3 Dividend Growth Stocks for Compounding Returns

Core Viewpoint - In uncertain macroeconomic times, adding exposure to top dividend growth stocks is crucial for consistent returns as the broader market experiences corrections [1][2]. Group 1: Kaspi.kz (KSPI) - Kaspi.kz operates a leading fintech and e-commerce ecosystem in Kazakhstan, showing impressive growth across its Payments, Marketplace, and Fintech platforms [3][4]. - In Q2 2024, Kaspi.kz's revenue surged by 36% and net income increased by 25% year-over-year, driven by the rapid adoption of its Super App [4]. - The company's Marketplace GMV soared by 62%, with strong performance in e-commerce, e-grocery, and travel sectors [4]. - Analysts initiated coverage with a price target of $175, indicating a potential upside of 35% [4]. - The stock has climbed 33% over the past year, and it offers a dividend yield of 5.5% [5]. Group 2: Opera (OPRA) - Opera is a browser company that has seen impressive growth, particularly with its gamer-centric Opera GX browser [6][7]. - In Q1 2024, Opera reported revenue of $101.9 million, a 17% year-over-year increase, and raised its full-year outlook [6]. - Analysts have a consensus moderate buy rating with an average price target of $23.50, representing nearly 87% upside [7]. - The stock is considered undervalued with a forward price-earnings ratio under 14-times, and earnings per share are expected to double while revenue grows by 13% annually over the next four years [7]. - Opera offers a dividend yield of 6.6% [7]. Group 3: Turkcell (TKC) - Turkcell is a leading mobile and digital services provider in Turkey, with revenue growing by 11.8% year-over-year in Q1 2024, driven by strong ARPU growth and a larger subscriber base [8][9]. - The stock has soared by 67% over the past year, with revenue expected to surge by 40% this year to $4.6 billion and reach nearly $10.4 billion within three years [9][10]. - Despite concerns over Turkey's high inflation, the company has adapted well, and it provides a dividend yield of nearly 4% [10].