5 High-Growth Forever Dividend Stocks to Buy

4. S&P Global Inc. (NYSE:SPGI)

5-Year Average Annual Dividend Growth Rate: 16.04%
Dividend Yield as of March 4: 1.04%

S&P Global Inc. (NYSE:SPGI) is a New York-based private banking company that specializes in financial information and analytics. In the fourth quarter of 2022, the company reported revenue of nearly $3 billion, up 40.7% from the same period last year. Its free cash flow for FY22 came in at $2.2 billion, which was sufficient for paying $1 billion worth of dividends to shareholders.

S&P Global Inc. (NYSE:SPGI) currently offers a quarterly dividend of $0.90 per share and has a dividend yield of 1.04%, as of March 4. The company has been raising its dividends consistently for the past 50 years, which makes it one of the high-growth dividend stocks on our list. Moreover, the company has raised its payouts at an annual average rate of 16.04% in the past five years.

As of the close of Q4 2022, 97 hedge funds in Insider Monkey’s database reported having stakes in S&P Global Inc. (NYSE:SPGI), up from 90 in the previous quarter.

Andvari Associated mentioned S&P Global Inc. (NYSE:SPGI) in its Q4 2022 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) is another company we own that is part of a duopoly in the business of credit rating. S&P and Moody’s have roughly equal market shares and rate more than 90% of all bonds worldwide. The service provides high value for the cost. A company that chooses to issue debt without a rating will pay an interest rate that could be higher by half of a percent. The cost of a higher interest rate far exceeds any savings gained by not using the services of S&P.

We think of S&P as a toll road that earns fees from its customers in exchange for cost-effective access to capital. As such, the company has extraordinary margins and pricing power and requires little of its own capital to grow. Even after fully reinvesting in its business, S&P still has an excess of cash. In 2021, S&P produced $3.5 billion of free cash from $8.3 billion of revenues. The company returns the majority of its free cash to investors in the form of dividends and share repurchases.”