Top Dividend Stocks to Watch in July 2024

In recent market events, U.S. stocks have been mixed, with volatility driven by the Federal Reserve’s inflation data and mixed earnings reports. The Nasdaq Composite and S&P 500 have shown resilience in a volatile environment, while the Dow Jones Industrial Average has seen modest declines. Given these conditions, investors may want to consider the stability offered by dividend-paying stocks, which can provide regular income streams and the potential for long-term value in the face of market uncertainty.

Top 10 Dividend Stocks in the United States

Name	Dividend rate	Dividend rating
Colombian Banking System (NasdaqGS:COLB)	7.24%	★★★★★★
Resource Connection (NasdaqGS:RGP)	5.07%	★★★★★★
OceanFirst Financial (NasdaqGS:OCFC)	5.03%	★★★★★★
Silvercrest Asset Management Group (NasdaqGM:SAMG)	4.87%	★★★★★★
Financial Regions (NYSE:RF)	4.79%	★★★★★★
Dillard’s (NYSE:DDS)	4.77%	★★★★★★
Huntington Bancshares (NasdaqGS:HBAN)	4.70%	★★★★★★
CompX International (NYSEAM:CIX)	4.86%	★★★★★★
Carter (NYSE:CRI)	5.16%	★★★★★★☆
Credicorp (NYSE:BAP)	5.66%	★★★★★☆

Click here to see the full list of 207 stocks selected by our top dividend stock scanner.

We’ll take a look at some of the top picks from our selection tool.

Simply Wall St Dividend Rating: ★★★★★☆☆

Overview: Flushing Financial Corporation, operating as the bank holding company of Flushing Bank, offers banking products and services primarily to consumers, businesses, and government entities and has a market capitalization of approximately $382.26 million.

Operations: Flushing Financial Corporation generates revenues primarily through its Community Bank segment, which contributed $191.50 million.

Dividend yield: 6.7%

Flushing Financial has maintained a stable dividend over the past decade, recently confirming quarterly payments. However, the high payout ratio of 92.6% raises concerns about sustainability, as it is not well covered by earnings. The company’s profit margins have fallen from 27.3% to 14.8%, and while the P/E ratio of 13.5x is lower than the U.S. market average, indicating potential value, the projected earnings growth of around 12.96% per year may not be enough to cover the dividend or provide future growth without improved profitability or cash flow management.

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Financial Institutions, Inc., operating through its subsidiary Five Star Bank, offers banking and financial services to individuals, municipalities and businesses in New York, with a market capitalization of approximately $298.44 million.

Operations: Financial Institutions, Inc. generates revenue primarily through its banking segment, which posted a profit of $196.23 million.

Dividend yield: 6.2%

Financial Institutions, Inc. has demonstrated a commitment to dividends, recently confirming a quarterly cash dividend and maintaining preferred stock payments. With a 10-year history of stable and growing dividends supported by a payout ratio of 47.6%, the dividends appear sustainable. Despite trading at significant undervaluation, recent earnings have declined, creating a potential risk to future dividend coverage without earnings recovery. The company’s consistent dividend policy amid these challenges underscores its reliability for income-oriented investors.

Simply Wall St Dividend Rating: ★★★★★☆☆

Overview: Independent Bank Corporation, serving as the bank holding company for Independent Bank, provides commercial banking services to individuals and businesses in rural and suburban Michigan and has a market capitalization of approximately $564.37 million.

Operations: Independent Bank Corporation generates revenue primarily through its subsidiary Independent Bank, which contributed $205.98 million.

Dividend rate: 3.6%

Independent Bank Corporation recently reported solid growth in net interest income and net income for Q1 2024, reflecting financial growth. The company declared a quarterly cash dividend of $0.24 per share, consistent with its history of reliable dividends over the past decade. Despite this stability, the company’s stock is trading 62.3% below its estimated fair value and its projected earnings are expected to decline by 0.3% per year over the next three years, which could threaten the sustainability of its future dividend without strategic adjustments.

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This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. Our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.

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