4 Top Growth Stocks That Pay Dividends

NYSE: VGR | Vector Group Ltd.  News, Ratings, and Charts

VGR – While the market is witnessing a rotation away from expensive growth stocks to value stocks, it could be a good idea to bet on growth stocks that are available at reasonable prices but nonetheless hold the potential to grow significantly with the impending economic recovery. However, to hedge against market volatility, choosing stocks that also pay dividends could up the odds of success. Vector Group (VGR), Haverty Furniture Companies (HVT), Entravision Communications (EVC), and Big 5 Sporting Goods (BGFV) possess solid growth attributes and pay decent dividends. Want to learn more? Then read on.

Analysts and investors anticipate a fast-paced economic recovery thanks to a federal-stimulus-driven increase in consumer spending, a low interest rate environment, and the gradual but continuing resumption of industrial activity. Consequently, many investors are shifting away from stay-at-home stocks to reasonably-priced stocks that are expected to do well with an economic recovery.

So, stocks that hold the potential to grow in the economic recovery phase should be the ones on which growth investors bet. However, given current market volatility, it could be wise to ensure some steady dividend income to enhance the growth attributes of a stock before investing in it.

Vector Group, Ltd. (VGR), Haverty Furniture Companies, Inc. (HVT), Entravision Communications Corporation (EVC), and Big 5 Sporting Goods Corporation (BGFV) are well positioned, we think, to grow their revenues and EPS with the economic recovery and they pay decent dividends. So, betting on these stocks could help one generate solid total returns.

Vector Group, Ltd. (VGR)

VGR is involved in the manufacture and sale of cigarettes and e-cigarettes. The company has operations primarily in the United States. VGR has gained 31.6% over the past year to close yesterday’s trading session at $13.67.

The company recently launched New Valley Ventures,  an investment vehicle that focuses  on next-generation technologies. The new company will invest in PropTech startups.

VGR’s trailing-12-month revenue has grown at a CAGR of 4.8% over the past five years. Its  trailing-12-month ebitda  grew at a CAGR of 7.2% year-over-year.

VGR  declared a dividend per share of $0.2 last quarter. The company has an annual dividend yield of 5.85%. The four-year average yield of the stock  is 11.4%.

VGR is expected to see a revenue growth of 17.7% for the quarter ended March 31, 2021 and 3.9% in 2021. Its  EPS is estimated to grow 33.3% for the quarter ended March 31, 2021 and at a rate of 6.4% per annum over the next five years.

The POWR Ratings are also high on VGR. It has an Overall Rating of A, which translates to a Strong Buy. The POWR Ratings are calculated by considering 118 different factors with the weighting of each optimized to improve overall performance.

It also has an A Growth rating along with Momentum, Value, and Quality ratings of B. In the A-rated Tobacco industry, it is ranked #1 of 11 stocks.

In total, we rate VGR on eight different levels. Beyond what we’ve stated above, we have also given VGR grades for Sentiment, and Stability. Get all the VGR ratings here.

Click here to checkout our Retail Industry Report for 2021

Haverty Furniture Companies, Inc. (HVT)

HVT is a specialty retailer of home furniture and accessories. The company has operations primarily in the United States. HVT has returned 185.1% over the past year to close yesterday’s trading session at $36.01.

The company recently opened a new store located in Southlake Corners. The store will have a dedicated space for in-store consultations.

HVT  declared a dividend per share of $0.22 last quarter. Its  dividend payout has grown at a CAGR of 15.6% over the past five years. The company has an annual dividend yield of 2.44%. The four-year average yield of the company’s stock  is 5.9%.

The company  is expected to see 11% revenue growth  for the quarter ended March 31 and 14.1% in 2021. Its  EPS is estimated to grow 25.5% for the quarter ended March 31, 2021 and 13.1% per annum over the next five years.

The company’s trailing-12-month revenue has increased at a CAGR of 1.9% over the past 10 years. HVT’s trailing-12-month EBITDA has increased at a CAGR of 9.1% over the past 10years.

It’s no surprise that HVT has an overall A rating, which equates to Strong Buy in our POWR Ratings system. HVT has an A  grade  for Quality, Growth, Momentum, and Value. In the A-rated Home Improvement & Goods industry, it is ranked #1 of 64 stocks.

Click here to see the additional POWR Ratings for HVT (Sentiment and Stability).

Entravision Communications Corporation (EVC)

EVC operates in the television broadcasting and radio broadcasting segments. The company has worldwide operations. EVC’s stock price has increased 101.9% over the past year and its last closing price was $4.08.

EVC is expected to see a revenue growth of 97.9% for the quarter ended March 31, 2021 and 53.8% in 2021. The company’s EPS is estimated to grow 566.7% in 2021.

EVC’s trailing-12-month revenue has expanded at a CAGR of 6.2% over the past five years, while its trailing-12-month ebitda  has expanded at a CAGR of 43.6% over the past year.

The company recently launched a revamped online news destination called Noticiasya.com. It  has also released a new audio streaming hub called El Botón.

EVC  declared a dividend per share of $0.025 last quarter. The shares have an annual dividend yield of 2.45%. The four-year average yield of the company’s stock is 5.88%

EVC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating,  which equates to Strong Buy in our proprietary ratings system. EVC has an A  grade for Growth and Sentiment, and B for Value and Quality. In the B-rated Entertainment – Broadcasters industry, it is ranked #1 of 11 stocks.

Beyond what we’ve stated above we have also given EVC grades for Momentum, and Stability. Get all the EVC ratings here.

Big 5 Sporting Goods Corporation (BGFV)

BGFV is a specialty retailer that focuses on sporting goods. The company  has operations primarily in the Western United States. BGFV has gained 1050.8% over the past year to close yesterday’s trading session at $14.04.

BGFV  declared a dividend per share of $0.15 last quarter, which is an increase of 50% versus its  earlier dividend amount. The company’s stock  has an annual dividend yield of 4.27%. The four-year average yield of the stock is 9.18%.

BGFV is expected to see  revenue growth of 19.5% for the quarter ended March 31, 2021, and its  EPS is estimated to grow 400% for the same quarter.

The company  recently negotiated a loan from Bank of America (BAC). The five-year loan  is expected to help give the financial flexibility to  the company’s operations.

BGFV’s trailing-12-month revenue has grown  at a CAGR of 0.2% over the past five years, while its  trailing-12-month ebitda  has grown  at a CAGR of 31.9% over the past three years.

It’s no surprise that BGFV has an overall A rating, which equates to Strong Buy in our POWR Ratings system. BGFV has an A  grade for Quality, Growth, Momentum, and Value. In the A-rated Athletics & Recreation industry, it is ranked #1 of 33 stocks.

Click here to see the additional POWR Ratings for BGFV (Sentiment, and Stability).

The POWR Ratings are calculated by considering 118 different factors with the weighting of each optimized to improve overall performance.

Click here to checkout our Retail Industry Report for 2021

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VGR shares were trading at $13.79 per share on Thursday afternoon, up $0.12 (+0.88%). Year-to-date, VGR has gained 19.98%, versus a 4.11% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

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