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Top U.S. Dividend Stocks
UPDATED May 26, 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
NasdaqGS:TCBK
TriCo Bancshares
TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: TCBK's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Rewards
Trading at 57.3% below our estimate of its fair value
Earnings are forecast to grow 14.72% per year
Earnings grew by 26.8% over the past year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
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
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: PH's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Rewards
Trading at 48.3% 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
NYSE:NBHC
National Bank Holdings
National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: NBHC's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Rewards
Trading at 54.5% below our estimate of its fair value
Earnings are forecast to grow 38.48% per year
Risks
No risks detected for NBHC 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
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: IDCC's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Future Dividend Coverage
Rewards
Trading at 11.5% 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:KAMN
Kaman
Kaman Corporation, together with its subsidiaries, operates in the aerospace, defense, medical, and industrial markets.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: KAMN's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Future Dividend Coverage
Rewards
Trading at 76% below our estimate of its fair value
Earnings are forecast to grow 22.75% per year
Became profitable this year
Risks
No risks detected for KAMN from our risks checks.
NasdaqGS:LBAI
Lakeland Bancorp
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 (3.8%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Rewards
Trading at 62.9% below our estimate of its fair value
Earnings are forecast to grow 16.11% per year
Earnings grew by 28.1% over the past year
Risks
Shareholders have been diluted in the past year
NasdaqGS:FIBK
First Interstate BancSystem
First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States.
Dividend Criteria
Stable Dividend
Growing Dividend
Future Dividend Coverage
High Dividend: FIBK's dividend (4.45%) is in the top 25% of dividend payers in the US market (4.01%)
Notable Dividend
Earnings Coverage
Rewards
Trading at 47.8% below our estimate of its fair value
Earnings are forecast to grow 54.46% per year
Risks
Shareholders have been substantially diluted in the past year
Significant insider selling over the past 3 months
Profit margins (16.5%) are lower than last year (29.4%)
Large one-off items impacting financial results
NYSE:USB
U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities and other financial institutions in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: USB's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (4.01%).
Rewards
Trading at 53.6% below our estimate of its fair value
Earnings are forecast to grow 14.43% per year
Earnings have grown 2.1% per year over the past 5 years
Risks
No risks detected for USB from our risks checks.