Winmark Corporation (NASDAQ:WINA) is among the 15 Dividend Growth Stocks with the Highest Growth Rates, appealing to income investors. The company operates 1,350 franchise locations, focusing on secondhand goods retail stores like Plato’s Closet and Once Upon A Child. With strong cash reserves, WINA offers a steady income for investors.

The franchise model remains at the core of Winmark Corporation (NASDAQ:WINA), generating revenue through franchise fees and royalties. The company is gradually exiting its leasing segment to support higher margins. WINA has consistently raised dividends at an annual average rate of nearly 36% in the past five years, making it an attractive choice for investors.

In the third quarter of 2025, Winmark Corporation (NASDAQ:WINA) had over $39.7 million in cash and cash equivalents, up from $12.1 million in December 2024. Its operating cash flow was over $36.3 million, enabling the company to maintain a solid dividend policy. WINA pays a quarterly dividend of $0.96 per share with a dividend yield of 0.98%.

While WINA offers investment potential, certain AI stocks may have greater upside potential and lower downside risk. Investors seeking undervalued AI stocks should consider other options. For more information, check out the article on the best short-term AI stock. Disclosure: None.

Read more at Yahoo Finance: Winmark’s (WINA) Strategic Shift and Cash Growth Enhance Its Appeal to Income Investors