As investors navigate an evolving economic environment characterized by persistent inflation, geopolitical uncertainty and concerns related to economic growth, dividend-paying bank stocks continue to offer an appealing source of reliable income. Banks with strong balance sheets, diversified revenue streams and disciplined capital allocation remain well-positioned to withstand economic uncertainty.
Against this backdrop, several banking stocks stand out for their ability to generate attractive dividend income while maintaining the potential for long-term value creation. Among them, Truist Financial TFC, Columbia Banking System COLB and Norwood Financial Corp. NWFL merit investors’ attention.
To choose these banks, we ran the Zacks Stocks Screener to identify stocks with a dividend yield of more than 4%. These three banks currently have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The above-mentioned three bank stocks have gained more than 15% in the past year.
Price Performance
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3 Bank Stocks to Watch -- TFC, COLB & NWFL
Truist Financial, headquartered in Charlotte, NC, is one of the largest commercial banks in the United States.
Truist Financial continues to generate stable earnings, supported by improving favorable interest rate conditions. Management anticipates NII to rise in the upcoming period, driven by higher client deposits and lower deposit costs, with NIM expected to expand as well.
Alongside core banking strength, Truist Financial 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.
TFC maintains a diversified balance sheet and ample on-balance-sheet liquidity. As of March 31, 2026, the company had total debt of $69.1 billion (with 40% being short-term in nature) and cash and due from banks, and interest-bearing deposits with banks of $36.2 billion.
The company pays out regular dividends. Over the past five years, it has increased its dividend twice and has a 50% payout ratio. It has a dividend yield of 4.31%. Check Truist Financial’s dividend history here.
Truist Financial Corporation Dividend Yield (TTM)
Truist Financial Corporation dividend-yield-ttm | Truist Financial Corporation Quote
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’s granular deposit base and relationship banking focus support resilient NII and balanced fee income growth. Columbia Banking is also scaling its Western footprint through strategic acquisition. In sync with this, in August 2025, COLB acquired Pacific Premier. The merger gives Columbia Banking roughly $70 billion in assets, about $50 billion in loans and $56 billion in deposits. With this buyout, the company gains greater scale and diversification across the Western United States, potentially improving competitive positioning, expanding its product offering and enhancing operating efficiencies.
COLB management remains focused on protecting core relationship deposits while continuing to wind down non-core, higher-cost sources. Management expects NIM to trend higher each quarter throughout 2026 as customer deposit balances rebound and balance sheet optimization actions continue to improve profitability. Strong capital generation and excess capital versus targets create tangible capacity to deploy capital opportunistically, supporting per-share value growth for Columbia Banking as integration synergies and earnings accretion continue to materialize.
As of March 31, 2026, COLB had cash and cash equivalents of $2.1 billion, while there was no short-term debt. The company has a dividend yield of 4.99%. Over the past five years, it has increased its dividend three times and has a 47% payout ratio. Check COLB’s dividend history here.
Columbia Banking System, Inc. Dividend Yield (TTM)
Columbia Banking System, Inc. dividend-yield-ttm | Columbia Banking System, Inc. Quote
Norwood Financial, headquartered in Honesdale, PA, 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.
NWFL’s growth initiatives support its long-term outlook. In January 2026, it completed the acquisition of PB Bankshares, including its subsidiary Presence Bank. The acquisition enhanced scale, deepened Norwood Financial’s footprint across Pennsylvania and created opportunities for sustainable earnings growth as integration progresses. Higher asset yields and favorable interest rate conditions will aid NII and margin growth in the coming period.
The company also maintains a healthy liquidity position, which supports its capital distribution plan. As of March 31, 2026, the company reported a long-term debt of $88 million, with no short-term borrowings, while cash and cash equivalents totaled $103 million.
Norwood Financial currently has a dividend yield of 4.23%. Over the past five years, it has increased its dividend six times and has a 40% payout ratio. Check NWFL’s dividend history here.
Norwood Financial Corp. Dividend Yield (TTM)
Norwood Financial Corp. dividend-yield-ttm | Norwood Financial Corp. Quote
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Columbia Banking System, Inc. (COLB): Free Stock Analysis Report
Norwood Financial Corp. (NWFL): Free Stock Analysis Report
Truist Financial Corporation (TFC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).