3 High-Growth Dividend Stocks to Buy in July

According to a report from 24/7 Wall St., three high-growth dividend stocks are worth attention in July, despite their current yields being below 1%. These companies are increasing their payouts at high rates that could turn today's modest income into a significant cash stream within a decade.

Details

The three stocks are Microsoft (MSFT), Broadcom (AVGO), and Visa (V). All offer dividend yields below 1%, but they increase their payouts annually at rates exceeding 10% in some cases. For example, Microsoft has increased its dividend by 10.7% annually over the past five years, while Broadcom has increased it by 14.5% and Visa by 17.2%.

Context

In a high-interest-rate environment, low dividend yields may seem unattractive. However, investors focusing on dividend growth rather than current yield can benefit from compounding payouts over the long term. All three companies have strong cash flows and resilient business models that support continued dividend increases.

What This Means for Investors

These stocks are suitable for investors seeking growing income over time, not an immediate high yield. Note that dividend growth is not guaranteed and may be affected by company performance and market conditions.