We recently published a list of the 10 High Growth Dividend Paying Stocks to Invest in. In this article, we are going to take a look at where Tractor Supply Company (NASDAQ:TSCO) stands against other profitable dividend stocks.
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.
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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.
At Insider Monkey, we are obsessed with hedge funds. 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).
Tractor Supply Company (NASDAQ:TSCO)
5-Year Revenue Growth: 12.25%
Tractor Supply Company (NASDAQ:TSCO) is an American farm supplies company that deals in home improvement and related equipment and supplies. In the fourth quarter of 2024, the company reported net sales of around $3.8 billion, marking a 3% year-over-year increase, supported by new store openings and improved comparable store sales. Earnings per share came in at $0.44, down 3% from the previous year, with both revenue and earnings slightly missing analyst estimates. Gross profit rose to $1.33 billion, up 2.8% from the prior-year period.
Tractor Supply Company (NASDAQ:TSCO) expanded its footprint in the pet care space through the acquisition of Allivet, a pet pharmacy business. This move complements its existing network of over 200 Petsense locations and a broad pet product offering in its core stores, providing another avenue for growth.
Tractor Supply Company (NASDAQ:TSCO) also demonstrated a strong cash position. The company ended the quarter with a healthy cash balance of roughly $252 million. For the full year, operating cash flow reached $1.4 billion, enabling the return of $472.5 million to shareholders through dividends. Additionally, the Board approved a $0.04 increase to its annual dividend—up 4.5% year over year—raising it to $0.92 per share for fiscal year 2025. A quarterly dividend of $0.23 per share was also declared, marking the company’s 16th consecutive year of dividend growth. As of April 8, the stock has a dividend yield of 1.89%.
Overall, TSCO ranks 7th on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of TSCO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than TSCO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
