While high-yield dividend stocks may attract outsized attention from investors, companies paying well-funded and growing, albeit smaller, dividends tend to outperform the market and their peers over the long term. Three companies that encapsulate this market-beating potential are Visa (NYSE: V), FactSet Research Systems (NYSE: FDS), and Nasdaq (NASDAQ: NDAQ), which have posted total returns of over 400%, 300%, and 500% in the last decade, respectively. By maintaining payout ratios below 30%, these stocks' dividend payments are well-funded and primed to continue increasing for decades.

These three businesses are in leadership positions in their niches. Let's explore why they're perfect for investors looking to grow their passive income throughout the rest of their lives.

While payments behemoth Visa and its 0.8% dividend yield may not immediately shout "massive passive income potential" at investors, its 17% annualized dividend growth rate over the last five years highlights its compounding nature.

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Source Fool.com