Are These The Best Dividend Stocks To Buy In 2022?
Despite the recent volatility in the stock market, 2021 is ending the year with strong gains. The S&P 500 is up 29%, which is significantly higher than its historical average. With the rising threats of the Omicron variant and inflation fears, it’s not difficult to imagine that a market crash could be underway. While it’s impossible to predict when that will happen, some are expecting it to happen in the near term.
As such, it would not surprise me to see high dividend stocks being among the most active stocks around now. For the most part, this would be thanks to the more defensive nature of this group of stocks. Now, when it comes to picking dividend stocks, investors would ideally want to look at firms whose businesses are rock solid. Because, said companies are often the ones that can afford to pay and increase their dividends consistently.
All in all, if investors are looking for more defensive plays in the market, dividend stocks could be their go-to’s. That’s considering these stocks’ generally stable growth and consistent payouts. Nevertheless, dividend stocks remain a viable play for those looking to diversify their portfolios. With that said, could one of these top dividend stocks be worth watching in the stock market today?
Top Dividend Stocks To Watch In 2022
- Pfizer Inc. (NYSE: PFE)
- Brookfield Renewable Partners LP (NYSE: BEP)
- Caterpillar Inc. (NYSE: CAT)
- Abbott Laboratories (NYSE: ABT)
- Abbvie Inc. (NYSE: ABBV)
Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Following the successful rollout of the vaccine, the company’s revenue soared 130% year over year to $24.1 billion in the third quarter.
Yet, despite its enormous drug development success and massive profit generation, the company is not resting on its laurels. Pfizer continues to help the world battle COVID-19 with its new oral antiviral treatment, Paxlovid. The pill has been shown to reduce the risk of hospitalization or death by nearly 90% in clinical trials.
Furthermore, the pill can be taken at home and this would change the way we could treat the viral infection. Thus, it would hopefully help reduce the burden on health care centers and hospital systems. Well, the company claims that it is now ready to begin delivery in the U.S. immediately into the hands of appropriate patients as quickly as possible. Pfizer has a dividend yield of over 2.7%. Considering the rising threat of the Omicron variant, do you have PFE stock on your watchlist right now?
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Brookfield Renewable Partners
Brookfield Renewable Partners (BEP) is a renewable energy company that owns and operates renewable power assets. In brief, it operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of wind, solar, and hydroelectric facilities all over the world. This adds up to approximately 21 gigawatts of installed capacity. What’s more, BEP has a massive development pipeline of 36 gigawatts of renewable-energy assets.
From its latest third quarter results, Brookfield Renewable generated $210 million of funds from operations. That’s up 32% year-over-year. This shows that the company has strong growth prospects, which many other dividend stocks are lacking.
Moreover, the company is also generating plenty of cash to support its dividend yield, which currently stands around 3.4%. And if you’re looking for a renewable energy company with strong growth, BEP stock seems like an obvious choice for many.
Heavy machinery giant Caterpillar is one of the stocks that will benefit from the infrastructure bill. The funding package combined with strong construction demand, is setting the stage for more growth in 2022 and beyond. For the uninitiated, the infrastructure package includes a 35% increase in spending on highways over the current authorized allocation of $46 billion.
For these reasons, some would argue that this presents a buying opportunity for investors looking to jump on any post-pandemic tailwinds for Caterpillar. The company currently has a dividend yield of 2.1%.
What’s more, the company seems to be kicking into high gear across the board. Caterpillar posted stellar figures in its latest quarterly earnings report. Notably, Caterpillar saw its net income surge by over 113% year-over-year. Secondly, Caterpillar is also working to diversify its portfolio. This is evident from its ongoing partnership with Chevron (NYSE: CVX) with hydrogen fuel cell-powered locomotives. Having read all of this, would you consider CAT stock a top dividend stock to buy now?
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Health care company Abbott Laboratories is one of the most reliable dividend stocks in the stock market today. Earlier this month, the company announced that its board of directors has yet again increased its quarterly common dividend. This marks the company’s 50th consecutive year of dividend growth. It has now increased to $0.47 per share, a 4.4% increase that follows a 25% increase to the company’s quarterly dividend in 2021. This also marks the company’s 392nd dividend increase in a row, dating back to 1924. Abbott currently has a dividend yield of 1.3%.
On top of that, the company also launched Similac 360 Total Care last month. This represents its next generation of infant formula with human milk oligosaccharides (HMOs).
Besides that, it is also the first and only infant formula in the U.S. with a blend of five different HMOs, previously only found in breast milk. Thus, the formula aims to provide nutrition to support the whole baby’s health and development. Safe to say, Abbott does not appear to be resting on its laurels. All things considered, would you add ABT stock to your portfolio?
Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. The drugmaker currently pays out just over 4% dividend yield.
More notably, the company has boosted its dividends by a whopping 225% since 2013. All of this is possible with the company’s strong pipeline of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
Financially, the company’s business remains healthy with a total revenue of $14.34 billion in its latest quarter. The company also maintains strong profit margins, coming in at 22.2% in the latest quarter. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. AbbVie has radically transformed its product portfolio ahead of the patent expiration of the anti-inflammatory medicine Humira. That aside, the company still boasts a solid lineup of drugs that could continue to drive top and bottom line growth. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
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