S&P Global Inc. (SPGI): One of the High Growth Forever Dividend Stocks to Invest In

Yahoo

15-04-2025

We recently published a list of the . In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other high growth forever dividend stocks.
Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don't diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market's monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices.
Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump's expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session's gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%.
This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market's down months and roughly 44% of its up months. They've also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market.
Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years.
The report emphasized that the most promising opportunities in the dividend space lie with so-called 'Compounders'—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends.
A group of analysts studying data on a large monitor.
For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. The stocks are ranked in ascending order of their revenue growth rates.
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5-Year Revenue Growth: 16.23%
S&P Global Inc. (NYSE:SPGI), a US-based capital markets firm specializing in financial analytics and information services, delivered solid results in the fourth quarter of 2024. The company posted a 14% year-over-year increase in revenue, while adjusted earnings per share rose by 20% to $3.77. Management also lifted investor confidence by issuing an upbeat outlook for the year ahead and announcing a new share repurchase program. A key highlight was the Ratings division, which saw a 31% jump in revenue, fueled by stronger activity across investment-grade and high-yield bonds, as well as loans and structured finance instruments—diversifying the company's earnings sources.
S&P Global Inc. (NYSE:SPGI) benefits from a subscription-based model, with over 75% of its revenue coming from recurring streams. This setup helps buffer its performance against fluctuations in the broader debt markets, where the Ratings business is a cornerstone. In addition, its Market Intelligence segment, alongside the Indices and Commodity Insights divisions, contributes to steady, dependable income.
S&P Global Inc. (NYSE:SPGI) also displayed robust financials, with operating cash flow reaching $5.7 billion in 2024, up from $3.7 billion a year earlier. Free cash flow rose to $5.27 billion, compared to $3.2 billion in 2023. This allowed the company to return $1.1 billion to shareholders via dividends. It pays a quarterly dividend of $0.96 per share, yielding 0.83%, as of April 13. The company has grown its dividend for 53 consecutive years.
Overall, SPGI ranks 2nd on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SPGI but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the .
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Disclosure: None. This article is originally published at .