Financial Institutions And 2 Additional US Dividend Stocks To Consider

In the current U.S. market landscape, major indices are experiencing mixed performance, with the Dow Jones slightly down while the S&P 500 and Nasdaq show modest gains amidst fluctuating investor sentiment driven by recent earnings reports and technological advancements. In such an environment, dividend stocks can offer a stable income stream, making them an attractive consideration for investors seeking to balance growth potential with consistent returns.

Top 10 Dividend Stocks In The United States

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	4.63%	★★★★★★
Columbia Banking System (NasdaqGS:COLB)	4.82%	★★★★★★
Interpublic Group of Companies (NYSE:IPG)	4.36%	★★★★★★
Isabella Bank (OTCPK:ISBA)	4.51%	★★★★★★
Dillard's (NYSE:DDS)	4.80%	★★★★★★
Financial Institutions (NasdaqGS:FISI)	4.50%	★★★★★★
Farmers National Banc (NasdaqCM:FMNB)	4.36%	★★★★★★
First Interstate BancSystem (NasdaqGS:FIBK)	5.49%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.54%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.44%	★★★★★★

Click here to see the full list of 134 stocks from our Top US Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Financial Institutions (NasdaqGS:FISI)

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

Overview: Financial Institutions, Inc., with a market cap of $413.63 million, operates as a holding company for Five Star Bank, offering banking and financial services to individuals, municipalities, and businesses in New York.

Operations: Financial Institutions, Inc. generates its revenue primarily from its banking segment, which accounted for $193.83 million.

Dividend Yield: 4.5%

Financial Institutions, Inc. offers a stable and attractive dividend yield of 4.5%, placing it in the top 25% of US dividend payers. The company's dividends are well-covered by earnings with a payout ratio of 37.4%, ensuring sustainability. Recent announcements include a quarterly cash dividend affirmation and preferred stock dividends, highlighting consistent shareholder returns. Despite some net charge-offs reported recently, its financial position remains robust with ongoing strategic refocusing efforts on core banking operations.

• Click here and access our complete dividend analysis report to understand the dynamics of Financial Institutions.
• Our valuation report unveils the possibility Financial Institutions' shares may be trading at a discount.

Preferred Bank (NasdaqGS:PFBC)

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

Overview: Preferred Bank offers a range of commercial banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, investors, professionals, and high net worth individuals, with a market cap of approximately $1.24 billion.

Operations: Preferred Bank generates its revenue primarily from its commercial banking segment, which accounted for $260.39 million.

Dividend Yield: 3%

Preferred Bank offers a reliable dividend yield of 3.01%, supported by a low payout ratio of 27.6%, indicating sustainable coverage by earnings. Despite recent declines in net interest income and net income, the bank maintains stable and growing dividends over the past decade. Trading at significant value below estimated fair value, it remains attractive relative to peers, although its yield is lower than top-tier US dividend payers. Recent insider selling may warrant caution.

• Dive into the specifics of Preferred Bank here with our thorough dividend report.
• According our valuation report, there's an indication that Preferred Bank's share price might be on the cheaper side.

Bar Harbor Bankshares (NYSEAM:BHB)

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

Overview: Bar Harbor Bankshares, with a market cap of $541.25 million, operates as the holding company for Bar Harbor Bank & Trust, offering a range of banking and nonbanking products and services to consumers and businesses.

Operations: Bar Harbor Bankshares generates revenue primarily from its Community Banking Industry segment, amounting to $148.71 million.

Dividend Yield: 3.4%

Bar Harbor Bankshares provides a stable dividend yield of 3.43%, supported by a moderate payout ratio of 41.5%, ensuring dividends are well covered by earnings and forecasted to remain sustainable over the next three years. Despite slight declines in net interest income, recent earnings per share have improved, highlighting financial resilience. Trading significantly below estimated fair value enhances its appeal, though its yield is lower than the top quartile of US dividend payers.

• Navigate through the intricacies of Bar Harbor Bankshares with our comprehensive dividend report here.
• Our valuation report here indicates Bar Harbor Bankshares may be undervalued.

Key Takeaways

• Get an in-depth perspective on all 134 Top US Dividend Stocks by using our screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

• 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