44 Dividend Growth Stocks For 2021 [Updated Daily]

High Growth Dividend Stocks

Dividend paying stocks are often known for being stable, low growth, cash flow machines that provide steady income for investors.

But what if you want to invest in stocks that pay a dividend, and provide an opportunity for future growth?

Finding these companies can be difficult.

Why?

Because generally, high growth companies are reinvesting their free cash flow to sustain future growth, rather than paying a dividend to investors. Companies have a choice over how they allocate their free cash flow, either reinvest, or distribute to shareholders.

There are a few rare companies that produce enough free cash flow to accomplish both. The definition of a growth stage company can vary, depending on who you ask. For us, growth stage companies share a few key characteristics:

• Double digit top line revenue growth,
• Free cash flow growth,
• A high return on equity, and
• A strong competitive advantage over its peers.

Some investors view growth stocks as only early stage companies with a lot of potential, but unproven results. While you can certainly profit on investing in a company early, we don’t view this to be a requirement of a growth stage company. In our view, a company can have both a long, established history of operations, and the potential for rapid future growth.

As we mentioned, finding dividend growth stocks can be a difficult task.

We’ve developed this stock market scanner to help you identify companies with high growth metrics, who are also paying dividends.These stocks all have high growth ratios, return on equity, dividend yields, and are positioned for long-term growth. The criteria used in our scan is:

• Currently paying a dividend,
• Top line revenue growth over 10%,
• Year over year free cash flow growth above 10%,
• Quarter over quarter free cash flow growth above 5%, and
• Return on Equity greater than 15%.

You can use our Stock Screener to change or update any of the metrics in our scan. The list is sorted by revenue growth from high to low.