In this article, we discuss 12 High Growth Low Dividend Stocks To Invest In.
Dividend stocks offer investors a reliable stream of income, no matter how the market is doing. Even if a stock’s price drops, companies that have been paying dividends for several years make for a steady investment. While total return, which equals dividends plus stock growth, is the most important, dividends can be useful for stability, since they hedge against inflation, offer tax advantages, and are generally less volatile than stocks without dividends. However, there is definitely a trade-off. When a company pays dividends, it has less money to reinvest in growth, which can slightly lower the stock price. Still, for long-term investors, dividend stocks are a great way to build wealth while getting paid passively.
As economic conditions change and interest rates fluctuate, fixed-income investments and high-growth sectors can also present valuable opportunities. Kathy Jones, chief fixed income strategist at Charles Schwab, told CNBC on January 23, 2025, that the economy has been growing faster than expected. With fiscal policies still fueling growth on top of an already strong economy, inflation may struggle to hit the Fed’s 2% target. Given this backdrop, Treasury Inflation-Protected Securities (TIPS) look particularly appealing right now, offering some of the highest real yields in the market. Jones also sees solid opportunities in investment-grade bonds, suggesting investors keep bond durations slightly below average to take advantage of potential yield improvements.
On the equities side, Jeremiah Buckley, portfolio manager at Janus Henderson, believes the same long-term growth trends that have driven the market over the past two years are still going strong. However, market sectors have reacted differently under the new government and its policies. He sees AI, software, capital markets, and travel as promising investment areas. Capital markets have a positive outlook, and travel demand is holding up well, backed by strong Q4 data from credit card companies and airlines. Buckley also expects people to keep spending big on cruises in 2025. These are some of the high growth industries that investors could explore for their stock portfolio.
A businessman checking a graph, indicating the steady growth of his specialty finance company.
Our Methodology
For this article, we used the Finviz stock screener to filter out stocks with dividend yields around 0.50% or lower as of February 24. We focused on selecting stocks that have a strong track record of profitability and financial stability. A few of these stocks have only recently begun paying dividends, but given their stability, they are most likely to maintain dividend payments moving forward. The list below is ranked in ascending order of the hedge fund sentiment as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here)
12. McKesson Corporation (NYSE:MCK)
Dividend Yield as of February 24: 0.48%
Number of Hedge Fund Holders: 78
McKesson Corporation (NYSE:MCK) is a global healthcare services company providing pharmaceuticals, business and clinical solutions, medication access and logistics, and medical equipment. On February 4, the company announced the acquisition of an 80% stake in PRISM Vision for $850 million, expanding its reach in ophthalmology, data analytics, and biopharma partnerships. PRISM will become part of McKesson’s US Pharmaceutical segment, and the deal is expected to strengthen MCK’s earnings per share by up to $0.75 within three years.
McKesson Corporation (NYSE:MCK) had a strong third quarter of fiscal 2025, with revenue up 18% to $95.3 billion and adjusted operating profit growing 16% to $1.5 billion. However, revenue fell a bit short of Wall Street expectations of $96.08 billion, impacted by lower-than-expected sales in its U.S. pharmaceutical segment. Driven by its solid performance, MCK raised its full-year adjusted EPS guidance to $32.55 – $32.95, representing a 19% to 20% year-over-year growth. Free cash flow was negative $2.6 billion due to timing shifts, but this will not impact full-year guidance. The company returned $919 million to shareholders during the quarter, including $827 million in share buybacks at an average of $537 per share and $92 million in dividends.
On January 30, 2025, McKesson Corporation (NYSE:MCK) declared a $0.71 per share quarterly dividend. The dividend is payable on April 1, to shareholders on record as of March 3. It is one of the best high-growth stocks to watch.
According to Insider Monkey’s fourth quarter database, 78 hedge funds were bullish on McKesson Corporation (NYSE:MCK), up from 57 funds in the preceding quarter. Arrowstreet Capital was the leading stakeholder of the company, with 928,462 shares worth $529 million.
11. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Dividend Yield as of February 24: 0.23%
Number of Hedge Fund Holders: 79
Hilton Worldwide Holdings Inc. (NYSE:HLT) ranks 11th on our list of the best high growth stocks to buy. It is an American hospitality company that franchises, owns, and leases luxury hotels and resorts globally. On February 5, Mizuho downgraded the stock from Outperform to Neutral on valuation concerns but raised its price target to $263 from $243. Hilton’s stock soared 37% in 2024 and 5% in early 2025, outperforming the broader market. Analysts see it as a top-tier business but believe the valuation leaves little room for further gains.
Hilton Worldwide Holdings Inc. (NYSE:HLT) had a record-breaking fourth quarter, with revenue growth and strong net unit expansion pushing adjusted EBITDA past $3.4 billion, up 11% from last year. The company’s fee-based model and growth strategy continue to pay off. Hilton generated $3 billion in shareholder returns during the quarter, including $150 million in dividends for the year.
On February 6, Hilton declared a $0.15 per share quarterly dividend, in line with previous. The dividend is payable on March 28, to shareholders on record as of February 21.
Among the hedge funds tracked by Insider Monkey, 79 funds were bullish on Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of Q4 2024, compared to 68 funds in the prior quarter. Bill Ackman’s Pershing Square was the biggest stakeholder of the company, with 5.4 million shares valued at $1.34 billion.
10. Constellation Energy Corporation (NASDAQ:CEG)
Dividend Yield as of February 24: 0.55%
Number of Hedge Fund Holders: 85
Constellation Energy Corporation (NASDAQ:CEG) is a Maryland-based electricity provider that generates power from nuclear, wind, solar, natural gas, and hydroelectric sources. It is one of the best high growth stocks for an income portfolio. On February 19, Citi analyst Ryan Levine raised the stock’s price target to $334 from $284, while maintaining a Neutral rating on the shares. The share price boost follows strong Q4 results, with EPS of $2.44 topping analyst estimates of $1.96 due to higher power prices, nuclear output, and lower taxes. However, Citi observed that wholesale sales dropped, and free cash flow fell short due to working capital changes.
Constellation Energy Corporation (NASDAQ:CEG) thrived in Q4, beating profit expectations due to lower expenses and surging power demand. In January, the company executed a bold move, acquiring Calpine Corp for $16.4 billion, one of the biggest power industry deals in the United States. Q4 adjusted earnings came in at $2.44 per share, beating the $2.15 estimate, while operating expenses dropped 23.6%. For 2025, Constellation expects earnings between $8.90 and $9.60 per share.
On February 18, Constellation Energy Corporation (NASDAQ:CEG) announced a $0.3878 per share quarterly dividend, a 10% increase from its prior dividend of $0.3525. The dividend is distributable on March 18, to shareholders on record as of March 7.
According to Insider Monkey’s fourth quarter database, 85 hedge funds were long Constellation Energy Corporation (NASDAQ:CEG), compared to 78 funds in the last quarter. Philippe Laffont’s Coatue Management was the largest stakeholder of the company, with 6.6 million shares worth nearly $1.5 billion.
9. Costco Wholesale Corporation (NASDAQ:COST)
Dividend Yield as of February 24: 0.45%
Number of Hedge Fund Holders: 95
Costco Wholesale Corporation (NASDAQ:COST), an American big-box warehouse retailer, ranks 9th on our list of the best high growth stocks to invest in. On February 6, Loop Capital just raised Costco’s price target from $1,095 to $1,150, keeping a Buy rating on the stock following the retailer’s January sales outperforming expectations. Loop Capital remains bullish on the company, forecasting 2025 EPS at $19.72, $1.59 higher than Wall Street consensus. The firm showed continued confidence in Costco’s momentum.
Costco Wholesale Corporation (NASDAQ:COST) reported $19.51 billion in sales for January 2025, up 9.2% from last year’s $17.87 billion. Over the first 22 weeks of this fiscal year, total sales amounted to $113.55 billion, an 8.2% increase compared to $104.94 billion the previous year. On January 23, the company declared a quarterly dividend of $1.16 per share. The dividend was distributed on February 21. It has raised its dividends consistently for 20 years.
