If you are an investor in growth stocks, you’re in luck.
The US market offers a wealth of investment opportunities in companies that display consistent growth.
However, your returns need not be limited to just capital gains from share price increases.
Many growth stocks also pay out dividends to boot, giving investors the best of both worlds.
We feature five attractive US growth stocks that not only saw their profits increase but have also raised their dividends in tandem.
Tractor Supply Company (NASDAQ: TSCO)
Tractor Supply is the largest rural lifestyle retailer in the US with 2,233 stores in 49 states as of 30 March 2024. The company also operates 202 Petsense stores selling pet-related items.
The company serves the needs of recreational farmers, ranchers, gardeners and homeowners with more than 50,000 staff on its payroll.
The company reported an encouraging set of results for the first quarter of 2024 (1Q 2024).
Sales inched up 2.9% year on year to US$3.4 billion while operating profit increased by 7.6% year on year to US$263.1 million.
Net profit improved by 8.2% year on year to US$198.2 million.
Tractor Supply upped its quarterly dividend by 6.8% year on year from US$1.03 to US$1.10 per share.
The retailer also generated a positive free cash flow of US$100.2 million for 1Q 2024, reversing the negative free cash flow of US$138.4 million a year ago.
Tractor Supply opened 17 new Tractor Supply stores along with four new Petsense stores during the quarter.
The company expects US$14.9 billion in sales for 2024 along with comparable store sales ranging between negative 1% to positive 1.5%.
Visa (NYSE: V)
Visa is a payment card services company with 4.4 billion debit and credit cards in issue as of 31 December 2023.
The company recently released its financial results for the first half of fiscal 2024 (1H FY2024) ending 31 March 2024.
For 1H FY2024, revenue increased 9.3% year on year to US$17.4 billion while operating profit improved by 8.5% year on year to US$11.3 billion.
Net profit jumped 13.2% year on year to US$9.6 billion.
Visa’s free cash flow generation for 1H FY2024 stayed constant year on year at US$7.6 billion.
The payments company increased its quarterly dividend to US$0.52 from US$0.45 a year ago.
Colgate-Palmolive Company (NYSE: CL)
Colgate-Palmolive is a consumer goods company focusing on oral care, personal care, and home care products.
The company sells its famous brands such as Colgate, meridol, Protex, Sanex, and others to more than 200 countries worldwide.
Colgate-Palmolive reported a robust set of earnings for 1Q 2024 with net sales rising by 6.2% year on year to US$5.1 billion.
Operating profit climbed 15.2% year on year to US$1 billion while net profit soared 83.6% year on year to US$683 million.
The consumer goods giant generated a positive free cash flow of US$555 million for the quarter, just 3% below the US$572 million it churned out in the previous year.
Its most recent quarterly dividend declared was US$0.50 per share, slightly above the US$0.48 that was paid out a year ago.
Procter & Gamble (NYSE: PG)
Procter & Gamble, or P&G, is also a consumer goods company that sells hair care, body care, and skincare products.
The company boasts a portfolio of well-known brands such as Gillette, Head & Shoulders, Pampers, Olay and many others.
For the first nine months of fiscal 2024 (9M FY2024) ending 31 March 2024, P&G’s sales inched up 3.3% year on year to US$63.5 billion.
Operating profit increased by 4.9% year on year to US$14.7 billion while net profit increased by 4.2% year on year to US$11.7 billion.
The consumer goods behemoth also saw its free cash flow jump 26% year on year for 9M FY2024 to US$11.6 billion.
The company raised its quarterly dividend by 7% year on year to US$1.0065, marking the 68th consecutive year that P&G has increased its annual dividend.
Texas Roadhouse (NASDAQ: TXRH)
Texas Roadhouse operates a chain of restaurants in the casual dining segment with 740 restaurants in its system spread across 49 US states and 10 foreign countries.
The restaurant chain reported an encouraging set of results for 2023.
Total revenue increased by 15.4% year on year to US$4.6 billion, with comparable restaurant sales increasing by 10.1% for company-owned restaurants and 9.8 at domestic franchise restaurants.
Operating profit improved by 10.6% year on year to US$354 million with net profit climbing 13% year on year to US$304.9 million.
Texas Roadhouse generated a positive free cash flow of US$217.9 million for 2023.
A total of 30 company restaurants and 15 franchised outlets were opened last year, and the company also repurchased 455,000 shares for US$50 million.
The board of directors authorised the payment of a quarterly dividend of US$0.61 per share, an 11% increase from the previous year.
Texas Roadhouse has seen a positive 6.8% increase in comparable restaurant sales for the first 50 days of 1Q 2024 and also implemented a 2.2% menu price increase in late March.
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Disclosure: Royston Yang owns shares of Tractor Supply Company and Visa.
