3 High-Growth, Safe Payout Stocks

Market-Beaters With Room To Run

August 13, 2025

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Most dividend investing content only focuses on high-yield stocks. And while these investments can be good, many mega-yielders are paying high starting yields due to an underlying business problem.

In many cases, a high-yield company’s earnings cannot support the dividend.

When the dividend payout ratio exceeds 100% and the company is paying more than it earns, dividends get cut.

Even worse, an unsustainable payout ratio usually indicates that corporate earnings are either flat or on the decline. And this could mean the company’s stock is headed for a long-term, downward spiral.

Here’s an example…

For years, high-yield investors touted Hanesbrands Inc. as a great investment because the company paid a 7% starting yield. However, Hanesbrands was plagued by debt and the firm ultimately suspended their dividend in 2022. Since then, shares of Hanesbrands Inc. have declined by almost -70%.

AT&T; Carter's, Inc.; and Medical Properties Trust are other high-yield darlings who saw their dividends slashed.

Which is why today’s article examines something different.

Instead of looking at high-yield stocks paying 7-8% starting yields, we’re examining low-yield businesses with safe payout ratios and inflation-beating dividend growth.

These are companies that may not get the most attention, but they’ve preformed well and still have plenty of room for future dividend raises, special payouts, and share buybacks.

CNO Financial Group, Inc. ($CNO)

CNO Financial Group, Inc. is a company most people have never heard of.

But, if you ever watch daytime television, you’re probably familiar with at least one of the firm’s products: Colonial Penn life insurance.

The firm offers life insurance, health insurance, annuities, and other financial products. And CNO Financial Group typically markets towards “middle-income pre-retiree and retired Americans.” In fact, AARP’s co-founder, Leonard Davis, also founded Colonial Penn.

CNO has grown its dividend every year for the past 12 years.

The company has an inflation-beating 5-year compound annual dividend growth rate of 7.63% while also maintaining a low payout ratio of just 15.93%.

  • Forward PE ratio of 9.66

  • 1.86% starting dividend yield

  • 5-year dividend CAGR of 7.63%

  • Payout ratio of 15.93%

  • 10-year average annual total return of 9.63%

CNO Financial Group is the only stock on this list that is not a market-beater. At least in a 10-year sense. Scaled down, the firm has outperformed the S&P 500 over the past five years.

Additionally, CNO currently trades at a price to earnings ratio of just 9.66, making it the cheapest stock to appear in today’s report.

Investors Title Company ($ITIC)

Investors Title Company is a stock that screens terribly.

From a cursory glance, this is a firm with very little dividend growth and a miniscule yield.

But dig a little deeper and you quickly discover that Investors Title Company is a market-beating high-yielder that pays enormous special dividends.

Investors Title Company provides title insurance, a niche but essential business. In the United States, almost every mortgage lender requires a homebuyer to have title insurance when they purchase their property.

Instead of raising their quarterly dividend each year, Investors Title Company pays an annual special dividend.

This special dividend policy has allowed the company to crush the market, delivering a 10-year average annual total return of 18.08%.

During good years, these dividends are huge.

For example, 2024 was a good year for the firm. And, Investors Title Company paid a quarterly dividend of $0.46 per share as well as a $14 per share special dividend. An investor who bought this stock at the start of 2024 would have paid around $160 per share, giving them starting yield of roughly 9%.

2023, however, was a bad year for business. And in 2023, Investors Title Company paid a quarterly dividend of $0.46 per share as well as a $4 per share special dividend.

An investor who bought this stock at the start of 2023 would have paid roughly $160 per share, 2023 and 2024 had similar starting share prices, and that investor would have experienced a starting yield of around 3.6%.

  • Forward PE ratio of 13.25

  • 0.80% starting dividend yield

  • 5-year dividend CAGR of 1.84%

  • Payout ratio of 10.52%

  • 10-year average annual total return of 18.08%

Instead of hiking its quarterly dividend each year, Investors Title Company pays a variable special dividend. A unique strategy, but one that’s served the company and its shareholders remarkably well.

eBay Inc. ($EBAY)

Old books, Rolexes, vintage Pokémon cards, cars, gold coins, golf clubs…

eBay Inc. has it all. Wall Street tends to ignore this well-established auction house. And, eBay is known for playing second fiddle to Amazon.

However, eBay serves multiple niches that Amazon and other E-commerce players don’t.

eBay is a marketplace for collectables, luxury goods, antiques, and unusual items. And this advantage has allowed the company to beat the market while also delivering inflation-beating dividend growth.

With a 10-year average annual total return of 14.28% and a 5-year compound annual dividend growth rate of 13.30%, eBay stock is definitely worth a look. Additionally, eBay maintains a low payout ratio of just 21.58%, meaning there’s plenty of room for future dividend raises. And, this is one of the rare tech stocks that trades at a valuation lower than the S&P 500.

  • Forward PE ratio of 17.05

  • 1.25% starting dividend yield

  • 5-year dividend CAGR of 13.30%

  • Payout ratio of 21.58%

  • 10-year average annual total return of 14.28%

eBay is a low-priced tech stock with market-beating performance and an established niche. The company is also one of the few E-commerce stocks that pays a dividend. And, eBay is consistently growing its dividend at a rate that outpaces inflation.

While high-yield stocks aren’t inherently bad, it’s always worth paying attention to a company’s payout ratio. If a dividend is unsustainable, it will be cut.

Likewise, a high dividend payout ratio that is sustainable can often leave little room for future growth. And in these situations, investors can find themselves holding an asset that can’t keep up with inflation.

Meanwhile, there are plenty of great businesses with low payout ratios and rapid dividend growth. CNO Financial Group, Investors Title Company, and eBay all manage their distributions prudently, allowing investors to enjoy long-term, inflation-beating, dividend growth.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.