Among the hedge funds tracked by Insider Monkey, 95 funds reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST), up from 75 funds in the last quarter. Ken Fisher’s Fisher Asset Management was the largest stakeholder of the company, with 3 million shares valued at $2.8 billion.
8. Thermo Fisher Scientific Inc. (NYSE:TMO)
Dividend Yield as of February 24: 0.32%
Number of Hedge Fund Holders: 100
Founded in 1956, Thermo Fisher Scientific Inc. (NYSE:TMO) is headquartered in Waltham, Massachusetts. The company offers a wide range of products, including lab equipment, diagnostic kits, biopharma services, and analytical instruments, catering to industries like pharmaceuticals, biotechnology, and academia.
Thermo Fisher beat Q4 Wall Street expectations, posting earnings of $6.10 per share and revenue of $11.40 billion, outperforming estimates of $5.94 and $11.28 billion, respectively. While biotech spending has been sluggish, potential interest rate cuts could increase funding for the sector. Looking ahead, Thermo Fisher Scientific Inc. (NYSE:TMO) expects 2025 adjusted profits between $23.10 and $23.50 per share, in line with analyst predictions.
On February 19, Thermo Fisher Scientific Inc. (NYSE:TMO) announced a quarterly dividend of $0.43 per share, a 10% increase from its earlier dividend of $0.39. The dividend is payable on April 15, to shareholders on record as of March 14. TMO is one of the best high growth stocks to watch out for.
According to Insider Monkey’s fourth quarter database, Thermo Fisher Scientific Inc. (NYSE:TMO) was part of 100 hedge fund portfolios, compared to 98 in the prior quarter. David Blood and Al Gore’s Generation Investment Management was a prominent stakeholder of the company, with over 1.5 million shares worth $817.6 million.
7. Danaher Corporation (NYSE:DHR)
Dividend Yield as of February 24: 0.51%
Number of Hedge Fund Holders: 101
Danaher Corporation (NYSE:DHR) ranks 7th on our list of the best high growth stocks. The company develops and distributes medical, industrial, and scientific products globally. Danaher’s biotechnology division supports therapeutic manufacturing with products like cell culture media, filtration tools, and single-use hardware, while its life sciences segment offers lab automation, genomic medicine, and industrial filtration.
On January 9, Danaher Diagnostics and Danaher Ventures announced a partnership with healthcare AI company Innovaccer to improve precision diagnostics. Innovaccer’s technology helps gather patient records, identify gaps in care, and recognize at-risk patients, making it easier for healthcare providers to deliver better care. Through this partnership, the companies aim to fasten the adoption of AI-driven diagnostics.
In Q4 2024, Danaher Corporation (NYSE:DHR) pulled in $1.1 billion in net earnings, translating to $1.49 per diluted common share. Revenue grew 2% from the previous year, reaching $6.5 billion, with core revenue up by 1%. Cash flow was also strong, with $2 billion in operating cash flow and $1.5 billion in free cash flow. Looking ahead to 2025, Danaher Corporation (NYSE:DHR) expects core revenue to dip slightly in the first quarter but aims for around 3% revenue growth for the full year.
On February 20, DHR declared a quarterly dividend of $0.32 per common share, set to be paid on April 25, to shareholders on record as of March 28, 2025. The company’s current dividend is an 18.5% increase from the prior dividend of $0.27.
According to Insider Monkey’s Q4 database, 101 hedge funds were bullish on Danaher Corporation (NYSE:DHR), compared to 98 funds in the preceding quarter.
6. Mastercard Incorporated (NYSE:MA)
Dividend Yield as of February 24: 0.55%
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE:MA), a multinational payment card corporation, is one of the best high growth stocks to monitor. In 2024, the company tokenized 30% of its transactions and acknowledged the impact of stablecoins and cryptocurrencies on traditional finance. In an SEC filing, the company outlined its progress in modernizing payments, from expanding blockchain-based solutions to improving access to digital assets. Mastercard also teamed up with crypto firms to allow consumers to purchase and use crypto with their cards.
