Weekly Watchlist – 10 Capital Growth Dividend Stocks in Focus

MaxDividends Mission: Helping people build growing passive income, retire early, and live off dividends.

Top Capital Growth Focused Dividend Stocks 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.

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🍁 October Is Here, Markets Keep Shifting, and the Hunt for Capital Growth Is On

The first week of October brought its share of headlines — oil prices bouncing, Washington politics heating up, and global markets sending mixed signals. For most, it feels like noise. For dividend hunters, it’s a map full of hidden treasures.

This week’s list is exactly that — a guide through the twists and turns of the market, pointing to companies that don’t just pay steady dividends, but also carry the power to grow stronger with time. These are the quiet compounding engines — businesses raising payouts like clockwork while expanding, innovating, and rewarding shareholders year after year.

Think of it as opening a new chapter in an ongoing adventure: inside, you’ll find industrial giants powering the economy, tech leaders riding global trends, and financial players collecting tolls every time money moves. Each one is a rare catch for investors on the hunt for long-term capital growth.

👉 Let’s turn the page and see what this week’s hunt reveals.

Weekly Watchlist – 10 Undervalued Dividend Stocks Built for Growth

This Week’s Top 10 Undervalued Capital Growth Dividend Stocks

📌 Today’s Table of Contents

Your Essential Dividend Investing Guide

• 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 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 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.

What makes it exciting is how timely these names are: healthcare players holding steady while the market worries about growth, tech leaders riding the surge in AI and semiconductors, industrial giants keeping supply chains moving, and financial infrastructure firms positioned to collect as market activity picks up into year-end.

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Think of it as flipping open a new chapter in the journey: hidden gems, undervalued setups, and businesses built for the long game. The kind of stocks that prove—week after week—that dividends and capital growth can go hand in hand.

Intro

A new week, a fresh chance to grow smarter. This lineup is all about capital growth–focused dividend stocks — businesses built to compound your wealth over the long haul.

What makes them special? Many are still trading below fair value, leaving the door open for those who know where to look. And plenty have outpaced the market for years — in some cases, doubling the S&P 500 while steadily raising payouts along the way.

That’s the MaxDividends edge: finding strong, battle-tested companies with balance sheets built to last and dividends that keep climbing. Those of you already following the concept — using the app, tracking the lists, reading each week — you know exactly how powerful this approach feels in real time.

Pullbacks aren’t setbacks, they’re opportunities. Every reinvested dollar adds weight to the snowball, and every dividend raise pushes you closer to your own version of financial freedom.

👉 Dive in — this week’s Top 10 could be the next building blocks in your compounding journey.

3 Capital Growth Dividend Picks to Watch This Week

1. 0.54% CHE Chemed

Chemed (NYSE: CHE) runs a two-engine model: VITAS, one of the largest hospice providers in the U.S., and Roto-Rooter, the country’s largest plumbing and drain-cleaning network — a steady combo of healthcare cash flows and countercyclical home services in a domestic footprint that skews operationally resilient and not flashy but steady.

For Q2 2025, total revenue registered $618.8 million, with VITAS contributing $396.2 million and Roto-Rooter at $222.6 million; the company posted GAAP diluted EPS of $3.57 and adjusted EPS of $4.27, with management calling out Medicare cap pressure in Florida as a near-term headwind; the setup reads like a margin play hinging on hospice mix and Roto-Rooter cost control, as YoY comps were softer versus expectations despite segment growth at VITAS.

The stock yields 0.55% on an annual dividend of $2.40, backed by a 16-year dividend increase track record; five-year dividend growth sits at +45.00%, with a dividend payout ratio of 12.34% that leaves ample room for buybacks and organic reinvestment — solid income hygiene with cyclical shock absorbers from services cash flow.

💡 Why Today?

Chemed isn’t a household name, but that’s the edge — a dual-engine business where healthcare meets essential services. Hospice care continues to ride demographic tailwinds, while Roto-Rooter generates steady cash in all market cycles. With dividends well-covered, a long record of raises, and buyback capacity on deck, CHE offers investors a resilient, quietly compounding play that doesn’t need headlines to deliver results.


