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Intro

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.

The Role of This Series Inside the MaxDividends

Inside the MaxDividends framework, every series has a job.

This series is about capital growth first. Here we focus on companies where capital appreciation leads the story, and dividends serve as a quality filter.

These are businesses that reinvest intelligently, expand earnings power, grow intrinsic value — and because of that, pay and raise dividends over time.

Capital grows first. Income follows.

How We Select Capital Growth Dividend Stocks

Every company in this series is selected through the MaxDividends Income System.

The MaxDividends Income System is our filter, rulebook, logic, and decision-making checklist — the framework that determines what belongs in a long-term compounding portfolio and what doesn’t.

For Capital Growth Dividend Stocks, the System is applied with a clear priority: capital growth first, dividends as confirmation of quality.

We run each candidate through the MaxDividends Income System, which for this series includes the following core criteria:

#1 Business Quality Score 90+

Strong balance sheet, durable margins, clean cash flows, and consistent execution across cycles. A foundational quality check covering business durability, competitive position, capital allocation discipline, and long-term compounding ability.

MaxDividends Research Platform. Business Analysis Score

#2 Dividend Increase History: 15+ years

Not for yield — but as proof that the business generates real cash and management allocates it responsibly.

The MaxDividends Research Platform. Dividend Analysis → Dividend History.

#3 MaxRatio Level → Growth Eagles zone

A profile that reflects capital efficiency, reinvestment quality, and long-term compounding potential.

The MaxDividends Research Platform. Dividend Analysis → MaxRatio.

#4 Market Valuation

Know when the price makes sense. See at a glance whether a stock is fairly valued, undervalued, or overpriced. Only fairly valued or undervalued companies qualify. Even great growth stories fail if you overpay.

The MaxDividends Research Platform. Company Valuation → Current Valuation.

#5 MaxDividends Investment Summary: Playing + Best For Capital Growth

The whole investment case in one glance. Valuation, investment consensus, and the stock’s best role in your portfolio.

MaxDividends Research Platform. Investment Summary

The MaxDividends Research Platform supports this process as our central data hub and navigator.

It stores the full history behind every decision — fundamentals, dividend timelines, valuation ranges, portfolio structure — and lets us track where we are, how far we’ve come, and whether we’re still aligned with the System.

The System decides. The Platform records, visualizes, and keeps us on course.

That’s how we consistently identify businesses where capital growth leads, dividends validate quality, and long-term wealth compounds quietly — week after week.

That’s where we are now.

This week’s Capital Growth Dividend list highlights businesses with durable earnings engines, pricing power, disciplined balance sheets, and long runways for both capital appreciation and rising income.

☕️ Pour your coffee, tune out the noise, and lean into the process — the best capital-growth dividend opportunities rarely announce themselves loudly.

Scroll to read — you’re a Premium partner, and the full breakdown is yours

👉 Here’s what made this week’s Capital Growth radar.

📌 Today’s Table of Contents

Your Essential Dividend Investing Guide

  • Top 3 U.S. Capital Growth Dividend Ideas - Three new opportunities with the perfect mix of growth, financial strength, and rising payouts. If you’ve been waiting for your next buy signal—this is it.

  • Top 10 Capital Growth Dividend Stocks (USA) - This week’s strongest names: steady dividend payers with serious capital growth power. I’ll share my portfolio highlights, fresh recommendations, and why these stocks stand out. Don’t just watch—these are the kinds of picks that can quietly compound into real wealth.

  • Top 3 Global Capital Growth Picks of the Week - Dividend payers outside the U.S. with the rare combo of stability and capital appreciation. A chance to diversify globally—before the crowd catches on.

  • Dividend News, Market Updates & My Portfolios – The key headlines, big payout moves, and exactly how I’m shifting my own capital. Real-world insights you can act on.

  • My Watchlist & Weekly Strategy – The names I’m stalking right now and the plan I’m setting up for the week ahead. Don’t miss what could be your next entry point.

👉 Let’s start with this week’s Top 3 Capital Growth Dividend picks — the names that stand out most right now as potential foundation stones for long-term capital growth.

3 Capital Growth Dividend Picks to Watch This Week

KLAC — KLA Corporation

KLA develops process-control and yield-management systems used by semiconductor manufacturers to inspect, measure, and improve chips throughout the production process. Its technologies help chipmakers identify microscopic defects and control increasingly complex manufacturing steps across advanced logic, memory, and semiconductor packaging.

As chip architectures become more complex, manufacturers need more inspection, metrology, and process-control capability to maintain yields. That puts KLA in a particularly important position across leading-edge semiconductor manufacturing and the expanding AI infrastructure supply chain.

💡 Why Today?

