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Top U.S. Dividend Stocks
UPDATED Sep 26, 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.
65 companies meet this criteria in the U.S. market
Icahn Enterprises L.P., through its subsidiaries, operates in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally.
Dividend Criteria
Stable Dividend
Growing Dividend
High Dividend: IEP's dividend (16.38%) is in the top 25% of dividend payers in the US market (4.57%)
Notable Dividend
Future Dividend Coverage
Earnings Coverage
Rewards
Trading at 97.8% below our estimate of its fair value
Earnings are forecast to grow 117.08% per year
Risks
Shareholders have been diluted in the past year
Cadence Bank provides commercial banking and financial services in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: CADE's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Rewards
Trading at 64.7% below our estimate of its fair value
Earnings are forecast to grow 21.71% per year
Risks
Shareholders have been substantially diluted in the past year
Significant insider selling over the past 3 months
Profit margins (19.3%) are lower than last year (28.1%)
Amdocs Limited, through its subsidiaries, provides software and services worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: DOX's dividend (2%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Rewards
Trading at 54% below our estimate of its fair value
Earnings are forecast to grow 7.41% per year
Risks
No risks detected for DOX from our risks checks.
First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FBNC's dividend (2.3%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Rewards
Trading at 63% below our estimate of its fair value
Earnings are forecast to grow 17.74% per year
Earnings have grown 14% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
German American Bancorp, Inc. operates as a bank holding company for German American Bank that provides retail and commercial banking services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: GABC's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Future Dividend Coverage
Rewards
Trading at 55.9% below our estimate of its fair value
Earnings are forecast to grow 20.26% per year
Risks
Shareholders have been diluted in the past year
World Fuel Services Corporation engages in the distribution of fuel and related products and services in the aviation, marine and land transportation industries worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: INT's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Future Dividend Coverage
Rewards
Trading at 82.3% below our estimate of its fair value
Earnings are forecast to grow 23.66% per year
Risks
Profit margins (0.2%) are lower than last year (0.5%)
Regal Rexnord Corporation, together with its subsidiaries, designs, manufactures, and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: RRX's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Rewards
Trading at 56.6% below our estimate of its fair value
Earnings are forecast to grow 32.34% per year
Earnings have grown 3.3% per year over the past 5 years
Risks
Shareholders have been substantially diluted in the past year
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: AGX's dividend (3.14%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Future Dividend Coverage
Rewards
Trading at 32.3% below our estimate of its fair value
Earnings are forecast to grow 37.75% per year
Risks
Profit margins (5.6%) are lower than last year (8.5%)