This week’s top capital-growth dividend stocks
MaxDividends Mission: Helping people build growing passive income, retire early, and live off dividends.
🦅 Top Capital Growth Focused Dividend Eagles of the Week
Each week, we select the best growth-focused dividend stocks that are undervalued or fairly valued based on the MaxDividends strategy. Perfect for DGI investors, long-term dividend growth investors, and those seeking capital appreciation.
Hi — Max here.
We’ve all grown up hearing the same story. You’ve probably heard it too — or even believed it at some point. That you have to choose between income and growth. Either you collect dividends or you build wealth. Either you play it safe or you try to compound.
It sounds reasonable. It feels conservative. And it’s also wrong.
At MaxDividends, we’ve learned one simple truth: The investors who get paid the most over a lifetime are the ones who own the right businesses — companies that grow earnings, raise dividends, and reinvest capital better than almost anyone else.
When that engine is running, income and capital growth feed off each other.
That’s how real wealth is built.
☕ What The Market Quietly Revealed This Week
While headlines bounce between inflation fears and rate-cut dreams, something far more important is happening underneath. Margins are stabilizing. Cash flows are improving. Dividend increases keep coming. The strongest businesses are quietly pulling away from the rest.
Inside this week’s Capital Growth Focused Dividend Stocks, we saw that pattern again. These are not hype stories. They are businesses that pay us today and grow what they pay tomorrow — the rare combination that fuels long-term compounding.
🧨 Here’s the pain most dividend investors live with
You’ve probably seen this — or lived it yourself.
You have a portfolio. Dividends are coming in. But inside, everything feels messy. A few high-yield stocks. A couple of old favorites. Some positions bought on news. Some bought because “everyone owns them.” There is income, but there is no real plan.
Sound familiar?
It’s familiar to a lot of us. It used to be familiar to me too.
We get paid — but our income isn’t designed to compound. It isn’t engineered to grow. We own stocks, but we don’t yet run an income system. And without a system, everything turns into guessing: should we buy more, trim, chase yield, or chase growth?
That’s where we, as investors, can get stuck for years.
🧭 That’s exactly why MaxDividends exists
We help you get paid — forever. Live off dividends. On your terms.
MaxDividends isn’t a newsletter. It isn’t a stock-picking club. It’s an Income System.
Every stock we track is filtered through the same framework I use for my own portfolios: financial strength, dividend safety, growth runway, valuation, and long-term compounding power.
Inside the MaxDividends App, this becomes visible. You see which companies deserve new capital, which ones are quietly compounding, and which no longer belong in a serious income portfolio.
👉 Unlock the MaxDividends Income System & App
Get instant access to the MaxDividends Income System. Start living off dividends today - with a system you can trust.
🧠 This Week’s Capital Growth Focused Dividend Stocks
Four companies where capital growth leads — and dividends quietly follow.
These aren’t high-yield plays. These are businesses built to compound.
🧬 West Pharmaceutical Services (WST)
10-Year Annualized Return: +17.04%
10-Year Total Return (capital growth + dividends): +402%
30+ year dividend streak
West makes the high-precision components that allow injectable drugs and biologics to be delivered safely. That places it at the center of global healthcare without taking drug-development risk.
Once a drug is approved using West’s components, it typically stays there for years. Switching costs are extremely high and margins remain among the best in med-tech.
After a post-pandemic inventory reset, volumes are stabilizing and cash flows remain strong. With a payout ratio below 30%, most of that cash is reinvested into growth and future dividend increases.
☁️ Microsoft (MSFT)
10-Year Annualized Return: +24.64%
10-Year Total Return (capital growth + dividends): +935%
20+ year dividend streak
Microsoft sits inside almost every enterprise workflow. Azure, Office, Windows, Teams, LinkedIn, and Copilot form one of the most powerful ecosystems in business.
What changed in 2025 is that AI moved from investment to monetization. Copilot is now sold as a subscription. Azure AI workloads are accelerating. Margins are expanding again.
With a payout ratio near 24%, Microsoft can raise its dividend, buy back shares, and reinvest aggressively at the same time — a triple compounding engine.
🏭 Donaldson Company (DCI)
10-Year Annualized Return: +13.45%
10-Year Total Return (capital growth + dividends): +315%
30+ year dividend streak
Donaldson makes filtration systems — the parts that keep factories, trucks, and heavy equipment running. That makes its revenue replacement-driven, recurring, and unusually stable for an industrial company.
Even in slower cycles, equipment still needs maintenance. As reshoring, infrastructure spending, and environmental standards rise into 2026, demand for Donaldson’s products continues to grow.
🌍 Maruwa Co. (Japan)
10-Year Annualized Return: +33.60%
10-Year Total Return (capital growth + dividends): +1,826%
15+ year dividend streak
Maruwa manufactures advanced ceramic components used in semiconductors, EVs, and power electronics. These components are extremely difficult to replace once designed into a system, giving Maruwa pricing power, high margins, and long-term customer relationships.
With a payout ratio of just 6.6%, almost all cash flow is reinvested into growth — while dividends have already grown more than 80% in five years. This is what a future global dividend powerhouse looks like early in its income curve.
🦅 Why This Matters
These companies operate in different industries, but they share the same DNA: strong cash flows, low payout ratios, disciplined reinvestment, rising dividends, and long runways for capital growth.
But knowing great companies isn’t enough.
Without a system, even the best businesses can be bought at the wrong time, held too long, or sized incorrectly. Risk creeps in quietly. Discipline fades. And compounding suffers.
That’s why MaxDividends is not just about finding great stocks — it’s about running a disciplined income system that manages risk, valuation, and capital allocation as your portfolio grows.
That’s how income becomes freedom. And that’s exactly what the MaxDividends Income System is built to deliver.
👉 Unlock the MaxDividends Income System & App
Get instant access to the MaxDividends Income System. Start living off dividends today - with a system you can trust.
A proven system for building income you can live on — powered by our dividend intelligence app
— Max
Founder, MaxDividends
MaxDividends Mission
Helping people build growing passive income, retire early, and live off dividends.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.