C vs USB: Dividend Yield, Growth & Safety Comparison
Citigroup Inc (C) and Us Bancorp De (USB) are both in the Financials sector, making them natural rivals for dividend investors. USB offers a significantly higher 3.37% yield compared to C's 1.90%, a gap of 1.47%. For dividend growth, C leads with a 5-year CAGR of 11.0% versus USB's 3.8%. Both stocks carry a "Safe" dividend safety rating. USB is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | C | USB |
|---|
| Dividend Yield | 1.90% | 3.37% |
| Annual Dividend | $2.32 | $2.04 |
| 5-Year CAGR | 11.0% | 3.8% |
| Payout Ratio | 33% | 44% |
| Consecutive Years | 0 | 15 |
| Price | $110.67 | $57.63 |
Yield Comparison
Us Bancorp De (USB) currently yields 3.37%, which is solid for the broader market. That's 1.47% more than Citigroup Inc (C), which yields 1.90%. In dollar terms, USB pays $2.04/share annually versus C's $2.32/share.
Dividend Growth
Over the past five years, C has grown its dividend at a 11.0% CAGR compared to USB's 3.8%. C: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 11.0% and the 10-year rate of 22.6%. USB: Dividend growth is slowing — the 3-year CAGR of 2.8% trails the 5-year rate of 3.8% and the 10-year rate of 7.4%.
Dividend Safety
C's dividend safety is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. USB's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. C's payout ratio of 33% is more conservative than USB's 44%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in USB generates approximately $337/year in dividend income, compared to $190/year from C — a difference of $147/year. At $100,000, that gap widens to $1470/year.
Verdict
- Best for income: USB
- Best for growth: C
- Best for safety: C
Frequently Asked Questions
Which has a higher dividend yield, C or USB?
Us Bancorp De (USB) has a higher dividend yield of 3.37% compared to Citigroup Inc (C) at 1.90%.
Is C or USB a better dividend growth stock?
Citigroup Inc has the stronger dividend growth with a 5-year CAGR of 11.0%, compared to Us Bancorp De's 3.8%.
Which is safer for dividend income, C or USB?
Citigroup Inc's dividend safety is rated "Safe" while Us Bancorp De is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in C vs USB generate?
A $10,000 investment in C generates approximately $190/year in dividends, while the same amount in USB generates about $337/year.
Is C or USB a Dividend Aristocrat?
Us Bancorp De is a Dividend Contender with 15 consecutive years of increases. Citigroup Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, C or USB?
Citigroup Inc has a lower payout ratio of 33% compared to Us Bancorp De's 44%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
C vs USB: which is better for retirement income?
It depends on your priorities. USB for current income, C for dividend growth, C for safety. Many retirement investors hold both for diversification.
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