General Dynamics' stock stands out as a top pick thanks to its robust dividend profile. It currently offers a healthy yield of 1.86%, boasts a five-year annualized growth rate of around 5%, and maintains a fairly conservative 42.7% payout ratio.

Stocks like Visa are often referred to as dividend growth stocks because they combine earnings growth with market-beating historical returns and regularly increase their dividends. Buying and holding a quality dividend growth stock can be a recipe for impressive long-term gains and steady passive income.

For instance, research shows that companies with payout ratios below 75% are less likely to cut or suspend their dividends, making them more dependable income sources. Stocks with even lower payout ratios -- below 50% -- may offer an extra layer of security and room for future dividend growth.

Learn how to select high-growth dividend stocks with rapidly growing dividends and structure a portfolio with this step-by-step guide. Click for our top picks.