Weekly Capital Growth Dividend Stock Picks

Where Capital Quietly Compounds

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.

Friends — Max here.

Let me start with something you and I both understand from experience.

Real wealth doesn’t usually announce itself. It doesn’t show up with headlines, fireworks, or urgency. It compounds quietly, steadily, almost politely — while most of the world is busy arguing about the next big thing.

That’s exactly what this week’s Capital Growth Dividend Leaders are about.

This series exists for one simple reason: to help us build the engine of the portfolio — the part that grows heavier, stronger, and more powerful with time. Capital first. Dividends as confirmation that the business is real, disciplined, and built to last.

When this part works, everything else gets easier. Future income has a bigger base. Decisions feel calmer. And patience finally starts paying us back.

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

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This week inside MaxDividends, we focused on businesses where earnings power expands quietly, reinvestment is intelligent, and dividends grow naturally as a result — not because management is trying to impress anyone, but because the math demands it.

And here’s the part that matters most.

None of this comes from gut feelings or narratives. Every single name you see is selected using the MaxDividends Income System — the same rulebook we use for our own portfolios and our kids’ portfolios.

The System decides what belongs. The App keeps us honest. And time does the heavy lifting. That combination is the edge.

This week’s Capital Growth radar surfaced companies with durable moats, pricing power, clean balance sheets, and long runways ahead. Businesses that don’t need perfect conditions to keep compounding — they just need time.

☕️ Pour your coffee. Tune out the noise. This is the part of investing that actually works.

This Week’s Capital Growth Dividend Leaders

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.

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🌍 A Japan-based advanced ceramics manufacturer

• 10-Year Annualized Return: +33.60%

• 10-Year Total Return (capital growth + dividends): +1,826%

• 15+ year dividend streak

This company produces highly specialized ceramic components used in semiconductors, electric vehicles, and power electronics. Once its parts are designed into customer systems, they are extremely difficult to replace — creating strong 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.

Here’s the key idea you already understand: Capital growth comes first. Dividends follow as proof. That’s why this series exists.

Inside the MaxDividends framework, Capital Growth Dividend Eagles are the growth engine that feeds everything else. Not the income bucket. Not the dividend-growth engine. This is the part that gets heavier with time — so future income has something real to compound from.

And none of these names show up by accident.

Every company is filtered through the MaxDividends Income System: financial strength first, reinvestment quality second, valuation discipline always. Dividends aren’t used to attract us — they’re used to validate the business.

The App then becomes our navigator. It stores the history, tracks valuation ranges, records dividend timelines, and shows us when something belongs — and when it no longer does.

The System decides. The App keeps us honest. We stay calm.

That’s the edge.

This week’s full Premium breakdown goes much deeper. Alongside the U.S. leaders, we also highlighted global compounders like Maruwa in Japan — a precision ceramics business quietly riding semiconductor complexity — and Stella-Jones in Canada, an infrastructure supplier with a Financial Score near perfection and dividend growth that keeps accelerating.

These are not trades. They’re foundation stones.

👉 Open the Full Capital Growth Dividend Eagles List

Inside the full weekly breakdown, Premium partners are getting:

Our Top 10 U.S. Capital Growth Dividend Leaders — the strongest compounders we’re tracking right now

• 3 fresh U.S. ideas that stand out as potential foundation stones for long-term growth

• 3 global capital-growth dividend picks outside the U.S. that quietly crush across cycles

• Dividend news, portfolio moves, and exactly how I’m allocating my own capital

• The updated Buy / Hold / Sell snapshot from the MaxDividends Universe

This is where the real work happens. And this is where hunger starts.

👉 Unlock the MaxDividends Income System & App

See the full Capital Growth Dividend Eagles list, the data behind every pick, and the structure that keeps us disciplined week after week.

The stocks in this series aren’t just numbers to me. They’re the foundation of my kids’ portfolios. I keep adding to names like these quietly, consistently, and without drama — so that one day, they inherit something far more valuable than money: freedom that compounds.

That’s the long game. And that’s exactly what we’re building together.

👉 Get Full Access to This Week’s Capital Growth Leaders

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A calm, repeatable approach to building dividend income — designed to help you live on dividends over time.

Best regards,
Max