Top U.S. Dividend Stocks

Top U.S. Dividend Stocks

UPDATED Jul 01, 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.

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

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: CATC's dividend (3.08%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

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Rewards

  • Trading at 14.4% below our estimate of its fair value

  • Earnings are forecast to grow 15.54% per year

  • Earnings grew by 40.5% over the past year

Risks

No risks detected for CATC from our risks checks.

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Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: MSFT's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (4.3%).

See Full Stock Report

Rewards

  • Trading at 38.9% below our estimate of its fair value

  • Earnings are forecast to grow 11.96% per year

  • Earnings grew by 29.4% over the past year

Risks

No risks detected for MSFT from our risks checks.

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Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: FNWD's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 40.9% below our estimate of its fair value

  • Earnings are forecast to grow 26.13% per year

Risks

  • Shareholders have been diluted in the past year

  • Profit margins (19%) are lower than last year (27.7%)

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Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in northwest Ohio and northeast Indiana.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: FMAO's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 23.8% below our estimate of its fair value

  • Earnings are forecast to grow 16.97% per year

  • Earnings grew by 27.6% over the past year

Risks

  • Shareholders have been diluted in the past year

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Farmers National Banc Corp., a financial holding company, operates in the banking, trust, retirement consulting, insurance, and financial management industries.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: FMNB's dividend (4.2%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 73.5% below our estimate of its fair value

  • Earnings are forecast to grow 28.77% per year

  • Earnings have grown 19.4% per year over the past 5 years

Risks

  • Shareholders have been diluted in the past year

View all Risks and Rewards

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: MBCN's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 53.3% below our estimate of its fair value

  • Earnings are forecast to grow 18.08% per year

  • Earnings grew by 59.5% over the past year

Risks

No risks detected for MBCN from our risks checks.

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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 (3.13%) is low compared to the top 25% of dividend payers in the US market (4.3%).

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 56.4% below our estimate of its fair value

  • Earnings are forecast to grow 27.15% per year

Risks

  • Shareholders have been diluted in the past year

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New York Community Bancorp, Inc. operates as the bank holding company for New York Community Bank that provides banking products and services in Metro New York, New Jersey, Ohio, Florida, and Arizona.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: NYCB's dividend (7.32%) is in the top 25% of dividend payers in the US market (4.3%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 23% below our estimate of its fair value

  • Earnings are forecast to grow 31.71% per year

  • Earnings grew by 9.7% over the past year

Risks

No risks detected for NYCB from our risks checks.

View all Risks and Rewards
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