The 10 Best High Dividend Stocks to Buy in 2022
The stock market has performed exceptionally well in recent years, with the S&P 500 index climbing more than 250% since its financial crisis low in 2009. The strength of the rally has surprised even the most bullish investors, and some fear that stocks are now getting overvalued. When people talk about valuations today, they typically look at price-to-earnings (P/E) ratios, where stocks are trading at 17 times their earnings average over the past decade, which is above the long-term average of 15 and significantly higher than the ratio’s 20th century average of 13.
1) Investing for income
If you're looking for stocks that will pay you dividends, you're not alone. With interest rates at all-time lows, many investors are searching for ways to boost their income. And, given the uncertainty of today's markets, dividend stocks have become even more attractive than usual. To help you find some solid dividend-paying companies for your portfolio, we've put together a list of the 10 best high dividend stocks to buy in 2022. As always, make sure to do your own research before investing.
Aircraft Leasing Services International Ltd (ALSI)
Based in Ireland and founded in 2004, ALSI is an aviation leasing company that provides clients with aircraft operating leases and financing solutions. The company is profitable and has seen strong growth over the past few years.
2) What is a dividend stock?
A dividend stock is a share of a company’s stock that pays regular cash dividends. Dividend stocks are usually mature companies that have a long history of paying dividends to shareholders. The 10 best high dividend stocks to buy in 2022 are: 1) Johnson & Johnson (JNJ) 2) Exxon Mobil (XOM) 3) AT&T (T) 4) Verizon Communications (VZ) 5) Pfizer (PFE) 6) Merck & Co. Inc. (MRK) 7) Chevron Corporation (CVX) 8) Coca-Cola Company (KO) 9) General Electric Company (GE) 10
Merck & Co. Inc. has the highest yield, at about 3.8%. Pfizer has the lowest yield, at about 2%. All ten of these stocks should be good for an investor looking for income from their portfolio, but there are many other factors to consider before investing in any one company.
3) Dividend Aristocrats List
If you're looking for the best high dividend stocks to buy in 2022, you can't go wrong with the Dividend Aristocrats. These are companies that have increased their dividends for 25 consecutive years or more. Some of the most well-known Dividend Aristocrats include Johnson & Johnson (JNJ), Procter & Gamble (PG), and 3M (MMM).
To find the complete list of Dividend Aristocrats, go to S&P Global's website. It is also a good idea to diversify your portfolio. You might want to invest in both energy and technology stocks, or healthcare stocks and banks. One way to do this is by purchasing an ETF like Vanguard Health Care ETF (VHT) which invests in securities of companies involved primarily in the health care industry. VHT includes some very large companies such as UnitedHealth Group (UNH) and Pfizer (PFE). The Vanguard Financials ETF (VFH) invests in stocks of U.S. based financial services firms including JP Morgan Chase (JPM), Citigroup Inc. (C), Bank of America Corp.(BAC), Capital One Financial Corp.(COF), and Goldman Sachs Group Inc.
4) A super successful strategy for investing
When it comes to finding the best high dividend stocks, there are a few things you should look for. First, find companies that have a history of paying out dividends. Second, focus on companies with strong balance sheets and solid cash flow. Third, look for companies with a competitive advantage that will allow them to continue paying dividends even in tough times. Fourth, make sure the company's dividend is sustainable by looking at its payout ratio. Finally, check the stock's valuation to make sure you're not overpaying. Ideally, you want to pay less than 20x earnings for a high-quality business. Here are some examples of good quality businesses that offer stable and attractive dividends:
1) General Electric (GE)
2) Wells Fargo (WFC)
3) AT&T (T)
4) Cisco Systems (CSCO).
5) There are five key factors you should look at before buying a stock
1) Company profitability - Is the company making money? 2) Debt levels - How much debt does the company have? 3) Dividend history - Has the company been paying dividends consistently? 4) Share price performance - How has the stock performed over time? 5) Valuation - Is the stock trading at a fair price?
6) Finding promising stocks now
The best high dividend stocks for the rest of 2020 include some well-known companies that have been paying out dividends for years, as well as some newer names that offer investors a chance to get in on the action early. Here are 10 of the best high dividend stocks to buy now.
1. Johnson & Johnson (NYSE: JNJ) has increased its dividend every year since 1977 and currently offers an annual yield of 3.8%. 2. Coca-Cola Company (NYSE: KO) has paid a dividend since 1890 and is currently yielding 3.2%. 3. Merck & Co., Inc. (MRK) has paid a quarterly dividend since 1971 and currently yields 2%. 4. IBM Corporation (IBM) has paid dividends every year since 1916 and is currently yielding 2%.
8) Yield curve – how it will affect your investments
A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but different maturity dates. The most common types of yield curves are Normal and Inverted. The normal or positive yield curve occurs when short-term interest rates are lower than long-term rates. Normally, investors prefer to invest their money for long periods of time because they expect higher returns with the passage of time (due to inflation).
If there is an inverted or negative yield curve where short-term interest rates are higher than long-term rates, it means investors prefer shorter maturities because they fear losses in capital due to potential inflationary pressures and/or deflationary trends. When you buy stocks, you want to make sure you buy stocks on the upside of the yield curve and not on the downside. You also want to diversify your holdings so as not be overexposed to one type of risk or another. Therefore, I recommend investing in some high dividend stocks with a low cost basis because these will provide safety should the markets collapse and provide opportunities for growth should the markets rebound. I recommend you look into Microsoft Corporation (MSFT), Walmart Inc. (WMT), Lowe's Companies Inc. (LOW), Johnson & Johnson Inc. (JNJ) and American Express Company (AXP).
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