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3 Bank Stocks With High Dividend Yield to Keep an Eye On
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Key Takeaways
Norwood Financial yields 4.18%, backed by steady dividend hikes and a conservative payout ratio.
Columbia Banking offers a 5.13% yield, supported by recent dividend increases and solid capital returns.
Truist provides a 4.18% yield, maintaining its quarterly dividend following the 2025 stress test.
This year has been good for bank stocks after a hiccup in April because of Donald Trump’s “Liberation Day” tariff plans. Since then, markets have rebounded strongly and reached record highs, supported by the Federal Reserve’s interest rate cuts. The central bank has lowered rates by 75 basis points this year and is expected to deliver another cut in 2026. This is expected to support the bank’s net interest income (NII) as funding costs stabilize and loan demand improves. With lower rates, deal-making activities are also expected to accelerate further in 2026.
Banks have been focusing on artificial intelligence (AI) and technology to enhance their client experience and expand their presence online to capture a rising mobile banking population. Also, strategic buyouts and collaborative efforts to deepen global presence and diversify revenue streams will further bolster fee income. Thus, in 2026, banking firms are likely to benefit from their efforts to boost NII and fee income.
Further, stronger-than-expected GDP growth and robust consumer spending have fueled renewed investor optimism. In such a dynamic market environment, dividend stocks stand out as a compelling option for stable income and sustained growth. Hence, dividend-heavy bank stocks such as Truist Financial Corporation (TFC - Free Report) , Columbia Banking System, Inc. (COLB - Free Report) and Norwood Financial Corporation (NWFL - Free Report) should remain on investors’ radar for generating steady income.
3 Bank Stocks With High Dividend Yield to Watch
To choose these banks, we ran the Zacks Stocks Screener to identify stocks with a dividend yield above 4%. Among these three stocks, one currently sports a Zacks Rank #1 (Strong Buy), while the other two carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past year, the share price has rallied more than 3% for each company.
Price Performance
Image Source: Zacks Investment Research
Norwood Financial, headquartered in Honesdale, PA, NWFL is the holding company for Wayne Bank, which provides a broad range of personal and business banking services, trust and investment products, and real estate settlement services. The bank operates across Northeastern Pennsylvania and parts of New York through a growing branch network. As of Sept. 30, 2025, it had $2.4 billion in assets.
The company’s strategic growth initiatives support its long-term outlook. In December 2025, it received final regulatory approval for its acquisition of PB Bankshares, including its subsidiary Presence Bank and is scheduled to close around Jan. 5, 2026. The acquisition is expected to enhance scale, deepen Norwood Financial’s footprint across Pennsylvania and create opportunities for sustainable earnings growth as integration progresses. Further, higher asset yields and favorable interest rate conditions will aid NII and margins growth in the coming period.
The company also maintains a healthy liquidity position, which supports its capital distribution plan. As of Sept. 30, 2025, the company reported long-term debt of $72.1 million with no short-term borrowings, while cash and cash equivalents totaled $49.3 million. Its capital position also remains strong, with a CET1 ratio of 12.27%, up from 11.74% a year ago.
In December 2025, NWFL raised its quarterly dividend by 3.2% to 32 cents per share. The company currently yields 4.33%. Over the past five years, it has increased its dividend six times and has a 47% payout ratio. The stock currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for the company’s earnings for 2025 and 2026 is pegged at $3.09 and $3.30, respectively.
Columbia Banking, headquartered in Tacoma, WA, provides commercial and consumer banking, treasury management, mortgage, wealth and trust services, and equipment finance through FinPac. The company operates across eight Western states with approximately 350 branches, serving both business and retail customers.
The bank’s relationship-based model and diversified deposit base continue to support stable earnings. Columbia Banking has also strengthened its Western U.S. presence through strategic acquisitions, highlighted by the completion of the Pacific Premier merger in August 2025. This transaction expanded total assets to nearly $70 billion, which bolstered its position in Southern California and improved diversification across attractive growth markets.
Operationally, COLB continues to see improving margin trends and funding efficiency. In the first nine months of 2025, NII (tax-equivalent basis) rose to approximately $1.38 billion, up 7.8% year over year, aided by higher customer-related fee income and one month of operating as a combined company. Excluding one-time items, management expects NII to remain relatively stable in the first quarter of 2026 as disciplined repricing supports margin resilience.
