Top 3 US Dividend Stocks To Enhance Your Portfolio

As the U.S. stock market continues its rally, with the S&P 500 and Dow Jones hitting record highs, investors are increasingly looking for stable opportunities to enhance their portfolios amid this bullish momentum. In such a thriving environment, dividend stocks stand out as attractive options due to their potential for providing consistent income and contributing to long-term portfolio growth.

Top 10 Dividend Stocks In The United States

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	4.53%	★★★★★★
Interpublic Group of Companies (NYSE:IPG)	4.31%	★★★★★★
Columbia Banking System (NasdaqGS:COLB)	4.54%	★★★★★★
Isabella Bank (OTCPK:ISBA)	4.51%	★★★★★★
Dillard's (NYSE:DDS)	4.67%	★★★★★★
Financial Institutions (NasdaqGS:FISI)	4.38%	★★★★★★
CompX International (NYSEAM:CIX)	4.51%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.49%	★★★★★★
First Interstate BancSystem (NasdaqGS:FIBK)	5.31%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.43%	★★★★★★

Click here to see the full list of 135 stocks from our Top US Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

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 in the United States with a market cap of $32.48 billion.

Operations: Fifth Third Bancorp generates revenue through its key segments, including Commercial Banking ($3.89 billion), Wealth and Asset Management ($807 million), and Consumer and Small Business Banking ($5.19 billion).

Dividend Yield: 3.1%

Fifth Third Bancorp's dividend payments have been stable and growing over the past decade, supported by a current payout ratio of 47%, indicating they are well-covered by earnings. Recently declaring a cash dividend of US$0.37 per share for Q3 2024, the bank maintains a reliable dividend history despite its yield being lower than the top quartile in the US market. The completion of significant share buybacks further underscores its commitment to returning value to shareholders.

• Get an in-depth perspective on Fifth Third Bancorp's performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that Fifth Third Bancorp is priced lower than what may be justified by its financials.

Northwest Bancshares (NasdaqGS:NWBI)

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

Overview: Northwest Bancshares, Inc. is the bank holding company for Northwest Bank, a state-chartered savings bank offering personal and business banking solutions, with a market cap of approximately $1.91 billion.

Operations: Northwest Bancshares, Inc. generates revenue primarily through its Community Banking segment, which accounts for $487.91 million.

Dividend Yield: 5.4%

Northwest Bancshares offers a mixed dividend profile, with a recent quarterly cash dividend of US$0.20 per share marking its 120th consecutive payment, yielding about 6.0%. However, the payout ratio is high at 105.4%, indicating dividends are not well-covered by earnings and may be unsustainable long-term. Despite trading below fair value and increasing dividends over a decade, past volatility raises concerns about reliability and sustainability amidst declining net income in recent quarters.

• Click here to discover the nuances of Northwest Bancshares with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Northwest Bancshares shares in the market.

Scholastic (NasdaqGS:SCHL)

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

Overview: Scholastic Corporation publishes and distributes children's books worldwide, with a market cap of approximately $755.21 million.

Operations: Scholastic Corporation generates revenue through three main segments: Children's Book Publishing and Distribution ($958.20 million), Education Solutions ($340.90 million), and International ($273.20 million).

Dividend Yield: 3%

Scholastic's dividend profile features a quarterly cash dividend of US$0.20 per share, with stable and growing payments over the past decade. However, the high payout ratio of 96.7% indicates dividends are not well-covered by earnings, raising sustainability concerns despite being well-supported by cash flows with a low cash payout ratio of 26%. Recent financials show improved net loss figures but lower profit margins year-over-year. The stock trades below estimated fair value.

• Delve into the full analysis dividend report here for a deeper understanding of Scholastic.
• Our valuation report unveils the possibility Scholastic's shares may be trading at a discount.

Taking Advantage

• Gain an insight into the universe of 135 Top US Dividend Stocks by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Searching for a Fresh Perspective?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com