The investment world is split into two clear camps – growth investing and income investing.
Growth investing involves buying a portfolio of growth stocks that can propel your investment portfolio to new heights.
Income investing, on the other hand, emphasizes the dividends received from a stock that constitutes a stream of passive income.
However, there is nothing that says you cannot enjoy the best of both worlds.
There are many stocks that not only exhibit growth but also dish out a dividend.
We feature four of them that you may wish to add to your buy watchlist.
ResMed (NYSE: RMD)
ResMed is a leader in delivering connected and digital health solutions for patients suffering from sleep apnea and chronic obstructive pulmonary disease (COPD).
The company has enjoyed steady growth over the years.
For its fiscal 2019 (FY2019) ending 30 June 2019, revenue came in at US$2.6 billion.
By FY2023, revenue had grown to US$4.2 billion while net profit more than doubled over the same period to US$897.6 million.
This momentum has carried over into the first quarter of FY2024 (1Q FY2024).
Revenue jumped 16% year on year to US$1.1 billion with operating profit increasing 4.8% year on year to US$289 million.
Net profit inched up 4.2% year on year to US$219.4 million with the company generating a positive free cash flow of US$245.4 million for the quarter.
A dividend of US$0.48 was declared, 9.1% higher than the US$0.44 paid out a year ago.
A study published in the Journal of American Medical Association Network Open estimated that the number of COPD sufferers will increase by 23% by 2050 to 600 million patients globally.
ResMed has sold around 22.5 million connected devices in the year to date and estimates that it can sell around 109 million by 2050 based on this long-term trend.
PepsiCo (NASDAQ: PEP)
PepsiCo is a global food and beverage leader that sells its products in more than 200 countries and territories worldwide.
Iconic brands under its umbrella include Pepsi-Cola, Gatorade, Doritos, Mountain Dew, and Quaker.
The food and beverage manufacturer reported a strong result for the first nine months of 2023 (9M 2023).
Revenue increased by 8.9% year on year to US$63.6 billion.
Operating profit, however, dipped by 3.7% year on year while net profit fell by 7.4% year on year to US$7.8 billion.
Investors should note that 9M 2022’s results included an exceptional gain and an impairment of intangible assets.
Excluding these, PepsiCo would have reported a 16.5% year on year increase in net profit.
The company’s free cash flow climbed 35.8% year on year to US$5.1 billion.
A quarterly dividend of US$1.265 per share was declared, bringing the annualised dividend to US$5.06, a 10% year-on-year increase from US$4.60.
Ralph Lauren (NYSE: RL)
Ralph Lauren designs, markets and distributes premium lifestyle products such as apparel, footwear, and accessories.
The luxury retailer posted a mixed set of results for the first half of fiscal 2024 (1H FY2024) ending 30 September 2023.
Revenue edged up 1.9% year on year to US$3.1 billion but operating profit fell by 13.4% year on year to US$330.9 million.
Ralph Lauren saw a boost from higher interest income that allowed its net profit for 1H FY2024 to creep up 1.9% year on year to US$279 million.
After adjusting for restructuring charges in both years, the company’s net profit would have grown by 13.1% year on year to US$323.9 million.
Ralph Lauren’s free cash flow also turned positive for 1H FY2024 at US$261.2 million, reversing the free cash outflow of US$82 million a year ago.
A dividend of US$0.75 was declared for the latest quarter, unchanged from the same period last year.
Management expects FY2024’s revenue to increase by a low single-digit percentage year on year while gross margin is expected to increase by 1.2% to 1.7%.
Kimberly-Clark (NYSE: KMB)
Kimberly-Clark is a consumer products company selling items such as hand napkins, tissue paper, diapers and sanitary pads under famous brands such as Huggies, Cottonelle, Scott, Kotex, and Kleenex.
The company’s brands are sold in more than 175 countries.
For 9M 2023, Kimberly-Clark saw net sales inch up 2% year on year to US$15.5 billion.
Operating and net profit, however, fell by 15% and 12% year on year to US$1.7 billion and US$1.3 billion, respectively.
9M 2023’s financials were negatively impacted by an impairment charge of US$658 million.
Excluding this, the consumer goods company’s net profit would have surged by 34.1% year on year to US$1.9 billion.
Free cash flow soared 67.3% year on year for 9M 2023 to US$1.8 billion.
A dividend of US$1.18 was paid out for the quarter, a slight increase from US$1.16 a year ago.
Kimberly-Clark intends to continue investing in innovative brands to meet consumers’ needs and has raised its full-year sales and earnings outlook.
Get Smart: The importance of an LPOA
Investors should not just focus on building a robust portfolio of growth stocks that pay dividends.
Mental health is also a major consideration, which is why it is important to set up a proper Lasting Power of Attorney (LPOA).
With an LPOA, you can carry on investing without worries as you will be well taken care of in case of any mental health emergency.
To find out more about Lasting Power of Attorney, please click HERE.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.