Growth investors focus on capital appreciation, while income investors look at the dividends that a stock can pay.
While each style has its merits, investors may not realise that they can enjoy the best of both worlds.
The US market offers up a wide range of companies, some of which hit the sweet spot of having both capital appreciation and a rising dividend.
Of course, having both these attributes means that investors may have to manage their expectations by accepting a lower growth rate and a reduced dividend yield.
Here are five US growth stocks that also pay increasing dividends.
Cintas (NASDAQ: CTAS)
Cintas provides products and services to organisations to help keep their premises and employees clean and safe.
The company sells supplies, including uniforms, mats, brooms, and other essential equipment.
For fiscal 2025 (FY2025) ending 31 May 2025, total revenue rose 7.7% year on year to US$10.3 billion.
Operating profit increased by 14.1% year on year to US$2.4 billion, while net profit increased by 15.3% year on year to US$1.8 billion.
The company also generated a positive free cash flow of US$1.76 billion for FY2025, up almost 6% year on year.
In line with these good results, Cintas announced a 15.4% year-on-year increase in its quarterly dividend to US$0.45 per share.
For FY2026, management projects revenue to be in the range of US$11 billion to US$11.15 billion.
This guidance represents a year-on-year growth of 7.5%.
Mastercard (NYSE: MA)
Mastercard is a financial services company that facilitates electronic payments between vendors, banks, and customers.
As of the second quarter of 2025 (2Q 2025), the company had a total of 3.58 billion debit and credit cards circulating around the world.
For the first half of 2025 (1H 2025), Mastercard’s revenue rose 15.6% year on year to US$15.4 billion.
Operating profit climbed 16.8% year on year to US$8.9 billion while net profit improved by 11.4% year on year to US$6.9 billion.
The financial services company also churned out a positive free cash flow of US$6.4 billion for 1H 2025, 55% higher than a year ago.
Mastercard paid out a quarterly dividend of US$0.76, 15.2% higher than the US$0.66 paid out in the prior year.
2Q 2025’s gross dollar volume increased by 9% year on year to US$2.6 trillion, underscoring the increased demand for Mastercard’s services.
The company recently unveiled a new suite of dining, entertainment and travel benefits alongside its most premium credit card tier called The Mastercard Collection.
This card provides priority reservations at high-end restaurants and also provides access to 190 fast-track security lanes at over 30 airports.
Hawkins (NASDAQ: HWKN)
Hawkins is a leading water treatment and speciality ingredients company that manufactures and distributes its products for food and health, and industrial customers.
The company owns 64 facilities in 28 US states and employs around 1,100 people.
Hawkins reported a respectable set of earnings for the first quarter of fiscal 2026 (1Q FY2026) ending 29 June 2025.
Sales increased by 14.6% year on year to US$293.3 million, while operating profit inched up 3.9% year on year to US$41.3 million.
Net profit increased by just 1% year on year to US$29.2 million because of higher interest expenses.
However, free cash flow more than doubled year on year to US$17.9 million for the quarter.
In line with the strong free cash flow generation, Hawkins increased its quarterly cash dividend by 6% year on year to US$0.19.
Hawkins possesses a strong record of accretive acquisitions, having conducted 20 such acquisitions in the last 14 years.
Its most recent acquisition was in July when it purchased PhillTech Inc., which manufactures and distributes coagulants and corrosion control products for water treatment customers.
Roper Technologies (NASDAQ: ROP)
Roper Technologies is a software company that acquires, manages, and develops other technology businesses.
For 1H 2025, revenue increased by 12.6% year on year to US$3.8 billion.
Operating profit climbed 10.1% year on year to US$1.1 billion but dipped by 1.3% year on year to US$709.4 million.
Stripping out the effects of unrealised gains and losses on equity investments, Roper Technologies would have seen its net profit grow 11.2% year on year to US$737.2 million.
Free cash flow remained constant at US$880 million for 1H 2025.
Roper Technologies increased its quarterly dividend by 10.7% year on year to US$0.83 per share.
Meanwhile, the business also announced the acquisition of Subsplash, a provider of AI-enabled cloud-based software and fintech solutions, for US$800 million.
The company also upgraded its 2025 guidance and believes it can achieve year-on-year revenue growth of around 13%, up from its previous outlook for 12%.
Lennox International (NYSE: LII)
Lennox International sells energy-efficient climate-control products in the North American market to residential and commercial customers.
For 1H 2025, revenue rose 3% year on year to US$2.57 billion, while operating profit increased 4.7% year on year to US$509.6 million.
Net profit climbed 7.5% year on year to US$397.9 million.
Lennox International generated a marginal negative free cash flow of US$3 million for 1H 2025, but still raised its quarterly dividend by 13% year on year to US$1.30 per share.
Revenue for 2025 is expected to rise 3% year on year, and management expects price increases to offset the impact of inflation.
The company will pursue inorganic growth opportunities while enhancing front-end customer experience.
Lennox International expects to incur around US$150 million in capital expenditures for 2025.
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Disclosure: Royston Yang owns shares of Mastercard.
