22 highest dividend paying stocks to buy and hold in 2022


I don’t know how the stock market will behave in the new year. Wall Street analysts don’t know that either. All predictions are really just guesses.

However, no guesswork is required to expect that many stocks will continue to pay solid dividends no matter what happens with the overall market. These are the types of stocks that income investors can hold without losing sleep.

What specific stocks are making the list? Here are 22 high-dividend stocks to buy and hold in 2022.

Image source: Getty Images.

22 high dividend stocks for 2022

Below are the 22 highest dividend paying stocks to buy and hold in 2022, listed in alphabetical order:

Data sources: Yahoo! Presentations to finance and corporate investors. * Includes the fixed + variable dividend.

Health care

You may have noticed that there are more stocks in the healthcare industry than in any other industry. This is mainly because there are many stocks in the healthcare sector that offer stable dividends and often offer strong growth prospects as well.

Three healthcare stocks have particularly impressive dividend histories. Abbott Labs and Johnson & Johnson are dividend kings – S&P 500 members with at least 50 consecutive years of dividend increases. AbbVie is expected to join the club in 2022.

Eli Lilly and Pfizer could be attractive to growth investors. Lilly has several catalysts on their way to the New Year. Pfizer significantly outperformed the broader market in 2021 and could do so again in 2022 with strong sales of its COVID-19 vaccine and pill.

Value investors might like other healthcare choices. CVS Health shares are trading at just 12 times expected earnings. Bristol Myers Squibb is even cheaper with a futures earnings multiple of just over seven. And Viatris is very cheap, with its stocks trading below 3.4 times expected earnings.

Energy

Companies in the energy sector are also often known for their dividends. Devon Energy certainly stands out with its more variable fixed dividend of over 9%. That’s over seven times the average dividend yield of the S&P 500.

Energy mid-level leader Enterprise Products Partners is not far behind Devon, however, with a dividend yield of 8.33%. While the shift away from fossil fuels may have an impact on the operations of these companies in the long term, their prospects for the next several years are promising.

This change will benefit Brookfield Renewable. The company has two stocks on our list. It was originally formed as a limited partnership (LP), Brookfield Renewable Partners (BEP). In 2020, the company created Brookfield Renewable Corporation (BEPC) for investors who wanted to avoid the tax hassle associated with LPs.

Duke Energy is not likely to generate meteoric growth. However, income investors should be able to count on the utility company’s regular dividend. Duke has paid an uninterrupted dividend for 95 consecutive years.

REIT

Three of the highest dividend paying stocks for 2022 are real estate investment trusts (REITs). They are required to return at least 90% of taxable income to shareholders in the form of dividends.

Medical Properties Trust is a REIT that focuses, as the name suggests, on medical properties, primarily acute care hospitals. Its dividend yield of 4.86% is particularly attractive. The company has increased its dividend payout for eight consecutive years.

Easterly Government Properties is arguably one of the safest dividend paying stocks on the market. She specializes in leasing properties to the US government.

Meanwhile, Innovative Industrial Properties is one of the fastest growing REIT holdings. The company rents properties from regulated cannabis operators in the United States. Its shares have climbed nearly 1,300% in the past five years. IIP’s dividend payout has increased tenfold during this period.

Technology and telecommunications

Intel has underperformed the overall market in 2021. However, investors should focus more on where the chipmaker is in 10 years or more than how its stock is going over a 12-month period. Intel’s future should be better than its immediate past. More importantly for income investors, the company’s dividend must be secure.

Likewise, Verizon was one of the worst performing Dow Jones stocks in 2021. However, investors should like the telecom giant’s hefty dividend. With the increasing adoption of 5G networks, Verizon should have strong prospects in the years to come.

Other

Air Products & Chemicals, Brookfield Infrastructure and PepsiCo round out the list of highest dividend paying stocks for 2022. As was the case with Brookfield Renewable, Brookfield Infrastructure has two stocks – a limited partnership (BIP) and the other a corporation. (BIPC). There is only one underlying activity, however. And this business is rock solid with consistent cash flow from a wide variety of infrastructure assets.

Like some of the other top 22 stocks, Air Products & Chemicals is unlikely to generate any breathtaking gains. However, he’s a dividend aristocrat with 39 straight years of dividend hikes. You should be able to count on these dividends which will continue to flow and grow in 2022.

PepsiCo is also a dividend aristocrat and will likely become a dividend king in the New Year. With its strong product lineup and dividend, PepsiCo is arguably one of the best consumer staples stocks to buy right now.

10 stocks we prefer at Abbott Laboratories
When our award-winning team of analysts have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *

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* Returns of the portfolio advisor as of December 16, 2021

Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners LP, Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer and Viatris Inc The Motley Fool owns and recommends Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Innovative Industrial Properties and Intel. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, CVS Health, Duke Energy, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, Verizon Communications and Viatris Inc. and recommends the following options: Long Calls at $ 57.50 in January 2023 on Intel and put options at $ 57.50 in January 2023 on Intel. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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