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Introduction

Investing is like baking a cake: you want the right blend of ingredients to create something delicious. In the financial world, that blend often involves combining growth potential with a steady income. Enter the world of dividend growth stocks— companies that expand their profits and share the sweetness with investors through dividends.

Here are 3 attractive US growth stocks that not only enjoyed increased profits but also upped their dividends.

1. Costco: A Retail Powerhouse with Global Reach

Costco, the retail giant known for its membership warehouse clubs, has a global footprint that spans eight countries. From the bustling aisles of its physical stores to its robust e-commerce platform, Costco caters to a diverse and savvy customer base. Let's dive into the numbers and explore why this company is a compelling investment opportunity.

The Numbers Speak Volumes

• Revenue Growth 🚀

  In the first nine months of fiscal year 2024 (ending May 12, 2024), Costco's total revenue surged by an impressive 7% year-on-year, reaching a staggering US$174.5 billion. This growth reflects the company's ability to attract and retain loyal members across the globe.

• Profitability Surge 💰

  Costco's operating profit soared by 17.1% year-on-year, hitting US$6.2 billion. Net profit followed suit, growing by an impressive 21.3% to US$5 billion during the same period. These robust financials underscore the company's efficient operations and strong market position.

• Cash Flow Strength 🌟

  Cash flow matters and Costco knows it. The retailer generated a positive free cash flow of US$5.2 billion in the first three quarters of FY2024, a remarkable 14.7% increase compared to the previous year. This healthy cash flow provides flexibility for expansion and shareholder returns.

• Sales Performance 📈

  Comparable store sales—a key metric—improved by 5.3% for the first nine months of FY2024. But that's not all. Costco's e-commerce division witnessed a nearly 15% year-on-year increase in comparable store sales during the same period. This dual-channel success demonstrates the company's adaptability in the digital age.

• Dividend Boost 💰

  Investors take note: Costco raised its quarterly dividend by 13.7% year-on-year, now standing at US$1.16 per share. This commitment to rewarding shareholders underscores the company's long-term vision and financial stability.

•  Membership Magic 🎉

  As of May 12, 2024, Costco boasts a whopping 74.5 million paid memberships worldwide—a 7.8% year-on-year increase. What's even more impressive? The membership renewal rate stands at a remarkable 90.5%. Costco's value proposition resonates with its loyal base.

Conclusion

Costco's global presence, robust financials, and unwavering commitment to its members make it an enticing choice for investors. Whether you're browsing the aisles or clicking through their online offerings, keep an eye on this retail powerhouse—it's more than just a warehouse club; it's an investment opportunity with staying power.

2.  Yum! Brands: A Global Food Empire

Unleashing Flavor Across 155 Countries

 Yum! Brands, the culinary powerhouse behind KFC, Taco Bell, Pizza Hut, and Habit Burger Grill, operates a staggering network of over 59,000 restaurants worldwide. From crispy fried chicken to cheesy pizzas, their diverse menu caters to taste buds across 155 countries. But what's cooking in their financial kitchen? Let's dive into the numbers.

A Mixed Platter: 1Q 2024 Results

• Revenue Dip, Yet Still Sizzling 💰

  In the first quarter of 2024, Yum! Brands served up a mixed set of results. Despite a 3% year-on-year revenue decline (landing at US$1.6 billion), the company remains a force in the global food scene.

• Profit Plunge and Net Profit Nudge 💰

  While the operating profit slid 1% to US$520 million, there's a silver lining: net profit eked out a 5% year-on-year increase, reaching US$314 million. Investors take note!

• Cash Flow: A Flavorful Surprise 🌟

  Yum! Brands whipped up a positive free cash flow of US$314 million during the quarter. That's like finding an extra chicken nugget in your combo meal—unexpectedly delightful!

   

• Expanding the Menu: 800 New Restaurants  🎉

  In 1Q 2024, Yum! Brands opened over 800 new restaurants globally. With a 6% year-on-year store growth, they're on track to surpass 60,000 restaurants by the end of 2024. That's a feast for investors eyeing growth potential.

• Dividends on the Rise 📈

  For shareholders, the cherry on top is the quarterly dividend increase: a hearty 10.7% year-on-year boost, now standing at US$0.67. It's like getting extra cheese on your pizza—more flavour, more value.

Conclusion

Yum! Brands isn't just about meals; it's a recipe for investment success. So, young investors, pull up a chair and savour the numbers—they're spicier than a jalapeño taco! 🌮💰

3.  ResMed: Revolutionizing Sleep Health and Chronic Disease Management

ResMed, a global leader in medical devices and digital health technology, is on a mission to transform the lives of millions suffering from sleep apnea, COPD, and other chronic diseases. With a presence in over 140 countries, ResMed's innovative solutions are making a significant impact on patients and healthcare systems worldwide.

Key Statistics

• Revenue Surge 📈

  In the first nine months of fiscal 2024 (9M FY2024), ResMed's revenue soared by an impressive 12%, reaching a staggering US$3.5 billion. This growth was fueled by robust demand for ResMed's cutting-edge sleep devices and a thriving mask product portfolio.

• Profitability Boost 📈

  Operating profit climbed by 10% year on year, hitting US$938.7 million. Net profit also saw a healthy improvement, rising by 9% to US$728.7 million. ResMed's commitment to innovation and efficiency is paying off.

• Cash Flow Triumph 💰

  ResMed generated a remarkable positive free cash flow of US$886.6 million during 9M FY2024—more than doubling the previous year's figure of US$370.6 million. This financial strength positions the company for sustained growth and strategic investments. 

• Dividend Growth 💰

  Shareholders rejoiced as ResMed paid out a quarterly dividend of US$0.48 in June, marking a 9.1% increase compared to the previous year's dividend of US$0.44. Consistent dividends reflect ResMed's commitment to rewarding its investors.

Addressable Market 🌟

 ResMed's impact extends far beyond financials. With approximately one billion people suffering from sleep apnea globally, the company's solutions address a massive unmet need. Moreover, a staggering 2.5 billion individuals live with sleep apnea, COPD, asthma, or insomnia—a vast market waiting to benefit from ResMed's innovations.

 Conclusion

As ResMed continues to lead the charge in sleep health and breathing health, investors can rest assured that their stake in this transformative company aligns with a noble purpose: improving 250 million lives by 2025. Whether you're a seasoned investor or just starting, keep an eye on ResMed—it's a beacon of hope for patients and a promising opportunity for growth. 💡

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