3 Reliable Dividend Stocks Offering At Least 4.2% Yield

The United States market has experienced a positive trend, rising 7.1% over the last week and 7.7% over the past year, with earnings expected to grow by 14% annually. In this environment, reliable dividend stocks offering yields of at least 4.2% can be appealing for investors seeking steady income alongside potential capital appreciation.

Top 10 Dividend Stocks In The United States

Click here to see the full list of 153 stocks from our Top US Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Burke & Herbert Financial Services (NasdaqCM:BHRB)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Burke & Herbert Financial Services Corp. is the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Virginia and Maryland, with a market cap of $771.76 million.

Operations: Burke & Herbert Financial Services Corp.'s revenue primarily comes from its Community Banking segment, generating $288.48 million.

Dividend Yield: 4.1%

Burke & Herbert Financial Services maintains a stable dividend history with reliable payments over the past decade, supported by a manageable payout ratio of 54.8%. However, recent shareholder dilution may be a concern. The company announced a $0.55 per share dividend and initiated a $50 million share buyback program, signaling confidence in its financial position despite large one-off items affecting earnings results. Recent executive changes could influence future strategic direction and financial management.

• Click here to discover the nuances of Burke & Herbert Financial Services with our detailed analytical dividend report.
• Our valuation report here indicates Burke & Herbert Financial Services may be undervalued.

Fifth Third Bancorp (NasdaqGS:FITB)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Fifth Third Bancorp is a bank holding company for Fifth Third Bank, National Association, offering a variety of financial products and services across the United States with a market cap of approximately $23.54 billion.

Operations: Fifth Third Bancorp generates its revenue primarily through three segments: Consumer and Small Business Banking ($4.78 billion), Commercial Banking ($3.56 billion), and Wealth and Asset Management ($611 million).

Dividend Yield: 4.1%

Fifth Third Bancorp's dividend yield of 4.14% is lower than the top US dividend payers, yet it maintains a reliable and growing dividend history with a sustainable payout ratio of 46%. Recent financials show steady net interest income at US$1.44 billion, though net charge-offs increased to US$136 million. The bank completed a significant share buyback totaling $3.20 billion since 2019, indicating robust capital management amid strategic expansions in underserved communities.

• Navigate through the intricacies of Fifth Third Bancorp with our comprehensive dividend report here.
• Our valuation report unveils the possibility Fifth Third Bancorp's shares may be trading at a discount.

Fulton Financial (NasdaqGS:FULT)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Fulton Financial Corporation is the bank holding company for Fulton Bank, offering banking and financial products and services in the United States, with a market cap of $3.04 billion.

Operations: Fulton Financial Corporation generates revenue primarily through its banking segment, which accounts for $1.15 billion.

Dividend Yield: 4.3%

Fulton Financial offers a stable dividend with a yield of 4.27%, though it trails the top US dividend payers. The company's dividends are well covered by earnings, with a current payout ratio of 43.5% and forecasted to improve to 37.8% in three years. Recent announcements include maintaining its quarterly cash dividend at $0.18 per share, reflecting consistent payment history over the past decade amidst forecasted annual earnings growth of 13.56%.

• Delve into the full analysis dividend report here for a deeper understanding of Fulton Financial.
• The analysis detailed in our Fulton Financial valuation report hints at an deflated share price compared to its estimated value.

Taking Advantage

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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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