In this article, we will take a look at some of the best high growth stocks that pay dividends.
Amid growing concerns about economic growth and President Trump’s tariffs, investors have been seeking safer investment options. In this environment, dividend stocks have gained significant traction, offering a defensive strategy while also providing steady passive income. Research from Ned Davis suggested that the tougher conditions facing the broader market this year could set the stage for dividend-paying stocks to perform well. The S&P Dividend Aristocrats Index, though it declined by over 8% in 2025 so far, is outperforming the wider market, which has fallen by more than 15% since the start of the year. Ned Davis’s Clissold and his team made the following comment about dividend investing in this environment:
“One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.”
Over the years, dividend stocks have proved their mettle because of strong balance sheets, stable businesses, and sound financials. These traits become even when important when the market is going through a rough stretch. Franklin Templeton noted that dividend-paying stocks are attractive because they help cushion market downturns while still offering strong growth potential. Over time and across different regions, dividend strategies have shown defensive characteristics. The report highlighted that from January 2022 through December 2024, these stocks experienced lower volatility and smaller declines than the broader market, whether looking globally, in the US, or across Europe. Notably, when concerns over inflation and rising interest rates flared up again in August, dividend stocks remained relatively resilient.
Considering the growing investor appetite for dividend stocks, more and more companies have initiated their dividend policy in recent times. Tech companies, which are usually associated with growth-oriented strategies, have also broached this territory and launched their dividends last year. They see dividends as a useful addition to share repurchase programs. While tech stocks currently offer relatively low dividend yields, the overall payouts are quite large—with J.P. Morgan projecting that just three major companies alone could return around $17 billion to shareholders over the coming year.
This trend marks an important development in the market. According to the report, the most promising dividend investments lie in “Compounders”—companies known for steadily raising their dividends over time. These firms, which make up nearly half of the strategy, are backed by consistent earnings growth. They not only offer dependable income but also form a strong base for achieving long-term outperformance in investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends.
Our Methodology
For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years. The final 10 picks are those with a five-year revenue growth rate exceeding 10%. The stocks are ranked in ascending order of their revenue growth rates.
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10. First Horizon Corporation (NYSE:FHN)
5-Year Revenue Growth: 10.82%
First Horizon Corporation (NYSE:FHN) is a Tennessee-based financial holding company that operates through three key divisions: Regional Banking, Specialty Banking, and Corporate. Recently, Baird upgraded the stock to Outperform from Neutral and maintained a $22 price target. The upgrade signals growing optimism about the company’s financial trajectory and the possibility of private market activity. Analysts noted that First Horizon’s solid market standing and overall financial strength present an attractive balance of risk and reward for investors, particularly if a private market deal materializes. Baird’s improved outlook is largely supported by the bank’s strong capital position and appealing valuation in the current market.
First Horizon Corporation (NYSE:FHN) delivered solid fourth-quarter results for 2024, posting $824 million in revenue—up 3% from the same period the year before. Despite facing a tough interest rate backdrop, the bank’s strong client relationships and balanced business model helped sustain earnings. Throughout the year, steady business growth was driven by a healthy net interest margin, an increase in counter-cyclical income, and lower net charge-offs. In the final quarter, the company saw a two-basis-point improvement in its net interest margin, a 6% boost in fixed income revenue, and net charge-offs held to just 8 basis points—setting the stage for a promising start to 2025.
First Horizon Corporation (NYSE:FHN) also remained committed to its shareholder obligation, returning $930 million to investors through dividends and share repurchases in the most recent quarter. The company pays a quarterly dividend of $0.15 per share and has a dividend yield of 3.56%, as of April 8. It is among the best growth stocks that pay dividends.
9. Thermo Fisher Scientific Inc. (NYSE:TMO)
5-Year Revenue Growth: 10.92%
Thermo Fisher Scientific Inc. (NYSE:TMO) is an American multinational biotech and life sciences company. It delivered better-than-expected results in the fourth quarter, reporting earnings of $6.10 per share on revenue of $11.40 billion—both figures surpassing Wall Street forecasts of $5.94 per share and $11.28 billion. Despite continued sluggishness in the biotech sector spending, the possibility of interest rate cuts could act as a catalyst by making funding more accessible.
For 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) projects adjusted earnings between $23.10 and $23.50 per share, aligning with current market forecasts. As a well-established player in the healthcare and pharmaceutical space, Thermo Fisher offers investors a way to tap into sector growth without the added risk of patent cliffs or the pressure to deliver blockbuster drugs. Its earnings base is highly stable, with over 80% of revenue coming from recurring sources. In the past five years, it has raised its revenue by nearly 11%, which makes it one of the best high growth stocks that pay dividends.
In the latest quarter, Thermo Fisher Scientific Inc. (NYSE:TMO) maintained strong cash generation, with $3.3 billion in operating cash flow and $2.8 billion in free cash flow. Over the full year of 2024, the company returned $4.6 billion to shareholders through dividends and share repurchases. Currently, it offers a quarterly dividend of $0.43 per share, having raised it by 10% in February. This was the company’s eighth consecutive year of dividend growth. The stock supports a dividend yield of 0.40%, as of April 8.
