5 High-Growth Forever Dividend Stocks to Buy

In this article, we discuss 5 high-growth forever dividend stocks to buy. If you want to read our analysis of dividend stocks and their performance over the years, go directly to read 12 High-Growth Forever Dividend Stocks to Buy. 

5. Nordson Corporation (NASDAQ:NDSN)

5-Year Average Annual Dividend Growth Rate: 16.02%
Dividend Yield as of March 4: 1.17%

Nordson Corporation (NASDAQ:NDSN) is an Ohio-based company that designs equipment for consumer and industrial adhesives, coatings, and sealants. In February, KeyBanc upgraded the stock to Overweight with a $255 price target, highlighting the company’s ‘best-in-class’ returns and constructive capital allocation.

Nordson Corporation (NASDAQ:NDSN) is one of the high-growth dividend stocks on our list as the company has been raising its payouts consistently for the past 59 years. The company’s five-year annual average dividend growth rate stands at 16.02%. It currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 1.17%, as of March 4.

In fiscal Q1 2023, Nordson Corporation (NASDAQ:NDSN) reported revenue of $610.4 million, which showed a 0.2% growth from the same period last year. The company’s operating cash flow for the quarter came in at $123.3 million, up from $118 million in the prior-year period.

As of the close of Q4 2022, 25 hedge funds in Insider Monkey’s database owned stakes in Nordson Corporation (NASDAQ:NDSN), compared with 26 in the previous quarter. The collective value of these stakes is over $284.3 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q4.

4. S&P Global Inc. (NYSE:SPGI)

5-Year Average Annual Dividend Growth Rate: 16.04%
Dividend Yield as of March 4: 1.04%

S&P Global Inc. (NYSE:SPGI) is a New York-based private banking company that specializes in financial information and analytics. In the fourth quarter of 2022, the company reported revenue of nearly $3 billion, up 40.7% from the same period last year. Its free cash flow for FY22 came in at $2.2 billion, which was sufficient for paying $1 billion worth of dividends to shareholders.

S&P Global Inc. (NYSE:SPGI) currently offers a quarterly dividend of $0.90 per share and has a dividend yield of 1.04%, as of March 4. The company has been raising its dividends consistently for the past 50 years, which makes it one of the high-growth dividend stocks on our list. Moreover, the company has raised its payouts at an annual average rate of 16.04% in the past five years.

As of the close of Q4 2022, 97 hedge funds in Insider Monkey’s database reported having stakes in S&P Global Inc. (NYSE:SPGI), up from 90 in the previous quarter.

Andvari Associated mentioned S&P Global Inc. (NYSE:SPGI) in its Q4 2022 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) is another company we own that is part of a duopoly in the business of credit rating. S&P and Moody’s have roughly equal market shares and rate more than 90% of all bonds worldwide. The service provides high value for the cost. A company that chooses to issue debt without a rating will pay an interest rate that could be higher by half of a percent. The cost of a higher interest rate far exceeds any savings gained by not using the services of S&P.

We think of S&P as a toll road that earns fees from its customers in exchange for cost-effective access to capital. As such, the company has extraordinary margins and pricing power and requires little of its own capital to grow. Even after fully reinvesting in its business, S&P still has an excess of cash. In 2021, S&P produced $3.5 billion of free cash from $8.3 billion of revenues. The company returns the majority of its free cash to investors in the form of dividends and share repurchases.”

3. T. Rowe Price Group, Inc. (NASDAQ:TROW)

5-Year Average Annual Dividend Growth Rate: 16.05%
Dividend Yield as of March 4: 4.3%

An American multinational investment management company, T. Rowe Price Group, Inc. (NASDAQ:TROW) is another high-growth dividend stock on our list. The company has raised its payouts at an annual average rate of 16.05% in the last five years. Moreover, it also maintains a 37-year streak of consistent dividend growth. The company offers a quarterly dividend of $1.22 per share and has a dividend yield of 4.3%, as of March 4.

In January, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported month-end assets under management of $1.35 trillion, up 5.8% from the same period last year.

In January, Deutsche Bank maintained a Hold rating on T. Rowe Price Group, Inc. (NASDAQ:TROW) with a $121 price target, appreciating the company’s recent quarterly earnings.

At the end of Q4 2022, 29 hedge funds tracked by Insider Monkey reported owning stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), compared with 30 in the previous quarter. The collective value of these stakes is over $422.3 million.

2. AbbVie Inc. (NYSE:ABBV)

5-Year Average Annual Dividend Growth Rate: 16.9%
Dividend Yield as of March 4: 3.79%

AbbVie Inc. (NYSE:ABBV) is an American biotech company, based in Illinois. In March, Guggenheim initiated its coverage on the stock with a Buy rating and a $172 price target, appreciating the company’s overall performance.

AbbVie Inc. (NYSE:ABBV) is one of the high-growth dividend stocks on our list as the company maintains a 50-year streak of dividend growth. In the past five years, it has raised its payouts at an annual average rate of 16.9%. The company offers a per-share dividend of $1.48 every quarter and has a dividend yield of 3.79%, as recorded on March 4.

At the end of Q4 2022, 73 hedge funds in Insider Monkey’s database reported owning stakes in AbbVie Inc. (NYSE:ABBV), compared with 80 in the previous quarter. The collective value of these stakes is over $1.5 billion.

Baron Funds mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter. Here is what the firm has to say:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

1. Lowe’s Companies, Inc. (NYSE:LOW)

5-Year Average Annual Dividend Growth Rate: 20.1%
Dividend Yield as of March 4: 2.10%

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement company. In March, Truist maintained a Buy rating on the stock with a $235 price target. The firm mentioned that the company’s sales trends remained stable in the fourth quarter.

Lowe’s Companies, Inc. (NYSE:LOW) currently offers a quarterly dividend of $1.05 per share for a dividend yield of 2.10%, as of March 4. The company has been rewarding shareholders with growing dividends for the past 59 years, which places it as one of the high-growth dividend stocks on our list. Its five-year annual average dividend growth rate stands at 20.1%.

Lowe’s Companies, Inc. (NYSE:LOW) was a popular stock among hedge funds in Q4 2022, as 68 funds tracked by Insider Monkey owned stakes in the company, up from 61 in the previous quarter. These stakes are valued at roughly $5.7 billion.

Pershing Square Holdings mentioned Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2022 investor letter. Here is what the firm has to say:

“Lowe’s Companies, Inc. (NYSE:LOW)’s is a high-quality business with significant long-term earnings growth potential underpinned by a superb management team that is successfully executing a multi-faceted business transformation. (Click here to read the full text)

You can also take a look at 12 Most Profitable Mid-Cap Stocks Now and 16 High Growth Non-Tech Stocks That Are Profitable

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