2. 0.69% LAD Lithia Motors - Undervalued

Lithia Motors (NYSE: LAD) runs a large, acquisition-driven auto retail platform across the U.S., Canada, and the U.K., pairing brick-and-mortar dealerships with the Driveway digital channel to cover sales, F&I, service, and parts — a not flashy but steady consolidator in fragmented auto retail.

For Q2 2025, revenue was $9.60 billion, up 4.0% year over year, while net income reached $258.0 million, up 19.2% YoY; diluted EPS printed at $9.87 and adjusted EPS at $10.24, helped by a $1.03 EPS mark-to-market tailwind from the Pinewood stake — a margin play as profit growth outpaced sales on aftersales and finance mix. Management highlighted solid aftersales momentum and stable unit trends through the quarter, with financing profitability improving alongside disciplined SG&A control.

Dividend yield is 0.70% with an annual dividend of $2.20 and a 15-year dividend increase track record — not flashy but steady cash returns for a scale buyer with strong cash generation. Five-year dividend growth stands at +76.00%, and the dividend payout ratio is 6.52%, leaving ample room for buybacks and M&A while keeping leverage in check — a solid setup for compounding through cycles.

💡 Why Today?

Auto retail is cyclical, but Lithia has been breaking the mold — expanding nationwide while most dealers stay local. Its strategy of rolling up fragmented dealerships, scaling digital retail, and pushing into new markets gives it a growth runway that’s hard to match.

Earnings may ebb and flow with used car pricing, but LAD has proven it can compound through cycles, consistently lifting profits and dividends. With the stock still trading below long-term fair value, investors today get a rare setup: capital growth potential in a consolidator that also pays and raises dividends.


3. 0.95% GWW WW Graigner - Undervalued

W.W. Grainger (NYSE: GWW) is a broadline MRO distributor serving businesses and institutions through a high‑touch network in North America and scaled digital platforms Zoro and MonotaRO, anchoring critical maintenance and safety supply chains across key industrial end markets.

For Q2 2025, sales were $4.6 billion, up 5.6% year over year, with daily sales up 5.1% on a constant‑currency basis; operating margin printed at 14.9% and gross margin softened as tariffs and mix created a manageable drag — a classic margin play supported by scale and cost control. Net earnings were $482.0 million, up 2.6% YoY, while diluted EPS came in at $9.97 as the topline beat met some pressure below the line; revenue held solid, but profit tracked under consensus, and management trimmed the full‑year outlook accordingly.

Dividend yield stands at 0.94% on an annual dividend of $9.04, backed by a 55‑year dividend increase streak — not flashy but steady cash returns. Five‑year dividend growth is +41.00%, and the dividend payout ratio is 22.94%, leaving ample room for reinvestment and buybacks while keeping the capital stack conservative — a solid, long‑game setup.

💡 Why Today?

Grainger trimmed guidance last quarter and the market clipped the stock — but the fundamentals haven’t cracked. Sales growth remains steady, digital platforms keep scaling, and tariffs/mix are only short-term drags. That leaves a Dividend King with 55 years of raises trading at a relative discount, giving dividend hunters a rare shot to buy quality industrial cash flow below long-term fair value.

Top 10 Capital Growth Dividend Winners of the Week

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

⭐️ Week 10/06/2025 | MaxDividends USA Picks

• 10-Year Total Return: +651.97%
• 10-Year Annualized Return: +19.46%
• Current Dividend Yield: 0.83%

👉 Top 10 of the Week (USA) – Portfolio Performance

Capital Growth Focused

0.31% WST West Pharmaceutical Services Inc
0.54% CHE Chemed Corp
0.64% MSFT Microsoft Corporation
0.63% BRO Brown & Brown Inc
0.95% GWW WW Grainger Inc
0.69% LAD Lithia Motors Inc
0.80% SPGI S&P Global Inc
0.69% KLAC KLA-Tencor Corporation
1.45% DCI Donaldson Company Inc
1.55% TRV The Travelers Companies Inc

