As of August 2024, the U.S. stock market has shown resilience with the S&P 500 and Nasdaq closing higher for four consecutive sessions, driven by a robust tech rally and encouraging inflation data. With expectations that the Federal Reserve may soon cut interest rates, investors are looking for stable opportunities to generate income. In this context, dividend stocks stand out as attractive options due to their potential for steady returns and income generation amidst fluctuating market conditions.
Top 10 Dividend Stocks In The United States
Name
Dividend Yield
Dividend Rating
BCB Bancorp (NasdaqGM:BCBP)
5.63%
★★★★★★
WesBanco (NasdaqGS:WSBC)
4.87%
★★★★★★
Columbia Banking System (NasdaqGS:COLB)
6.14%
★★★★★★
Silvercrest Asset Management Group (NasdaqGM:SAMG)
Overview: National Bankshares, Inc. is the bank holding company for the National Bank of Blacksburg, offering retail and commercial banking services to individuals, businesses, non-profits, and local governments with a market cap of $177.73 million.
Operations: National Bankshares, Inc. generates revenue through the provision of retail and commercial banking products and services aimed at individuals, businesses, non-profits, and local governments.
Dividend Yield: 5.2%
National Bankshares' dividend yield of 5.19% places it among the top 25% of US dividend payers, with stable and growing payments over the past decade. However, its high payout ratio (98%) raises concerns about sustainability, as recent earnings reports show a net loss of US$0.306 million for Q2 2024 compared to a net income of US$3.9 million a year ago. Despite trading at a significant discount to estimated fair value, profitability challenges persist.
Overview: ESSA Bancorp, Inc., with a market cap of $162.15 million, operates as a bank holding company for ESSA Bank & Trust, offering various financial services to individuals, families, and businesses in Pennsylvania.
Operations: ESSA Bancorp, Inc. generates $68.48 million in revenue from its Thrift/Savings and Loan Institutions segment.
Dividend Yield: 3.4%
ESSA Bancorp offers a stable and reliable dividend, with payments increasing over the past decade. The current yield is 3.38%, which is lower than the top 25% of US dividend payers. With a low payout ratio of 33.1%, dividends are well-covered by earnings. Recent earnings reports show a slight decline in net income and interest income compared to last year, but dividends remain consistent at $0.15 per share as affirmed by the Board in May 2024.
Overview: Silicon Motion Technology Corporation designs, develops, and markets NAND flash controllers for solid-state storage devices globally, with a market cap of approximately $2.05 billion.
Operations: Silicon Motion Technology Corporation generates $774.69 million from developing NAND flash controllers for solid-state storage devices.
Dividend Yield: 3.1%
Silicon Motion Technology Corporation has declared an annual dividend of $2.00 per ADS, paid quarterly. Recent earnings reports show a significant increase in both sales and net income for Q2 2024 compared to the previous year, indicating robust financial health. The company's dividends are well-covered by earnings with a payout ratio of 31.5% and cash flows at 77%. However, its dividend yield of 3.14% is lower than the top quartile of US dividend payers.
Get an in-depth perspective on all 186 Top US Dividend Stocks by using our screener here.
Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
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.
