If Growth Is Your Game, We Have the Name of the Dividend Stock for You

Are you confused about investing in dividend or growth stocks? Here are a few dividend stocks generating capital and dividend growth.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published February 27, 8:00 pm EST

Is it a good time to buy growth stocks or dividend stocks? Both stocks serve different purposes. However, several tech-related growth stocks have been falling due to uncertainty around the impact of artificial intelligence (AI). Several dividend stocks, from real estate to energy to telcos, have been slashing dividends. In this topsy-turvy world, here are two dividend stocks that can ace your growth game.

Child measures his height on wall. He is growing taller. — Source: Getty Images

The dividend stock for your growth game

TC Energy (TSX: TRP) stock has surged 87% since October 2023. What happened? Is this growth sustainable? In these 16 months, a lot has happened on the macro, policy, and company’s structure front, all in sync for the growth symphony.

TC Energy’s biggest risk was the Keystone XL pipeline, which reported several oil spills until the company cancelled the project after being revoked by the Biden administration. The company then spun off its oil pipeline business and is now a pure gas pipeline company. It has been completing gas pipeline projects on time and under budget.

The company earns more than 50% of its revenue from US Gas transmission. However, US tariffs have increased the need for diversification. To tap the North American liquified natural gas (LNG) exports opportunity, Canada made its first LNG exports from the LNG Canada terminal. The Canadian government has made it a priority project to expand terminals to export more gas.

The growth angle of TC Energy

TC Energy’s biggest growth driver could be the Natural Gas Transmission Line (NGTL) pipeline, as it will be the key beneficiary of this changing supply chain. In addition, artificial intelligence (AI) data centres are using natural gas-fired power stations to meet their energy needs, which will increase natural gas demand. Cherry on top are the Canadian government’s policies to expedite major infrastructure projects. The gas pipeline is in a cyclical rally, which could drive growth for the next five years.

Manulife Financial

Another dividend stock that is on a growth spree is Manulife Financial (TSX: MFC). Its stock has doubled since October 2023 as the company expanded organically and through expansion. It acquired U.S.-based Comvest Credit Partners and PT Schroder Investment Management Indonesia and entered the Indian insurance market in partnership with Mahindra & Mahindra.

Between 2023 and 2025, Manulife’s core return on equity (ROE) increased from 15.9% to 16.5%, and remittances increased from $5.5 billion to $6.4 billion. The company aims to increase ROE to 18% by 2027. It has grown its dividend per share at an average annual rate of 10.7% in the last 13 years. The stock’s momentum has slowed, with the share price falling 6% in February. Now is a good time to lock in a 4% yield and future growth.