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Top U.S. Dividend Stocks
UPDATED May 28, 2022
What are the best U.S. Dividend Stocks? According to our Simply Wall St analysis these are the best U.S. dividend companies.
We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
47 companies meet this criteria in the U.S. market
NasdaqGS:DGIC.A
Donegal Group
Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: DGIC.A's dividend (4.13%) is in the top 25% of dividend payers in the US market (3.92%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 31.6% below our estimate of its fair value
Earnings are forecast to grow 25.86% per year
Risks
Profit margins (3.4%) are lower than last year (7.5%)
NasdaqGS:PEBO
Peoples Bancorp
Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and retail banking products and services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: PEBO's dividend (5.41%) is in the top 25% of dividend payers in the US market (3.92%)
Notable Dividend
Rewards
Trading at 61.4% below our estimate of its fair value
Earnings are forecast to grow 13.38% per year
Earnings have grown 5.3% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
Large one-off items impacting financial results
NasdaqGS:UMPQ
Umpqua Holdings
Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: UMPQ's dividend (4.73%) is in the top 25% of dividend payers in the US market (3.92%)
Notable Dividend
Rewards
Trading at 72% below our estimate of its fair value
Earnings are forecast to grow 39.72% per year
Risks
No risks detected for UMPQ from our risks checks.
NasdaqGS:HOFT
Hooker Furnishings
Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: HOFT's dividend (4.63%) is in the top 25% of dividend payers in the US market (3.92%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 79.2% below our estimate of its fair value
Earnings are forecast to grow 41.44% per year
Became profitable this year
Risks
No risks detected for HOFT from our risks checks.
NYSE:ALL
Allstate
The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: ALL's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.92%).
Rewards
Trading at 47.4% below our estimate of its fair value
Earnings are forecast to grow 24.44% per year
Risks
Profit margins (6.6%) are lower than last year (15.5%)
NasdaqGS:BFIN
BankFinancial
BankFinancial Corporation operates as the bank holding company for BankFinancial, National Association that provides various commercial, family, and personal banking products and services.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: BFIN's dividend (4.04%) is in the top 25% of dividend payers in the US market (3.92%)
Notable Dividend
Stable Dividend
Rewards
Trading at 3.2% below our estimate of its fair value
Earnings are forecast to grow 23.67% per year
Risks
No risks detected for BFIN from our risks checks.
NasdaqGS:IDCC
InterDigital
InterDigital, Inc., together with its subsidiaries, designs and develops technologies that enable and enhance wireless communications in the United States, China, South Korea, Japan, Taiwan, and Europe.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: IDCC's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.92%).
Future Dividend Coverage
Rewards
Trading at 9.3% below our estimate of its fair value
Earnings are forecast to grow 20.33% per year
Earnings grew by 34.7% over the past year
Risks
Large one-off items impacting financial results
NYSE:KAMN
Kaman
Kaman Corporation, together with its subsidiaries, operates in the aerospace, defense, medical, and industrial markets.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: KAMN's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.92%).
Future Dividend Coverage
Rewards
Trading at 75.7% below our estimate of its fair value
Earnings are forecast to grow 22.75% per year
Became profitable this year
Risks
No risks detected for KAMN from our risks checks.