3 Top Us Stocks For Growth & Dividends

In partnership with

Introduction

Picture this: You're not just watching stock prices dance on a screen; you're receiving a steady stream of passive income. Dividends—the golden nuggets of the investment world—make it all possible.

The US market offers an abundance of growth stocks, each vying for attention with their potential for capital appreciation. But why settle for just growth when you can have the best of both worlds—growth and income?

Enter the elite class of dividend-paying growth stocks. These unique opportunities allow investors to enjoy the long-term appreciation of a thriving business while receiving consistent dividends along the way. It's a winning combination that blends the excitement of growth with the reliability of passive income.

These stocks offer a compelling proposition for investors seeking the perfect balance of capital appreciation and income generation. Here are well-established US companies that stand out for delivering this attractive mix, making them a must-consider for any diversified portfolio 📈 📊 

_{FinanceBuzz's credit card experts reviewed dozens of cards with low introductory APRs, and the Discover it® Cash Back is one of our favourites for its long no-interest period on both purchases and balance transfers, incredible cash back rewards, no annual fee, and welcome offer that doubles your cash back in the first year.}

1. Mondelez International

Mondelez International (NASDAQ: MDLZ), a global leader in the food and beverage sector, has solidified its presence in over 150 countries with beloved brands like Oreo, Ritz, Cadbury, Milka, and Toblerone. The company continues to showcase robust growth and financial discipline, making it an appealing option for investors seeking stability and consistent returns in a competitive market.

For the first nine months of 2024, Mondelez reported impressive financial results:

• Revenue: Increased marginally by 0.5% year-on-year, reaching US$26.8 billion, despite global headwinds.

• Operating Profit: Jumped nearly 10% year-on-year to US$4.7 billion, demonstrating strong operational efficiency.

• Adjusted Net Profit: Surged 20.3% year-on-year to US$3.5 billion, excluding one-off items.

• Free Cash Flow: Remained a hallmark of financial stability, climbing 4% year-on-year to US$2.5 billion for 9M 2024.

Mondelez’s shareholder returns are equally compelling. Its latest quarterly dividend of US$0.47 per share brought the annualized dividend to US$1.88, reflecting a 10% increase from the prior year.

The company’s strategic resilience is evident through its hedging against rising cocoa prices and commitment to maintaining its chocolate products' integrity. Additionally, Mondelez has embraced innovation by partnering with Amazon Web Services (AWS) to accelerate digital transformation and enhance operational efficiencies.

With its robust financial performance, global brand strength, and forward-looking strategies, Mondelez International offers a compelling opportunity for investors seeking growth, consistency, and a reliable source of income.

2. Mastercard

Mastercard (NYSE: MA) continues to solidify its position as a global leader in payment processing, facilitating secure and efficient transactions between customers and vendors. With 3.4 billion cards in circulation as of 30 September 2024, the company’s expansive reach underscores its importance in the global financial ecosystem.

Mastercard’s financial performance for the first nine months of 2024 (9M 2024) reflects its consistent growth and operational efficiency:

• Revenue: Grew 11.5% year-on-year to US$20.7 billion, driven by increasing payment volumes and transaction activity.

• Operating Profit: Rose 9.5% year-on-year to US$11.6 billion, showcasing strong profitability.

• Net Profit: Climbed 13.4% year-on-year to US$9.5 billion, reinforcing its position as a reliable income generator.

• Free Cash Flow: Surged 28% year-on-year to US$9 billion, highlighting robust cash generation capabilities.

Shareholders have benefited from Mastercard’s impressive performance, with the company declaring a quarterly dividend of US$0.76—a 15.2% increase from the prior year—bringing its annualized dividend to US$3.04 per share.

Mastercard is also making strategic moves to enhance its offerings and maintain a competitive edge. The US$2.65 billion acquisition of Recorded Future, the world’s largest threat intelligence company, will bolster its cybersecurity services. Additionally, the launch of Biz360, a comprehensive digital solution for small businesses, demonstrates Mastercard’s commitment to innovation and empowering its customers.

With its strong financials, shareholder-friendly policies, and forward-thinking strategies, Mastercard presents an attractive opportunity for investors seeking growth, profitability, and innovation in the ever-evolving payments landscape.

3. Medtronic

Medtronic (NYSE: MDT) stands as a global leader in medical technology, delivering innovative solutions for over 70 health conditions, including Parkinson’s disease and diabetes. With operations spanning 150 countries and a workforce of more than 95,000 employees, Medtronic continues to make a profound impact on healthcare worldwide.

The company’s financial performance for the first half of fiscal 2025 (1H FY2025) ending 25 October 2024 highlights its steady growth and operational strength:

• Revenue: Increased 4% year-on-year to US$16.3 billion, driven by strong demand across its diverse product portfolio.

• Operating Profit: Jumped 14.5% year-on-year to US$2.9 billion, reflecting improved cost efficiency and scalability.

• Net Profit: Surged 36% year-on-year to US$2.3 billion, showcasing robust profitability.

• Free Cash Flow: Soared 41.5% year-on-year to US$1 billion, underscoring Medtronic’s financial discipline and consistent cash generation.

This strong cash flow has allowed Medtronic to maintain and grow its dividend. The latest quarterly dividend of US$0.70per share brings the annualized dividend to US$2.80, a modest increase from US$2.76 the prior year, demonstrating the company’s commitment to rewarding shareholders.

Medtronic’s commitment to innovation is equally impressive. Earlier this month, it received CE Mark approval from the European Union for its cutting-edge deep brain stimulation (DBS) technology. This groundbreaking device transmits electric signals to the brain, offering hope and improved quality of life for patients with Parkinson’s disease.

With its consistent financial performance, robust dividend payouts, and relentless pursuit of innovation, Medtronic presents an attractive investment opportunity for those looking to capitalize on the growing demand for advanced medical solutions.

The Bottom Line

Across industries and sectors, Mondelez International, Mastercard, and Medtronic stand out as compelling investment opportunities, each offering a unique blend of growth, innovation, and shareholder value.

• Mondelez International, with its iconic global brands like Oreo and Cadbury, continues to deliver solid financial performance and consistent free cash flow. Its hedging strategies, dividend growth, and commitment to digital transformation through its partnership with Amazon Web Services highlight its ability to adapt and thrive in a competitive market.

• Mastercard, as a global payments leader, benefits from an expanding card base and growing transaction volumes, reflected in its robust revenue and profit growth. The company’s strategic acquisitions, such as Recorded Future, and innovative solutions like Biz360 demonstrate its focus on enhancing its cybersecurity capabilities and supporting small businesses while consistently rewarding shareholders through rising dividends.

• Medtronic, a medical technology pioneer, excels in developing solutions for over 70 health conditions, including Parkinson’s disease. Its strong revenue growth, significant profit increases, and cutting-edge innovations, such as its CE Mark-approved deep brain stimulation (DBS) technology, position it as a leader in the healthcare sector. Its financial discipline and commitment to dividend growth further underscore its attractiveness as an investment.

These 3 companies not only exemplify financial strength and operational excellence but also demonstrate forward-thinking strategies to address emerging trends and market needs. Whether in food and beverage, payment processing, or medical technology, each offers investors a unique combination of innovation, growth, and reliable returns, making them standout options for a diversified portfolio.

Happy Investing!!