Lower yields today, but dividends growing 10-25% annually. Your income doubles every 3-7 years instead of 20+ years.
Year 1: $10,000 @ 6% = $600/year
Year 10: $643/year (3% growth)
Year 20: $867/year
Takes 24 years to double income
Year 1: $10,000 @ 2% = $200/year
Year 10: $518/year (15% growth)
Year 20: $3,273/year (!)
Income doubles every 5 years
Key insight: By year 15, the dividend growth stock pays more annually despite starting at 1/3 the yield. By year 25, it's paying 5x more per year!
Semiconductor & infrastructure software
Current Yield
1.8%
5-Yr Growth
18.5%
Years Paying
14 years
Payout Ratio
48%
Leading semiconductor company with dominant position in data center networking and wireless chips. Acquired VMware for software diversification. Dividend has grown from $0.23/quarter in 2019 to $0.59/quarter in 2024. Your income triples in 7 years at this pace.
Income Projection (per $10,000 invested):
Year 1: $180 | Year 5: $367 | Year 10: $951 | Year 15: $2,461
Global payments network
Current Yield
0.8%
5-Yr Growth
17.0%
Years Paying
16 years
Payout Ratio
21%
Processes billions of transactions globally. Earns a small fee on each swipe. Extremely low payout ratio (21%) means massive room for growth. As world moves to digital payments, Visa profits grow. 15-year track record of double-digit dividend increases.
Digital payments & data analytics
Current Yield
0.6%
5-Yr Growth
16.0%
Years Paying
13 years
Payout Ratio
18%
Similar model to Visa—earns fees on transactions. Ultra-low payout ratio (18%) enables aggressive dividend growth. Every year, more cash transactions convert to digital, growing MA's revenue. Perfect for 30+ year holding period.
Membership warehouse retail
Current Yield
0.6%
5-Yr Growth
13.0%
Years Paying
21 years
Payout Ratio
28%
Membership fees ($120-130/year) provide predictable revenue. 93% renewal rate = sticky customers. Paid special $10-15/share dividends several times (on top of regular dividend). If you shop at Costco, you understand why it wins.
Home improvement retail
Current Yield
2.0%
5-Yr Growth
15.0%
Years Paying
62 years
Payout Ratio
35%
Aging housing stock (median U.S. home is 40+ years old) drives renovation demand. Dividend aristocrat with 62 years of payments. Better value than Home Depot currently with similar growth profile. 2% starting yield sweetens the deal.
| Stock | Yield | 5Y Growth | Sector |
|---|---|---|---|
| Broadcom (AVGO) | 1.8% | 18.5% | Technology |
| Visa (V) | 0.8% | 17.0% | Financials |
| Mastercard (MA) | 0.6% | 16.0% | Financials |
| Lowe's (LOW) | 2.0% | 15.0% | Consumer |
| Home Depot (HD) | 2.3% | 14.0% | Consumer |
| Costco (COST) | 0.6% | 13.0% | Consumer |
| Microsoft (MSFT) | 0.8% | 10.2% | Technology |
| Apple (AAPL) | 0.5% | 7.8% | Technology |
| Stryker (SYK) | 1.1% | 9.5% | Healthcare |
| TJX Companies (TJX) | 1.3% | 11.0% | Retail |
Pre-built spreadsheet with 25 fast-growing dividend stocks + tracking tools
Income Projection:
Year 1
$650
Year 5
$1,312
Year 10
$3,288
Year 15
$8,235
Assumes 15% average dividend growth with DRIP enabled. Does not include stock price appreciation.
Companies paying 0.5-2% yields are reinvesting profits into growth. As the business grows, dividends grow too. Think of it like planting a tree—small today, but massive in 20 years. High-yield stocks (6-10%) often lack growth because they pay out everything.
Typically 7-12 years. A stock growing dividends 15% annually doubles income every 5 years. After 10-15 years of compounding, the total income received can exceed a 6% yielder. Use our calculator to model your specific scenario.
Absolutely! Many investors do 60% dividend growth (for future) + 40% high-yield (for current income). This balances long-term wealth building with near-term cash flow. Adjust ratios based on your age.