KLA is entering fiscal 2027 with accelerating business momentum. The company reported record fiscal fourth-quarter revenue of $3.66 billion, up 15% year over year, and expects approximately $4.0 billion in revenue for the September quarter. Management says momentum is strengthening through the second half of 2026 and should continue into 2027.

The underlying driver is the increasing complexity of AI chips. Leading-edge logic, advanced memory, and advanced packaging all require more intensive process control as manufacturers push performance higher and integrate increasingly sophisticated designs. KLA therefore benefits not only from greater semiconductor investment, but from the rising amount of inspection and measurement required to manufacture each new generation of advanced chips.

AMAT — Applied Materials Inc

Applied Materials develops equipment and technologies used in semiconductor manufacturing, including materials deposition, modification, etching, inspection, and advanced packaging. Its systems are used by the world’s leading chipmakers to build increasingly complex logic, memory, and AI-related semiconductor devices.

The company is positioned across several of the industry's most important technology transitions, including gate-all-around transistors, high-bandwidth memory, advanced packaging, and new materials engineering techniques required to improve chip performance and energy efficiency.

💡 Why Today?

Applied Materials has just delivered record fiscal third-quarter revenue of $9.12 billion, up 25% year over year, while non-GAAP EPS increased 41% to a record $3.50. The momentum is continuing: management expects approximately $10.25 billion in fourth-quarter revenue and $4.02 in non-GAAP EPS, both representing another significant step higher for the business.

AI-related semiconductor investment remains the central driver. Applied expects continued strength in DRAM, leading-edge foundry/logic, and advanced packaging, and has raised its outlook for 2026 advanced-packaging revenue growth to more than 70%. Customer planning is also extending unusually far into the future, with some discussions now reaching 2030, prompting Applied to invest in additional manufacturing capacity to support demand through the end of the decade.

GL — Globe Life Inc

Globe Life provides life and supplemental health insurance primarily to middle-income households in the United States. The company operates through several distribution channels, including American Income Life, Liberty National, Family Heritage, United American, and its direct-to-consumer business.

Its model is built around relatively straightforward protection products, recurring premium income, and a broad distribution network. This creates a business capable of generating steady cash flows that can be reinvested in growth or returned to shareholders through dividends and share repurchases.

💡 Why Today?

Globe Life’s operating momentum continues to strengthen. Second-quarter net operating income per share increased 10% year over year to $3.61, marking double-digit growth in eight of the last nine quarters, while total premium revenue increased 7%. Health insurance is emerging as an especially strong growth engine: health premiums rose 16%, including a 29% increase at United American. Management also raised its full-year 2026 earnings guidance to $15.55–$15.95 per share.

Strong cash generation is now translating directly into shareholder returns. After repurchasing $175 million of stock during the second quarter, Globe Life authorized a new $2.5 billion share-repurchase program in August. With insurance operations continuing to fund growth while producing excess capital, the combination of rising earnings, expanding health premiums, and aggressive buybacks creates another potential engine for long-term per-share value growth.

This Week’s Top 10 Capital Growth Dividend Leaders

This week’s lineup highlights elite dividend-paying compounders — companies where capital growth leads the story and dividends quietly reinforce the long-term track.

We track them inside a model portfolio—adding one stock at a time, week after week.

⭐️ Week 08/25/2026 | MaxDividends USA Picks

  • 10-Year Total Return: +783.14%

  • 10-Year Annualized Return: +20.52%

  • Current Dividend Yield: 0.70%

Capital Growth Focused

  • WST — West Pharmaceutical Services Inc | Quality Score: 97 | MaxRatio: 0.44

  • CHE — Chemed Corp | Quality Score: 93 | MaxRatio: 1.23

  • GL — Globe Life Inc | Quality Score: 95 | MaxRatio: 1.47

  • AMAT — Applied Materials Inc | Quality Score: 98 | MaxRatio: 1.70

  • MSFT — Microsoft Corporation | Quality Score: 97 | MaxRatio: 1.96

  • KLAC — KLA Corporation | Quality Score: 97 | MaxRatio: 1.97

  • MORN — Morningstar Inc | Quality Score: 92 | MaxRatio: 1.98

  • LAD — Lithia Motors Inc | Quality Score: 93 | MaxRatio: 2.08

  • SPGI — S&P Global Inc | Quality Score: 96 | MaxRatio: 2.10

  • MCO — Moody’s Corporation | Quality Score: 97 | MaxRatio: 2.17

Comments

KLA and Applied Materials continue to benefit from rising AI-related semiconductor investment. More advanced logic, memory, and packaging require increasingly sophisticated manufacturing equipment and process control. Microsoft is benefiting from the same AI cycle from the cloud side, with Azure growth remaining strong and demand for AI infrastructure continuing to expand.

Healthcare is also showing solid momentum. West Pharmaceutical is seeing strong demand for components used in biologics, GLP-1 drugs, and injectable medicines, while Chemed has raised its outlook on stronger performance at VITAS Healthcare.

