Where does U.S. Bancorp rank after its 10% announced dividend increase?

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U.S. Bancorp announced a regular quarterly dividend of $0.28, a 10 percent increase from the prior rate of $0.255 per share. The dividend will be paid at the new higher rate on October 17, 2016, to shareholders of record at close of business on September 30, 2016. U.S.Bancorp is a member of the Top 100 dividend  candidates.

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Listed in the table below are the quarterly dividend payments since 2010. Our analysis of U.S. Bancorp as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
9/28/2016 0.28
6/28/2016 0.255
3/29/2016 0.255
12/29/2015 0.255
9/28/2015 0.255
6/26/2015 0.255
3/27/2015 0.245
12/29/2014 0.245
9/26/2014 0.245
6/26/2014 0.245
3/27/2014 0.23
12/27/2013 0.23
9/26/2013 0.23
6/26/2013 0.23
3/26/2013 0.195
12/27/2012 0.195
9/26/2012 0.195
6/27/2012 0.195
3/28/2012 0.195
12/28/2011 0.125
9/28/2011 0.125
6/28/2011 0.125
3/29/2011 0.125
12/29/2010 0.05
9/28/2010 0.05
6/28/2010 0.05
3/29/2010 0.05

Analysis of U.S. Bancorp is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 2.36 124
Dividend Growth (5 year VL) 6.5% 167
Trailing P/E 13.4 56
S&P Financial Rating A 120
Beta 0.95 100
Total Ranking #97 567

Additional Information;

Price 9/20/16 % Yield 5 Year Div. Growth Rate  BV    2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$43.02 2.36% 6.5% 25.10 1.71 0.62 2.01 2.61% 1.45%

Final Analysis;

  • U.S. Bancorp’s dividend yield is higher than that of the S&P 500 Index and is also trading towards the higher end of its average historical dividend yield.
  • U.S. Bancorp maintains a 5 year dividend growth rate of 6.5%   This is lower than 20 other companies in the sector and ranks 167 among all companies.
  • U.S. Bancorp is trading above its average price/book value (P/BV) range at 1.71.  From a relative valuation perspective, American Express is overvalued based upon its historical trading history.
  • U.S. Bancorp maintains a credit rating of A. This is above investment grade, a positive.
  • U.S. Bancorp maintains a beta of 0.95, lower than the average company.
  • U.S. Bancorp’s total ranking is 97.

Based upon its low P/E ratio and high credit rating, U.S. Bancorp qualifies as one of our Top 100 Dividend Stocks.

U.S. Bancorp Dividend Yield Chart (Click to enlarge)

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Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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