In Q4 2024, the company raked in $3.5 billion in adjusted net income, with earnings per share at $3.82. Revenue for the quarter amounted to $7.5 billion, up 14% year-over-year. Mastercard Incorporated (NYSE:MA) also repurchased $3.4 billion worth of stock during the fourth quarter, plus another $644 million through January 27, 2025. Credit and debit growth benefited from the Wells Fargo Commercial Credit and Citizens debit migrations. Overall, growth was driven by robust consumer demand, the expansion of security and authentication solutions, and strategic pricing.
On February 10, Mastercard Incorporated (NYSE:MA) declared a $0.76 per share quarterly dividend, in line with previous. The dividend is payable on May 9, to shareholders on record as of April 9. The company has offered 13 years of consistent dividend growth to customers.
Hedge funds showed greater interest in MA during Q4. According to Insider Monkey’s fourth quarter database, 151 hedge funds reported owning stakes in Mastercard Incorporated (NYSE:MA), compared to 131 funds in the prior quarter.
5. Salesforce, Inc. (NYSE:CRM)
Dividend Yield as of February 24: 0.52%
Number of Hedge Fund Holders: 162
San Francisco-based cloud software company, Salesforce, Inc. (NYSE:CRM), specializes in CRM technology. On February 21, investment advisory Oppenheimer reiterated an Outperform rating on the stock and assigned a $415 price target to the shares. Oppenheimer expects CRM to report strong Q4 results with $10 billion in revenue and $2.60 EPS but warns that guidance may miss investor expectations. The firm has concerns about leadership changes and uncertainty around Agentforce revenue. To regain confidence, the firm suggests that Salesforce must top estimates, clarify growth plans, and capitalize on an IT spending rebound.
In the fourth quarter of 2024, Salesforce, Inc. (NYSE:CRM) made $9.29 billion in revenue, up 11% from last year. For the full year, revenue stood at $34.9 billion, also up 11%, while operating cash flow increased 44% to $10.2 billion. CRM introduced a $0.40 per share quarterly dividend and expanded its share buyback program by $10 billion, returning $1.7 billion to shareholders in Q4 and $11.7 billion since the program commenced. Looking ahead, Salesforce sees an 8-9% increase in FY25 revenue, expecting it to fall between $37.7 billion and $38 billion. It is one of the best high growth stocks to invest in.
Among the hedge funds tracked by Insider Monkey, Salesforce, Inc. (NYSE:CRM) was part of 162 portfolios in Q4 2024, up significantly from 116 in the last quarter. ValueAct Capital is a prominent stakeholder of the company, with 2.9 million shares worth $969 million.
4. Apple Inc. (NASDAQ:AAPL)
Dividend Yield as of February 24: 0.41%
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is ramping up its US presence with a $500 billion investment over the next four years, creating 20,000 new jobs and moving AI server production to Houston. This move is a bid by Apple to seek relief from Trump’s tariffs on Chinese imports. The investment will support a new server facility, a supplier academy in Michigan, and higher spending with American suppliers. In collaboration with Foxconn, Apple Inc. (NASDAQ:AAPL) will begin producing AI servers in Houston this year, with a larger facility set to launch in 2025. It is one of the best high growth stocks that should be on investors’ radar for a balanced income portfolio.
Apple kicked off fiscal 2025 with solid Q1 results, reporting $124.3 billion in revenue, a 4% increase from last year, and earnings per share of $2.40, up 10%. The company credited record revenue and strong margins for driving double-digit EPS growth, allowing Apple to return more than $30 billion to shareholders. Additionally, Apple Inc. (NASDAQ:AAPL)’s board approved a $0.25 per share cash dividend, which was distributed on February 13, to shareholders of the company as of February 10.
According to Insider Monkey’s fourth-quarter data, 166 hedge funds reported owning stakes in Apple Inc. (NASDAQ:AAPL), up from 158 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway was the biggest position holder in the company, with a stake worth over $75 billion.