Globe Life continues to grow premiums and earnings, supported by particularly strong health insurance growth, while its new $2.5 billion share-repurchase authorization adds another driver of per-share growth.

Financial markets are supporting S&P Global, Moody’s, and Morningstar. Strong debt issuance is helping the ratings businesses, while demand for financial data, analytics, and AI-powered tools continues to expand. Lithia Motors adds another capital-allocation story, combining improving operating results with significant share repurchases and a higher dividend.

This week’s Top 10 is just the start—hundreds of battle-tested dividend growers with serious capital growth potential are waiting in the full Dividend Eagles list inside the MaxDividends Research Platform.

Max’s Comment:

The Top 10 Capital Growth-Focused Dividend Stocks aren’t just numbers on a screen for me - they’re the foundation of my kids’ portfolios.

I keep adding to these names regularly, and when my kids turn 21, the plan is simple: hand them a portfolio built on quality, consistency, and growing income. A gift of freedom that keeps compounding long after I step aside.

Here are the names purchased in Q3 ’26:

Donaldson Company (DCI)

Donaldson is a global leader in filtration systems used across industrial equipment, transportation, aerospace, and life sciences. The company benefits from a large installed base and recurring replacement demand, supporting steady cash flow and consistent long-term growth.

IDEX Corporation (IEX)

IDEX manufactures highly engineered products used in healthcare, industrial, water, and scientific applications. Its portfolio of niche market leaders, combined with disciplined acquisitions and strong margins, has made IDEX a reliable long-term compounder.

Lindsay Corporation (LNN)

Lindsay is a leading provider of irrigation equipment and transportation infrastructure solutions. The business is supported by long-term demand for water efficiency, agricultural productivity, and infrastructure investment, providing a solid foundation for future growth.

AptarGroup (ATR)

Aptar specializes in dispensing and packaging solutions used across healthcare, beauty, and consumer products. The business is supported by recurring demand, innovation, and long-term customer relationships, creating a solid foundation for steady growth.

Gorman-Rupp (GRC)

Gorman-Rupp designs and manufactures pumps used in water, wastewater, construction, industrial, and municipal applications. The company serves essential infrastructure markets, generating resilient cash flow and supporting steady long-term dividend growth.

Kids’ Portfolios:

  • Focused on capital growth, built around Growth-Focused Dividend Eagles

  • Powered by weekly dividend growth stock picks with the help of the MaxDividends Assistant

  • $300 each, every quarter

Top 3 Global Capital Growth Dividend Stocks of the Week

These aren’t just household U.S. names—this week we spotlight three global dividend growers that have quietly crushed the market while rewarding investors with rising payouts. Each one combines serious capital growth potential with the kind of dividend discipline that builds real long-term wealth.

👇 Let’s break down the top 3 international picks — and if you want the full runway of global Dividend Eagles, you’ll find the complete updated list inside the MaxDividends Research Platform.

⭐️ Week 08/25/2026 | MaxDividends International Stocks

  • 10-Year Total Return: +219.16%

  • 10-Year Annualized Return: +11.01%

  • Current Dividend Yield: 0.80%

Capital Growth Focused

PRV — Porvair plc | UK

Porvair is a specialist filtration and environmental technology company serving aerospace, energy, industrial, laboratory, and environmental markets. Its filtration systems and analytical products are used in applications where reliability, safety, and precise performance are critical.

The company operates across a collection of specialized businesses serving niche markets with high technical requirements and strong barriers to entry. This focused model, combined with disciplined acquisitions, has allowed Porvair to steadily expand earnings while maintaining a strong balance sheet.

💡 Why Today?

Porvair delivered another record first half, with revenue rising 9% to £106.2 million, adjusted operating profit up 10%, and adjusted EPS up 11%. The company also ended the period with £7.1 million in net cash.

ASSA-B — ASSA ABLOY AB | Sweden

ASSA ABLOY is a global leader in access solutions, producing mechanical and electronic locks, automated doors, entrance systems, identity technologies, and digital access-control products used across residential, commercial, institutional, and industrial buildings.

The company combines a huge installed base with continuous product innovation and an aggressive acquisition strategy. As physical security increasingly shifts toward connected, electronic, and automated access systems, ASSA ABLOY continues expanding beyond traditional locks into a broader technology-driven security ecosystem.

💡 Why Today?

ASSA ABLOY’s growth accelerated in the second quarter: organic sales increased 4%, EPS rose 12%, operating cash flow increased 16%, and EBITA margin reached a record 18.1%. Growth was particularly strong in EMEIA, while Americas, Global Technologies, and Entrance Systems also expanded.

