3 Top Dividend Stocks to Consider

As the U.S. stock market hit new highs after the S&P 500 closed at a record high, investors are looking for stable income sources amid rising economic growth and rising indexes. In this environment, dividend stocks can provide a reliable stream of income, making them an attractive option for those looking to capitalize on current market momentum and potentially benefit from consistent returns.

Click here to see the full list of 117 stocks from our Top US Dividend Stock Screener.

Let’s explore several standout options from the results in the screener.

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

Overview: Euroseas Ltd provides ocean transportation services worldwide and has a market cap of $382.28 million.

Operation: Euroseas Ltd. generates revenue of $223.79 million from its Transportation – Shipping segment.

Dividend Yield: 5.1%

Euroseas has performed strongly among dividend stocks, with a 5.13% yield placing it in the top 25% of US dividend payers. Despite only three years of dividend history, payouts have grown and are well covered by earnings (payout ratio: 11.8%) and cash flow (cash payout ratio: 48.5%). Recent charter contracts for its vessels are expected to increase revenue visibility through 2029, supporting future dividend stability amid global market uncertainties.

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

Overview: Preferred Bank offers a range of banking products and services to small and medium-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals, with a market capitalization of $1.23 billion.

Operation: Preferred Bank’s revenue is mainly derived from its commercial banking segment, which generated $271.35 million.

Dividend Yield: 3%

Preferred Bank recently raised its annual dividend to US$3.20 per share, reflecting growth of 6.7%, with payouts well covered by earnings due to a low payout ratio of 29.9%. Despite being below the top tier of US dividend payers, its stable and growing dividends over the past decade provide credibility for investors. The bank’s recent financial performance shows steady growth in net income and earnings per share, supporting its dividend sustainability amid strategic buybacks and minimal charge-offs.

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

Overview: EOG Resources, Inc. With a market capitalization of approximately $56.12 billion is engaged in the exploration, development, production and marketing of crude oil, natural gas liquids, and natural gas in producing basins in the United States and internationally.

Operation: EOG Resources primarily generates revenue through its crude oil and natural gas exploration and production segment, which contributes $22.65 billion.

Dividend Yield: 3.9%

EOG Resources’ dividend yield of 3.92% is below the top quarter of US dividend payers, and its payout has been volatile over the past decade. However, dividends are well covered by earnings and cash flow, with payout ratios of 39.1% and 56.9%, respectively. Recent strategic moves include a $3 billion credit facility to strengthen liquidity and board changes to increase financial oversight, which could support future stability in dividends despite concerns about historical volatility.

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This article by Simply Wall St. is general in nature. We only provide commentary using an unbiased methodology based on historical data and analyst forecasts and our articles are not intended to be financial advice. It does not recommend buying or selling any stock, and does not take into account 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 content. Simply Wall St. has no position in any of the stocks mentioned.

Companies discussed in this article include ESEA PFBC and EOG.

This article was originally published by Simply Wall St.

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