In this article, we discuss 10 high growth dividend paying stocks to buy now.
When examining investment strategies, many investors tend to focus on the fluctuations of stock prices, often measuring their portfolios based solely on capital gains. While this perspective is mainstream, it does not take into account an equally important source of returns, which is dividends. According to Kirsten Cabacungan, an investment strategist at Merrill and Bank of America Private Bank, investors should consider both stock price appreciation and dividend income when evaluating performance, since dividend-paying stocks can play a crucial role in a balanced portfolio.
Dividend investing provides two important advantages. First, the steady income generated by dividends can allow investors to manage their liquidity needs, which is particularly useful for those approaching or already at retirement. Second, companies with a history of consistent dividend payments have often shown greater stability, leading to reduced volatility and providing a buffer during market downturns. This defensive quality makes dividend-paying stocks appealing not only for income-oriented investors but also for those seeking to mitigate risk.
Overall, the short-term situation for dividend investing looks tough, but cutting dividends can simply be a safe move, even for stable companies. In the long term, some companies, given their industry, location, and business strength, will still be in a strong position to maintain or grow their dividends. This makes active investing, where investors focus on picking specific companies, more useful than just relying on broad index funds.
With that outlook in mind, let’s take a look at high growth dividend paying stocks to buy now.
Image by Steve Buissinne from Pixabay
Our Methodology
In this article, we applied a stock screener to select companies with positive dividend yields. We then reviewed their average 5-year revenue growth and focused on those with strong fundamentals and growth above 20%. The stocks are ranked in ascending order according to the hedge fund sentiment as of Q2 2025. These 10 stocks have also received attention from Wall Street analysts and major media outlets.
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).
10. Woodside Energy Group Ltd (NYSE:WDS)
Number of Hedge Fund Holders: 12
Average 5-year Revenue Growth: 36.46%
Dividend Yield as of September 26: 6.91%
Woodside Energy Group Ltd (NYSE:WDS) is one of the best dividend stocks to buy. As of August 19, Woodside Energy has been holding discussions with potential partners, including Saudi Aramco, which suggests that it could keep as much as 80% of the holding company for its $17.5 billion Louisiana LNG project in the United States.
According to CEO Meg O’Neill, Woodside plans to sell 20% to 30% of the Louisiana LNG project, which came with its $900 million acquisition of Tellurian the prior year. There have been discussions for months now, and in April, the firm gave the go-ahead for construction before settling on the sale of any shares in the holding company.
The CEO mentioned that WDS is in no hurry to make the sale. One reason for the company’s careful approach is its $5.7 billion agreement with Stonepeak, which took a 40% stake in the firm that controls the Louisiana LNG infrastructure. The agreement means Stonepeak will finance 75% of the project’s capital costs in 2025 and 2026.
Woodside Energy Group Ltd (NYSE:WDS) works in oil and gas exploration, production, and sales across the Asia Pacific, Africa, the Americas, and Europe.
9. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 41
Average 5-year Revenue Growth: 29.38%
Dividend Yield as of September 26: 0.70%
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the best dividend stocks to buy. On July 22, ECARX Holdings Inc. (NASDAQ:ECX) reported a new strategic deal with Monolithic Power. The partnership is meant to develop automotive intelligence and robotics solutions and will create a global supply chain and ecosystem that handles integration, adaptation of the platform, and service delivery.
Both companies will search for opportunities in automotive and intelligent technology, working on product testing, system upgrades, and faster development and time-to-market. MPWR will bring in its worldwide research and supply strengths to help ECARX build a stronger supply chain and launch products more quickly worldwide.
Through this collaboration, ECARX will be able to expand its intelligent car and robotics tech to industries such as automation and consumer electronics. MPWR contributes by offering power electronics built on semiconductors, which are applied in telecom, cloud services, automotive systems, and consumer products.
Ziyu Shen, Chairman and CEO of ECARX, mentioned:
“This strategic partnership with MPS marks another important step in the build-out of our global strategy and technological ecosystem. We have always viewed our supply chain as the core competitive advantage and will continue to develop relationships with partners that can support the development of intelligent solutions across global markets.”
Monolithic Power Systems, Inc. (NASDAQ:MPWR), founded in 1997 and based in Kirkland, Washington, manufactures semiconductor-based power electronics. Its products are used in cloud computing, automotive, consumer electronics, and industrial systems.
8. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 43
Average 5-year Revenue Growth: 36.02%
Dividend Yield as of September 26: 1.10%
HDFC Bank Limited (NYSE:HDB) is one of the best dividend stocks to buy. On August 18, Jefferies began coverage of HDB, assigning a Buy rating and an INR 900 price target.
According to the investment firm, HDFC Bank Limited (NYSE:HDB) benefits from a competitive position through its diverse portfolio, extensive reach, large client network, and efficient funding structure.
Jefferies estimates that HDB will achieve 18% growth in AUM and 22% growth in EPS between FY25 and FY28e. ROE is expected to climb from 13% in FY26e to 16% by FY28e after a planned capital raise, despite expectations of muted performance in FY26.
The stock is almost back to its IPO level, down roughly 10% from its high it hovered at right after the listing. It trades at a discount to competitors like CIFC and BAF that report bigger ROE.
According to Jefferies, major risks include a slowdown in growth, deterioration in asset quality, and changes in regulations around bank subsidiaries.
HDFC Bank Limited (NYSE:HDB), founded in 1994 and based in Mumbai, is one of India’s leading banks offering deposits, loans, cards, insurance, investments, and digital banking.
7. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 45
Average 5-year Revenue Growth: 60.30%
Dividend Yield as of September 26: 3.71%
Coterra Energy Inc. (NYSE:CTRA) is one of the best dividend stocks to buy. On September 11, Raymond James maintained an Outperform rating on Coterra but trimmed the price target from $38 to $34. The company has an uninterrupted 36-year track record of dividend payments.
In its 2025 guidance, Coterra sees capital spending rising around 7% to $2.3 billion and production climbing about 3% to 768 Mboe/d. Raymond James projects slightly higher figures, with output at 770.3 Mboe/d and capex at $2.31 billion.
In 2026, volumes are expected to come in at 795 Mboe/d (62% gas, 22% oil), with capex amounting to $2.33 billion. Raymond James believes Coterra’s reinvestment rate will stay below that of its industry competitors due to cost efficiency and debt reduction strategies.
Analysts expect the company to deliver free cash flow yields of close to 10% in 2025 and 11% in 2026, with EV/EBITDA values forecasted at 4.7x and 4.3x.
Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that explores and produces oil, gas, and natural gas liquids.
6. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 46
Average 5-year Revenue Growth: 33.69%
Dividend Yield as of September 26: 2.68%
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the best dividend stocks to buy. On August 20, Melius Research assigned a Buy rating on FANG, along with a price target of $213.
Diamondback is one of the major Permian Basin pure-play companies, where it directs its streamlined operations toward Wolfcamp, Spraberry, and Bone Spring formations.
Melius observed that the company scaled up through active mergers and acquisitions, positioning itself among the top acreage holders in the Midland Basin.
The firm noted that Diamondback’s lean and flexible low-expense model is a competitive edge. The company concentrates primarily on the Permian Basin, known as one of America’s top oil and gas hubs.
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based oil and gas company that explores and develops reserves in the Permian Basin in West Texas.
5. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 73
Average 5-year Revenue Growth: 32.32%
Dividend Yield as of September 26: 1.08%
NRG Energy, Inc. (NYSE:NRG) is one of the best dividend stocks to buy. In Q2 2025, the company released mixed earnings, and investors were not as impressed despite the management’s positive outlook.
In Q2, NRG reported adjusted earnings per share of $1.73, up 8% from the previous year, while maintaining its 2025 guidance. The company’s management added that new power agreements with data centers and the expansion of its virtual power plant were significant for future growth. NRG Energy noted that the first half of the year was strong and believes it is on track to reach the higher end of its 2025 goals, despite a few hurdles this quarter.
In the second quarter, the company earned $909 million in adjusted EBITDA and $339 million in net income. Even though results were lower than the prior-year quarter, the company is still ahead overall, with EBITDA up 11% to $2.035 billion. The weaker quarter came from losing Airtron’s earnings, the Cottonwood lease ending, Indian River Unit 4 closing, and higher pay costs.
A core update was NRG’s long-term data center contracts commencing in 2026, with expansion potential up to 1 GW. The Texas Virtual Power Plant also outperformed expectations, with a new 2025 goal of 150 MW and long-term targets of 650 MW by 2030 and 1,000 MW by 2035.
NRG Energy, Inc. (NYSE:NRG) is a Houston-based company producing electricity from natural gas, coal, oil, and renewables. Along with retail electricity, it also offers home protection, energy management, and smart home services.
