If capital appreciation is your only focus in investing, you may want to consider growth stocks, but adding dividend paying stocks can provide both, the capital appreciation promised by growth stocks and the dividends promised by the name. The appeal is clear: It offers you the chance for long term stock price increases, and the benefit of regular dividend payouts. If you're not ready to take that risk, a solid strategy for 2024 includes stocks that combine strong growth potential with attractive dividends. Dual investment of this kind can alleviate the volatility that can be associated with growth stocks, while still allowing for very large returns.

In this article, we will look at 9 stocks that have a great potential of price appreciation and reliable dividends. These stocks spread over the many sectors of the industry and provide diversity in your portfolio. If you're an experienced investor or a newbie to the market, adding growth stocks that also pay dividends is a good way to make money on both income and capital growth. So let's get into the details of 2024 high potential picks.

9 Growth Stocks That Also Pay Dividends

Here are 9 growth stocks that not only show potential for long-term appreciation but also provide reliable dividend payouts.

Microsoft (MSFT)

Microsoft has long been one of the leading companies in the technology world, and its growth looks no where but up. And Microsoft's revenue base grows, with its wide variety of cloud services, software solutions and innovative technologies. However, at the same time, it has proved its willingness to pay regular dividends to shareholders since 2003.

This tech giant has increased dividends for many years, and that is because it has a solid earnings and cash flow. While its dividend yield won't be as high as other companies, Microsoft's consistent growth makes for a solid choice for long term investors looking to compound price and dividend.

Johnson & Johnson (JNJ)

Known for its stability and consistency, Johnson & Johnson is a dividend aristocrat, meaning it has consistently raised its dividend payout for over 25 years. As a global leader in pharmaceuticals, medical devices, and consumer health products, JNJ has a diversified business model that allows it to weather economic downturns while still delivering growth.

The companys dividend yield is strong, and its growth prospects are backed by innovations in the healthcare sector, particularly in areas like oncology and immunology. With a well-balanced mix of growth and income, Johnson & Johnson is a great pick for investors looking for reliability and dividends.

Apple (AAPL)

Apple is another tech giant that has become a cornerstone of the modern investment portfolio. While its best known for its products like the iPhone, iPad, and Mac computers, Apple has transformed into a services company with recurring revenue streams from its App Store, Apple Music, and iCloud. This shift has provided a steady foundation for its growth.

Apples dividend yield is moderate but stable, and the company has shown a consistent ability to grow both its revenue and its payouts to shareholders. With its vast cash reserves and market-leading position in consumer electronics, Apple is well-positioned to continue delivering both capital gains and reliable dividends.

Procter & Gamble (PG)

Procter & Gamble is one of the most well-established consumer goods companies in the world, and it has a long history of paying dividends. The company owns a diverse range of household brands like Tide, Pampers, and Gillette, all of which help generate consistent revenue even during economic uncertainty.

In addition to its stability and dividend history, P&G is also focusing on growth through innovation, particularly in its health and beauty divisions. Its ability to grow revenue while paying regular dividends makes it an attractive option for investors looking for long-term stability and income.

PepsiCo (PEP)

PepsiCo is another consumer staple that combines growth potential with dividend payouts. The companys portfolio includes some of the most iconic food and beverage brands, including Pepsi, Mountain Dew, Lays, and Gatorade. These products are in demand worldwide, providing steady cash flow to fund its dividend payments.

PepsiCo has been increasing its dividends for over 40 years, making it a reliable choice for dividend-seeking investors. With its international presence and expansion into healthier products, PepsiCo offers both growth and steady income for its shareholders.

Visa (V)

Visa is a global leader in digital payments and has capitalized on the rapid growth of e-commerce and digital transactions. As the world continues to shift towards cashless payments, Visa is well-positioned to continue its growth trajectory in the coming years.

In addition to strong growth prospects, Visa has a solid dividend payment history, regularly increasing its payouts to shareholders. The companys low payout ratio also leaves room for further dividend increases as its revenue continues to grow, making it a great pick for those seeking both capital appreciation and income.

Coca-Cola (KO)

Coca-Cola is a well-known dividend-paying stock with a long history of rewarding shareholders. The companys global reach, strong brand portfolio, and established market position make it a solid growth stock. Despite its somewhat slow growth in recent years, Coca-Cola has adapted by expanding into healthier beverage options like sparkling waters and teas, ensuring its long-term relevance.

The companys reliable dividend and focus on growth through product diversification make it a strong pick for investors looking for both income and potential capital gains.

Texas Instruments (TXN)

Texas Instruments is a leading semiconductor company known for producing chips that are critical to industries ranging from automotive to consumer electronics. The company has experienced strong growth due to the ongoing demand for chips, and it has a robust dividend payout record.

With a well-managed business and a focus on innovative products, Texas Instruments offers both growth potential and a steady dividend yield. The companys dividend payout ratio is sustainable, and it has consistently increased dividends over the years, making it a solid pick for long-term investors.

Realty Income (O)

Realty Income operates as a real estate investment trust (REIT) that focuses on acquiring and managing commercial properties leased to high-quality tenants. The company has a unique business model that generates consistent cash flow through long-term lease agreements.

Realty Income is known for its monthly dividend payouts, which are particularly attractive to income-seeking investors. While it doesnt offer the explosive growth seen with tech stocks, its reliable cash flow and stable dividends make it a solid choice for dividend investors.

Conclusion

For investors looking to build a portfolio that combines the potential for growth with steady income, focusing on growth stocks that pay dividends is a smart strategy. The 9 stocks discussed in this article represent a diverse mix of sectors, from technology and healthcare to consumer goods and real estate. Each of these companies has a proven track record of growth and has demonstrated a commitment to rewarding shareholders through consistent dividends.