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Top U.S. Banks Dividend Stocks
UPDATED Jun 27, 2022
What are the best U.S. Banks Dividend Stocks?
According to our Simply Wall St analysis these are the best U.S. Banks 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.
25 companies meet this criteria in the U.S. market
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
Earnings Coverage
Future Dividend Coverage
High Dividend: FNB's dividend (4.32%) is in the top 25% of dividend payers in the US market (4.23%)
Notable Dividend
Growing Dividend
Rewards
Trading at 60.2% below our estimate of its fair value
Earnings are forecast to grow 19.39% per year
Earnings have grown 10.8% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
SouthState Corporation operates as the bank holding company for SouthState Bank, National Association that provides a range of banking services and products to individuals and companies.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: SSB's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Rewards
Trading at 36.2% below our estimate of its fair value
Earnings are forecast to grow 15.55% per year
Earnings grew by 76.2% over the past year
Risks
Shareholders have been diluted in the past year
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: OCFC's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Rewards
Trading at 65.7% below our estimate of its fair value
Earnings are forecast to grow 27.68% per year
Earnings grew by 29.8% over the past year
Risks
No risks detected for OCFC from our risks checks.
First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FBNC's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Rewards
Trading at 66.3% below our estimate of its fair value
Earnings are forecast to grow 23.8% per year
Earnings have grown 16.3% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
Cadence Bank provides commercial banking and financial services in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: CADE's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Rewards
Trading at 67.9% below our estimate of its fair value
Earnings are forecast to grow 26.29% per year
Risks
Shareholders have been substantially diluted in the past year
Profit margins (17.9%) are lower than last year (27.5%)
Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: SYBT's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Future Dividend Coverage
Rewards
Trading at 36% below our estimate of its fair value
Earnings are forecast to grow 32.37% per year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Profit margins (24%) are lower than last year (37.9%)
Large one-off items impacting financial results
German American Bancorp, Inc. operates as a bank holding company for German American Bank that provides retail and commercial banking services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: GABC's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Future Dividend Coverage
Rewards
Trading at 54.7% below our estimate of its fair value
Earnings are forecast to grow 17.5% per year
Earnings have grown 15.9% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: INDB's dividend (2.55%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Future Dividend Coverage
Rewards
Trading at 33% below our estimate of its fair value
Earnings are forecast to grow 29.4% per year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Large one-off items impacting financial results