Top Dividend Stocks to Consider in July 2024

As the US market enters a cautious phase with retail investors holding back on aggressive buying ahead of earnings season, dividend stocks remain an attractive option for those seeking regular income streams. In light of current economic dynamics and market sentiment, these stocks could offer relative stability and consistent returns amid broader market fluctuations.

Top 10 Dividend Stocks in the United States

Name	Dividend yield	Dividend Rating
Columbia Banking System (NasdaqGS:COLB)	7.53%	★★★★★★
Resource Connection (NasdaqGS:RGP)	5.47%	★★★★★★
Premier Financial (NasdaqGS:PFC)	6.32%	★★★★★★
OceanFirst Financial (NasdaqGS: OCFC)	5.21%	★★★★★★
Silvercrest Asset Management Group (NasdaqGM:SAMG)	5.17%	★★★★★★
Dillard’s (NYSE:DDS)	4.88%	★★★★★★
Citizens Financial Group (NYSE:CFG)	4.77%	★★★★★★
CompX International (NYSEAM: CIX)	5.31%	★★★★★★
Financial Regions (NYSE:RF)	4.92%	★★★★★★
Huntington Bancshares (NasdaqGS:HBAN)	4.83%	★★★★★★

Click here to see the full list of 210 stocks in our Best Dividend Stocks Analysis tool.

Below, we highlight some of our favorites from our exclusive screener.

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

Preview: Credicorp Ltd. is a diversified financial services company offering banking, insurance and healthcare services primarily in Peru, with a market capitalization of approximately $12.97 billion.

Operations: Credicorp Ltd. generates its revenues from diversified financial services, including banking, insurance and healthcare services, primarily in Peru.

Dividend yield: 5.7%

Credicorp Ltd. is trading 33% below its estimated fair value, with earnings expected to grow by 11.16% per annum. Despite a high NPL ratio of 6.2%, dividends are covered by earnings with a payout ratio of 55.7%, although the dividend record has been unstable and unreliable over the past decade. Recent positive developments include an increase in reported net profit to PEN1,511.66 million in Q1 2024 and an announcement of an increased dividend of PEN35 per share, payable on 14 June, without withholding tax.

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

Preview: DRDGOLD Limited is a South African gold mining company specialising in the reprocessing of surface gold tailings, with a market capitalisation of approximately $808.95 million.

Operations: DRDGOLD Limited generates its revenues primarily through two segments: Ergo, which generated ZAR 4.34 billion, and FWGR, which contributed ZAR 1.47 billion.

Dividend yield: 5%

DRDGOLD has posted earnings growth of 14.9% over the past year and forecasts annual revenue growth of 21.23%. Despite a dividend yield of 4.98%, which ranks in the top quartile of U.S. stocks, its dividends are not well supported by free cash flow or earnings, indicating potential sustainability issues. Additionally, while dividends have increased over the decade, they have also been particularly volatile and unreliable, with a payout ratio of 54.8%. The company’s price-to-earnings ratio is favorable at 11x compared to the U.S. market average of 16.6x.

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

Preview: Dorian LPG Ltd., operating globally, specializes in the transportation of liquefied petroleum gas using its fleet of LPG tankers, with a market capitalization of approximately $1.86 billion.

Operations: Dorian LPG Ltd. generates its revenues primarily from international transportation services, amounting to $558.83 million.

Dividend yield: 9.2%

Dorian LPG Ltd. recently declared an irregular dividend of $1.00 per share, payable on May 30, 2024, for a total of approximately $40.6 million. Despite a stable recent payout, the company’s dividend history is short and uneven over the past three years with a high yield of 9.16%. On the financial side, Dorian LPG has solid annual earnings growth of 78.3%, but future earnings are expected to decline by an average of 32.7% per year over the next three years, calling into question the sustainability of future dividends despite a reasonable payout ratio of 52.4% and a cash payout ratio of 47.9%. The stock’s valuation appears attractive with a price-to-earnings ratio significantly below the market average at just 6.1x.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.

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