20 Best Dividend Growth Stocks with High Yields

2. Polaris Inc. (NYSE:PII)

Dividend Yield as of May 13: 6.98%

Polaris Inc. (NYSE:PII) is a well-established automotive manufacturer with a 70-year history. The company focuses on powersports vehicles, which are divided into three core segments: off-road vehicles (such as ATVs, snowmobiles, and side-by-sides), on-road vehicles (including motorcycles and light-duty utility models), and marine offerings like pontoons and deck boats. Polaris maintains a leading or second-place market position across all the categories it serves. Its extensive dealer network helps the company effectively distribute its vehicles and accessories while supporting robust investment in R&D to enhance safety, performance, design, and innovation.

In the first quarter of 2025, Polaris Inc. (NYSE:PII) posted mixed results. Revenue reached $1.5 billion, down 12% year-over-year. However, the revenue still came in $10 million above Wall Street expectations. North American sales, which made up 84% of the total, were close to $1.3 billion, representing an 11% decline from the prior year. The overall sales dip was mainly driven by weaker volumes and softer net pricing, partly due to increased promotional activity, though this was somewhat balanced by a better product mix.

Despite these challenges, Polaris Inc. (NYSE:PII) maintained a solid financial position. The company closed the quarter with $291.7 million in cash and cash equivalents. Operating cash flow also saw a turnaround, improving to $83.2 million compared to an outflow of $105 million in the same quarter of 2024. The company has been growing its payouts for 30 consecutive years, which makes it one of the best dividend stocks. Its quarterly dividend is $0.67 per share for a dividend yield of 6.98%, as of May 13.