In This Article:
In the quest for reliable income from dividend stocks in the United States, where average yields hover around 1.7%, investors often face a mix of opportunities and risks. A key factor in evaluating these stocks is the stability of their dividends. Companies like Cracker Barrel Old Country Store, which have experienced significant dividend cuts, highlight the importance of assessing not just the yield but also the consistency and reliability of dividend payments over time. This article will explore why such instability can be a red flag for investors seeking dependable dividend investments.
Top 10 Dividend Stocks In The United States
| Name | Dividend Yield | Dividend Rating |
| Columbia Banking System (NasdaqGS:COLB) | 7.36% | ★★★★★★ |
| Resources Connection (NasdaqGS:RGP) | 5.31% | ★★★★★★ |
| Silvercrest Asset Management Group (NasdaqGM:SAMG) | 4.97% | ★★★★★★ |
| OceanFirst Financial (NasdaqGS:OCFC) | 5.15% | ★★★★★★ |
| Dillard's (NYSE:DDS) | 4.87% | ★★★★★★ |
| Regions Financial (NYSE:RF) | 4.83% | ★★★★★★ |
| Huntington Bancshares (NasdaqGS:HBAN) | 4.75% | ★★★★★★ |
| CompX International (NYSEAM:CIX) | 5.21% | ★★★★★★ |
| Premier Financial (NasdaqGS:PFC) | 6.19% | ★★★★★☆ |
| East West Bancorp (NasdaqGS:EWBC) | 3.03% | ★★★★★☆ |
Click here to see the full list of 205 stocks from our Top Dividend Stocks screener.
We're going to check out one of the best picks from our screener tool and one that could be a dividend trap.
Top Pick
National Bankshares
Simply Wall St Dividend Rating: ★★★★★☆
Overview: National Bankshares, Inc., with a market cap of approximately $179.70 million, serves as the bank holding company for the National Bank of Blacksburg, offering retail and commercial banking products and services to individuals, businesses, non-profits, and local governments.
Operations: The firm offers retail and commercial banking solutions to a diverse clientele including individuals, businesses, non-profits, and local governments.
Dividend Yield: 5%
National Bankshares is currently valued at 61.5% below our fair value estimate, offering a potentially attractive entry point for dividend investors. Despite a decline in profit margins from 43.1% to 29.5% over the past year, the company has maintained stable and reliable dividends for the last decade, with payments increasing annually. Its dividend yield stands at 4.95%, higher than the top quartile of US market payers at 4.74%. Additionally, with a payout ratio of 66.7%, its dividends are well-covered by earnings, contrasting sharply with companies that have experienced significant cuts in their dividends due to coverage issues.