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Top U.S. Dividend Stocks
UPDATED May 23, 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.
56 companies meet this criteria in the U.S. market
NasdaqGS:FRME
First Merchants
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: FRME's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 61.4% below our estimate of its fair value
Earnings are forecast to grow 20.5% per year
Earnings grew by 24.9% over the past year
Risks
Shareholders have been diluted in the past year
NYSE:TPR
Tapestry
Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: TPR's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stable Dividend
Rewards
Trading at 72.9% below our estimate of its fair value
Earnings are forecast to grow 13.58% per year
Earnings grew by 133.9% over the past year
Risks
No risks detected for TPR from our risks checks.
NYSE:HOMB
Home Bancshares (Conway AR)
Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: HOMB's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 54.6% below our estimate of its fair value
Earnings are forecast to grow 28.17% per year
Risks
Shareholders have been diluted in the past year
NasdaqGS:ONB
Old National Bancorp
Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: ONB's dividend (3.6%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 49% below our estimate of its fair value
Earnings are forecast to grow 69.2% per year
Risks
Shareholders have been substantially diluted in the past year
Profit margins (20.1%) are lower than last year (35.4%)
NasdaqGS:SHYF
Shyft Group
The Shyft Group, Inc. manufactures and assembles specialty vehicles for the commercial vehicle and recreational vehicle industries in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: SHYF's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 27.4% below our estimate of its fair value
Earnings are forecast to grow 70.73% per year
Earnings grew by 41.4% over the past year
Risks
Significant insider selling over the past 3 months
NasdaqGS:RELL
Richardson Electronics
Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: RELL's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 85.8% below our estimate of its fair value
Earnings are forecast to grow 31.32% per year
Became profitable this year
Risks
High level of non-cash earnings
Shareholders have been diluted in the past year
NYSE:IIPR
Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: IIPR's dividend (5.43%) is in the top 25% of dividend payers in the US market (4.11%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 76.1% below our estimate of its fair value
Earnings are forecast to grow 23.1% per year
Earnings have grown 71.9% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
NasdaqGS:SIGI
Selective Insurance Group
Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: SIGI's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Future Dividend Coverage
Rewards
Trading at 52.8% below our estimate of its fair value
Earnings are forecast to grow 12.65% per year
Earnings grew by 1.1% over the past year
Risks
No risks detected for SIGI from our risks checks.