Are These The Best Dividend Stocks To Buy Now In 2022?

Amid high inflation and a volatile market, dividend stocks could be worth turning your attention towards in the stock market now. After all, inflation remains high, with April’s CPI increasing by 8.3% from a year ago. That is marginally higher than the consensus estimate of 8.1%. Here is where dividend stocks come into play. Typically, these stocks are able to offer more consistent returns even during times of uncertainty. 

Take Realty Income (NYSE: O) for example. It is a real estate investment trust that pays out monthly dividends to investors. With an attractive 4.65% annual dividend yield, Realty Income could be worth checking out. The company last week also posted its operating results, with funds from operations and revenues outpacing estimates. Elsewhere, investors may be looking at ExxonMobil (NYSE: XOM). The oil and gas company offers an annual dividend yield of 4.06%. In late April, the company brought in strong quarterly earnings of $5.5 billion, up from $2.7 in the year prior. Besides that, the company also declared a quarterly dividend of $0.88. All in all, if you’re interested in dividend stocks, here are four to check out in the stock market today.

Dividend Stocks To Watch Right Now

Pfizer 

Starting us off today is Pfizer, a company that has been at the forefront of the health care industry in the past couple of years. The company continues to advance treatments and cures for some of the most feared diseases of the times. This would include Covid-19, where the company has delivered billions of its life-saving vaccines to people all over the globe. Currently, Pfizer brings investors a 3.24% annual dividend yield. And on April 28, its Board of Directors approved a quarterly cash dividend of $0.40, payable June 10. On Tuesday, the company agreed to purchase Biohaven Pharmaceutical (NYSE: BHVN) for $11.6 billion or $148.5 per share. 

This marks Pfizer’s biggest deal in the past few years as it bolsters its pipeline of drugs. This comes at a time where Pfizer has been looking to acquire companies to sustain its pandemic-fueled growth. Biohaven’s best-known drug is Nurtec ODT, which has been approved for both acute treatment and prevention of migraine in adults. BMO Capital Markets analyst Evan Seigerman commented, “Nurtec checked five of six key criteria for Pfizer in picking an asset to acquire, including: high complement to the portfolio, high level of clinical de-risking, high commercial potential, low infrastructure requirements, and low FTC risk.” Given the acquisition, should you keep tabs on PFE stock?

PFE stock chart
Source: TD Ameritrade TOS

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Merck

Following that, we have Merck, a multinational pharmaceutical company. It has been a leader in the industry for over 130 years and has brought many life-saving medicines and vaccines to millions of people. It also continues to be at the forefront of research to prevent and treat diseases that threaten both people and animals. This would include cancer, infectious diseases, and emerging animal diseases. Over the past year, MRK stock has risen nearly 20%. Along with that, the company also has an annual dividend yield of 3.09%.

Late last month, it posted its first-quarter financials that exceeded consensus estimates on profit and revenue. Notably, Merck brought in a revenue of $15.9 billion for the quarter, rising a whopping 50% from last year and beating estimates of $14.68 billion. Diving in, its Covid-19 treatment, molnupiravir, made up 20% of the company’s first-quarter revenue. Looking at its profits, Merck raked in a net income of $4.31 billion, a 57% rise from $2.7 billion in 2021. Accordingly, earnings per share were $2.14, an 84% year-over-year increase that beats the $1.83 per share analysts were expecting. Considering the impressive quarter, should you buy MRK stock?

MRK stock chart
Source: TD Ameritrade TOS

Kraft Heinz

Another notable dividend stock to watch would be Kraft Heinz. In detail, the company manufactures and markets products such as condiments and sauces, dairy, meals, meats, coffee, and other grocery products throughout the world. Similar to many top names in the industry, KHC stock is showing resilience in times of uncertainties in the stock market. The stock has risen by 20% since the start of the year. KHC stock has a dividend yield of 3.68%. Additionally, the company’s board of directors declared a regular quarterly dividend of $0.40 per share on April 27.

At the same time, it also reported its first-quarter financials for 2022. In brief, net sales for the quarter were a cool $6 billion. Organic net sales increased 6.8% year-over-year. The company also posted non-GAAP earnings per share of $0.60, beating estimates by $0.07. Furthermore, it also raised its expectations for 2022 organic net sales to a mid-single-digit percentage. This is due to strong performance to date and ongoing business momentum. With that being said, should investors be on the lookout for KHC stock?

KHC stock chart
Source: TD Ameritrade TOS

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Procter & Gamble

Finally, we have Procter & Gamble, or PG for short. PG is a company that focuses on providing branded consumer packaged goods to consumers across the world. It operates through five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The company offers products under brands such as Head & Shoulders, Herbal Essences, SK-II, Oral-B, Downy, and many more. Hence, it should not be surprising that PG stock is always in consideration as a top consumer staples stock. In fact, the stock has risen by about 12% over the past year, despite pressure on the broader market.

Last month, the company declared a dividend payout of $0.913 per share, marking the 66th consecutive year that PG has increased its dividend. Besides that, the company also reported its quarterly revenue and earnings that exceeded Wall Street estimates. Starting with the company’s revenue, it brought in $19.38 billion, up by 7% year-over-year and surpassing estimates of $18.73 billion. Moving on, PG brought in adjusted earnings of $1.33 per share, exceeding the $1.29 Wall Street was expecting. Accordingly, net income came in at $3.36 billion, up from $3.27 billion a year earlier. Considering the solid quarter, should you invest in PG stock?

PG stock chart
Source: TD Ameritrade TOS

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