Top U.S. Dividend Stocks

Top U.S. Dividend Stocks

UPDATED May 17, 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.

58 companies meet this criteria in the U.S. market

NasdaqGS:DGIC.A

Donegal Group

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

  • Dividend Coverage

  • Growing Dividend

  • High Dividend: DGIC.A's dividend (4.24%) is in the top 25% of dividend payers in the US market (4.06%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 33.5% 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%)

NasdaqGS:UMPQ

Umpqua Holdings

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking services.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: UMPQ's dividend (4.87%) is in the top 25% of dividend payers in the US market (4.06%)

  • Notable Dividend

See Full Stock Report

Rewards

  • Trading at 72.9% below our estimate of its fair value

  • Earnings are forecast to grow 39.72% per year

Risks

No risks detected for UMPQ from our risks checks.

NasdaqGS:PEBO

Peoples Bancorp

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and retail banking products and services.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: PEBO's dividend (5.55%) is in the top 25% of dividend payers in the US market (4.06%)

  • Notable Dividend

See Full Stock Report

Rewards

  • Trading at 62.5% below our estimate of its fair value

  • Earnings are forecast to grow 13.38% per year

  • Earnings have grown 5.3% per year over the past 5 years

Risks

  • Shareholders have been diluted in the past year

  • Large one-off items impacting financial results

NasdaqGS:HOFT

Hooker Furnishings

Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • High Dividend: HOFT's dividend (4.74%) is in the top 25% of dividend payers in the US market (4.06%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 76.2% below our estimate of its fair value

  • Earnings are forecast to grow 48.54% per year

  • Became profitable this year

Risks

No risks detected for HOFT from our risks checks.

NasdaqGS:IDCC

InterDigital

InterDigital, Inc., together with its subsidiaries, designs and develops technologies that enable and enhance wireless communications in the United States, China, South Korea, Japan, Taiwan, and Europe.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: IDCC's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (4.06%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 14% below our estimate of its fair value

  • Earnings are forecast to grow 20.33% per year

  • Earnings grew by 34.7% over the past year

Risks

  • Large one-off items impacting financial results

NYSE:PH

Parker-Hannifin

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: PH's dividend (1.95%) is low compared to the top 25% of dividend payers in the US market (4.06%).

See Full Stock Report

Rewards

  • Trading at 47.3% below our estimate of its fair value

  • Earnings are forecast to grow 15.71% per year

  • Earnings have grown 12.4% per year over the past 5 years

Risks

  • Has a high level of debt

NasdaqGS:EWBC

East West Bancorp

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: EWBC's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.06%).

See Full Stock Report

Rewards

  • Trading at 66.4% below our estimate of its fair value

  • Earnings are forecast to grow 12.76% per year

  • Earnings grew by 44.2% over the past year

Risks

No risks detected for EWBC from our risks checks.

NYSE:FNB

F.N.B

F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses.

Dividend Criteria

  • Stable Dividend

  • Dividend Coverage

  • Future Dividend Coverage

  • High Dividend: FNB's dividend (4.07%) is in the top 25% of dividend payers in the US market (4.06%)

  • Notable Dividend

  • Growing Dividend

See Full Stock Report

Rewards

  • Trading at 56.9% below our estimate of its fair value

  • Earnings are forecast to grow 17.74% per year

  • Earnings have grown 10.8% per year over the past 5 years

Risks

  • Shareholders have been diluted in the past year

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