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Top U.S. Dividend Stocks
UPDATED Jun 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.
24 companies meet this criteria in the U.S. market
Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: FNF's dividend (5.02%) is in the top 25% of dividend payers in the US market (4.98%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 61% below our estimate of its fair value
Earnings are forecast to grow 29.58% per year
Risks
Profit margins (6.2%) are lower than last year (14.1%)
Entravision Communications Corporation operates as an advertising, media, and technology solutions company worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: EVC's dividend (4.23%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Future Dividend Coverage
Rewards
Trading at 23.1% below our estimate of its fair value
Earnings are forecast to grow 42.74% per year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Profit margins (1.8%) are lower than last year (3.2%)
Large one-off items impacting financial results
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AXS's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Rewards
Trading at 62.9% below our estimate of its fair value
Earnings are forecast to grow 34.5% per year
Risks
Profit margins (4.3%) are lower than last year (11.5%)
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: RE's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Rewards
Trading at 67.2% below our estimate of its fair value
Earnings are forecast to grow 42.92% per year
Risks
Shareholders have been diluted in the past year
Profit margins (5.2%) are lower than last year (11%)
Huntsman Corporation manufactures and sells diversified organic chemical products worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: HUN's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Rewards
Trading at 6.4% below our estimate of its fair value
Earnings are forecast to grow 29.61% per year
Risks
Profit margins (3.7%) are lower than last year (13.9%)
Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AIZ's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Rewards
Trading at 40.9% below our estimate of its fair value
Earnings are forecast to grow 40.8% per year
Risks
Profit margins (2.3%) are lower than last year (6%)
Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: PFS's dividend (5.22%) is in the top 25% of dividend payers in the US market (4.98%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 37.3% below our estimate of its fair value
Earnings are forecast to grow 39.54% per year
Earnings have grown 12.5% per year over the past 5 years
Risks
No risks detected for PFS from our risks checks.
Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: JOUT's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (4.98%).
Future Dividend Coverage
Rewards
Trading at 84% below our estimate of its fair value
Earnings are forecast to grow 21.39% per year
Risks
No risks detected for JOUT from our risks checks.