U.S. Bancorp (USB): A Strong Buy Bank Stock with a Steady Dividend Track Record

U.S. Bancorp (NYSE:USB) is included among the Best Strong Buy Dividend Stocks to Invest in Now.

U.S. Bancorp (USB): A Strong Buy Bank Stock with a Steady Dividend Track Record

A high-powered banker making a deal in their modern office in the city.

The company revealed on July 1 its plan to increase its quarterly dividend by 4%, raising the payout from $0.50 to $0.52 per share. This move came on the heels of the bank’s solid performance in the Federal Reserve’s stress test. In addition to the dividend increase, the company intends to proceed with share repurchases under its existing $5 billion buyback program.

During the second quarter of 2025, U.S. Bancorp (NYSE:USB) reported diluted earnings per share of $1.11 and achieved a return on tangible common equity of 18%, along with a return on average assets of 1.08%. Notably, a year-over-year increase in top-line revenue, combined with disciplined expense management, contributed to 250 basis points of positive operating leverage (as adjusted) and led to an efficiency ratio of 59.2% for the quarter.

Currently, U.S. Bancorp (NYSE:USB) offers a quarterly dividend of $0.50 per share and has a dividend yield of 4.34%, as of July 29. The company has been rewarding shareholders with growing dividends for the past 14 consecutive years.

While we acknowledge the potential of USB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than USB and that has 100x upside potential, check out our report about this cheapest AI stock.

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