Most investors tend to fall into two camps: growth or income. Typically, growth-centric companies reinvest profits generated to expand their market reach. On the other hand, dividend-focused companies typically return cash generated back to shareholders in the form of growing dividends. What if I told you that there are businesses that manage to do both – growing earnings and increasing dividend payments to shareholders? We look at how ST Engineering (SGX: S63), or STE, could be one of those rare companies that combine both earnings and dividend growth.

Why Growth and Dividends Can Be a Powerful Combination

Owning companies that deliver strong earnings growth can seriously help to compound your capital faster. Combining this accelerated capital appreciation with solid dividend growth from recurring cash flow can help further bolster your wealth. Remember, your wealth grows from higher total returns through share price appreciation and dividends. In assessing quality dividend growth stocks, we tend to favour names that can...