Interest Rates Headed Much Higher: 5 'Strong Buy' Dividend-Paying Banks

U.S. Bancorp

This top super-regional bank is another of the higher-paying dividend bank stocks. U.S. Bancorp (NYSE: USB): provides various financial services in the United States through a network of 2,434 banking offices, principally operating in the Midwest and western regions of the United States, as well as through online services and a network of 4,232 ATMs.

The company offers depository services, including checking accounts, savings accounts and time certificate contracts; lending services, such as traditional credit products; and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance and other products. It also provides ancillary services comprising capital markets, treasury management and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations and charitable organizations.

In addition, U.S. Bancorp offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. The company also provides corporate and purchasing card and corporate trust services, and merchant processing services, as well as cash and investment management, ATM processing, mortgage banking and brokerage and leasing services.

Shareholders receive a 3.11% dividend. J.P. Morgan has set its U.S. Bancorp stock target price at a Wall Street high of $72. The consensus target was last seen at $65.52. The shares closed at $59.21 on Thursday.

The Federal Reserve is way behind the curve, despite offering some positive forward-looking comments recently. The increase in the federal funds rate will begin next month, but the problems in the economy and the soaring inflation, which is at the highest level in 40 years, will not be going away anytime soon. These top banks remain among the best ideas for growth and income investors seeking a place to move capital and resources in 2022.

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