3 US Dividend Stocks To Enhance Your Portfolio

As the U.S. stock market experiences a surge, driven by a rally in major technology stocks that pushed the Nasdaq Composite above 20,000 points for the first time, investors are keenly observing opportunities to strengthen their portfolios amidst these dynamic conditions. In such an environment, dividend stocks offer a compelling avenue for enhancing portfolio stability and income potential, as they provide regular payouts that can cushion against market volatility while benefiting from overall growth trends.

Top 10 Dividend Stocks In The United States

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

Here we highlight a subset of our preferred stocks from the screener.

Brookline Bancorp (NasdaqGS:BRKL)

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

Overview: Brookline Bancorp, Inc. is a bank holding company for Brookline Bank, offering commercial, business, and retail banking services to corporate, municipal, and retail clients in the United States with a market cap of approximately $1.13 billion.

Operations: Brookline Bancorp, Inc. generates revenue primarily through its banking business segment, which amounts to $333.83 million.

Dividend Yield: 4.2%

Brookline Bancorp offers a stable dividend with a yield of 4.24%, which is reliable and has shown growth over the past decade. Despite trading at 25.3% below its estimated fair value, its dividends are well-covered by earnings, with a current payout ratio of 64.8%, forecasted to improve to 43.5% in three years. Recent earnings reports indicate slight declines in net income and interest income compared to the previous year, but dividends remain affirmed at US$0.135 per share for Q3 2024.

• Click to explore a detailed breakdown of our findings in Brookline Bancorp's dividend report.
• The analysis detailed in our Brookline Bancorp valuation report hints at an deflated share price compared to its estimated value.

Karat Packaging (NasdaqGS:KRT)

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

Overview: Karat Packaging Inc. manufactures and distributes single-use disposable products for restaurant and foodservice settings, with a market cap of approximately $634.76 million.

Operations: Karat Packaging Inc.'s revenue primarily comes from the manufacturing and supply of a broad portfolio of single-use products, amounting to $416.57 million.

Dividend Yield: 5.4%

Karat Packaging's dividend yield of 5.41% ranks in the top 25% among US dividend payers, although its history is short and payments have been volatile. The company trades at a significant discount to its estimated fair value, with dividends covered by earnings and cash flows (payout ratios: 84.9% and 76.5%, respectively). Recent earnings show stable revenue growth but a slight decline in net income over nine months; however, dividends increased to US$0.40 per share recently.

• Get an in-depth perspective on Karat Packaging's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Karat Packaging shares in the market.

Southside Bancshares (NYSE:SBSI)

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

Overview: Southside Bancshares, Inc., the bank holding company for Southside Bank, offers a variety of financial services to individuals, businesses, municipal entities, and nonprofit organizations with a market cap of approximately $1.06 billion.

Operations: Southside Bancshares, Inc. generates revenue primarily from its banking segment, totaling $244.62 million.

Dividend Yield: 4.1%

Southside Bancshares offers a stable dividend history with consistent growth over the past decade, supported by a manageable payout ratio of 51.5%. Despite its dividend yield of 4.11% being slightly below the top tier in the US market, it remains reliable and covered by earnings. Recent changes include its listing move to the New York Stock Exchange and board adjustments, while earnings show slight declines but maintain coverage for future dividends at an estimated 54.6% payout ratio in three years.

• Navigate through the intricacies of Southside Bancshares with our comprehensive dividend report here.
• According our valuation report, there's an indication that Southside Bancshares' share price might be on the cheaper side.

Turning Ideas Into Actions

• Dive into all 135 of the Top US Dividend Stocks we have identified here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Want To Explore Some Alternatives?

• 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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