U.S. Bancorp (NYSE:USB) is included among the 11 High-Yield Dividend Stocks for Steady Cash Flow.
Photo by
Dan Dennis on
Unsplash
U.S. Bancorp (NYSE:USB) ranks among the leading financial institutions in the United States. Headquartered in Minneapolis, the company operates primarily through its subsidiary, U.S. Bank, which provides a wide range of services, including personal and commercial banking, wealth management, and payment processing.
On October 20, TD Cowen raised its price target on U.S. Bancorp (NYSE:USB) from $59.00 to $60.00 while maintaining a Buy rating. The firm credited the adjustment to a strong quarterly performance, noting revenue growth of 4.48% year-over-year, disciplined cost control, and steady gains in fee income.
According to TD Cowen, U.S. Bancorp (NYSE:USB) is “beginning to hit its stride” operationally, supported by improving fundamentals and exceptional results from its payments business, which the firm called the company’s “crown jewel.” The report also pointed out that USB shares trade at 9.2 times estimated 2026 earnings and 1.6 times expected 2025 tangible book value — levels the firm considers attractive given the company’s growth trajectory.
TD Cowen expects continued revenue momentum and further acceleration in the payments segment, reinforcing its positive view of the stock. The bank’s dividend track record also stands out, with 15 consecutive years of payout increases, appealing to long-term income investors. The company pays a quarterly dividend of $0.52 per share and has a dividend yield of 4.37%, as of October 21.
While we acknowledge the potential of USB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Beaten Down Dividend Stocks to Buy Right Now and 15 Dividend Stocks That Have Raised Payouts for 20+ Years
Disclosure: None.