As U.S. markets experience volatility with the Dow Jones Industrial Average on its longest losing streak since 1978, investors are closely watching the Federal Reserve's upcoming rate decision. Amidst this backdrop, dividend stocks can offer a measure of stability and income, making them an attractive option for those looking to navigate uncertain market conditions.
Overview: Union Bankshares, Inc. is a bank holding company for Union Bank, offering retail, commercial, and municipal banking services in northern Vermont and New Hampshire with a market cap of $155.64 million.
Operations: Union Bankshares, Inc. generates its revenue primarily from its Community Bank segment, which accounted for $46.39 million.
Dividend Yield: 4.2%
Union Bankshares offers a stable and reliable dividend, with payments consistently growing over the past decade. The recent quarterly dividend was US$0.36 per share, reflecting a yield of 4.23%, slightly below the top quartile of US dividend payers. Despite trading at 32.1% below its estimated fair value, earnings have declined recently, raising concerns about future coverage without sufficient data to confirm sustainability beyond three years. Recent bylaw amendments and shelf registration filings indicate ongoing corporate governance adjustments and capital management activities.
Overview: Silicon Motion Technology Corporation designs, develops, and markets NAND flash controllers for solid-state storage devices globally, with a market cap of approximately $2.03 billion.
Operations: The company's revenue segment focuses on developing NAND flash controllers for solid-state storage devices, generating $814.77 million.
Dividend Yield: 3.3%
Silicon Motion Technology's dividend yield is lower than the top 25% of US dividend payers, yet its dividends are well-covered by earnings with a payout ratio of 31.5%. Despite past volatility, dividends have increased over the last decade. The company recently declared an annual cash dividend of $2.00 per ADS for 2024-2025, payable quarterly. Recent financials show significant growth in sales and net income, supporting its current dividend strategy amidst executive changes and ongoing presentations at major conferences.
Overview: First Horizon Corporation is a bank holding company for First Horizon Bank, offering a range of financial services, with a market cap of approximately $10.76 billion.
Operations: First Horizon Corporation's revenue primarily comes from its Regional Banking segment, generating $2.51 billion, and its Specialty Banking segment, contributing $742 million.
Dividend Yield: 3%
First Horizon's dividends have been stable and growing over the past decade, with a current yield of 3.01%, though below the top US dividend payers. The payout ratio is a manageable 43.4%, indicating dividends are well-covered by earnings, with forecasts suggesting further coverage improvement to 34.5%. Recent financials show increased net income and earnings per share, supporting its dividend strategy alongside ongoing share repurchases totaling $476 million under its buyback program.
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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.
