With U.S. public debt around 100% of GDP and interest costs taking a larger slice of government spending, many investors are rethinking how they approach dividend stocks. When fiscal policy makes capital scarcer and borrowing more expensive, attention often shifts to companies that already combine moderate debt levels, consistent dividends, and solid returns on equity. This article looks at how that backdrop connects to our High-Quality Dividend Stocks screener and highlights three stocks that appear better positioned to handle tighter financial conditions, providing potential exposure to steadier income while limiting reliance on cheaper sources of capital.

Marsh & McLennan Companies (MRSH)

Overview: Marsh & McLennan Companies is a New York headquartered professional services group that helps businesses, governments and individuals manage risk, insurance, and people decisions through its Risk and Insurance Services and Consulting divisions.

Operations: The company generates about US$17.6b from Risk and Insurance Services and US$10.0b from Consulting, partly offset by US$0.1b of corporate eliminations.

Market Cap: US$80.5b

For income focused investors, Marsh & McLennan Companies is a large, diversified broker and consultant with fee based revenue, a long dividend track record and high reported return on equity, even if that ROE is boosted by significant debt. In a world where higher public debt and interest costs can make capital more expensive, its focus on risk advisory and insurance broking, plus recent acquisitions like TriBridge Partners and a new multi currency credit facility, underline its scale and funding access, but also highlight leverage and margin pressure as key watchpoints. With earnings growth forecasts in the mid single digits, a 2.09% dividend and a valuation that screens as discounted on cash flow, investors watching fiscal tightening may want to look closer at how resilient this business is under tougher conditions.

Marsh & McLennan Companies appears to be a high ROE income engine built on fee based resilience, but heavy leverage and tighter money can change the story fast. Unpack the 3 key rewards and 1 important warning sign

Power Corporation of Canada (TSX:POW)

Overview: Power Corporation of Canada is a Montreal based holding company that owns insurance, wealth management and investment businesses across North America, Europe and Asia, giving investors broad exposure to life and health insurance, retirement solutions, asset management and fintech.

Operations: The company generates about CA$32.8b from Great West, CA$3.9b from IGM, and CA$3.0b from alternative asset investment platforms and other activities, with smaller contributions from the holding company and consolidation effects.

Market Cap: CA$55.3b

Power Corporation of Canada stands out in a world of higher public debt and more expensive capital because it leans on recurring fee and insurance income, a long dividend record around a 3.02% yield, and an experienced board rather than aggressive borrowing. Earnings and margins have been mixed recently, and the group is still proving out its alternative asset platforms, so investors need to weigh that against solid cash flows from core subsidiaries, disciplined buybacks and fresh initiatives such as the Sagard AI Fund and renewable gas financing. For dividend focused portfolios looking for scale, diversification across insurance, wealth and alternatives, and potential upside to intrinsic value, this company may warrant closer consideration.

Power Corporation of Canada’s mix of insurance, wealth and alternative assets could be masking what really drives its cash flow strength. Review the analysis report for Power Corporation of Canada to see how that balance might shift next.

Arrow Financial (AROW)

Overview: Arrow Financial is a Glens Falls based community bank that offers everyday deposit accounts, loans, wealth management, insurance, and retirement services, giving customers a single institution for both routine banking needs and longer term financial planning.

Operations: Arrow Financial generates about US$168.4m in revenue entirely from its Community Banking segment in the United States.

Market Cap: US$677.5m

Arrow Financial draws interest as a well capitalized regional bank that combines a consistent dividend, recently strong earnings momentum, and forecast double digit revenue and profit growth at a time when higher U.S. public debt and interest costs can make funding less plentiful for weaker lenders. The P/E multiple sits below the broader U.S. market. Membership in the S&P Regional Banks Select Industry Index and the Adirondack Bancorp merger point to a growing footprint. At the same time, insider selling, a modest 11.6% ROE and index removals are reminders to watch how management converts that growth into lasting returns as funding conditions tighten and loan quality, capital ratios and dividend coverage come under closer scrutiny.

Arrow Financial’s earnings momentum, dividend record and merger story could be masking a far more interesting growth profile. Review the analyst forecasts for Arrow Financial to see what the forecasts might be missing.

The three stocks in this article are a useful starting point, but they are only a small slice of the opportunities that our High-Quality Dividend Stocks approach surfaced. The full screener reveals 24 more companies with similar income potential and balance sheet discipline through the High-Quality Dividend Stocks screener. Use Simply Wall St to identify, analyze and filter for the exact catalysts, payout profiles and debt characteristics that matter most so you can focus on the high conviction dividend ideas that fit your portfolio.

Take Control of Your Investment Journey

If Power Corporation of Canada or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.