High-Growth Dividend Stocks for Aggressive Portfolios: Smart Picks to Compound Wealth

The first filter focuses on dividend safety, requiring a payout ratio below 50% and coverage ratio of at least 1.5x, signaling earnings comfortably fund dividends while leaving buffer for economic shocks. However, ratios alone can mask liquidity constraints if operating cash flow is weak, demanding holistic analysis.

Next, we examine Dividend Kings-companies with 50+ years of consecutive dividend increases-typically growing payouts at 5-6% annually, their longevity reflecting disciplined capital allocation and resilience through market cycles. Still, this track record doesn't guarantee sustained growth amid disruptive economic shifts or sector-specific headwinds.

Finally, leverage and cash flow criteria ensure growth sustainability: net debt/EBITDA below 3.0x and positive free cash flow. These safeguards prevent balance sheet strain during downturns while funding expansion. Yet, high debt tolerances vary by sector; utilities may sustain 3.5x leverage where tech firms need stricter controls.