As the U.S. stock market reaches new heights with the S&P 500 and Nasdaq hitting record levels, investors are keenly observing how economic indicators like employment data influence Federal Reserve policies. In this environment of potential interest rate cuts, dividend stocks remain attractive for their ability to provide steady income streams amidst market volatility. A good dividend stock typically combines a strong track record of payouts with solid financial health, making them particularly appealing in today's dynamic economic landscape.

Top 10 Dividend Stocks In The United States

Click here to see the full list of 133 stocks from our Top US Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

First Merchants

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

Overview: First Merchants Corporation, with a market cap of $2.53 billion, operates as the financial holding company for First Merchants Bank, offering community banking services.

Operations: First Merchants Corporation generates revenue of $593.09 million through its community banking services.

Dividend Yield: 3.3%

First Merchants offers a stable dividend yield of 3.25%, supported by a low payout ratio of 45.6%, indicating dividends are well covered by earnings and forecasted to remain so in three years (39.6%). Despite trading below its estimated fair value, recent earnings reports show decreased net income and EPS compared to last year, which might concern some investors. The company declared a $0.35 per share cash dividend payable in December 2024, maintaining its reliable dividend history over the past decade.

• Delve into the full analysis dividend report here for a deeper understanding of First Merchants.
• Our valuation report here indicates First Merchants may be undervalued.

Independent Bank

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

Overview: Independent Bank Corp., the bank holding company for Rockland Trust Company, offers commercial banking products and services to individuals and small-to-medium sized businesses in the United States, with a market cap of $3.05 billion.

Operations: Independent Bank Corp.'s revenue from its Community Banking segment is $655.49 million.

Dividend Yield: 3.2%

Independent Bank's dividend yield of 3.18% is supported by a low payout ratio of 49.1%, ensuring dividends are well covered by earnings and projected to remain so in three years (38.9%). The bank's dividends have been stable and reliable over the past decade, though its current yield is below the top tier in the US market. Despite recent declines in net income and EPS, Independent Bank continues to seek M&A opportunities as part of its growth strategy.

• Dive into the specifics of Independent Bank here with our thorough dividend report.
• The valuation report we've compiled suggests that Independent Bank's current price could be quite moderate.

Provident Financial Services

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

Overview: Provident Financial Services, Inc. is a bank holding company for Provident Bank, offering a range of banking products and services to individuals, families, and businesses in the United States, with a market cap of approximately $2.71 billion.

Operations: Provident Financial Services, Inc. generates revenue primarily through its Traditional Banking and Other Financial Services segment, which amounted to $526.01 million.

Dividend Yield: 4.6%

Provident Financial Services offers a dividend yield of 4.62%, ranking in the top 25% of US dividend payers, but its high payout ratio of 97.6% raises concerns about sustainability. While dividends have grown reliably over the past decade, current earnings do not cover them, and future coverage is uncertain despite forecasts suggesting improved earnings growth. Recent financials reveal increased net interest income and net loan charge-offs, alongside substantial insider selling and shareholder dilution.

• Get an in-depth perspective on Provident Financial Services' performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that Provident Financial Services is trading beyond its estimated value.

Where To Now?

• Discover the full array of 133 Top US Dividend Stocks right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include NasdaqGS:FRME NasdaqGS:INDB and NYSE:PFS.

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