Key Takeaways
- KeyCorp yields 4.0% to U.S. Bancorp’s 3.6%, but KeyCorp’s dividend has been $0.82 a share a year since fiscal 2023, while U.S. Bancorp raised its quarterly payout 3.8% in June.
- Both dividends are well covered: U.S. Bancorp’s used 44% of fiscal 2025 normalized EPS and KeyCorp’s 55%, with fiscal 2026 consensus putting them at 40% and 43%.
- Both banks reported record third-quarter revenue in October, and KeyCorp’s diluted EPS rose 24% from a year before.
- U.S. Bancorp trades at 2.1x tangible book value, against 1.8x for KeyCorp.
U.S. Bancorp (USB) reported record third-quarter net revenue on Oct. 15 and raised its outlook for the year. Five days later, KeyCorp (KEY) posted record revenue too, with diluted EPS up 24% from a year before.
Their dividends have gone separate ways. U.S. Bancorp raised its quarterly payout to $0.54 from $0.52 on June 24. KeyCorp’s has stayed at $0.205 a quarter, the $0.82 a year it has paid since fiscal 2023. Yet KeyCorp still yields more: 4.0% against 3.6%.
So which is the better dividend stock?
| Metric | U.S. Bancorp (USB) | KeyCorp (KEY) |
|---|---|---|
| Dividend yield | 3.6% | 4.0% |
| Annual dividend | $2.16 | $0.82 |
| Dividend growth, fiscal 2020-2025 | 4.0% a year | 2.1% a year |
| Payout ratio of normalized EPS, fiscal 2025 | 44% | 55% |
| Payout ratio of normalized EPS, fiscal 2026 consensus | 40% | 43% |
| Price/tangible book (LTM) | 2.1x | 1.8x |
Source: TIKR and company filings, as of Nov. 5, 2026.
6 safe dividend stocks paying retirees 6%+ yields
There are over 100 stocks paying 6%+ annual dividends today.
But after an extensive investment review leveraging TIKR’s proprietary data, we now believe only six of them are truly safe for retirees.
They’re all yours for free as part of our new investment report, which you can access right here.
U.S. Bancorp has room to keep raising
U.S. Bancorp had a strong third quarter. Net revenue hit a record $7.97 billion, up from $7.33 billion a year before, and diluted EPS rose 9.8% to $1.34. Capital markets revenue jumped 69.3% from a year before, helped by the BTIG acquisition, while mortgage banking revenue fell 13.9%. Management now expects 2026 net revenue to grow 8% to 9%.
U.S. Bancorp’s dividend per share rose every year from fiscal 2016 to fiscal 2025, from $1.07 to $2.04, including the years its earnings dipped:
The payout ratio peaked at 59.0% in fiscal 2023, when normalized EPS fell to $3.27. Fiscal 2025’s dividends used a well-covered 44% of EPS. Fiscal 2026 consensus puts that at 40%, on EPS of $5.34 from 13 analysts, and last year’s final consensus came within 2% of the actual.
CFO John Stern said on the third-quarter call that the bank is “very much committed to the 70% to 75% payout from a capital distribution standpoint.” Buybacks make up most of that target. U.S. Bancorp paused them in the third quarter as loan growth and higher bond yields used up capital, and its CET1 ratio was 10.8% on Sept. 30. Management expects to resume buybacks in the next quarter or two. Note that the pause didn’t touch the dividend, which went up.
KeyCorp’s dividend is on hold
KeyCorp had a good quarter too. Revenue reached a record $2.04 billion, up 8% from a year before, and its net interest margin widened 20 basis points to 2.95%. Commercial and industrial loans grew 13.9% on average, and management expects 2026 net interest income to grow about 10%.
The dividend hasn’t kept up. Normalized EPS fell from $1.92 in fiscal 2022 to $0.88 in fiscal 2023, which pushed the payout ratio to a stretched 93.2%. KeyCorp has held its dividend at $0.82 a share since:
Earnings recovered to $1.50 in fiscal 2025, for a 55% payout ratio. Fiscal 2026 consensus EPS of $1.89 would bring it to a comfortable 43%, a 26% rise that fits the third quarter, when diluted EPS rose to $0.51 from $0.41 and net charge-offs fell to 0.32% of average loans from 0.42% a year before. Sixteen analysts make the estimate, and last year’s final consensus missed by 1%.
On the third-quarter call, management promised to “maintain our strong dividend.” Spare capital is going to buybacks. KeyCorp repurchased $320 million of stock in the third quarter and is on pace for $1.3 billion this year.
So which dividend wins?
U.S. Bancorp is the better dividend stock. It’s still raising its dividend, and analysts expect its normalized EPS to climb from $4.62 in fiscal 2025 to $6.47 by fiscal 2028:
That’s the kind of growth I want behind a dividend. On $10,000, KeyCorp pays $400 a year today against U.S. Bancorp’s $360. Now compare each dividend’s current pace: U.S. Bancorp’s dividend rose 3% in fiscal 2025, and KeyCorp’s didn’t rise at all. At those rates, U.S. Bancorp’s income passes KeyCorp’s around 2030. By year 10, it reaches about $471 against KeyCorp’s $400, a 4.7% yield on your cash today. Even at their 5-year rates, U.S. Bancorp catches up around 2032.
KeyCorp’s dividend isn’t in danger. Its coverage is improving quickly, and its return on tangible common equity reached 15.1% in the third quarter, above its 15% target. At 1.8x tangible book value, it’s also cheaper than U.S. Bancorp at 2.1x. It’s just that KeyCorp is putting its spare capital into buybacks, and for income, I’d rather own the bank that’s raising the check.
Of course, KeyCorp plans to give more detail on 2027 at year-end. If a dividend raise comes with it, U.S. Bancorp would take longer to catch up.
Forget U.S. Bancorp: 6 safe 6%+ dividend yields you can buy right now
Dividends can hold the key to enormous wealth. But only if you buy the right ones.
Picking the right high-yield dividend stock can be the difference between a dream retirement…and scraping by every month, waiting for the next Social Security check to clear.
We’ve identified six stocks yielding 6%+ that we believe every retiree should know about right now. (And U.S. Bancorp isn’t one of them.)
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