As of Sept. 30, 2025, the company reported short-term borrowings of $2.90 billion with no long-term debt, while cash and cash equivalents totaled $2.34 billion. During the same period, the company’s CET1 ratio increased to 11.6% from 10.3% a year earlier.
In November 2025, Columbia raised its quarterly dividend by 2.8% to 37 cents per share. Currently, the company’s dividend yield stands at 5.17%. Over the past five years, COLB has increased its dividend three times with a payout ratio of 48%. The stock currently carries a Zacks Rank #3.
Columbia Banking System, Inc. Dividend Yield (TTM)
The Zacks Consensus Estimate for the company’s earnings for 2025 and 2026 is pegged at $3.02 and $2.97, respectively.
Truist Financial, headquartered in Charlotte, NC, operates through an extensive branch and digital network, offering a wide range of consumer, small business, wholesale and wealth management services.
Truist continues to generate stable earnings, supported by improving favorable interest rate conditions. Management anticipates NII to rise approximately 2% sequentially in the fourth quarter, driven by higher client deposits and lower deposit costs, with NIM expected to expand sequentially as well.
Alongside core banking strength, Truist is actively refining its business mix to support long-term growth. The company continues to invest in digital capabilities and high-growth markets, while divesting non-core businesses to sharpen its strategic focus. These actions are expected to enhance operating efficiency and foster sustainable revenue growth over time.
The company has a decent liquidity position. As of Sept. 30, 2025, the company had total debt of $71.1 billion, with 41.3% in short-term obligations, and cash and due from banks plus interest-bearing deposits of $36.9 billion, sufficient to cover near-term funding needs. Its CET1 capital ratio stood at 11.0%, slightly down from 11.6% a year ago.
In June 2022, the company increased its quarterly dividend by 8% to 52 cents per share. Following the 2025 stress test, Truist maintained its quarterly dividend at 52 cents per share. The stock currently yields 4.12%, with a payout ratio of 56%. Over the past five years, the company has raised its dividend twice. The stock currently carries a Zacks Rank #3.
Image: Bigstock
3 Bank Stocks With High Dividend Yield to Keep an Eye On
Key Takeaways
This year has been good for bank stocks after a hiccup in April because of Donald Trump’s “Liberation Day” tariff plans. Since then, markets have rebounded strongly and reached record highs, supported by the Federal Reserve’s interest rate cuts. The central bank has lowered rates by 75 basis points this year and is expected to deliver another cut in 2026. This is expected to support the bank’s net interest income (NII) as funding costs stabilize and loan demand improves. With lower rates, deal-making activities are also expected to accelerate further in 2026.
Banks have been focusing on artificial intelligence (AI) and technology to enhance their client experience and expand their presence online to capture a rising mobile banking population. Also, strategic buyouts and collaborative efforts to deepen global presence and diversify revenue streams will further bolster fee income. Thus, in 2026, banking firms are likely to benefit from their efforts to boost NII and fee income.
Further, stronger-than-expected GDP growth and robust consumer spending have fueled renewed investor optimism. In such a dynamic market environment, dividend stocks stand out as a compelling option for stable income and sustained growth. Hence, dividend-heavy bank stocks such as Truist Financial Corporation (TFC - Free Report) , Columbia Banking System, Inc. (COLB - Free Report) and Norwood Financial Corporation (NWFL - Free Report) should remain on investors’ radar for generating steady income.
3 Bank Stocks With High Dividend Yield to Watch
To choose these banks, we ran the Zacks Stocks Screener to identify stocks with a dividend yield above 4%. Among these three stocks, one currently sports a Zacks Rank #1 (Strong Buy), while the other two carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past year, the share price has rallied more than 3% for each company.
Price Performance
Image Source: Zacks Investment Research
Norwood Financial, headquartered in Honesdale, PA, NWFL is the holding company for Wayne Bank, which provides a broad range of personal and business banking services, trust and investment products, and real estate settlement services. The bank operates across Northeastern Pennsylvania and parts of New York through a growing branch network. As of Sept. 30, 2025, it had $2.4 billion in assets.
The company’s strategic growth initiatives support its long-term outlook. In December 2025, it received final regulatory approval for its acquisition of PB Bankshares, including its subsidiary Presence Bank and is scheduled to close around Jan. 5, 2026. The acquisition is expected to enhance scale, deepen Norwood Financial’s footprint across Pennsylvania and create opportunities for sustainable earnings growth as integration progresses. Further, higher asset yields and favorable interest rate conditions will aid NII and margins growth in the coming period.
