Top Dividend Winners: 3 Stocks with Rapid Growth and Strong Financial Health

Don’t Be Fooled by a Fancy Dividend Yield

So you’ve seen a slick dividend yield hovering at 6–7% on the screen and you think, “That’s the quick cash I’m looking for!” But before you dive into the purchase, remember that high yield isn’t always the gold standard. It can often be the siren call to what investors call the “dividend trap.”

The Dividend Trap 101

A company with limited growth or shaky financial footing boosts its dividend.
The stock price usually takes a nosedive when reality sets in.
Even though the yield looks shiny, the payout slips away as the price drops.

Pro Wisdom from Trading.biz: A Better Play

Cory Mitchell says, “Real dividend savvy folks look for companies that RAISE their dividends year over year and grow earnings steadily.” Why? Because a rising earnings stream means bigger payouts and a stock that often climbs too.

How to Spot Winners

Here’s a quick recipe for the “gold‑mine” dividend stock:

Top‑Tier Yields?
10 + Years of Consistent Dividend Growth
6 + Years of Positive Earnings
Projected Growth for the Next Five Years

Three Dividend Stars of the Year

Let’s spotlight three powerhouse stocks that tick all those boxes (names of course are fictional for our example):

Company A – The dividend that keeps climbing.
Company B – A strong earnings engine behind the payouts.
Company C – Consistent profits that keep the growth signal bright.

Chart: Performance + Dividends Over the Past Year

Below is a snapshot showing how each of these stocks performed across the last twelve months, including their dividend payouts. Disclaimer: Image is illustrative.

Chart Notes

Each line tracks the stock price.
Bars represent dividend payouts per share.
Red dots are earnings announcements.

Bottom Line

Don’t let a dazzling yield lure you into a dividend trap. Instead, scout for companies that consistently increase dividends and grow earnings. Those are the ones that offer real, lasting value. Happy investing!

W.W. Grainger, Inc. (GWW)

Grainger: The Dividend Whisperer and Growth Powerhouse

Ever feel like your stock portfolio could use a little more jerk? Grainger might just be the company that gives you that extra spark.

What’s the deal with the dividend?

At first glance, the 1.8% dividend might look like a whisper. But the secret sauce is the growth—the cash you get has jumped by a whopping 14.9% per year over the past decade. Imagine your wallet having a yearly workout routine that actually makes it stronger.

Key metrics that will make you want to buy a pizza (or a share)

Analysts’ Forecast: Expect an average 28% EPS growth per year for the next five years. That’s almost triple the usual S&P 500 pace.
Historical Performance: Grainger’s EPS has been 21% higher annually over the last half‑decade.
Past Ten Years of Returns: Investors could have seen on average 14.5% per year, beating the S&P 500 which only manages about 12% per year.

Why you should care (and maybe toss a few bucks in)

These numbers aren’t just curiosity—they’re a tick‑tock showing that Grainger’s not just resting on its laurels. With dividends on the rise and EPS growth that outpaces the market, this stock has the makings of a comfortable side hustle for the long‑term.

Bottom Line

Grainger’s fending off the ordinary with a dividend that’s quietly climbing and earnings that’re doubling up with the market’s average. If you’re after a mix of steady income and real growth, you might find yourself enjoying more than just the paper package.

Hubbell Inc. (HUBB)

Hubbell: Powering Its Way to the Top

Ever wondered what makes Hubbell stand out in the electrical biz? It’s a blend of steady cash flow, solid growth, and a touch of power‑driven confidence.

Dividend Delight

Current dividend yield: 1.5% — steady beats for dividend lovers.
Dividends have been climbing at a healthy 9.3% annually for the last ten years.

Earnings on the Upswing

Analysts forecast a 19.5% annual EPS growth over the next five years.
Actual EPS growth in the past five years: 15% per year.

Return Values

Over the past decade, the stock has delivered an average of 14.1% yearly returns.

All in all, Hubbell isn’t just giving light; it’s giving returns.

UnitedHealth Group Incorporated (UNH)

UnitedHealth: The Big Dividend Booster

Ever wondered how a health insurer can keep both the medical and the money flowing? Meet UnitedHealth, a private powerhouse that’s thriving in the US and around the globe.

Dividend Growth: A 21% Per Year Trend

YoY jump: The company’s dividend has been climbing at an impressive 21% per year over the past decade.
Current yield? Just 1.4% — a solid return that keeps investors smiling.

EPS (Earnings Per Share) Snapshot

Future forecast: Analysts expect 12.7% annual EPS growth in the next five years.
Past performance: That’s not far off — the firm has already achieved a 13.6% rise in EPS per year over the last five years.

Stock Performance: A Decade of Daily Wins

Average yearly returns: The stock has raked in a stellar 23.4% each year for the past decade.

Bottom line? UnitedHealth knows how to make everyone’s head easier — by paying more dividends, projecting robust EPS gains, and delivering consistently high stock returns. Whether you’re in it for the health side or the financial side, they’ve got a winning formula.

Investing in dividend stocks

Why Picking Growth‑Oriented Stocks Beats the Classic High‑Dividend Chase

When investors grab growth stocks rather than those boasting a splashy dividend yield, there’s a subtle but powerful logic behind the choice. Those companies have shown that they can make money consistently, and that success feeds both their payouts and the price of their shares.

The Perils of “Just a High Dividend”

Unstable payouts: A dividend that looks generous today may slip tomorrow if the board decides to cut it.
Price wobble: When a company stops growing, the share price can tumble. That drops the real value of the dividend despite the headline yield staying high.
Surprise squeezes: Market excitement can inflate a stock’s price temporarily, making its yield look better than it really is.

The Upside of Proven Profits

Growth companies give you:

Steady cash flow that keeps the dividend on track.
Historical evidence that share prices rise alongside earnings.
A buffer against the inevitable market downturns, because their business model is resilient.

What the Future Might Hold

The market is a roller‑coaster, and these stocks will go through peaks and valleys, much like the major indices. But if they keep up the earnings growth they’ve shown over the years, the odds are they’ll keep delivering higher dividends and pushing their own share price up, too.