Exploring Franklin Financial Services And Two More Leading Dividend Stocks

The United States stock market has experienced a robust climb, ascending 1.0% in the past week and achieving a 22% increase over the last year, with earnings projected to grow by 15% annually. In such an environment, dividend stocks like Franklin Financial Services can be particularly appealing for their potential to provide investors with steady income alongside capital appreciation.

Top 10 Dividend Stocks In The United States

Name	Dividend Yield	Dividend Rating
Columbia Banking System (NasdaqGS:COLB)	7.53%	★★★★★★
Resources Connection (NasdaqGS:RGP)	5.26%	★★★★★★
Silvercrest Asset Management Group (NasdaqGM:SAMG)	5.02%	★★★★★★
Regions Financial (NYSE:RF)	5.14%	★★★★★★
Huntington Bancshares (NasdaqGS:HBAN)	4.98%	★★★★★★
Dillard's (NYSE:DDS)	4.94%	★★★★★★
CompX International (NYSEAM:CIX)	4.88%	★★★★★★
East West Bancorp (NasdaqGS:EWBC)	3.07%	★★★★★☆
Southside Bancshares (NasdaqGS:SBSI)	5.58%	★★★★★☆
CVB Financial (NasdaqGS:CVBF)	4.84%	★★★★★☆

Click here to see the full list of 212 stocks from our Top Dividend Stocks screener.

We'll examine a selection from our screener results.

Franklin Financial Services (NasdaqCM:FRAF)

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

Overview: Franklin Financial Services Corporation, operating through its subsidiary Farmers and Merchants Trust Company of Chambersburg, offers commercial and retail banking, along with trust services to a diverse clientele in Pennsylvania, with a market capitalization of approximately $117.54 million.

Operations: Franklin Financial Services Corporation generates its revenue primarily from traditional banking and related financial services, amounting to $67.52 million.

Dividend Yield: 4.5%

Franklin Financial Services maintains a consistent dividend payout, declaring a regular cash dividend of US$0.32 per share for Q2 2024, matching the previous quarter's distribution. Despite trading at 36.2% below its estimated fair value and offering a 4.52% yield which is slightly below the top tier in the U.S., its dividends are well-supported by a reasonable payout ratio of 40.9%. However, there's insufficient data to confirm if future dividends will be covered by earnings or cash flows beyond three years.

• Delve into the full analysis dividend report here for a deeper understanding of Franklin Financial Services.
• According our valuation report, there's an indication that Franklin Financial Services' share price might be on the cheaper side.

Dime Community Bancshares (NasdaqGS:DCOM)

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

Overview: Dime Community Bancshares, Inc. serves as the holding company for Dime Community Bank, offering a range of commercial banking and financial services with a market capitalization of approximately $704.58 million.

Operations: Dime Community Bancshares generates its revenue primarily through its community banking segment, which amassed $328.39 million.

Dividend Yield: 5.3%

Dime Community Bancshares offers a high dividend yield of 5.3%, ranking in the top 25% of US dividend payers. The company's dividends have shown growth and reliability over the past decade, supported by a sustainable payout ratio of 56.1%. Despite trading at 59.5% below its estimated fair value, recent executive changes and a shelf registration filing indicate strategic shifts, possibly affecting future performance. However, profit margins have declined from last year, which could impact earnings growth forecasted at 29.14% annually.

• Navigate through the intricacies of Dime Community Bancshares with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Dime Community Bancshares' current price could be quite moderate.

OceanFirst Financial (NasdaqGS:OCFC)

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

Overview: OceanFirst Financial Corp. serves as the bank holding company for OceanFirst Bank N.A., with a market capitalization of approximately $848.66 million.

Operations: OceanFirst Financial Corp. generates its revenue primarily through community banking operations, which amounted to $385.73 million.

Dividend Yield: 5.3%

OceanFirst Financial Corp. maintains a solid track record in dividend reliability, having declared its 109th consecutive quarterly dividend recently. The dividends are well-supported by a low payout ratio of 46.8%, ensuring sustainability from earnings. Although the stock trades at 47.5% below its estimated fair value, suggesting potential undervaluation, analysts predict a price increase of 24.8%. However, it's important to note that there is insufficient data to confirm the future coverage of dividends by earnings or cash flows beyond three years.

• Click here and access our complete dividend analysis report to understand the dynamics of OceanFirst Financial.
• The analysis detailed in our OceanFirst Financial valuation report hints at an deflated share price compared to its estimated value.

Turning Ideas Into Actions

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Ready For A Different Approach?

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• 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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