3 Top US Dividend Stocks For Your Portfolio
As the S&P 500 reaches record highs, buoyed by a late trading rally, investors are closely watching the market's momentum and its implications for portfolio strategies. In such an environment, dividend stocks can offer a blend of income and stability, making them an attractive option for those looking to capitalize on the current market dynamics while potentially mitigating risk.
Name
Dividend Yield
Dividend Rating
Columbia Banking System (NasdaqGS:COLB)
5.17%
★★★★★★
FMC (NYSE:FMC)
6.10%
★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)
4.84%
★★★★★★
Dillard's (NYSE:DDS)
5.16%
★★★★★★
Southside Bancshares (NYSE:SBSI)
4.55%
★★★★★★
Isabella Bank (OTCPK:ISBA)
4.48%
★★★★★★
Citizens & Northern (NasdaqCM:CZNC)
5.20%
★★★★★★
First Interstate BancSystem (NasdaqGS:FIBK)
5.74%
★★★★★★
Virtus Investment Partners (NYSE:VRTS)
4.82%
★★★★★★
Archer-Daniels-Midland (NYSE:ADM)
4.44%
★★★★★★
Click here to see the full list of 135 stocks from our Top US Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
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 $644.38 million.
Operations: Karat Packaging Inc. generates revenue primarily from the manufacturing and supply of a diverse range of single-use products, totaling $416.57 million.
Dividend Yield: 5.2%
Karat Packaging's dividend yield of 5.23% places it in the top 25% of US dividend payers, with recent increases reflecting a rise to $0.45 per share. However, its payout ratio of 84.9% and cash payout ratio of 76.5% suggest moderate coverage by earnings and cash flows, respectively. Despite a volatile and short dividend history, earnings are forecasted to grow annually at 12.73%, potentially supporting future stability in payouts.
Click to explore a detailed breakdown of our findings in Karat Packaging's dividend report.
Insights from our recent valuation report point to the potential overvaluation of Karat Packaging shares in the market.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Magic Software Enterprises Ltd. offers proprietary application development, vertical software solutions, business process integration, IT outsourcing services, and cloud-based services both in Israel and internationally, with a market cap of $627.98 million.
Operations: Magic Software Enterprises Ltd. generates revenue through proprietary application development, vertical software solutions, business process integration, IT outsourcing software services, and cloud-based services across Israel and international markets.
Dividend Yield: 3.3%
Magic Software Enterprises offers a dividend yield of 3.33%, below the top quartile of US dividend payers. Its dividends are well-covered, with a payout ratio of 62.2% and cash payout ratio of 45.2%. Despite past volatility in payments, recent increases over the last decade indicate potential for growth. Trading at a lower price-to-earnings ratio than its industry peers, Magic Software presents good value but lacks dividend stability and reliability historically.
Delve into the full analysis dividend report here for a deeper understanding of Magic Software Enterprises.
Upon reviewing our latest valuation report, Magic Software Enterprises' share price might be too pessimistic.
Simply Wall St Dividend Rating: ★★★★★★
Overview: Dillard's, Inc. operates retail department stores across the southeastern, southwestern, and midwestern United States with a market cap of approximately $7.84 billion.
Operations: Dillard's, Inc. generates revenue primarily through its Retail Operations segment, which accounts for $6.44 billion, complemented by its Construction segment contributing $295.67 million.
Dividend Yield: 5.2%
Dillard's offers a robust dividend yield of 5.16%, placing it in the top quartile of US dividend payers. Its dividends have been stable and growing over the past decade, with a low payout ratio of 2.6% ensuring coverage by earnings and a cash payout ratio of 61.9% indicating sustainability through cash flows. A recent special dividend of US$25 per share highlights its commitment to returning capital to shareholders, although future earnings are forecasted to decline significantly.
Click here and access our complete dividend analysis report to understand the dynamics of Dillard's.
Our comprehensive valuation report raises the possibility that Dillard's is priced lower than what may be justified by its financials.
Embark on your investment journey to our 135 Top US Dividend Stocks selection here.
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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.
Companies discussed in this article include NasdaqGS:KRT NasdaqGS:MGIC and NYSE:DDS.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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