When you think of S&P/ASX 200 Index (ASX: XJO) dividend stocks, A2 Milk Co Ltd (ASX: A2M) may not be the first company that comes to mind.

But that could be set to change.

On the back of strong half-year results, the dairy company declared its first-ever dividend on 17 February.

Those strong results and that maiden passive income payout sent shares in the ASX 200 dividend stock flying higher over the following weeks.

On Wednesday, A2 Milk shares closed up 0.49%, trading for $8.14 apiece. That sees the share price up an impressive 40.83% in 2025, not including that dividend payment.

And according to Family Financial Solutions' Jabin Hallihan, A2 Milk shares are well-placed to keep outperforming (courtesy of The Bull).

ASX 200 dividend stock on the growth path

"The A2 Milk Company is a premium dairy business," said Hallihan, who has a buy recommendation on the ASX 200 dividend stock.

"The company delivered a strong interim result in fiscal year 2025, driven by continuing growth in the China and other Asia segment and supported by the US segment," he said.

As for that passive income, Hallihan noted, "A2M established a dividend policy for the first time in the company's history in November 2024. A2M declared a fully franked interim dividend of NZ8.5 cents a share."

And Hallihan expects more growth ahead.

"The company's innovative approach and solid execution positions it for continuing growth," he said.

What's been happening with A2 Milk shares?

For the six months to 31 December, the ASX 200 dividend stock reported a 10.1% year-on-year increase in revenue to NZ$893.8 million. This helped boost the company's cash balance by 28% to NZ$1.01 billion

And with net profit after tax (NPAT) up 7.6% to NZ$91.7 million, management grabbed the interest of passive income investors with A2 Milk's inaugural dividend of 8.5 NZ cents per share, equating to 6.6 Aussie cents per share.

Eligible investors will have received that payout earlier this month, on 4 April.

While there's no definitive word yet on any final dividend, if A2 Milk can continue growing its earnings per share, the company could cement itself as a new ASX 200 dividend stock that also offers material capital growth potential.

Indeed, in February, A2 Milk upgraded its full-year FY 2025 revenue guidance. Management is forecasting revenue growth of low to mid-double digits, up from the prior guidance of mid to high-single-digit growth.