3 Dividend Leaders Set for Strong Growth in 2025

Core Insights - Dividend growth stocks provide stable returns and portfolio growth through increasing annual distributions, which can be reinvested for compounded performance [1] - The stocks discussed are growth stocks with total returns projected in the high-double-digits for 2024, and significant growth over the past five and ten years [2] Group 1: Packaging Corporation of America (PKG) - PKG has experienced nearly 100% price appreciation over the last eighteen months, with a dividend yield of 2.11% and a P/E ratio of 27.63 [4] - The company is expected to see adjusted EPS growth of nearly 25% in 2024, with a payout ratio of only 55%, indicating strong dividend sustainability [5] - Analysts have increased their price targets for PKG by nearly 50% in the latter half of 2024, suggesting a positive revision trend [6] Group 2: Cintas (CTAS) - Cintas operates with a strong balance sheet and has a dividend yield of 0.74%, with a P/E ratio of 53.48, indicating high-quality operations [7] - The company is expected to sustain growth in the high single digits, supported by expanding market presence and share repurchases [8] Group 3: Casey's General Stores (CASY) - CASY has a dividend yield of 0.47% and a P/E ratio of 29.58, with plans to sustain margins despite headwinds in 2024 [12] - The company is acquiring Fikes Wholesale to enhance its regional presence, which will support future growth [12] - CASY has a low payout ratio of less than 15%, positioning it well to continue its history of dividend increases [13]