Acquisitions remain another growth engine. ASSA ABLOY completed five deals during the quarter and has continued buying businesses since then, including Classic Brass and the announced acquisition of Gunnebo Entrance Control. Its acquisition pipeline remains strong, with more than 900 potential targets identified.

7532 — Pan Pacific International Holdings Corp | Japan

Pan Pacific International Holdings operates one of Japan’s largest discount retail networks, led by the Don Quijote and MEGA Don Quijote brands. Its stores sell everything from groceries and household essentials to electronics, cosmetics, fashion, and luxury goods through a distinctive high-density, value-focused retail format.

The company has built a strong domestic franchise while expanding internationally across Asia and the United States. Its combination of discount pricing, private-label products, store expansion, and appeal to both local consumers and international tourists provides several avenues for long-term growth.

💡 Why Today?

Pan Pacific has just reported record FY2026 results. Revenue increased 8.8% to ¥2.45 trillion, operating income rose 7.7% to ¥174.8 billion, and net profit jumped 21.6%. Domestic sales grew 9.1%, while tax-free sales reached a record high as inbound demand broadened across visitors from Southeast Asia, North America, and Europe.

Growth is continuing into FY2027. The company expects sales to rise another 9.9% to ¥2.69 trillion, while Olympic Group became a consolidated subsidiary in July, expanding PPIH’s store network and creating potential purchasing and operating synergies. Its new food-focused Robin Hood format is also running ahead of initial sales plans.

The 3 picks we just covered are only the start. Beyond them, there’s a whole roster of global Dividend Eagles—companies that have raised payouts for 15+ years and kept shareholders winning across every cycle.

Explore the full updated International Dividend Eagles list now inside the MaxDividends Platform — your runway to the world’s most consistent wealth compounding machines.

MaxDividends Buy / Hold / Sell Research Database

Research-backed guidance on quality dividend stocks.

MaxDividends Research Platform (included in Premium)

Every week we analyze thousands of companies across the MaxDividends Universe, evaluating them using Financial Scores, MaxRatio, valuation, dividend discipline, and long-term earnings trends.

The result is a clear Buy / Hold / Sell breakdown of the top dividend names in the market. Just a data-driven snapshot that shows:

  • which companies deserve new capital,

  • which companies we continue compounding with,

  • and which positions our team believes may need to be trimmed or exited.

It's the fastest way to understand where quality is strengthening — and where it's fading.

Last Week’s Highlights from MaxDividends

A quick roundup of articles and dividend stock ideas worth your time.

Top Gainers of the Week – MaxDividends Top Stocks

Every week, some of our Dividend Eagles spread their wings a little wider. These are the names that delivered the strongest price gains on the market—proof that reliable dividend payers don’t just hand out income, they can also fly high on capital growth.

👉 Here are this week’s top 3 gainers from the Dividend Eagles list:

🥉 +26.01% MORN — Morningstar Inc

Morningstar provides investment research, financial data, credit ratings, indices, and analytics through businesses including Morningstar Direct, PitchBook, Morningstar Credit, and Morningstar Indexes.

Shares have rallied as improving operating performance becomes increasingly visible. Second-quarter revenue increased 9.6%, operating income rose 28.4%, and adjusted EPS increased 29.2%. Free cash flow nearly doubled, rising 96.3% to $122.5 million. Morningstar Credit was particularly strong, with revenue up 23.4%, while Direct and PitchBook also contributed to growth.

🥈 +26.90% ACN — Accenture plc

Accenture is one of the world’s largest professional services companies, helping businesses adopt cloud technologies, AI, cybersecurity, and digital infrastructure across industries and geographies.

Accenture increased its fiscal 2026 share-repurchase plan by $2 billion to $7.5 billion — 62% more than last year — signaling management’s view that the stock does not reflect the company’s financial strength and long-term growth opportunity. The company expects $2.3 billion of repurchases in the fourth quarter alone.

🥇 +27.67% MSFT — Microsoft Corporation

Microsoft is one of the world’s largest technology companies, with Azure, Microsoft 365, enterprise software, cybersecurity, and artificial intelligence at the center of its growth strategy.

Microsoft delivered another powerful quarter, with revenue rising 18% to $90.0 billion and Azure and other cloud services growing 43%. Azure surpassed $100 billion in annual revenue for the first time, while Microsoft 365 Copilot exceeded 30 million paid seats. The results helped demonstrate that Microsoft’s enormous AI infrastructure investments are translating into cloud growth and commercial demand.

Happy dividends for all the holders!

Best regards,
Max

💌 Questions or thoughts? Reach me anytime at [email protected]

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*Disclaimer: This article reflects the author’s personal opinions and is intended for educational and entertainment purposes only. It does not constitute financial advice in any form. Always do your own research and consult a licensed financial advisor. The author may hold positions in some of the stocks mentioned, in line with the views expressed. This is a disclosure, not a recommendation to buy or sell any securities.
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