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Why U.S. Bancorp (USB) is a Great Dividend Stock Right Now
USBU.S. Bancorp(USB) ZACKS·2025-02-03 17:45

Company Overview - U.S. Bancorp (USB) is based in Minneapolis and operates in the Finance sector, with a year-to-date share price change of -0.1% [3] - The company currently pays a dividend of 0.5pershare,resultinginadividendyieldof4.190.5 per share, resulting in a dividend yield of 4.19%, which is higher than the Banks - Major Regional industry's yield of 3.21% and the S&P 500's yield of 1.5% [3] Dividend Performance - U.S. Bancorp's annualized dividend is 2, reflecting a 1% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 4.35% [4] - The current payout ratio is 50%, indicating that the company pays out 50% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, U.S. Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $4.37 per share, representing a 9.80% increase from the previous year [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [7] - U.S. Bancorp is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]