From Yahoo Finance: 2025-04-15 07:51:00

Investors are turning to high growth forever dividend stocks like Comfort Systems USA, Inc. (FIX) as traditional dividend stocks have lagged behind due to AI-focused companies. Even during market turbulence, dividend stocks remain stable, with the Dividend Aristocrats Index showing a decline of nearly 3% compared to over 8% for the S&P index and over 13% for NASDAQ.

Historical data shows that Dividend Aristocrats have delivered higher risk-adjusted returns with lower volatility compared to the broader market. During market downturns, these stocks outperform the S&P index and experience smaller drawdowns. Analysts predict a strong phase of dividend growth, with global dividends per share expected to accelerate to 7.6% in the coming years.

Comfort Systems USA, Inc. (FIX) ranks first on the list of high growth stocks that pay dividends. The company reported strong revenue growth of 37.5% in the fourth quarter of 2024, with net income increasing to $145.9 million. FIX also declared a 14.3% hike in its quarterly dividend, marking its 13th consecutive year of dividend growth and supporting a dividend yield of 0.46%.

The company has a robust cash position, ending the year with $550 million in cash and cash equivalents. FIX generated $210.5 million in operating cash flow and $171.7 million in free cash flow. While FIX shows promise as an investment, some deeply undervalued dividend stocks may offer greater potential for higher returns within a shorter time frame.



Read more at Yahoo Finance: The High Growth Forever Dividend Stock to Invest In