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Every now and then I get a reader letter asking me which is more important: dividends or growth?
My answer?
Both.
Stock market experts have been pestering entry-level investors with this false dilemma for decades. They love to sort the world into piles for their most interesting projects, and they’ve decided that companies can either pay us or pay their R&D teams, but not both.
I could drive a truck through the hole in this logic – and I will.
Next, I’ll highlight seven dividend stocks that I expect to announce increases to their cash distributions in the coming months. This includes five companies that pay us high returns of up to 11%, as well as two companies that doubled their dividends last year.
The lazy criticism behind dividends is that companies start paying them – and growing them aggressively – because management no longer has more productive ways to spend the money. If executives believe it’s better to put additional dollars directly into our pockets, rather than fund more research or ramp up marketing, the growth phase of the company needs to be firmly behind the rearview mirror.
But that’s stupid: it’s not a zero-sum game. Many companies that pay and improve their dividends both increase their revenue (which is reflected in their bottom line) and improve their ability to turn that income into profits. So now they can afford to multitask; they can still create innovations And pay us a nice sum.
The tech industry is full of these stories, but here are two of the most recognizable:
MSFT Dividend Growth
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AVGO Dividend Growth
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In both cases, the dizzying improvement in incomes was not a sign of stagnation: it was a sign that everyone had taken new steps in their ability to produce money.
I call this phenomenon the “dividend magnet.” Raising dividends tends to drive up prices, so we get paid two means: higher stock prices and a constantly increasing “return on cost”.
This is why I regularly monitor the earnings calendar and dividend announcements. Big splashes and continued trends toward generosity are a goldmine for dual-threat stocks. On my radar right now?
- A pair of recent dividend doublers
- Five companies pay up to 11% always seem to have more money to share with us.
2 Dividend Growth Stocks Poised to Double
I’ll start with the red-hot dividend producers. They will not overthrow anyone with their current returns, but they could become portfolio cash cows if they maintain this pace.
GE Vernova (GEV, 0.2% dividend yield)General Electric’s clean energy division, which was spun off in April 2024, wasted no time in upgrading its dividend. Towards the end of 2024, GEV announced that it would pay its first dividend (25 cents per quarter) in January 2025. Fast forward to December 2025, and it announced that it would double that distribution.
More may be on the way. Vernova was unprofitable as recently as 2023, but its bottom line has exploded over the past three years: $5.64 per share in 2024, then $17.96 in 2025, then $35.42 in 2026. Wall Street thinks earnings will calm down next year, but GEV should still benefit longer term from growing demand for power infrastructure. Additionally, its dividend is only 8% of estimates for 2027. That’s miles of margin for the payment to be made. Announcement of expected dividend: early December.
PG&E (PCG, 1.6% dividend yield)a California utility, also doubled its dividend last year, but its situation couldn’t be more different from that of GE Vernova. The company suspended distribution in 2017, then declared bankruptcy in 2019 as it faced tens of billions of dollars in debt related to years of devastating wildfires. But it left Chapter 11 protection in 2020, restarted its dividend program at a penny per share in 2023, then increased that payout by 150% in 2024 and 100% last year.
PCG has taken a beating over the past month or so after the California Legislature blocked Gov. Gavin Newsom’s plan to shield utilities from liability for wildfires. Shortly afterward, the utility announced it would undergo a “strategic review” and said it would delay about $2 billion in work into 2027 to delay more costly borrowing. This stock faces a lot of risks and the environment seems downright hostile to hopes of a dividend hike later this year. The positive side? PG&E is expected to continue growing earnings this year and next, and the current split represents just 12% of earnings estimates for 2026. The utility average is closer to 60%. This makes PG&E’s Investor Relations page a must-see in a few months. Announcement of expected dividend: early December.
5 High-Yielding Dividend Growth Stocks
Amcor (AMCR, 6.1% yield)a global packaging giant, is a revenue unicorn. This is a Dividend Aristocrat (due to its tie-up with Bemis in 2019) which offers both a healthy yield and a reasonable price. That’s what my recent article on cheap dividend stocks was the subject of, and they remain cheap, at around 6 times cash flow estimates.