3. Alphabet Inc. (NASDAQ:GOOG)
Dividend Yield as of February 24: 0.44%
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG) ranks 3rd on our list of the best high growth stocks to buy. Alphabet is betting big on AI, announcing a $75 billion investment in infrastructure, well above Wall Street’s $58.84 billion estimate. CFO Anat Ashkenazi commented that the spending will fuel growth across Google Services, Google Cloud, and DeepMind, with most of it going toward servers, data centers, and networking.
Alphabet Inc. (NASDAQ:GOOG)’s net income climbed 28% to $26.5 billion in Q4, with earnings per share rising 31% to $2.15. The company generated a strong free cash flow of $24.8 billion in Q4 and $72.8 billion for the full year 2024. In the fourth quarter, GOOG returned $15 billion to shareholders through share buybacks and distributed $2.4 billion in dividends, bringing total shareholder returns to nearly $70 billion for the year.
On February 7, Alphabet Inc. (NASDAQ:GOOG) declared a quarterly dividend of $0.20 per share. The dividend will be distributed to shareholders on March 17, and to shareholders on record as of March 10.
Among the hedge funds tracked by Insider Monkey, 174 funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG) at the end of the fourth quarter, compared to 160 funds in the prior quarter.
2. NVIDIA Corporation (NASDAQ:NVDA)
Dividend Yield as of February 24: 0.03%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), an American multinational semiconductor and graphics provider, has been the biggest winner in the AI boom. However, China’s DeepSeek offers cheaper AI models, which has led to questions about whether Nvidia’s advanced chips are even essential now. Due to DeepSeek’s surge in January, Nvidia ended up losing $593 billion in market value, which is the biggest loss for an American company in one day. Despite these concerns, the company is projected to announce a 72% revenue growth to $38.05 billion in Q4. However, this would be its slowest growth in seven quarters.
On February 24, Rosenblatt Securities reaffirmed a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $220 price target, expecting strong Q4 earnings. Analysts expect marginal outperformance for both the January and March quarters, with ongoing high demand for Nvidia’s latest Blackwell product line. Rosenblatt remains optimistic about Nvidia’s product roadmap. While the stock trades at a higher-than-average P/E ratio of 52.79, the investment advisory is positive about Nvidia’s long-term growth, citing its competitive positioning and the growing value of its AI offerings. It is one of the best high growth stocks to hold on to.
According to Insider Monkey’s Q4 data, 223 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), up from 193 funds in the prior quarter. Fisher Asset Management was one of the top shareholders of the company, with a position worth $13.2 billion.
1. Meta Platforms, Inc. (NASDAQ:META)
Dividend Yield as of February 24: 0.31%
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) ranks 1st on our list of the best high growth stocks. Meta is diving into AI-powered humanoid robots, betting big on the future of robotics. The company is setting up a dedicated team within its Reality Labs division to develop AI, sensors, and software that could power a new generation of robots designed to handle household tasks. While humanoid robots have made progress in hardware, Meta believes its expertise in AI and data from AR/VR can help push the field forward, making these futuristic machines more practical for day-to-day use.
Meta Platforms, Inc. (NASDAQ:META) finished 2024 on a high note, with daily active users across its apps hitting 3.35 billion in December, up 5% from the previous year. Ad impressions grew steadily, increasing 6% in Q4 and 11% for the full year. Revenue also saw a strong jump, reaching $48.39 billion for the quarter and $164.50 billion for the year, up 21% and 22% year-over-year. The company bought back stock worth $29.75 billion and shelled out $5.07 billion in dividends for the year.
On February 13, Meta Platforms, Inc. (NASDAQ:META) declared a $0.525 per share quarterly dividend, a 5% increase from its last dividend of $0.5. The dividend is payable on March 26, to shareholders on record as of March 14.
According to Insider Monkey’s Q4 data, 262 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 235 funds in the earlier quarter. Rajiv Jain’s GQG Partners is one of the top shareholders of the company, with a position worth $5.45 billion.
Overall, Meta Platforms, Inc. (NASDAQ:META) ranks first on our list of the high growth low dividend stocks to invest in. While we acknowledge the potential of META to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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