4. KKR & Co. Inc. (NYSE:KKR)
Number of Hedge Fund Holders: 84
Average 5-year Revenue Growth: 281.34%
Dividend Yield as of September 26: 0.55%
KKR & Co. Inc. (NYSE:KKR) is one of the best dividend stocks to buy. On September 9, following a group meeting with KKR’s CFO Rob Lewin and institutional investors, Piper Sandler reaffirmed its Overweight rating on the stock and assigned a price target of $166.
The firm showed confidence in KKR, noting stronger transaction volumes across business areas. Piper Sandler cited this growth in deal momentum as a main factor in its decision to stick with a bullish rating.
Piper Sandler identified digital infrastructure as a core strength, labeling it a “multi-year opportunity” for KKR. The 401K market was also noted as a possible addition to the broader growth narrative.
While the overall outlook was favorable, Piper Sandler pointed out that the company’s insurance operations are under some near-term pressure from tight asset spreads and intense liability-side competition.
Piper’s research note came after the meeting with KKR CFO Rob Lewin, which confirmed its constructive perspective on the company’s business momentum and growth opportunities.
KKR & Co. Inc. (NYSE:KKR) is a New York-based investment firm that is involved in private equity, real estate, credit, and infrastructure.
3. Apollo Global Management, Inc. (NYSE:APO)
Number of Hedge Fund Holders: 86
Average 5-year Revenue Growth: 134.47%
Dividend Yield as of September 26: 1.50%
Apollo Global Management, Inc. (NYSE:APO) is one of the best dividend stocks to buy. On September 8, Apollo Global mentioned that its managed funds will invest €3.2 billion into a joint venture with RWE, the country’s largest energy producer. This venture will involve RWE’s 25.1% ownership in Amprion, the transmission operator catering to nearly 29 million people in seven German federal regions.
RWE will retain control over the joint venture, which will deliver equity financing to help Amprion’s long-term grid development program. This setup allows RWE to prioritize its primary electricity production and trading operations while strengthening its green energy portfolio.
Apollo Partner Jamshid Ehsani stated that the collaboration with RWE will offer financing for major grid development in Germany to ensure energy for homes and industries. He also mentioned that Apollo aims to ramp up its European investments, especially in Germany, France, Italy, and the UK.
Since 2020, Apollo Global Management, Inc. (NYSE:APO) has managed over $100 billion in funding initiatives, supporting European companies like EDF, BP, Vonovia, Air France-KLM, and AB InBev. The firm also highlighted its aim to pour more than $100 billion into Germany over the next ten years.
The deal still needs regulatory approval and is expected to wrap up in Q4 2025.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Average 5-year Revenue Growth: 22.23%
Dividend Yield as of September 26: 1.21%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best dividend stocks to buy. On August 25, the company’s filings revealed that Vice President Jonathan Lee grew his holdings by 346 shares, moving from 459,526 on June 30 to 459,872 on July 31. There were no new pledges of common shares by directors, executives, or large shareholders owning more than 10%.
For asset management, TSM and its subsidiaries bought NT$10.2 billion in fixed-income assets and got rid of NT$0.4 billion in July.
The filing showed that TSM distributed new unsecured bonds in two parts under the 114-3 series. Tranche A, worth NT$8.3 billion, has a 1.92% coupon and will mature between July 2025 and July 2030. Tranche B, amounting to NT$4.0 billion, carries a 2.05% coupon and will mature between July 2025 and July 2035. Both tranches feature bullet repayment and annual interest payments.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
Average 5-year Revenue Growth: 72.17%
Dividend Yield as of September 26: 0.02%
NVIDIA Corporation (NASDAQ:NVDA) is one of the best dividend stocks to buy. On September 13, Nvidia unveiled the latest GeForce Now enhancement, transitioning from RTX 4080 servers to Blackwell RTX 5080 SuperPods.
The chipmaker explained that Ultimate-tier users can expect faster speeds, reduced latency, and a bigger gaming catalog, all included without extra fees.
The new Blackwell RTX 5080 SuperPods provide better visuals and smoother performance, given the DLSS 4 and AI upscaling. The company added that upcoming games such as DUNE: Awakening, Cronos: The New Dawn, and Clair Obscur: Expedition 33 will put the GPU’s strengths on display.
Blackwell RTX servers are becoming available worldwide, allowing more members to access advanced streaming performance on many devices from PCs and Macs to Chromebooks, LG TVs, and Steam Decks.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
