After trading for nearly 30 years, one of the best things I’ve learned is that it pays to be picky when looking for income-generating stocks. Sure, high yields are attractive, but a company that has high yields and the ability to sustain them is worth its weight in gold. Even better if such companies have a good track record of increasing dividends, preferably consecutively. 

Now, there are groups of companies like Dividend Aristocrats and Kings that already offer the qualities I like. But that doesn't mean we need to limit ourselves to those top-shelf companies. Sometimes, there are dividend-paying gems exhibiting high growth, low payout ratios, and decent yields that are waiting on the sidelines. 

Today, I’ll be reviewing my list of notable dividend stocks to see which ones meet my stringent criteria for high yields and high growth. 

How I Came Up With The Following Stocks

As usual, I fired up Barchart’s Stock Screener tool and used the following filters: 

• Annual Dividend Yield: Left blank so I can sort the list using this criterion.
• Current Analyst Rating & Number of Analysts: 3.5 (Moderate Buy) to 5 (Strong Buy), and 16 or above. This combination ensures I get companies that have Wall Street’s (generally) positive regard.
• 5-Year Dividend Growth: 50% and above. This filter compares the company’s payouts from five years ago to the current ones. On average, a 50% growth rate represents a 10% growth annually, which is considered strong and sustainable for many mature businesses.
• Dividend Payout Ratio: 65% or less. The payout ratio shows how much the company uses of its earnings to pay dividends. 65% is on the high end of what many consider the “healthy” range.
• Watchlists: As someone who loves dividend stocks, I maintain several dividend-centric watchlists that I now use for this search. These include the Dividend Contenders, Aristocrats, Kings, high-yield stocks, growth stocks, and monthly dividend stocks. 

I ran the screen and got 28 companies, which I then arranged from highest to lowest yields:

Now, I’ll take the top three and discuss each one, starting with number one: 

Best Buy Company (BBY)

First up is Best Buy Company (NYSE:BBY), a multinational consumer electronics retailer that sells a wide range of products, including computers, smartphones, televisions, home appliances, video games, and related accessories. The company has over 1000 stores in the US and Canada alone, and now operates an online platform that offers the same extensive product selection, along with convenient delivery, pickup, and customer support services.

Best Buy currently pays 95 cents per share quarterly, which works out to $3.80 per year and around a 5.29% yield. Aside from the high yield, the company also boasts a relatively healthy dividend payout ratio of 59.14% and an 88% 5-year dividend growth rate. Even more impressive, the company has increased dividends since 2004, for 22 straight years. Three more years of increases, and Best Buy will become a Dividend Aristocrat!

Analysts also rate BBY stock a Moderate Buy. 

Comcast Corp A (CMCSA)

Comcast Corporation (NASDAQ:CMCSA) is one of the biggest global media and technology companies in the United States, offering services that range from cable television and high-speed internet to wireless communications and home phone solutions. In the last few decades, it also started acquiring large-scale networks and communications providers, including NBCUniversal, Sky, and various regional sports and entertainment networks. 

The company pays $1.32 in dividends annually, translating to around a 4% yield based on the stock's last closing price. Dividends have increased 93.65% in the last five years, while Comcast currently has an impressive 28.15% payout ratio despite its relatively high yield. It also has an 18-year dividend increase streak, and today, CMCAS stock has a Moderate Buy rating.

Regions Financial Corp (RF)

Last but not least is Regions Financial Corporation (NYSE:RF), a banking and financial services company that operates primarily in the Southern and Midwestern United States. It offers a full range of services, including personal and business banking, mortgage and lending products, wealth management, and insurance solutions.

Regions Financial has a long and storied history of paying dividends - since 1989. The company increased its payouts until it went stagnant between 2000 and 2004 at 33 cents quarterly, around the time when the dot-com bubble burst and the markets were recovering. It picked up the pace after that, but then the global financial crisis hit, and it was forced to cut dividends to 1 cent a share quarterly. 

Since 2013, however, the company has continued increasing its dividends, with the most recent one being $1.00 per share per year, which reflects around a 3.8% yield. Regions Financial has increased its dividend by 66.10% over the last five years, and its current dividend payout ratio is a healthy 41.16%. Meanwhile, analysts rate RF stock a Moderate Buy. 

Final Thoughts

Looking for long-term dividend stocks is not just about yields. You need to look at the company’s ability to maintain its payments, check if the current levels are at risk of cuts, and determine whether its financial performance, industry position, and growth prospects can support consistent dividend increases in the future.