Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In July 2024, the top-performing dividend payers included tools and accessories firm Stanley Black & Decker SWK, regional bank Columbia Banking System COLB, and entertainment company Sirius XM Radio SIRI.
To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Dividend Leaders Index, which tracks the performance of the 100 highest-yielding stocks from a broad basket of consistent dividend payers.
The Top-Performing US Dividend Leaders of July 2024
- Stanley Black & Decker SWK
- Columbia Banking System COLB
- Sirius XM Radio SIRI
- Scotts Company SMG
- First Hawaiian FHB
- Valley National Bank VLY
- United Bankshares UBSI
- Citizens Financial Group CFG
- Zions Bancorporation ZION
- PNC PNC
Best-Performing Dividend Stocks in the US
How Have Dividend Stocks Performed?
Over the past month, the Morningstar Dividend Leaders Index, which captures the 100 highest-yielding names, rose 7.2%, while the broad Morningstar Dividend Composite Index gained 4.6%. In the 12 months leading up to July 31, the Dividend Leaders Index gained 19.0% and the Dividend Composite Index gained 16.5%.
1-Year Performance for Dividend Stocks
The overall US stock market, as measured by the Morningstar US Market Index, has gained 1.6% on the month and 21.5% on the year.
Yields and Metrics for July’s Best-Performing Dividend Stocks
Stanley Black & Decker
Tools and accessories firm Black & Decker rose 32.2% in July and gained 9.7% over the past 12 months. Trading at $105.62 per share, its stock has a forward dividend yield of 3.11%. Black & Decker pays investors an annual dividend of $3.28 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Columbia Banking System
Regional bank Columbia Banking System rose 31.5% in July and gained 21.9% over the past 12 months. At $26.16 per share, its stock has a forward dividend yield of 5.5% and an annual dividend of $1.44 per share. It has a quantitative Morningstar Rating of 3 stars.
Sirius XM Radio
Entertainment company Sirius XM gained 21.9% in July and fell 30.3% over the past 12 months. The stock’s $3.45 price gives it a forward dividend yield of 3.08%. Sirius XM Radio pays investors an annual dividend of $0.11 per share. With a fair value estimate of $5 per share and a narrow economic moat, the stock is moderately undervalued, trading at a 31% discount. It has a Morningstar Rating of 4 stars.
Scotts Company
Agricultural inputs company Scotts rose 20.8% in July and gained 16.0% over the past 12 months. Trading at $78.60 per share, Scotts stock has a forward dividend yield of 3.36% and an annual dividend of $2.64 per share. The stock, which has a narrow economic moat, is moderately undervalued, trading 25% below its fair value estimate of $105 per share. It has a Morningstar Rating of 4 stars.
First Hawaiian
Regional bank First Hawaiian gained 20.6% in July and rose 26.1% over the past 12 months. Trading at $25.04 per share, its forward dividend yield is 4.15%. First Hawaiian pays investors an annual dividend of $1.04 per share. It has a quantitative Morningstar Rating of 3 stars.
Valley National Bank
Regional bank Valley National gained 20.3% in July and fell 13.8% over the past 12 months. At $8.40 per share, Valley National stock has a forward dividend yield of 5.24% and an annual dividend of $0.44 per share. It has a quantitative Morningstar Rating of 3 stars.
United Bankshares
Regional bank United Bankshares rose 20.0% in July and gained 20.8% over the past 12 months. Trading at $38.93 per share, United Bankshares stock has a forward dividend yield of 3.8% and an annual dividend of $1.48 per share. It has a quantitative Morningstar Rating of 3 stars.
Citizens Financial Group
Regional bank Citizens Financial rose 19.6% in July and gained 38.8% over the past 12 months. Trading at $42.67 per share, Citizens Financial stock has a forward dividend yield of 3.94% and pays investors an annual dividend of $1.68 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Zions Bancorporation
Regional bank Zions gained 19.1% in July and rose 39.4% over the past 12 months. The stock’s $51.67 price gives it a forward dividend yield of 3.17%. Zions pays investors an annual dividend of $1.64 per share. With a fair value estimate of $56 per share and no economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.
PNC
Regional bank PNC rose 17.5% in July and gained 36.9% over the past 12 months. At $181.10 per share, PNC has a forward dividend yield of 3.53% and an annual dividend of $6.40 per share. The stock, which has a narrow economic moat, is trading near its fair value estimate of $175 per share. It has a Morningstar Rating of 3 stars.
What Is the Morningstar Dividend Leaders Index?
The Morningstar Dividend Leaders Index captures the performance of the 100 highest-yielding stocks with consistent records of paying dividends that can sustain those payments. It’s a subset of the Morningstar US Market Index (which represents 97% of equity market capitalization) that includes only securities whose dividends are qualified income. Real estate investment trusts are excluded. Companies are screened for dividend consistency and sustainability. Each must have a positive five-year dividend per share growth and a dividend coverage ratio greater than 1. The 100 highest-yielding stocks are included in the index, weighted by the dollar value of their dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to find more top-performing or cheap dividend stocks can do the following:
- Review the full list of stocks in the Morningstar Dividend Leaders Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
- Use the Morningstar Investor Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
- Use Morningstar Investor to build a watchlist of the best dividend stocks and easily follow those stocks’ valuations, ratings, and dividend yields.
- Watch our dividend stock video series, hosted by David Harrell, for ideas to consider.
- When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter to a stock’s potential for outperformance.
- Watch this video to learn how Morningstar uses the star rating, moat rating, and other metrics to evaluate stocks.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was generated with the help of automation and reviewed by Morningstar editors.Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article.Find out about Morningstar’s editorial policies.
