5 Best Regional Bank Dividend Stocks to Buy

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

Number of Hedge Fund Holders: 48

An American bank holding company, U.S. Bancorp (NYSE:USB) has been raising its dividends consistently for the past 12 years. On June 13, it declared a quarterly dividend of $0.48 per share, which was in line with its previous dividend. The stock’s dividend yield on July 26 came in at 4.94%.

At the end of Q1 2023, U.S. Bancorp (NYSE:USB) was a part of 48 hedge fund portfolios, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $742.6 million.

Coho Partners mentioned U.S. Bancorp (NYSE:USB) in its Q2 2023 investor letter. Here is what the firm has to say:

“U.S. Bancorp (USB) has a well-deserved reputation of being a high quality, conservative lender and historically the company has performed well versus peers during challenging times. We believe the near-term pressure on USB’s share price stems from the collapse of Silicon Valley Bank, Signature Bank, and First Republic. USB has been caught up in the regional bank issues, but we believe it has a bright future. Since our initial purchase during the pandemic, USB has performed in line or ahead of our expectation. We were also very positive on the company’s decision to acquire Union Bank, which operated primarily in California, a market in which USB had limited exposure. Union Bank’s customers were primarily small businesses, where USB saw potential to leverage its cash management and payment offerings to gain meaningful revenue growth with above average margins. The conversion of Union Bank to USB programs went without a glitch.

We believe USB is well capitalized but with the Union Bank deal, USB will be subject to additional capital requirements, which will prevent buybacks in the near term. However, we do anticipate a modest dividend increase this December but, in the meantime, USB trades at less than 8x trailing earnings with a 5.8% dividend yield.”