Comments

This week’s capital growth dividend lineup blends defensive strength with long-term compounding power. West Pharmaceutical and Chemed keep healthcare steady in the mix, delivering cash flows in niches that rarely slow down, while Microsoft anchors the list with cloud and AI growth and KLA benefits from the semiconductor build-out. Brown & Brown and Travelers add insurance resilience with recurring premiums and steady dividend hikes. Grainger, Donaldson, and Lithia Motors show how essential industries can compound, from supplying the economy’s nuts and bolts to rolling up auto dealerships nationwide. S&P Global stands out as the toll-booth of capital markets, collecting fees every time money moves. 

What makes this week’s Top 10 timely is that each of these businesses is positioned against current market themes: healthcare demand is holding strong while growth fears dominate headlines, AI and semiconductor spending is accelerating despite volatility, insurers are enjoying pricing power in today’s cycle, industrial suppliers are stabilizing as supply chains normalize, and financial infrastructure players like S&P Global are set to benefit from renewed capital market activity heading into year-end. 

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 app.

👉 See the Full Dividend Eagles List

Max’s Comment:

The Top 10 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.

New quarter, new milestone. Every quarter I put $300 into each of my three kids’ portfolios — building generational wealth one brick at a time. This quarter I added WestPharma and ResMed.

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

Child 1 Portfolio

Child 2 Portfolio

Child 3 Portfolio

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 app.

⭐️ Week 10/06/2025 | MaxDividends International Stocks

• 10-Year Total Return: +2,023%
• 10-Year Annualized Return: +30.57%
• Current Dividend Yield: 0.37%

Capital Growth Focused

1. 0.80% IP Interpump Group S.p.A. | Italy

Interpump Group S.p.A. (BIT: IP) manufactures high-pressure hydraulic pumps and water-jetting systems, serving industrial, automotive, and marine markets across Europe, North America, and Asia as a specialized fluid dynamics player.

In Q2 2025, Interpump reported revenue of €555.3 million, up 1.0% year-over-year . Net profit was €60.4 million, down 3.4% YoY. EBITDA rose to €132.1 million, improving the EBITDA margin to 23.8% from 22.7% a year ago.

The company pays an annual dividend of €0.32, yielding 0.80%. Its dividend track record spans 10 years, with 5-year dividend growth of +45.00% and a payout ratio of 16.42%.

💡 Why Today?

Interpump Group is a leader in high-pressure pumps and hydraulics, serving energy, construction, and industrial markets. Despite mixed demand, margins are improving and the Water-Jetting division is gaining speed. The dividend is modest, but backed by steady growth and reinvestment — making today an attractive entry into Europe’s industrial backbone.

2. 0.22% 5344 Maruwa Co Ltd | Japan

Maruwa Co. Ltd. (TSE: 5344) is a Japanese firm in the ceramics and electronic components space, producing substrate materials and LED lighting equipment, with operations largely focused in domestic and Asian semiconductor and electronics markets.

In the quarter ending June 30, 2025, Maruwa reported net sales of ¥17,256 million, up 6.2% year-over-year from ¥16,243 million the prior year. Its net income (profit attributable to owners) tumbled 13.9% to ¥3,878 million from ¥4,502 million a year ago. Margins got squeezed — despite topline tailwinds, profit compression is evident, making this more of a margin play than a pure growth story.

The company pays an annual dividend of ¥90.00 per share, giving a yield of 0.22%. Dividend track record spans 12 years, with 5-year dividend growth of +81.00 % and a payout ratio of 6.23 %.

💡 Why Today?

Electronics, EVs, and semiconductors keep expanding, and Maruwa sits at the core with its ceramic components and substrates. The company runs with little debt and solid profitability, steadily reinvesting for growth. While the dividend yield is modest, the real story is capital appreciation — and today’s valuation offers an attractive entry into a business powering the next wave of tech demand.


3. 0.10% KEI KEI Industries Limited | India

KEI Industries Limited (TSE: 5344) engages in cables and wires manufacturing, producing high-tension, extra-high voltage, and communication cables. It operates primarily in India, servicing infrastructure, energy, utility, and power distribution markets.

