We recently published a list of the 10 High Growth Forever Dividend Stocks to Invest In. In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other high growth forever dividend stocks.
Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don’t diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market’s monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices.
Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump’s expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session’s gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%.
This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market’s down months and roughly 44% of its up months. They’ve also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market.
Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years.
The report emphasized that the most promising opportunities in the dividend space lie with so-called “Compounders”—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends.
An engineer inspecting a newly renovated electrical installation.
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 and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. 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).
Comfort Systems USA, Inc. (NYSE:FIX)
5-Year Revenue Growth: 21.86%
Comfort Systems USA, Inc. (NYSE:FIX) is a Texas-based company that offers mechanical and electrical contracting services. The bulk of the company’s revenue is generated through new commercial construction projects. However, maintaining existing systems and upgrading older ones also play an important role in its operations. Given the historically fragmented nature of the industry, the company has made acquisitions a core part of its strategy. Between 2007 and 2023, it allocated an average of $82.5 million per year toward acquiring other businesses—accounting for roughly three-quarters of its overall capital deployment during that period.
In the fourth quarter of 2024, Comfort Systems USA, Inc. (NYSE:FIX) reported revenue of $1.87 billion, which showed a 37.5% growth from the same period last year. The company’s net income came in at $145.9 million, up from $91.6 million in the prior-year period. Its cash position also came in strong, as it ended the year with $550 million available in cash and cash equivalents, compared with $205 million in 2023.
Comfort Systems USA, Inc. (NYSE:FIX) generated $210.5 million in operating cash flow, and its free cash flow came in at $171.7 million. In February, the company declared a 14.3% hike in its quarterly dividend to $0.40 per share. Through this increase, the company achieved its 13th consecutive year of dividend growth. The stock supports a dividend yield of 0.46%, as of April 13.
Overall, FIX ranks 1st on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of FIX 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 FIX 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.
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