3 Dividend-Paying Growth Stocks to Consider in August Amid S&P 500 Rally

The S&P 500 (SNPINDEX: ^GSPC) is poised for an above-average performance in 2025, building on consecutive annual gains exceeding 20% in 2023 and 2024. This momentum follows a swift recovery from April's steep sell-off, underscoring the index's resilience. With valuations running high, investors are advised to focus on quality companies capable of justifying their premiums through sustained earnings growth.

Three dividend-paying stocks stand out for August: WM (0.81%), IBM (-2.70%), and DAL (0.07%). WM, formerly Waste Management, exemplifies stability in passive income generation. Its integrated waste management model—spanning collection, transportation, and processing—capitalizes on predictable demand tied to population and economic expansion. Despite lacking flashy tech innovations, WM has outperformed the S&P 500 over both 5- and 10-year periods, a testament to its operational consistency.