Back in August, I created a filter to find the best US dividend stocks. My criteria were the following:
– Dividend yield over 3%
– Stock price over $10.00
– Payout Ratio under 60%
Then, with your comments, I decided to pull out another search for the Top US dividend stocks by changing my filters for the following:
– Dividend yield over 3%
– Maximum dividend yield 7%
– Payout Ratio under 60%
– Dividend growth (min 5% annualized growth over 5 years)
– P/E ratio under 15
As you can see, we have taken out the stock price as some readers were pointing that some great dividend stocks can be found within the lower end of the ticker. On the other hand, I have put a maximum dividend yield of 7% since I think that “overpaying” dividend stocks would likely include some dubious prospects.
I think the most interesting part was to add the dividend growth to my dividend stock filter. The real power of dividend investing is found within the dividend growth on a long term investment period.
Here are the Best US Dividend Stocks:
|Ticker||Name||Dividend Yield||Payout Ratio|
|GCBC||Greene County Bancorp Inc||4||25.34|
|BKYF||Bank of Kentucky Financial Corp||3.4||45.12|
|RPM||RPM International Inc||4.08||58.56|
|TYCB||Calvin B Taylor Bankshares Inc||3.5||52.92|
|BMTC||Bryn Mawr Bank Corp||3.26||47.31|
|HGIC||Harleysville Group Inc||4.26||40.38|
|JNJ||Johnson & Johnson||3.39||43.42|
|TMP||Tompkins Financial Corp||3.36||41.49|
|NEE||NextEra Energy Inc||3.61||47.33|
|ARLP||Alliance Resource Partners LP||5.34||56.27|
|BOH||Bank of Hawaii Corp||3.87||59.87|
|SAFT||Safety Insurance Group Inc||4.43||45.87|
|VLGEA||Village Super Market Inc||3.4||42.63|
|CIZN||Citizens Holding Co||4.46||55.07|
|ORRF||Orrstown Financial Services Inc||3.6||42.14|
|CSBB||CSB Bancorp Inc/OH||4.59||58.06|
|FII||Federated Investors Inc||3.98||49.79|
|FFIC||Flushing Financial Corp||4.02||56.75|
|UNS||Unisource Energy Corp||4.58||40.83|
|NKSH||National Bankshares Inc||3.36||40.67|
|CHCO||City Holding Co||4.18||50.77|
|ALNC||Alliance Financial Corp/NY||3.83||47.98|
|FLIC||First of Long Island Corp/The||3.52||40.68|
|NSM||National Semiconductor Corp||3.15||36.19|
|HARL||Harleysville Savings Financial Corp||5.15||55.52|
|NOC||Northrop Grumman Corp||3.05||34.27|
|CCFN||CCFNB Bancorp Inc||4.28||39.44|
|NWFL||Norwood Financial Corp||4.11||42.56|
|HCBK||Hudson City Bancorp Inc||5.21||54.7|
|EBTC||Enterprise Bancorp Inc/MA||3.57||39.06|
|KEQU||Kewaunee Scientific Corp||3.64||0|
|TSH||Teche Holding Co||4.58||41.34|
|LPHI||Life Partners Holdings Inc||5.51||54.04|
|CZFS||Citizens Financial Services Inc||3.25||29.92|
|LMT||Lockheed Martin Corp||4.2||30.03|
|SMBC||Southern Missouri Bancorp Inc||3.15||24.35|
|LLY||Eli Lilly & Co||5.55||49.73|
|SBSI||Southside Bancshares Inc||3.61||24.95|
|CPKF||Chesapeake Financial Shares Inc||3.32||23.54|
|HCBC||High Country Bancorp Inc||5.42||21.77|
I pulled out my data back in mid October so some numbers might be off slightly (especially dividend yield).
This is with no surprises that my first stock pick, JNJ (which is yet to be bought since I’m having problem with my corporate brokerage account) is part of the list. On the other hand, high dividend paying companies that are part of the tobacco industry were taken off that list mainly because of their higher payout ratio. Even Universal Corp didn’t make the cut since their dividend growth slowed down over the past 5 years. In the end, it is simply the reflection of a declining industry…
I’ll come up with the best Canadian dividend stocks on next Monday with the same approach. You will see, there is not much to build a portfolio from!
That’s a pretty solid list. Of course no screener can catch every single great dividend stock, but it definitely captures many, many good dividend stocks.
I own some of those companies like JNJ, CVX, and HGIC.
Hi Dividend Blog Guy,
I like your analysis and picks dividends are especially important given the current investment environment. I agree with you that the tobacco stocks are a declining industry because of US attitudes toward smoking but if you go beyond the US centric focus you can find a US company that could fit your criteria. I wrote about it on my blog and you can check it out there. The address is :
Terry in VA
Nice list: Please add another two sort columns and rank them on their percentage if income derived from overseas markets and cash balance on hand. The first may provide indication of an ability to maintain dividend patout in the face of a declining US market and dollar, while the second may indicate a higher reliability in making dividend payouts.
Otherwise, nice job.
I work for a bank. I’m sure there are several solid banks in your list, but I would be very careful here. Many banks have not taken their hits on non-performing assets or have pass credits that have yet to blow up when the interest reserve runs out. We have several more years of pain before we get out of this mess. My crystal ball in no better than yours, but I think minimum 3 more years and maybe 5. Several hundred banks will not survive the ‘cleansing.’ The only reason many more banks have not been closed (except for the TBTF banks), is that the FDIC does not have the funding or the staff to do it. Oh well, another $600B of QE.
Magnus from ILoveDividends.com
This might be a usefull list! Thanks!
I agree with you. Actually, I would tend to buy Canadian Banks instead of US banks to complete the financial sector. They are more solid and offer great dividend yield (3.50% to 4.50%) along with low P/E ratio and dividend payout ratio too.
I can see how this can really work within an RRSP ( no US withholding tax). Can we justify creating a non registered US portfolio?
What would the numbers look like?