In Q1 FY2025-26 (ended June 2025), the company reported revenue of ₹2,590.32 crore, up 25.44% year-over-year . Net profit stood at ₹195.75 crore, rising 30.28% YoY. Margin behavior shows net profit margin of 7.44%, indicating decent operational leverage given the revenue growth.

The company pays an annual dividend of ₹90.00 JPY, yielding 0.22%, with a 12-year dividend increase track record, 5-year dividend growth of +81.00%, and a dividend payout ratio of 6.23%.

💡 Why Today?

India’s infrastructure boom is fueling massive demand for cables and power systems, and KEI Industries is a direct beneficiary. With solid profitability and low debt, it reinvests for growth. The dividend is small, but the real story is capital appreciation as India’s build-out accelerates.

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 app — your runway to the world’s most consistent wealth compounding machines.

👉 Dividend Eagles: Top International Stocks List (Tab → International)

Dividend Market Overview

A Deep Dive into Last Week’s Dividend Market Events

📊 Dividend Eagles Pulse

Here’s how the Dividend Eagles have delivered since the list went live in 2024:

✅ 555 (+5) regular dividends hit shareholder accounts
✅ 238 increases logged (+9.30% average)
✅ 10 special dividends sweetened the pot

❌ Just 1 cut (0.19% → 0.18%)
❌ 0 suspensions

Bottom line: the heartbeat of the Eagles list is strong—steady raises, almost no disappointments. Exactly what you want fueling your passive income.

Last Week’s Highlights from MaxDividends

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

👉 🎯 My Dividend Hunt: The Hidden Pearl in Retail

👉 🎓 MaxDividends Academy Case Study: Microsoft (MSFT)

Now, let’s dive into the biggest movers and the stocks preparing to pay you in the coming days.

Top 3 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:

+6.05% HSY The Hershey Company

Hershey (NYSE: HSY) is a North American–anchored snacks maker best known for chocolate, with three operating segments — North America Confectionery, North America Salty Snacks, and International — and a moat built on brand, shelf, and seasonal execution across retail channels.

+6.46% LII Lennox International

Lennox International (NYSE: LII) builds HVAC and refrigeration systems for residential and commercial markets, with a North American core and selective global exposure — a not flashy but steady operator benefiting from replacement demand, price/mix, and energy‑efficiency tailwinds.

+7.11% KLAC KLA Corp

KLA (NASDAQ: KLAC) supplies inspection and metrology systems that police yield at leading-edge chip fabs across the U.S., Asia, and Europe, selling process-control hardware, software, and services into foundry, logic, memory, and advanced packaging — a not flashy but steady picks‑and‑shovels play on AI capex cycles.

Dividend Hike of the Week: OZK Bank (OZK)

Dividend Increase: +2.30%. 25+ consecutive years of dividends. 🦅 Proven Dividend Eagle

Bank OZK (NASDAQ: OZK) is a high‑return regional bank with a national footprint in commercial real estate lending through its Real Estate Specialties Group, alongside community banking, business banking, and treasury services across nine states — a not flashy but steady lender with disciplined underwriting and deposit‑gathering that travels well through cycles.

For Q2 2025, total revenue printed at $392.8 million, up 6.8% year over year, while net income available to common stockholders hit a record $178.9 million, up 3.1% YoY; diluted EPS was $1.58 as net interest income set a quarterly record and loan and deposit growth stayed solid — a margin play with credit costs contained and asset quality steady. Management also raised loan growth expectations on the back of healthy production pipelines, reinforcing operating momentum into the second half.

Dividend yield is 3.41% on an annual dividend of $1.76, backed by a 25‑year dividend increase track record — not flashy but steady cash returns. The bank has already raised the dividend twice in 2025, including an October move to $0.45 per share (61st consecutive quarterly increase), reflecting robust earnings power and conservative payout discipline. Five‑year dividend growth is +68.00%, and the dividend payout ratio is 28.57%, leaving ample room for organic growth, credit reserves, and buybacks without stressing capital — a solid setup as the rate and credit cycle evolves.

