The Nasdaq Composite is often associated with high-powered growth stocks. But there are also many quality dividend stocks in there as well, which are also focused on growth. Three stocks that could potentially give you the best of both worlds are Viatris (VTRS -0.78%), Comcast (CMCSA -0.82%), and Paccar (PCAR 2.58%).
1. Viatris
Drugmaker Viatris has only been around since 2020 when it spun off from Pfizer and merged with Mylan. It sells generic and branded drugs, and has been expanding via acquisitions of late.
On Jan. 3 the company announced the closing of two acquisitions -- Oyster Point Pharma and Family Life Sciences. As a result of the deals, the company will have a new division focused on eye care. Combined, Viatris believes the acquisitions could add $1 billion in revenue by 2028. Over the trailing 12 months, Viatris' top line has totaled $16.7 billion.
Since it's relatively new, Viatris hasn't been paying dividends for long -- but offering a payout looks to be a priority, as its yield is 4.1% right now (that's more than double the S&P 500 average of 1.6%). And last year the company also bumped up its dividend by one cent.
Trading at less than four times its future earnings (which are based on analyst expectations), there's some good value in Viatris, as it's already a high-yielding dividend stock with some potentially underrated growth potential.
2. Comcast
Telecom giant Comcast is a growth-oriented business that pays a decent yield. Its owns NBCUniversal, Xfinity, and Sky, and has its streaming service Peacock, which thanks to Netflix's password sharing crackdown may have an opportunity to lure away some customers this year. At 20 million subscribers, Peacock is nowhere near the 231 million subscribers that use Netflix today. But for Comcast, that presents an attractive growth opportunity.
In 2022 the company's revenue rose by 4.3% to $121.4 billion. Its theme park business showed significant improvement, bringing in $7.5 billion in sales and rising by 49% year over year (due to lifted COVID restrictions). Comcast has both the stability of a strong telecom business and some great growth opportunities in theme parks and its media segment (which includes Peacock) that should help ensure its top line still has plenty of runway left to go higher.
Comcast's 3% yield also provides a good source of recurring income to investors. And with the stock trading at 10 times future profits (versus the S&P 500 average of 19), this is another relatively cheap stock to load up on today.
3. Paccar
Truck manufacturer Paccar is coming off a strong earnings report. It posted record numbers for 2022, including consolidated sales of $28.8 billion, which rose 23% year over year. Net income of just over $3 billion also jumped by an impressive 61%. This past year marked the 84th straight year where the company posted a profit, demonstrating some incredible resilience and stability for the business.
Paccar has been working on building more fuel-efficient trucks, and even electric vehicles, in a constant pursuit of growth and adapting to changing customer needs.
The company also pays a modest dividend yield of around 1.3%. It's the lowest payout on this list, but that can be misleading as it typically pays an extra dividend. In December 2022 it announced an extra cash dividend of $2.80 per share.
Special or extra dividend payments are not recurring, but they are a great sign that the company is eager and willing to compensate investors after a strong year. In 2021, the company also declared an extra cash dividend of $1.50.
For those kinds of surprises, it may be worth hanging onto the stock, especially at its cheap valuation; Paccar's stock trades at less than 12 times its future earnings despite being near its 52-week high. Given the company's impressive results and continued growth, this could be an underrated growth stock to own.
