U.S. Bancorp: I'm Buying This Undervalued Stock That Just Raised Its Dividend

Oct. 14, 2024 9:00 AM ETU.S. Bancorp (USB) StockUSB7 Comments
(7min)

Summary

  • U.S. Bancorp offers an attractive value proposition, trading below historical valuation with a forward P/E of 12.0 and a solid 4.3% dividend yield.
  • USB's strong risk management, steady loan and deposit growth, and rising non-interest income, particularly in payments and investment management, bolster its positive outlook.
  • USB remains well-capitalized, recently raised its dividend, and has a positive outlook with 9%-12% annual EPS growth forecasted.
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Value investors may be turned off by the recent resilience of the stock market, with the Dow and S&P 500 (SPY) hitting all-time highs. It’s important to keep in mind, however, that it’s a market for stocks rather than the

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I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of USB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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