Best Dividend Stocks in 2022 | Learn more
Dividend stocks regularly distribute their profits to their shareholders. This contrasts with growth stocks, for example, which generally do not pay dividends but can reward investors with strong appreciation in their share price. Neither approach is strictly speaking better for investors. You may prefer to invest in dividend stocks in 2022 or in growth stocks. You may even prefer both types, it all depends on your strategy.
However, dividend investors often prefer consistent income over the years, and that’s what the best dividend stocks can provide. Even if their yields are not the highest, these stocks come from profitable companies with healthy balance sheets. These companies usually don’t try to entice investors with unsustainable payouts, and they certainly don’t have negative profits.
If you want consistent income from high-quality businesses, here are the best dividend-paying stocks in 2022:
- Real Estate Income (NYSE: O)
- People’s United Financial (Nasdaq: PBCT)
- Johnson & Johnson (NYSE:JNJ)
- AbbVie (NYSE: ABBV)
- Consolidated Edison (NYSE: ED)
- Target Company (NYSE: TGT)
Best Dividend Stocks in 2022
Many of them are household names, but what makes them one of the best dividend-paying stocks in 2022? Let’s find out.
#6 Real Estate Income
Dividend yield: 4.38%
Realty Income is a real estate investment trust (REIT) that pays a strong dividend for such a consistent. In fact, it pays a dividend every month and has slowly increased its average cash amount year after year. Realty Income’s portfolio includes many large companies such as 7-Eleven, Walgreens, Dollar General and FedEx.
By investing in such pillars, investors can count on dividends month after month, year after year. Realty Income (O) recently paid a dividend of $0.247 per share with a yield of 4.38%. O also pays monthly dividends and the payout slowly increases over time. Typically, it will stay the same for several months before an increase of one or two cents.
People’s United Financial No. 5
Dividend yield: 3.52%
People’s United Financial is a bank that operates more than 400 branches, primarily in the Northeastern United States, in states such as Connecticut, New York, Massachusetts, and Vermont. It offers a full range of banking services to its customers, such as personal banking, credit cards, mortgages, loans, insurance and investment services.
M&T Bank acquired People’s Financial (PBCT) in 2021, but the latter did not change its constant dividend. It pays quarterly dividends and increases them each year by ¼ cent. Most recently, it paid dividends of $0.1825 per share, but it will be $0.185 per share for the second quarter of 2022 if it continues its past behavior.
No. 4 Johnson & Johnson
Dividend yield: 2.53%
In the past, consumers often thought of Johnson & Johnson as a company that made products like baby powder and baby oil. Then we received a Johnson & Johnson COVID-19 vaccine, and learned that J&J was doing so much more. Indeed, it produces medical devices, pharmaceuticals, surgical products, etc. Some of the names we all know are also J&J brands, such as Tylenol, Band-Aid and Neosporin.
Johnson & Johnson (JNJ) is also a strong dividend stock. Its dividend yield is currently around 2.5% and it recently paid a dividend of $1.06 per share. He usually increases his dividend once a year by about five or six cents, and he is due for an increase based on past payments. Therefore, its next dividend could be $1.10 per share.
Dividend yield: 3.97%
AbbVie is a biopharmaceutical company founded in 2013; it was originally a spin-off from medical device company Abbott Laboratories. Abbie’s products include Humira, Botox, Celexa and Kaletra. However, this is only a small sample, its full portfolio includes dozens of products in the fields of immunology, neuroscience, virology, gastroenterology, eye care and medical aesthetics. .
AbbVie also pays a strong and consistent dividend. He usually increases them each year, usually in the range of nine to 12 cents. It just increased its dividend for the state of the year, paying $1.41 per share in January 2022. That’s good for a 3.97% yield, and the company has been steadily increasing its yield for years. years.
#2 Best Dividend Stocks Consolidated Edison
Dividend yield: 3.68%
Consolidated Edison, also known as ConEd, is a New York-based energy company. Not only can you buy dividend-paying stock from ConEd, but the company is also investor-owned. In fact, it is one of the largest investor-owned energy companies with approximately $12 billion in annual revenue and $62 billion in assets.
ConEd also pays a strong dividend with a yield of 3.68%, with a recent payout of $0.79 per share. It has steadily increased its dividend over the past few years; for the first quarter of 2022, it increased its dividend by 1.5 cents per share, which was enough for a nearly 20% increase.
Best Dividend Stocks No. 1 Target Corporation
Dividend yield: 1.7%
Consumers and investors know Target for its logo and its ubiquitous red coloring. However, it doesn’t always attract a lot of attention as a profitable or dividend-paying company, despite being a company that has both advantages. Although its profit margin is modest (single digits), it has consistently maintained a positive net margin for each of the past four quarters.
And, indeed, Target pays a dividend to its investors every quarter. Like many dividend-paying stocks, its dividends are adjusted annually and are expected to be increased in August, based on its dividend history. In the past, it has increased its annual dividend by around two to four cents. However, in August 2021, it increased its dividend by 22 cents, meaning the previous dividend was $0.68. Now its shares are paying $0.90, with a potential increase to come. It should be interesting to see what the next increase has in store for us.
Bob Haegele is a personal finance writer specializing in investing and retirement planning. His heavy student loan burden inspired him to repay his loans, and now he’s helping others get their finances in order. When he’s not writing, he enjoys traveling and live music.