JPM vs USB: Dividend Comparison
Dividend data as of
Jpmorgan Chase & Co (JPM) 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 JPM's 1.82%, a gap of 1.55%. For dividend growth, JPM leads with a 5-year CAGR of 18.6% versus USB's 3.8%. Both stocks carry a "Safe" dividend safety rating. USB is a Dividend Contender with 15 years of consecutive increases.
Verdict
Yield Analysis
USB yields 1.55% more than JPM. In dollar terms, JPM pays $5.80/share vs USB's $2.04/share annually.
Dividend Growth
JPM: Dividend growth is accelerating — the 3-year CAGR of 34.9% exceeds the 5-year rate of 18.6% and the 10-year rate of 16.5%.
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
JPM: The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x.
USB: The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in JPM vs USB today?
At $301.96 per share, $10,000 buys about 33.1 shares of Jpmorgan Chase & Co (JPM). Each share pays $5.80 per year in dividends, so the position starts out generating roughly $192 per year — about $16 a month.
At $57.63 per share, $10,000 buys about 173.5 shares of Us Bancorp De (USB). Each share pays $2.04 per year in dividends, so the position starts out generating roughly $354 per year — about $30 a month.
USB is the larger income stream from day one: $162 per year more on the same $10,000 invested.
What could $10,000 of JPM or USB income look like in 10 years?
Jpmorgan Chase & Co (JPM) has raised its dividend about 18.6% a year over the past five years. If that pace held, the $182 per year that $10,000 generates today at the current 1.82% yield would reach $1,008 per year by 2036 — a 10.1% yield on the original cost.
Us Bancorp De (USB) has raised its dividend about 3.8% a year over the past five years. If that pace held, the $337 per year that $10,000 generates today at the current 3.37% yield would reach $487 per year by 2036 — a 4.9% yield on the original cost.
On those trailing rates, JPM pays more in 2036: $1,008 versus $487 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would JPM's dividend growth overtake USB's higher yield?
Jpmorgan Chase & Co (JPM) yields less today (1.82% vs 3.37%) but has grown its dividend faster — 18.6% vs 3.8% a year over the past five years. If both trends continued, a $10,000 position in JPM would start out-earning the same position in USB around 2031 (roughly 5 years from now), paying about $429 per year at the crossover. Before that point, USB pays more each year; after it, the gap compounds in JPM's favor.
Can JPM and USB afford their dividends?
Jpmorgan Chase & Co (JPM) earns $20.03 per share against $5.80 paid out in dividends — 3.5x coverage (a 29% payout ratio).
Us Bancorp De (USB) earns $4.62 per share against $2.04 paid out in dividends — 2.3x coverage (a 44% payout ratio).
JPM's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for USB if earnings weaken.
Which fits an early-retirement income portfolio better, JPM or USB?
For income you need right now, Us Bancorp De (USB) leads: $100,000 invested today pays about $281 a month at the current 3.37% yield, versus $152 a month from Jpmorgan Chase & Co (JPM) at 1.82%.
With a decade or more before the income is needed, JPM's faster dividend growth (18.6% vs 3.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: USB has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,207/yr in JPM vs $679/yr in USB by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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