The stock market can be rewarding, especially if the profits from your existing shares are combined with regular company dividends. The US market follows a similar approach, with several top US stocks that pay dividends in the form of more shares or a cash payout to the investors.
Given the fluctuations in the US share market due to potential inflation, high-dividend stocks offer a reliable investment. For one, companies with solid financials during a volatile market are expected to produce better results in the upcoming quarters. Secondly, you can direct the US stock dividends towards purchasing more company shares, and the cycle continues!
However, investors are spoilt for choice in the massive US market. Read further as we dissect the top 5 high-dividend stocks in the US and discuss how to start investing in them.
The first step in identifying the best US dividend stocks is to assess the yield of each company. Essentially, you can understand yield with a simple formula.
Yield = The annual dividends provided by a company per share/Price per share of the company
After acquiring the yield value in percentages, you can compare it to the average yield generated by the S&P 500 index and determine if the returns are worth investing in the company. Using this principle, here are the top 5 US stocks paying generous dividends.
Hailed as one of the largest telecom providers in the US, Verizon is recognised as a blue-chip firm. While it has struggled to win the race to adopt 5G technology, the company possesses steadfast cash flow, which makes it a worthy investment.
The latest data signifies that the dividend yield for Verizon until April 12, 2023, stood at an impressive 6.63%.
Although it possesses a strong presence in over 16 US states, Dominion Energy might not be on your list due to the recent drop in its share prices. However, the company shows solid signs of growth as it focuses on minimal carbon generation over the next few years.
Plus, the dividends are generous. Until April 13, the dividend yield of Dominion Energy was at 4.58%.
IBM has existed since the advent of the first personal computer and continues to adapt to the ever-changing technological market. It recently entered cloud computing by purchasing enterprise software Red Hat. Going forward, it is expected to register significant gains as it continues to recover the losses suffered in 2020.
With an average annual dividend of 4.94%, IBM is known to provide investors with a USD 6.60 dividend annually.
LNC is renowned for its insurance and retirement products business. The company shares trade at a lower value against others in the domain but offer far more reliability in the face of economic uncertainties. LNC is a viable option if you are looking to park your funds in a company that displays slow but stagnant growth with good dividends, look no further than LNC.
An annual dividend yield of 8.53% makes LNC a good option for long-term investment.
Tyson Foods is a company that focuses on packaged meat products. While the recent Ukraine-Russia war carved a dent into its profit margins, the company's shares are still trading at around eleven times its forward earnings.
Owing to their dividend yield of 3.1%, the current price offers a great entry point.
Fi Money allows investing in top US companies at industry-best forex rates. The user interface is intuitive, and novice investors can use curated collections to make decisions. Seasoned investors can apply filters and pick from a wide range of international options. On Fi, you can buy US Stocks instantly!
Yes, several US companies like Verizon and IBM provide dividends to shareholders.
According to the latest S&P metrics, the annual dividend rate for US stocks is 1.66%.
Getting dividends for US Stocks in India is entirely dependant on the company's dividend policy.
With multiple platforms for US Stocks investment from India available currently, it's safe to invest in US Stocks from India. Look into how US Stocks will be taxed for you and do your research before investing. Stock markets and subject to risks, so it's best to have a risk appetite if you choose to invest in US Stocks.