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Top U.S. Dividend Stocks
UPDATED Feb 07, 2023
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.
36 companies meet this criteria in the U.S. market
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 (4.32%) is in the top 25% of dividend payers in the US market (4.22%)
Notable Dividend
Rewards
Trading at 59.9% below our estimate of its fair value
Earnings are forecast to grow 45.27% per year
Risks
No risks detected for UMPQ from our risks checks.
Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: EBMT's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Rewards
Trading at 36.3% below our estimate of its fair value
Earnings are forecast to grow 25.29% per year
Risks
Shareholders have been diluted in the past year
MVB Financial Corp., through its subsidiaries, provides financial services to individuals and corporate clients in the Mid-Atlantic region and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: MVBF's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Rewards
Trading at 53.8% below our estimate of its fair value
Earnings are forecast to grow 64.62% per year
Risks
Shareholders have been diluted in the past year
Profit margins (13.2%) are lower than last year (32.9%)
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: EIG's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Future Dividend Coverage
Rewards
Trading at 32.7% below our estimate of its fair value
Earnings are forecast to grow 60.73% per year
Risks
Profit margins (8.1%) are lower than last year (18.5%)
The First Bancshares, Inc. operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FBMS's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Rewards
Trading at 49.9% below our estimate of its fair value
Earnings are forecast to grow 27.84% per year
Risks
Shareholders have been diluted in the past year
Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: CWCO's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Future Dividend Coverage
Rewards
Trading at 42.8% below our estimate of its fair value
Earnings are forecast to grow 49.36% per year
Earnings grew by 285.8% over the past year
Risks
No risks detected for CWCO from our risks checks.
Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: WBS's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Rewards
Trading at 54.7% below our estimate of its fair value
Earnings are forecast to grow 29.03% per year
Earnings grew by 57.6% over the past year
Risks
No risks detected for WBS from our risks checks.
First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FCF's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (4.22%).
Rewards
Trading at 51.4% below our estimate of its fair value
Earnings are forecast to grow 17.47% per year
Risks
No risks detected for FCF from our risks checks.