Investors love growth stocks that also pay big and reliable dividends because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 – $20) / $20 = 13%. This combines the price appreciation and the dividend received.
BofA Securities is one of the top firms on Wall Street, and we have covered the company’s curated stock lists for years. These are the absolute best ideas in several different categories, including the Endeavor List, covering small-cap stocks, and the Value 10 list, featuring the top analysts’ best value ideas. One of our readers’ favorite lists is the Growth 10 list, a quantitatively generated portfolio of 10 stocks with high expected earnings growth. BofA Global Research analysts select the stocks from the most attractive stocks in the S&P 500.
We screened the Growth 10 list for stocks that are Strong Buys and also provide shareholders with reliable dividends. Four of the companies are timely ideas for growth and income investors now.
Why do we cover growth dividend stocks?
Growth dividend stocks also offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Allstate
This insurance giant raised its dividend earlier this year by 8.7%. Allstate Corp. (NYSE: ALL | ALL Price Prediction) provides property, casualty, and other insurance products in the United States and Canada.
It operates in five segments:
- Allstate Protection
- Run-off Property-Liability
- Protection Services
- Allstate Health and Benefits
- Corporate and other
The company offers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online, as well as property and casualty insurance. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, protection, and insurance products, such as identity protection and restoration through:
- Allstate Protection Plans
- Allstate Dealer Services
- Allstate Roadside
- Arity
- Allstate Identity Protection brands
In addition, the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; Medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents; and net investment income, net gains on investments, other revenue, debt service, holding company activities, and certain non-insurance operations.
The company also offers automotive protection, vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection, as well as roadside assistance, mobility data collection services, and analytical solutions utilizing automotive telematics information. Additionally, it provides identity theft protection and remediation services.
BofA Securities has a huge $286 target price.
Gilead Sciences
This biotech giant pays a solid dividend and offers outstanding total return potential for 2025. Gilead Sciences Inc. (NASDAQ: GILD) is engaged in advancing medicines to prevent and treat life-threatening diseases, including human immunodeficiency virus (HIV), viral hepatitis, COVID-19, cancer, and inflammation, and is focused on discovering, developing, and delivering medicines to address unmet medical needs in virology, oncology, and other therapeutic areas.
The company’s portfolio of marketed products includes:
- Biktarvy
- Genvoya
- Descovy
- Complera/Eviplera
- Symtuza
- Truvada
- Stribild
- Sunlenca
- Epclusa
- Vemlidy
- Harvoni
- Viread
- Livdelzi
- Veklury
- Yescarta
- Tecartus
- Trodelvy
- AmBisome
- Letairis
Gilead’s product candidates include Bulevirtide, Lenacapavir, Axicabtagene ciloleucel, Anitocabtagene autoleucel, Sacituzumab govitecan-hziy, and Domvanalimab and zimberelimab. Biktarvy is an oral formulation dosed once a day for the treatment of HIV-1 infection in certain patients.
It operates in more than 35 countries worldwide.
BofA Securities has a $126 target price for the shares.
Merck
Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. Merck is not just a healthcare company but a global force in the industry. Down over 30% over the past year while paying a solid dividend, this blue chip is a no-brainer. The company operates through two segments.
The Pharmaceutical segment offers human health pharmaceutical products in:
- Oncology
- Hospital acute care
- Immunology
- Neuroscience
- Virology
- Cardiovascular
- Diabetes
- Vaccine products, such as preventive pediatric, adolescent, and adult vaccines
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves:
- Drug wholesalers
- Retailers
- Hospitals
- Government agencies
- Managed healthcare providers, such as health maintenance organizations
- Pharmacy benefit managers and other institutions
- Physicians
- Physician distributors
- Veterinarians
- Animal producers
Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.
The BofA Securities price target is posted at $99.
Welltower
Welltower Inc. (NYSE: WELL) is a real estate investment trust that invests in healthcare infrastructure. This is another favorite pick at BofA Securities, and the company delivers a solid dividend payout. Welltower specializes in seniors housing operating properties, as well as long-term and healthcare infrastructure.
The company invests with senior housing operators, post-acute providers, and health systems to fund the real estate infrastructure needed to scale care delivery models and improve people’s wellness and overall healthcare experience.
Welltower owns interests in properties concentrated in high-growth markets in the United States, Canada, and the United Kingdom, including senior housing, post-acute communities, and outpatient medical properties.
Its senior housing operating properties include:
- Senior apartments
- Assisted living,
- Independent living/continuing care retirement communities
- Independent supportive living communities (Canada)
- Care homes with and without nursing (United Kingdom), and combinations thereof
The company’s triple-net properties include those under seniors housing operating properties, as well as long-term and post-acute care facilities.
BofA Securities has set a $240 price objective for the stock.
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