10 Best Bank Stocks With High Dividends

7. U.S. Bancorp (NYSE:USB)

Dividend Yield as of December 6: 3.84%

Number of Hedge Fund Holders: 46

U.S. Bancorp (NYSE:USB) is a financial services holding company offering multiple services, including banking, lending, asset management, and payment solutions. On November 7, Citigroup analyst Keith Horowitz upgraded USB stock to Buy from Neutral and raised the 12-month price target to $65 from $49. The Citi analyst believes the bank is improving its expenses, getting back to growth, and expects its profits from loans and deposits to recover as deposit costs come down.

At the end of October 2024, U.S. Bancorp (NYSE:USB) announced that it is restructuring its payments business into two divisions – Payments: Merchant and Institutional (PMI), handling merchant services, corporate payments, and Payments Europe, and Payments: Consumer and Small Business (PCS), managing credit and debit cards, Elan, and co-brand programs. USB Chairman and CEO Andy Cecere said this shift will help the company grow faster and maximize returns on its recent investments.

In the third quarter, U.S. Bancorp (NYSE:USB) reported earnings of $1.03 per share and total revenue of $6.9 billion. The bank saw strong growth in net interest income, made good progress in fee-based business areas, and kept expenses under control. This led to modest positive revenue growth compared to the same time last year. Revenue growth from the previous quarter came from a better loan mix, fixed asset repricing, smart liability management, and strategic adjustments to the investment portfolio.

U.S. Bancorp (NYSE:USB) is one of the best bank stocks to add to an income portfolio. Why? Its 14th consecutive year of dividend growth speaks for itself. On September 12, USB raised its quarterly dividend by 2% from $0.49 per share to $0.50. The dividend was distributed on October 15.