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The U.S. stock market has climbed strongly in the past twelve months, with an impressive 23% gain. Assuming annual earnings rise by 15%, analysts predict an ongoing increase.

Dividend stocks become a desirable choice for investors against this stable and expanding background since they provide consistent income and possible capital appreciation. Let’s now examine some of the best choices found by our screening procedure closer-up.

Norwood Financial Corp.

Norwood Financial Corp. (NASDAQ:NWFL) is a holding company for Wayne Bank and provides banking and related financial services.

With a market capitalization of around $203.81 million, the company has demonstrated its commitment to shareholders through regular dividend payments.

Norwood Financial Corp. earns approximately $64.28 million annually from its banking activities. In April 2024, the corporation raised its quarterly cash payback by 3.5% to $0.30 per share.

Norwood Financial keeps an attractive dividend yield of 4.74%, which ranks it within the top quartile of U.S. dividend-paying equities, even if Q1 2024 presents difficulties. Recent shelf filings suggest possible capital-raising operations supporting continuous dividend support.

Carter's

The leading childrenswear company, Carter’s, Inc. (NYSE:CRI), is based in the United States and operates internationally. Comprising a market valuation of around $2.50 billion, the corporation generates income in three main areas:

• U.S. Retail: Carter’s U.S. retail activities bring in $1.49 billion.

• U.S. Wholesale: This division generates $998.73 million

• International: Carter generates $426.78 million in income from its activities abroad.

Carter has confirmed a quarterly dividend of US$0.80 per share, although its dividend yield of 4.68% is slightly below that of the top quartile of U.S. dividend companies. The corporation is committed to shareholder rewards.

Sustainability Metrics

• Earning Payout Ratio: At 48.1%, the company’s payouts are sustainable.

• Cash Payout Ratio: The cash payout ratio is twenty-nine percent.

However, Carter’s has seen dividend fluctuation over the past 10 years, which adds some worry. Sales fell somewhat in Q1 2024, but net income and earnings per share (EPS) improved yearly, showing operational resiliency.

Exxon Mobil

Exxon Mobil Corporation (NYSE:XOM), the worldwide oil and gas giant with a market value of over $462 billion, held its most recent shareholder meeting. Although ideas for improved environmental disclosures and pay equity reporting were rejected, the company reaffirmed its willingness to reimburse cash to investors via dividends.