Top High-Growth Dividend Stocks to Buy in August 2025 Amid Economic Uncertainty

As global markets grapple with the dual pressures of rising tariffs and persistent inflation, income-focused investors are increasingly prioritizing stocks that combine dependable dividends with growth resilience. The current environment demands a careful balance: preserving capital while securing cash flow to weather volatility. Three standout names—The PNC Financial Services Group (PNC), Elevance Health (ELV), and California Water Service Group (CWT)—emerge as compelling candidates for investors seeking to anchor their portfolios in companies with strong fundamentals, sustainable yields, and strategic adaptability.

PNC: A Bank Built for the Long Haul

Regional banks face unique challenges in a high-tariff, low-interest-rate world, but PNC's performance in Q2 2025 underscores its competitive edge. The bank delivered a 4% revenue increase and a 11.9% jump in diluted earnings per share (EPS), supported by a 44.5% payout ratio and a 3.5% dividend yield. Its net interest margin (NIM) expanded by 2 basis points, and a CET1 capital ratio of 10.5% reflects robust financial health.

PNC's strategic focus on branch expansion and private credit—sectors less sensitive to rate cuts—positions it to outperform peers. With a price target upside of 7.2%, the stock offers modest growth potential alongside its 14-year streak of dividend hikes.

Elevance Health: Navigating Healthcare's Bumpy Road

Healthcare is a defensive sector, but Elevance Health (formerly Anthem) faces margin pressures from regulatory shifts and rising costs. Despite a 21.6% drop in Q2 2025 diluted EPS, the company grew operating revenue by 14.3%, and its 28.9% payout ratio leaves ample room for future dividend increases. A 2.4% yield may appear modest, but its 44.2% price target upside signals optimism about long-term earnings recovery.

Elevance's $8.5 billion in cash and equivalents provides a buffer against short-term volatility, while its 12% annualized EPS growth target through 2027 underscores its ability to adapt to the Affordable Care Act (ACA) and Medicaid dynamics. For investors willing to stomach near-term headwinds, this stock offers a high-conviction play on healthcare's inevitable demand.

CWT: The Utility Sector's Steady Hand

Utilities are classic defensive plays, and California Water Service Group (CWT) exemplifies the genre. With a 2.7% yield and a 59-year streak of dividend growth, CWT's 53.0% payout ratio is slightly elevated but manageable given its predictable cash flows. Q1 2025 results were stellar: 13% revenue growth and a 214% surge in adjusted diluted EPS, driven by infrastructure investments and strategic acquisitions.

CWT's 25.9% price target upside stems from its capital expenditure plan, which now exceeds depreciation by fourfold. The company's 3.9% five-year revenue growth outlook makes it a rare utility stock with meaningful expansion potential, even in a high-tariff environment.

Why These Stocks Thrive in Uncertainty

The common thread among PNC, Elevance Health, and CWT is their ability to generate stable cash flows while investing in growth. PNC's private credit strategy and Elevance's healthcare innovation address structural demand, while CWT's utility model insulates it from macroeconomic swings. All three maintain conservative leverage and strong balance sheets, critical for withstanding market turbulence.

For investors prioritizing income preservation and growth, these stocks offer a diversified approach. PNC and CWT provide lower-volatility, steady-yield profiles, while Elevance Health introduces a higher-growth, slightly riskier component. Together, they form a resilient core for a portfolio navigating an unpredictable landscape.

Actionable Advice for August 2025

• PNC is ideal for those seeking a balanced blend of income and modest growth. Use its current yield and expansion plans as entry points.
• Elevance Health suits investors with a medium-term horizon who can tolerate near-term volatility for long-term healthcare sector gains.
• CWT is a must-buy for conservative portfolios, offering utility-like stability with above-average growth prospects.

As the U.S. economy navigates the ripple effects of higher tariffs and inflation, these three stocks exemplify the power of combining defensive positioning with strategic growth. By locking in sustainable dividends and capital appreciation, they provide a roadmap for preserving income while navigating the unknown.