In this article, we discuss 5 high growth dividend paying stocks to buy. If you want to see more high growth dividend paying stocks to buy, the risk/reward, and methodology of this list, go directly to 10 High Growth Dividend Paying Stocks to Buy.
5. SAP SE (NYSE:SAP)
EPS Next 5 Year Ratio: 15.41%
Dividend Yield as of 2/19: 1.77%
SAP SE (NYSE:SAP) is a leading software enterprise company with an annual dividend per share of $2.08 per share and dividend yield of 1.77% as of 2/19.
For 2022, SAP SE (NYSE:SAP) CEO Christian Klein said, “SAP is more resilient than ever. We end 2022 with continued strong cloud momentum and a return to operating profit growth in the fourth quarter, marking an important inflection point. Heading into 2023, this gives us great confidence in delivering on our promise of accelerating topline and double-digit non-IFRS operating profit growth.”
In terms of future earnings, analysts expect SAP SE (NYSE:SAP) to increase its EPS by an average of 15.41% a year for the next 5 years, ranking the stock #5 on our list of 10 High Growth Dividend Paying Stocks to Buy.
4. Visa Inc. (NYSE:V)
EPS Next 5 Year Ratio: 15.48%
Dividend Yield as of 2/19: 0.81%
Visa Inc. (NYSE:V) is a payments network giant that analysts expect to continue to increase its EPS by an average of 15.48% a year over the next 5 years given the expected continued growth in commerce and e-commerce. Specifically, analysts see Visa Inc. (NYSE:V) earning $7.42 per share in FY2022, $8.46 per share in FY2023, $9.69 per share in FY2024, and $11.21 per share in FY2025. Visa Inc. (NYSE:V) has increased its annual dividend for 14 consecutive years and has a dividend yield of 0.81% as of 2/19.
In February 2023, the CFPB proposed a rule to curb excessive credit card late fees to $8 as opposed to the existing late fee of up to $41. In terms of the stock reaction, Visa Inc. (NYSE:V) shares didn’t decline all that much in the days after the news and it is not clear just how much the company’s growth will be affected by the rule proposal.
3. The Charles Schwab Corporation (NYSE:SCHW)
EPS Next 5 Year Ratio: 18.46%
Dividend Yield as of 2/19: 1.25%
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with 33.8 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.7 million banking accounts, and $7.05 trillion in client assets. In January, the company’s board of directors approved a 14% increase to the quarterly cash dividend to $0.25 per common share, giving the stock a dividend yield of 1.25% as of 2/19. In terms of earnings growth, The Charles Schwab Corporation (NYSE:SCHW) ranks #3 on our list of 10 High Growth Dividend Paying Stocks to Buy given its EPS next 5 year ratio of 18.46%.
2. Mastercard Incorporated (NYSE:MA)
EPS Next 5 Year Ratio: 20.34%
Dividend Yield as of 2/19: 0.63%
Mastercard Incorporated (NYSE:MA) is a leading payments operator with a dividend yield of 0.63% as of 2/19. Despite higher inflation, the company has done relatively well in terms of its financial results.
For the fourth quarter, Mastercard Incorporated (NYSE:MA)’s net sales rose 12% year over year to $5.8 billion and its fourth quarter gross dollar volume rose 8% year over year. Four quarter adjusted net income was $2.5 billion and adjusted diluted EPS was $2.65.
For full year 2022, the company’s gross dollar volume rose 12% year over year, adjusted net revenue rose 18% year over year to $22.2 billion and adjusted diluted EPS rose 27% year over year to $10.65. For full year 2022, Mastercard Incorporated (NYSE:MA) also repurchased 25.7 million shares at a cost of $8.8 billion and the company also paid $1.9 billion in dividends. Mastercard Incorporated (NYSE:MA) has a EPS next 5 year ratio of 20.34%.
Like Visa Inc. (NYSE:V), Mastercard Incorporated (NYSE:MA) could be affected by the CFPB proposal to curb excessive credit card late fees to $8 if passed although the exact effect on the company’s growth is uncertain.
1. ASML Holding N.V. (NASDAQ:ASML)
EPS Next 5 Year Ratio: 29.80%
Dividend Yield as of 2/19: 1.53%
ASML Holding N.V. (NASDAQ:ASML) is a leading semiconductor equipment producer that ranks #1 on our list of 10 High Growth Dividend Paying Stocks to Buy given analysts expect the company to grow its EPS on average by 29.8% a year for the next 5 years.
As it stands, the company is pretty profitable given it has considerable scale and is on the cutting edge of a very important industry.
In Q4 2022, ASML Holding N.V. (NASDAQ:ASML) had net sales of €6.4 billion, gross margin of 51.5%, and net income of €1.8 billion, and for 2022, the company had net sales of €21.2 billion, gross margin of 50.5%, and net income of €5.6 billion.
The company is expected to grow fairly rapidly in 2023 with ASML Holding N.V. (NASDAQ:ASML) stating in January 2023 that it expects 2023 net revenue to grow over 25% compared to 2022.
As of 2/19, ASML Holding N.V. (NASDAQ:ASML) has a dividend yield of 1.53%.
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