The company also maintains a healthy liquidity position, which supports its capital distribution plan. As of Sept. 30, 2025, the company reported long-term debt of $72.1 million with no short-term borrowings, while cash and cash equivalents totaled $49.3 million. Its capital position also remains strong, with a CET1 ratio of 12.27%, up from 11.74% a year ago.
In December 2025, NWFL raised its quarterly dividend by 3.2% to 32 cents per share. The company currently yields 4.33%. Over the past five years, it has increased its dividend six times and has a 47% payout ratio. The stock currently sports a Zacks Rank #1.
Norwood Financial Corp. Dividend Yield (TTM)
Norwood Financial Corp. dividend-yield-ttm | Norwood Financial Corp. Quote
The Zacks Consensus Estimate for the company’s earnings for 2025 and 2026 is pegged at $3.09 and $3.30, respectively.
Columbia Banking, headquartered in Tacoma, WA, provides commercial and consumer banking, treasury management, mortgage, wealth and trust services, and equipment finance through FinPac. The company operates across eight Western states with approximately 350 branches, serving both business and retail customers.
The bank’s relationship-based model and diversified deposit base continue to support stable earnings. Columbia Banking has also strengthened its Western U.S. presence through strategic acquisitions, highlighted by the completion of the Pacific Premier merger in August 2025. This transaction expanded total assets to nearly $70 billion, which bolstered its position in Southern California and improved diversification across attractive growth markets.
Operationally, COLB continues to see improving margin trends and funding efficiency. In the first nine months of 2025, NII (tax-equivalent basis) rose to approximately $1.38 billion, up 7.8% year over year, aided by higher customer-related fee income and one month of operating as a combined company. Excluding one-time items, management expects NII to remain relatively stable in the first quarter of 2026 as disciplined repricing supports margin resilience.
As of Sept. 30, 2025, the company reported short-term borrowings of $2.90 billion with no long-term debt, while cash and cash equivalents totaled $2.34 billion. During the same period, the company’s CET1 ratio increased to 11.6% from 10.3% a year earlier.
In November 2025, Columbia raised its quarterly dividend by 2.8% to 37 cents per share. Currently, the company’s dividend yield stands at 5.17%. Over the past five years, COLB has increased its dividend three times with a payout ratio of 48%. The stock currently carries a Zacks Rank #3.
Columbia Banking System, Inc. Dividend Yield (TTM)
Columbia Banking System, Inc. dividend-yield-ttm | Columbia Banking System, Inc. Quote
The Zacks Consensus Estimate for the company’s earnings for 2025 and 2026 is pegged at $3.02 and $2.97, respectively.
Truist Financial, headquartered in Charlotte, NC, operates through an extensive branch and digital network, offering a wide range of consumer, small business, wholesale and wealth management services.
Truist continues to generate stable earnings, supported by improving favorable interest rate conditions. Management anticipates NII to rise approximately 2% sequentially in the fourth quarter, driven by higher client deposits and lower deposit costs, with NIM expected to expand sequentially as well.
Alongside core banking strength, Truist is actively refining its business mix to support long-term growth. The company continues to invest in digital capabilities and high-growth markets, while divesting non-core businesses to sharpen its strategic focus. These actions are expected to enhance operating efficiency and foster sustainable revenue growth over time.
The company has a decent liquidity position. As of Sept. 30, 2025, the company had total debt of $71.1 billion, with 41.3% in short-term obligations, and cash and due from banks plus interest-bearing deposits of $36.9 billion, sufficient to cover near-term funding needs. Its CET1 capital ratio stood at 11.0%, slightly down from 11.6% a year ago.
In June 2022, the company increased its quarterly dividend by 8% to 52 cents per share. Following the 2025 stress test, Truist maintained its quarterly dividend at 52 cents per share. The stock currently yields 4.12%, with a payout ratio of 56%. Over the past five years, the company has raised its dividend twice. The stock currently carries a Zacks Rank #3.
Truist Financial Corporation Dividend Yield (TTM)
Truist Financial Corporation dividend-yield-ttm | Truist Financial Corporation Quote
The Zacks Consensus Estimate for the company’s earnings for 2025 and 2026 is pegged at $3.94 and $4.47, respectively.