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Top U.S. Dividend Stocks
UPDATED Jun 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.
52 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 (4.94%) is in the top 25% of dividend payers in the US market (4.25%)
Notable Dividend
Rewards
Trading at 73.6% below our estimate of its fair value
Earnings are forecast to grow 39.33% per year
Risks
No risks detected for UMPQ from our risks checks.
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 (2.12%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Rewards
Trading at 41.1% below our estimate of its fair value
Earnings are forecast to grow 41.77% per year
Risks
Shareholders have been diluted in the past year
Large one-off items impacting financial results
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 (2.55%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Rewards
Trading at 64.3% below our estimate of its fair value
Earnings are forecast to grow 28.9% per year
Risks
Profit margins (12.8%) are lower than last year (23.7%)
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: PH's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Rewards
Trading at 50.1% below our estimate of its fair value
Earnings are forecast to grow 15.72% per year
Earnings have grown 12.4% per year over the past 5 years
Risks
Has a high level of debt
Barnes Group Inc. provides engineered products, industrial technologies, and solutions in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: B's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Future Dividend Coverage
Rewards
Trading at 42.3% below our estimate of its fair value
Earnings are forecast to grow 21.11% per year
Earnings grew by 90.4% over the past year
Risks
Significant insider selling over the past 3 months
Lakeland Bancorp, Inc. operates as the bank holding company for Lakeland Bank that offers various banking products and services for individuals and small to medium sized businesses.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: LBAI's dividend (3.88%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Rewards
Trading at 64.5% below our estimate of its fair value
Earnings are forecast to grow 16.12% per year
Earnings grew by 28.1% over the past year
Risks
Shareholders have been diluted in the past year
AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AZZ's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Rewards
Trading at 83.6% below our estimate of its fair value
Earnings are forecast to grow 4.86% per year
Earnings grew by 112.1% over the past year
Risks
No risks detected for AZZ from our risks checks.
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
Notable Dividend
High Dividend: DGIC.A's dividend (3.93%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Future Dividend Coverage
Rewards
Trading at 29% 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%)