3 Top US Dividend Stocks For Your Portfolio

Dividend Yield: 3.3%

Magic Software Enterprises offers a dividend yield of 3.33%, below the top quartile of US dividend payers. Its dividends are well-covered, with a payout ratio of 62.2% and cash payout ratio of 45.2%. Despite past volatility in payments, recent increases over the last decade indicate potential for growth. Trading at a lower price-to-earnings ratio than its industry peers, Magic Software presents good value but lacks dividend stability and reliability historically.

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

Overview: Dillard’s, Inc. operates retail department stores across the southeastern, southwestern, and midwestern United States with a market cap of approximately $7.84 billion.

Operations: Dillard’s, Inc. generates revenue primarily through its Retail Operations segment, which accounts for $6.44 billion, complemented by its Construction segment contributing $295.67 million.

Dividend Yield: 5.2%

Dillard’s offers a robust dividend yield of 5.16%, placing it in the top quartile of US dividend payers. Its dividends have been stable and growing over the past decade, with a low payout ratio of 2.6% ensuring coverage by earnings and a cash payout ratio of 61.9% indicating sustainability through cash flows. A recent special dividend of US$25 per share highlights its commitment to returning capital to shareholders, although future earnings are forecasted to decline significantly.

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:KRT NasdaqGS:MGIC and NYSE:DDS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com