The war in Iran and weak consumer spending have hampered Amcor’s business this year, and AMCR stock has generated a steady return in response. But the company has kept its bottom line ahead of the Street thanks to the strength of its foodservice and pet care lines, and it’s still on pace to post double-digit bottom-line growth this year. Its 2025 acquisition of rival Berry Global could also be a cash flow driver in the years to come. Dividend coverage isn’t exactly loose, at 65% of this year’s earnings estimates, but the potential growth gives Amcor room to deliver hikes greater than the 2% it has shelled out in recent years. Announcement of expected dividend: end of October/beginning of November.
AMCR Dividend Magnet
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Getty Realty (GTY, 6.8% yield) is a real estate investment trust (REIT) that owns 1,245 “free-standing” (single-tenant) commercial properties in 46 states and the District of Columbia. It is also one of the most stable companies we can find. While it’s technically a retail REIT, it’s not a fickle mall operator: It’s an owner of convenience stores, auto service centers, fast-food drive-thru restaurants, gas stations, car washes, and more.
It wasn’t always so safe. Getty Realty previously leased approximately 70% of its properties to Getty Petroleum Marketing (GPMI), but it was forced to terminate the leases for nonpayment of rent and GPMI filed for bankruptcy. GTY had to cut its dividend twice: by 48% in 2011, then by another 50% in 2012. Since then, it has widely diversified its portfolio and, starting in 2025, brought the dividend back above what it paid before the cuts. Getty’s current dividend represents 77% of funds from operations (FFO) estimates for 2026, which is a fairly safe level that should allow for even more growth. The size of its next hike could be an indication of whether it is concerned (or not) about the purchasing power of its low-income customers. Dividend announcement planned: end of October.
MPLX LP (MPLX, 7.5% yield) is an oil and gas master limited partnership (MLP) that acts as a holding vehicle for Marathon Petroleum (MPC) intermediate assets. These include pipelines, refineries, natural gas liquids (NGL) gathering systems and processing complexes, NGL fractionation facilities, storage caverns, tank farms, motor ships and barges, and other joint MPC/MPLX assets.
This high-yielding energy stock is the perfect example of my argument that dividend growth is not a sign of operational “slowdown.” MPLX is expanding its gathering and processing capabilities in the Permian Basin, as well as its hydraulic fracturing capacity, and several growth projects have already come online in 2026 or are expected to be operational by the end of the year. And this while maintaining an unbroken streak of increased distribution since the COVID decline that management expects will continue at least this year and next year. Distribution announcement expected: end of October.
MPLX Dividend Magnet
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Delek Logistics Partners LP (DKL, 8.5% distribution yield)which is linked to Delek US Holdings (DK)is another midstream energy MLP with operations in the Permian. It owns approximately 1,200 miles of crude oil and refined product pipelines, as well as gas processing plants, water utilities, several joint venture pipeline assets and much more.
The expansion of new pipeline projects improves prices, making drilling on its permit more attractive. Its “sweetening” treatment of corrosive gases also appeals to producers. This bodes well for DKL, but the proof will be in the payment. Delek Logistics Partners is already one of the highest paying MLPs in the market. But it is also a quarterly relaunchand has been for years. His cast’s growth has slowed, although I’ve pointed out in the past that Delek’s pace has fluctuated in the past without breaking the streak. Distribution announcement expected: end of October.
NexPoint Residential Trust (NXRT, 11.0% yield) is a residential REIT that owns 36 properties with 13,305 units in 10 Sun Belt markets. Most of its properties are Class B multifamily buildings rented to “working” and middle-income residents. It focuses on providing “value-add”, which is simply upgrading its properties to secure higher rents. Improvements such as interior renovations, new appliances and the addition of smart home technology generate significant rent premiums.
This could be one of the biggest dividend announcements of the next quarter. NXRT has been in a massive downtrend since 2022 and has fallen off a cliff in recent months. The yield has exploded from just under 8% to 11% since my article on NexPoint and other REITs in June, largely due to interest rate fears. The company is heavily leveraged, and most of that debt is expected to become more expensive after the recent Fed hike. The Street isn’t just murmuring about a dividend cut: at least one analyst has flagged NexPoint’s ability to cover the distribution with its cash flow. A little reassurance from management would be very helpful. We’ll probably get at least one sign (one way or another) in a few weeks. Dividend announcement planned: end of October.
Gn bussni
