Are These The Best Dividend Stocks To Buy Right Now?
Dividend stocks are increasingly sought after in the stock market now. This would be the case as many consider dividend stocks as a safe haven in times of volatility. With inflation rising and the threats from the Omicron variant, stocks with high dividend yields could help stabilize one’s portfolio. Besides, investors can expect regular cash flows and there is a possibility of decent capital gains over time.
In this era of low interest rates, dividend payments can be an excellent way to supplement your income. And by investing in some of the high dividend stocks, you could potentially grow your portfolio by simple, consistent compounding. Now, you may think that investing in top dividend stocks are for retirees who need income to live off of. But it is also worth pointing out that this section of the stock market today can offer lower volatility.
No doubt, many of the growth stocks have brought significant returns since the pandemic started. But they are no longer the apparent choice. Just like every other boom and bust cycle. With the downward trajectory of the stock market we are seeing in recent weeks, some investors have turned conservative. Therefore, the allure of investing in dividend stocks would be increasingly in focus. And if you’re putting up a list of best dividend stocks 2022, do you have the following names on your list?
Best Dividend Stocks To Buy [Or Avoid] For 2022
- VICI Properties Inc. (NYSE: VICI)
- Apple Inc. (NASDAQ: AAPL)
- Coca-Cola Co. (NYSE: KO)
- AbbVie Inc. (NYSE: ABBV)
- Innovative Industrial Properties (NYSE: IIPR)
VICI Properties
VICI Properties is a real estate investment trust (REIT) that owns real estate across the entertainment industry. The REIT is a triple net leased to prominent names like Caesars Entertainment (NASDAQ: CZR) and Hard Rock Cafe. Following its acquisition of MGM Growth Properties, VICI Properties will have 43 world-renowned Las Vegas and regional gambling properties across 15 US states, which is expected to close in the first half of 2022. And the REIT’s cash rent will nearly double from existing $1.5 billion to $2.6 billion. VICI Properties currently has a dividend yield of 5.2%.
Notably, VICI Properties was able to collect all of the cash rent that was due on time in the middle of the COVID-19 crisis last year. That’s impressive if you consider that Las Vegas was closed for a few months. What’s more, despite the high annual growth profile, VICI stock appears to be reasonably priced for long-term investors seeking safe and growing dividend payments. Considering all this, would VICI stock make your list of top dividend stocks to buy right now?
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Apple
Many investors wouldn’t consider Apple a top dividend stock. But that could soon change. Even with the premium pricing on its devices, Apple continues to thrive amid the current pandemic. Not to mention, the company also offers a wide array of services and subscriptions that synergize well with its devices. All of these make up Apple’s holistic tech ecosystem. Currently, AAPL stock has an annual dividend of $0.88 and a dividend yield of 0.5%.
Admittedly, Apple’s dividend might not seem particularly attractive today. But it’s worth pointing out that its latest quarter dividend is over 7% higher than what it was a year ago. Most importantly, Apple is still on a healthy growth trajectory. In its most recent quarter, Apple recorded a revenue of $83.4 billion, up 29% year-over-year. Considering its strong growth, there’s much to look forward to. Thus, would AAPL stock be a top dividend stock to buy right now?
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Coca-Cola
Coca-Cola is a multinational beverage corporation whose products are sold in more than 200 countries and territories. Its multiple billion-dollar brands are spread across several beverage categories worldwide. This includes sparkling soft drink brands like Coca-Cola, Sprite, and Fanta. It also includes hydration, sports, coffee and tea brands. It employs more than 700,000 people across the globe and continues to positively impact the lives of its consumers. Currently, Coca-Cola pays a 2.9% dividend yield.
For those unfamiliar, Coca-Cola has raised its dividend payout to shareholders for 59 consecutive years. And you could count on the company to continue doing so considering its healthy growth rate. In late October, the company reported its third-quarter financials which topped analysts’ estimates. It sees continued momentum and strong results with revenues growing by 16% year-over-year to $10 billion. Impressively, this is already ahead of its pre-pandemic levels. Coca-Cola also reported an earnings per share of $0.57 for the quarter, growing by 41% compared to a year earlier. Given the strong quarter, is KO stock worth investing in right now?
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AbbVie
Pharmaceutical giant AbbVie is an attractive income play for many investors. The drugmaker currently pays out more than 4% dividend yield, making it one of the highest dividend stocks among its industry peers. More notably, the company has boosted its dividend yield 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.
On the financial front, 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 for 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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Innovative Industrial Properties
Industrial Innovative Properties (IIPR) focuses solely on the procuring and leasing of industrial properties. The likes of which are marketed towards state-licensed marijuana growers as production facilities. In essence, IIPR’s take on the weed industry is a unique one, to say the least. Regardless of scale, weed producers looking to enter the growing U.S. market will require space. What’s more, the company has recently raised its quarterly dividend by 7% to $1.50 per share. The stock currently has a dividend yield of 2.5%.
According to a study by Grand View Research, legal marijuana sales could grow at a compound annual growth rate (CAGR) of 26.7% between 2021 and 2028. As of early November, IIPR said it owned 76 properties over 19 states. Some of its tenants are among the top U.S. marijuana companies such as Trulieve (OTCMKTS: TCNNF) and Cresco Labs (OTCMKTS: CRLBF). With the regulated pot industry poised for significant growth, would you be watching IIPR stock?
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