What are we looking for?
U.S. dividend-paying companies offering attractive yields combined with positive growth expectations and reasonable valuations.
The screen
Canadian investors tend to be concentrated on domestic markets, a common phenomenon known as home country bias. The S&P/TSX Composite is also dominated by financials, energy, and materials, leaving limited exposure to sectors such as technology, health care, and consumer discretionary. The U.S. market offers a far larger range of opportunities and should be considered for diversification purposes. As of Jan. 30, 2026, the United States accounted for approximately 63 per cent of the MSCI All Country World Index, a global equity benchmark tracking more than 2,500 large and mid-cap stocks. Canada accounts for roughly 3 per cent of it.
Using FactSet’s screening tool, I identified U.S. dividend payers offering yield, growth, and value by applying the following criteria:
- included in the S&P 500 index
- market capitalization greater than US$1-billion
- forecast positive sales and earnings growth over the next year
- dividend yield greater than 3.5 per cent
- dividend payout ratio less than 75 per cent
The seven companies that passed the screen were ranked by a multifactor composite of dividend yield, dividend payout ratio, one-year forward price-to-earnings, price-to-free-cash-flow, and enterprise value-to-EBITDA.
What we found
U.S. telecommunications provider AT&T Inc. ranked first on the screen, but rival Verizon is featured below given its higher dividend yield and year-to-date total return, suggesting positive momentum behind the name.
Verizon Communications Inc. VZ-N ranked second with a 5.9-per-cent dividend yield and a forward price-to-earnings ratio of 9.6 times, well below the group average of 13 times. The company reported first-quarter results on April 27, achieving a record adjusted EBITDA of US$13.4-billion, up 6.7 per cent year-over-year. It also reported 55,000 postpaid phone net additions, its first positive first-quarter result on that metric since 2013. Management raised full-year 2026 adjusted earnings-per-share guidance to growth of 5 to 6 per cent and reaffirmed free cash flow guidance of at least US$21.5-billion, providing plenty of coverage for the company’s roughly US$11.5-billion in annual dividend payments. Verizon raised its dividend for the 19th consecutive year in September, 2025.
Accenture PLC, ACN-N a global consulting and technology services firm, ranked third with a 3.6-per-cent dividend yield and was the only tech sector company to pass the screen. Shares are down 31.9 per cent year-to-date amid investor concerns that artificial intelligence will decrease demand for consulting work. The fundamentals, however, tell a different story. In the first quarter ended Nov. 30, advanced AI bookings reached US$2.2-billion, up 76 per cent from a year earlier, while advanced AI revenue grew 120 per cent over the same period to US$1.1-billion, reflecting increased demand from enterprises looking to integrate and implement AI into their operations. The company posted record bookings of US$22.1-billion in the second quarter ended Feb. 28 and raised its quarterly dividend by 10 per cent to US$1.63 per share for fiscal 2026.
The information in this article is not investment advice. The author assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained above.
Arjun Deiva, CFA, is an MBA Candidate at the University of California, Berkeley, Haas School of Business.
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