My Plans for This Week

The week’s off to a strong start, and I’m feeling optimistic about adding more quality dividend ideas to the portfolio at a discount. No, it’s not the fire-sale pricing we saw during Covid or back in 2008, but let’s be honest—any discount in this market feels good. My plan is the same: invest $3,000 this week and keep stacking shares of great companies.

Right now, I’ve got my eye on Shoe Carnival, T. Rowe Price, Snap-On, and Novo Nordisk. I’ll see which one looks most attractive as the week plays out.

I’m also planning to add to the Family Core Portfolio—likely a small position in the Canadian company Cogeco Inc. As for Teleperformance, the stock looks cheap, but my position is already around $60,000, above my average weight, so I’m holding steady there. I’d rather spread the capital evenly across several strong names to keep risk in check. I may also top up Rubis SCA a little.

On top of that, I’ve updated my quarterly plan, and I’ll share it with you below.

Inside the MaxDividends app, we’re also building something new—an exciting feature that’s going to make your investing journey even more powerful.

At the same time, we’re doing the daily work: combing through earnings reports, checking payout data, and updating dividend records so the information you see stays sharp and reliable. Big thanks to Grinch and Wouter for the valuable notes you shared last week—we folded those right into the Dividend tab.

👉 My WatchList

A curated list of dividend stocks that are currently being monitored for potential investment opportunities.

👉 My Portfolio with All Updates and Ideas

Detailed insights into my personal investment portfolios, including recent updates and strategic ideas

This is what the MaxDividends strategy is all about: steady weekly investing, balanced positions, focusing on financially strong dividend growers, and letting compounding work for us. It’s not hype, it’s not guessing—it’s a proven path to lasting wealth and financial freedom.

Everything’s moving in the right direction—let’s keep building.

My Strategic Thoughts & Plans for 2025

Main

For the past 20 years, I’ve poured time and energy into building businesses. That’s been my main source of capital. In recent years, I’ve let the stock market go to work for me—growing that capital further through smart dividend investing.

This year I turned 40. As a father of three, my focus is shifting. I still love business and investing, but I want to do it on my own terms. My goal is to take a more strategic role, free up time for family, and finally pursue interests I’ve been putting off. Dividends make that possible.

In 2025, I’m transitioning to fully living off dividends. My main portfolio—stacked with strong growth companies and high-yield dividend stocks—will fund this shift.

📅 This Quarter’s Plan (Q4)

For the fourth quarter, my focus is simple: put more savings to work in the core family portfolio and keep aggressively reinvesting every dividend. The target is clear — push monthly dividends past $7,000 by year-end.

The strategy doesn’t change. I’m looking for stable, undervalued Dividend Eagles that start with solid yields and have the strength to keep paying and raising over time. Dividends are my lever — I collect them, reinvest them, and let compounding do the heavy lifting.

I won’t lock in specific tickers right now — opportunities shift as the quarter unfolds. What matters is scanning the best markets worldwide: the U.S., Canada, Japan, Australia, the U.K., and Europe, and picking financially strong companies that fit the MaxDividends secret formula.

And for my kids? The playbook stays the same: $300 each, every quarter. Three kids, three portfolios, one steady strategy to build generational wealth.

Strategy

The structure is unchanged — 90% high-yield dividend growth stocks, 10% capital growth stocks. The mission stays the same too: steady income, steady growth, and the freedom that comes from reinvesting.

Right now, it’s all about speeding up the cycle — dividends keep rising, capital keeps compounding, and every reinvested payout brings us closer to true financial freedom.

Everything is rooted in the MaxDividends Investing Concept and the Dividend Eagles framework. It’s simple, low-maintenance, and effective. Most of the time, I just watch my passive income grow—steady, predictable, and compounding every month.

👉 My Recent Friday Purchases Overview

Happy dividends for all the holders!

Best regards,
Max

🔗 Explore more issues in this series here: #MaxDividendsTop10Weekly

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Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.

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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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