Below we present the list of Top 5 Earnings Growth Stocks with Dividends for 2021. For more background and a more comprehensive list please see Top 10 Earnings Growth Stocks with Dividends for 2021.
- Equinix Inc (NASDAQ:EQIX)
The second-half of our list of dividend-paying earnings growth stocks begins with Equinix Inc (NASDAQ:EQIX), which Rajiv Jain’s GQG Partners owned 1.31 million shares of on September 30, an 11% quarter-over-quarter increase. Equinix has been able to grow its earnings over each of the last three years, more than tripling its EPS during that period.
The REIT, which operates a connected global data center platform, pays out a quarterly dividend of $2.66, giving it a yield of 1.52%, which is quite low for an REIT, though Equinix is hardly your average REIT. Its dividend payout ratio had been quite high for several years, but thanks to its recent earnings surge, the dividend looks very sustainable.
- Mastercard Incorporated (NYSE:MA)
GQG Partners owned 3.08 million shares of Mastercard on September 30, valued at over $1.04 billion. If not for a miniscule earnings dip of less than 1% in 2017, Mastercard Incorporated (NYSE:MA) would be in the midst of an 11-year run of steadily rising earnings. Mastercard made up for that slight decline with two of its best years ever, more than doubling its EPS between 2017 and 2019.
Thanks to that earnings surge, Mastercard has been able to raise its quarterly dividend payments by 60% since 2018. However, as MA shares have risen by over 120% since the end of 2017, they actually yield even less now, at just 0.47%. With a low payout ratio of about 0.23, there is still plenty of potential for robust future dividend growth.
- Microsoft Corporation (NASDAQ:MSFT)
GQG Partners owned just under 5.60 million shares of MSFT on September 30, a position valued at nearly $1.18 billion. We previously highlighted Microsoft Corporation (NASDAQ:MSFT) as one of 5 Stocks That Could Massively Grow Their Dividends in 2021 and Beyond, thanks to its low payout ratio and consistent earnings growth. Microsoft has grown its earnings in four of the last five years, including a massive EPS spike during its fiscal 2019, which bumped further in fiscal 2020. Microsoft’s dividend yields just over 1.00%, while its quarterly payments have increased more than four-fold since 2010.
- Abbott Laboratories (NYSE:ABT)
One of the 10 Best Growth Stocks To Buy Now According To Ray Dalio, Abbott Laboratories (NYSE:ABT) has grown its earnings significantly over the past two years after a volatile decade of earnings. Despite that volatility, the medical device company has been able to consistently raise its dividend payments in recent years, including accelerated boosts over the past two years. ABT shares now yield 1.34% and the company’s payout ratio is very manageable.
In its Q3 investor letter, Polen Capital praised Abbott’s resilience and noted that its consumer-facing businesses were able to grow by 10% in the first half of 2020. GQG Partners owned 14.51 million ABT shares at the end of Q3, giving it a $1.58 billion ownership stake in the company.
- Nvidia Corp (NASDAQ:NVDA)
GPU maker Nvidia Corp (NASDAQ:NVDA) tops the list of earnings growth stocks with dividends for 2021, with GQG Partners owning just under 4.70 million shares valued at over $2.54 billion at the end of Q3. Even after a step back in 2019, Nvidia’s earnings were still more than 4x higher than what they were just four years earlier following a tremendous earnings growth spurt between 2016 and 2019. The gaming giant is also coming off a very strong Q3 during which it earned $2.91 per share, putting it on pace for record earnings in 2020.
Nvidia’s earnings surge has yet to translate into noteworthy dividend growth however, as the company has raised its dividend by an extremely conservative 14% over the past four years, giving it a paltry yield of 0.12%, which is also about what its payout ratio is. The potential is certainly there for a more significant dividend raise in the near future.
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Disclosure: None.
