America’s best dividend paying companies
Dividend stocks are companies that pay out a portion of their profits to a class of shareholders on a regular basis. The best US companies are usually well-established dividend payers with consistent profits and a long record of dividend payouts. The distributions are known as dividends and can be paid in the form of cash or as bonus shares. Most dividends are paid on a quarterly basis, but some are paid monthly, annually, or even once in the form of a special dividend. While dividend stocks are known for their regular dividend payments, during tough economic times, these dividends may be cut to conserve cash. In this article, we will look at a list of the best dividend paying companies in the US market.
One useful metric for investors to gauge the sustainability of a company’s dividend payments is the dividend payout ratio, which is calculated by dividing total dividends by net income, and tells investors how much of a company’s net income is returned to shareholders in the form of dividends versus how much the company retains and invests in More growth. If the ratio exceeds 100% or is negative, this indicates that the company may be borrowing to pay dividends.
1- Annaly Capital Management Inc. (NLY)
Forward dividend yield: 13.50%
Payout ratio: 56.9%
Price: $6.52
Market value: $9.7 billion
Total return for one year: 15.6% –
First in the list of the best dividend company in the US market Annaly Capital Management, a capital management company that invests in and finances residential and commercial assets. Its investments include mortgage-backed securities (MBS) and residential real estate. The company has about $89 billion in total assets. On March 17, Annaly declared a dividend for the first quarter in 2022 of $0.22 per common share, which will take place on April 29 for common shareholders of record as of March 31 2022.
2- New Residential Investment Corp (NRZ)
Forward dividend yield: 9.65%
Payout ratio: 56.8%
Price: $10.36
Market value: $5.0 billion
Total return for the year: 11.4%
Second on the list of America’s best paying dividend companies, New Residential Investment Corp. is a real estate investment fund, providing capital and services to the mortgage and financial services industries. The Company invests in long-term, fixed cash flow assets, and its investment portfolio includes assets related to mortgage servicing, non-agency securities, home loans, and other related investments. New Residential Investment Corp. declared its common and preferred stock dividend for the first quarter of 2022 on March, whereby a dividend of $0.25 per common share will be paid on April 29 to shareholders of record in April, 2022.
3- Lumen Technologies Inc. (LUMN)
Forward dividend yield: 9.25%
Payout ratio: 53.5%
Price: $10.81
Market value: $11.9 billion
Total return for one year: -2.5%
Lumen Technologies is a technology and communications company that serves consumers and businesses around the world, providing an integrated platform that combines network assets, cloud connectivity, security solutions, voice tools, etc. to help companies use their data and adopt next generation technologies. On March 28, Lumen reported that Chris Stansbury, who was most recently a senior vice president and chief financial officer for Arrow Electronics Inc., had been named CFO as CFO, effective
4- OneMain Holdings Inc. (OMF)
Forward dividend yield: 8.08%
Payout ratio: 97.0%
Price: $47.04
Market value: $6.2 billion
Total return for one year: 1.8%
Fourth on the list of the best dividend paying company in the US market is OneMain Holdings, a financial services holding company focused on consumer financing, particularly those with limited access to credit from banks, credit card companies and other traditional lenders. The company operates a network of 1,400 branches across the United States and provides a digital platform that allows customers to easily obtain products online.
5- TFS Financial Corp. (TFSL)
Forward dividend yield: 7.31%
Payout ratio: 79.4%
Price: $15.45
Market value: $4.4 billion
Total return for one year: -16.4%
TFS Financial is a banking holding company that provides services including retail banking, real estate lending, deposit collection, and other financial services through subsidiaries. The total consolidated assets of the company are approximately $14.1 billion.
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