In this article, we discuss 5 high growth low dividend stocks to buy. If you want to see more high growth low dividend stocks to buy, the risk/reward, and methodology of this list, go directly to 10 High Growth Low Dividend Stocks to Buy.
5. S&P Global Inc. (NYSE:SPGI)
EPS Next 5 Year Ratio: 13.10%
Dividend Yield as of 2/20: 1%
S&P Global Inc. (NYSE:SPGI) is a leading financial data firm with a dividend yield of 1% and a forward P/E ratio of 25.09 as of 2/20. One reason for the fairly premium forward P/E ratio is that analysts expect S&P Global Inc. (NYSE:SPGI) to grow its EPS by an average of 13.1% a year over the next 5 years. For the fourth quarter, S&P Global Inc. (NYSE:SPGI) exceeded analyst estimates for adjusted EPS and sales as the company reported adjusted EPS of $2.54 on sales of $2.94 billion versus the consensus of $2.48 on revenue of $2.88 billion. For FY23, S&P Global Inc. (NYSE:SPGI) sees adjusted EPS of $12.35-$12.55 versus the consensus of $12.44.
4. Visa Inc. (NYSE:V)
EPS Next 5 Year Ratio: 15.48%
Dividend Yield as of 2/20: 0.81%
Visa Inc. (NYSE:V) is a payments leader that is very profitable. For its fiscal full year 2022, Visa Inc. (NYSE:V) had adjusted net income of $16 billion or $7.50 per share and the company’s net sales rose 22% year over year to $29.3 billion. In the fourth quarter, the company’s board of directors increased the quarterly cash dividend by 20% to $0.45 per share and authorized a new $12 billion share repurchase program. As a result, Visa Inc. (NYSE:V) has a dividend yield of 0.81% as of 2/20.
In terms of the future, analysts see Visa Inc. (NYSE:V) growing its EPS by an average rate of 15.48% a year for the next 5 years. While the CFPB proposed a rule to curb excessive credit card late fees in February 1, the stock didn’t decline very much and it is uncertain to what extent it will affect Visa Inc. (NYSE:V).
3. The Charles Schwab Corporation (NYSE:SCHW)
EPS Next 5 Year Ratio: 18.46%
Dividend Yield as of 2/20: 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.
For the fourth quarter, the company reported adjusted EPS of $1.07 on net sales of $5.497 billion versus the consensus of $1.09 on revenue of $5.56 billion. For the full year, The Charles Schwab Corporation (NYSE:SCHW) 2022 revenues rose 12% year over year to $20.8 billion and the company’s adjusted EPS was $3.90.
The Charles Schwab Corporation (NYSE:SCHW) has an EPS next 5 year ratio of 18.46% and a dividend yield of 1.25% as of 2/20.
2. Mastercard Incorporated (NYSE:MA)
EPS Next 5 Year Ratio: 20.34%
Dividend Yield as of 2/20: 0.63%
Mastercard Incorporated (NYSE:MA) is a payments network that analysts expect will increase its EPS on average by 20.34% a year for the next 5 years. For Q4, the company reported adjusted EPS of $2.65 on sales of $5.82 billion versus the consensus of $2.58 on revenue of $5.79 billion.
Mastercard Incorporated (NYSE:MA) CEO Michael Miebach said in January, “We closed out the year with strong financial results and notable wins which will help us capitalize on the tremendous secular shift to digital payments. As we look at the broader economy, we see the continued recovery of cross-border travel, with volumes up 59% versus a year ago and we’re encouraged by Asia opening up further. While macroeconomic and geopolitical uncertainty persists, consumer spending has been remarkably resilient. We are well prepared to adjust our investment profile quickly if needed.”
Like Visa, Mastercard Incorporated (NYSE:MA) could be affected by the CFPB proposed rule to curb excessive credit card late fees although the exact effect on growth is uncertain. As of 2/20, the company has a dividend yield of 0.63%.
1. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
EPS Next 5 Year Ratio: 22.95%
Dividend Yield as of 2/20: 0.46%
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading brokerage firm that ranks #1 on our list of 10 High Growth Low Dividend Stocks to Buy given analysts expect the company to grow its EPS by an average of 22.95% a year for the next 5 years. For the quarter ended December 31, 2022, Interactive Brokers Group, Inc. (NASDAQ:IBKR) had adjusted EPS of $1.30 on adjusted revenues of $958 million. Interactive Brokers Group, Inc. (NASDAQ:IBKR) has an annual dividend of $0.40 per share, which as of 2/20 is a dividend yield of 0.46%.
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