In this article, we will take a look at the 10 Fastest Growing Dividend Stocks to Buy Now.
According to an April 16 CNBC report, Bank of America said that during periods of market volatility or rising stagflation concerns, investors may benefit from holding stocks with attractive but sustainable dividend yields. These types of stocks can offer a measure of protection for portfolios.
Savita Subramanian, who leads U.S. equity and quantitative strategy at Bank of America, said the conflict with Iran could raise stagflation risks. She explained that the firm’s review of past periods since 1987, marked by slower growth and higher inflation, showed that Quality and Cash Deployment strategies performed best. She also said that if markets shift back toward a total return approach, where dividends play a larger role than they did during the period of near-zero interest rates, investors may want to focus on companies with yields above the market average, but not excessively high.
With the S&P 500 yielding about 1.1%, the firm sees moderately higher yields as a more practical range. In that context, Bank of America screened the Russell 1000 and focused on companies in the second quintile of trailing dividend yields. It said these firms tend to carry less risk than those in the top quintile, where very high yields can sometimes point to underlying issues. The firm added that extremely high dividend yields may reflect falling share prices or financial strain, both of which can increase the risk of dividend cuts.
Given this, we will take a look at some of the fastest-growing stocks that pay dividends.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this list, we screened for dividend companies with 5-year sales growth over 15%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. American Express Company (NYSE:AXP)
5-Year Sales Growth: 16.07%
On April 16, Jeffrey Adelson of Morgan Stanley lowered the firm’s price recommendation on American Express Company (NYSE:AXP) to $385 from $395. It reiterated an Equal Weight rating on the shares. The analyst said the firm is cutting price targets for about half of its consumer finance coverage ahead of Q1 earnings, pointing to higher macro uncertainty.
On April 16, Reuters reported that American Express agreed to acquire Hyper, an artificial intelligence-focused expense management startup backed by Sam Altman. The move reflects a broader push among large financial firms to bring AI into core business software, especially in expense management. Tasks like manual processing, compliance checks, and approvals can be automated. In a letter to shareholders last month, AmEx CEO Stephen Squeri said AI was creating a “structural shift” in how businesses operate.
The acquisition could support AmEx’s push to expand automation tools for commercial clients and strengthen its position in corporate spending. Financial terms were not disclosed. Founded in 2022, Hyper builds AI agents that categorize expenses, file reports, check them against budgets and company policies, and send reminders for submissions. The company counts Altman as an investor and had partnered with AmEx in 2024 to launch a credit card. AmEx said the deal is expected to close in the second quarter of 2026.
American Express Company (NYSE:AXP) operates as a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and network businesses serve a wide range of customers, including consumers, small businesses, mid-sized firms, and large corporations worldwide.
9. Arthur J. Gallagher & Co. (NYSE:AJG)
5-Year Sales Growth: 18.6%
On April 13, Mizuho lowered its price recommendation on Arthur J. Gallagher & Co. (NYSE:AJG) to $259 from $260. It maintained an Outperform rating on the shares. The firm updated its estimates and targets across its North America insurance coverage. It said it remains most constructive on brokers, expects moderation in commercial pricing pressure among property and casualty insurers, and views the setup for life insurers as “the most challenging.”
On April 8, Barclays raised its price target on Gallagher to $275 from $262 and kept an Overweight rating. The changes came as part of a Q1 preview for the insurance group. The analyst noted that premium growth and broker organic growth “are likely to remain sluggish,” in a research note. Barclays also said solid margins and strong capital deployment should continue to support reported book value growth in Q1.
Arthur J. Gallagher & Co. (NYSE:AJG) operates as a global insurance brokerage, risk management, and consulting services provider. Its business is organized across brokerage, risk management, and corporate segments.
