7 of the Best High-Yield Dividend Stocks for 2022 to Buy Now

Advertisement

dividend stocks - 7 of the Best High-Yield Dividend Stocks for 2022 to Buy Now

Source: iQoncept/shutterstock.com

Looking back on 2021, the S&P 500 finished another year on a high. At the close of the 12-month period, the index had provided 27% returns to investors for the year. However, fears of another slowdown from new variants of the novel coronavirus or inflation will have several investors in a risk-averse mindset. In that case, investors would want to consider investing in high-yielding dividend stocks that offer stable income.

Overall, dividend stocks offer consistent income to shareholders. Typically, companies that have a solid track record of paying out dividends are resilient in the face of a crisis such as the coronavirus. However, we have seen several dividend aristocrats suspending dividend payments due to the pandemic-led slowdown.

However, there have been a number of stocks that have remained buoyant despite the challenges. In fact, these seven dividend stocks stand out among the rest.

  • Sunoco (NYSE:SUN)
  • Exxon Mobil (NYSE:XOM)
  • Camping World Holdings (NYSE:CWH)
  • EPR Properties (NYSE:EPR)
  • Alliancebernstein Holding LP (NYSE:AB)
  • AbbVie (NYSE:ABBV)
  • Enbridge (NYSE:ENB)

Now, let’s dive in and take a closer look at each one.

Dividend Stocks To Buy: Sunoco (SUN)

Image of a Sunoco gas station in Orlando, Florida

Source: Alex Pesantes / Shutterstock

Dividend Yield: 8.1%

Sunoco is a top retail motor fuels distributor in the United States. With the entire hullabaloo around electric vehicles (EVs), we tend to forget that most Americans still use a combustion engine in their vehicles. Moreover, SUN stock is one of the highest-yielding propositions in its sector, with an incredible dividend yield of 8.1%.

Moreover, Sunoco didn’t halt its dividend payouts despite the challenges during the pandemic. This year, it is picking up the pace again, generating handsome operating cash flows of $512 million in the first nine months. Moreover, its distribution coverage is at a robust 161%. In the past couple of quarters, revenue growth has improved by double-digits, and it’s likely to take its fine form into next year.

Exxon Mobil (XOM)

Exxon Retail Gas Location

Source: Jonathan Weiss / Shutterstock.com

Dividend Yield: 5.7%

Energy giant Exxon Mobil has been repositioning its business to grow its asset base, reduce its debt load and diversify into a low carbon business. In doing so, it is already seeing a healthy improvement in its cash flows. Moreover, its 5.7% yield and 20 years of growth make its dividend profile arguably the strongest in the sector.

Exxon reported $6.8 billion in earnings and roughly $4.5 billion in savings in its third quarter. Additionally, it used its savings in fortifying its balance sheet, with a $4 billion reduction in debt. Additionally, with oil prices rising again, it is poised to capitalize on them and significantly improve margins.

With an impressive portfolio of assets and much-needed diversification efforts, XOM stock is incredible shareholder reward potential.

Dividend Stocks To Buy: Camping World Holdings (CWH)

Camping World (CWH) logo on a smartphone in front of an American flag background.

Source: IgorGolovniov / Shutterstock.com

Dividend Yield: 4.9%

Social distancing trends have been a game-changer for leading RV retailer Camping World Holdings. With air travel hesitancy and remote working trends in play, RVs became highly popular during the pandemic. Moreover, the trend is unlikely to stop here, as the RV Industry Association states that roughly 46 million Americans could go on an RV trip within the next year.

Camping World has been on fire in recent years, with more than 12.4% revenue growth in the past five years. Moreover, top-line growth in the past three quarters has been over double-digits; on top of that, its EBITDA growth in the past year has been over 90%. More importantly, it boasts a 4.9% yield for investors, which may reach 7% by 2022. Therefore, CWH stock is a long-term play with plenty of upside potential.

EPR Properties (EPR)

6 Monthly Dividend Stocks to Buy

Source: Shutterstock

Dividend Yield: 6.3%

EPR is a real estate investment trust (REIT), mainly in experiential properties. Naturally, its tenants felt the wrath of the pandemic, much more so than other REITs. Nevertheless, things are looking up for EPR stock.

EPR has done well to limit its debt load to come out of the pandemic unscathed. Moreover, its rent collection rates are up to 90% as of its most recent quarter. Thus, with over 350 properties and tenants in virtually every state, it’s an excellent recovery play for next year.

Furthermore, its dividend yield of 6.3% and more than a 100% payout ratio further adds to its bull case.

Dividend Stocks To Buy: Alliancebernstein Holding LP (AB)

The AllianceBernstein (AB) logo inside a corporate office in New York City.

Source: rblfmr / Shutterstock.com

Dividend Yield: 7.3%

AllianceBernstein is a top asset management firm operating in six continents worldwide. In the five years, the firm has performed exceptionally well for its clients and investors with healthy dividends and top-line growth. AB stock is a spectacular prospect with a yield of over 7% and a couple of years of dividend growth.

The firm has done remarkably well to expand its assets under management, with double-digit growth in the past few quarters. As of the third quarter, its assets under management (AUM) stood at a whopping $742.2 billion, the bulk of which came from its U.S. clients. Moreover, it has grown its revenues by more than 20% on a year-over-year basis. Though it operates in a highly competitive sector, it has had an exceptional track record to deliver consistent returns for its customers.

AbbVie (ABBV)

abbvie (ABBV) website and logo on mobile phone

Source: Piotr Swat / Shutterstock.com

Dividend Yield: 4.2%

Pharma giant AbbVie is a high-yield dividend aristocrat among Warren Buffet’s top investing picks.

The company has performed incredibly in the past several years and has posted solid financial results, led by its hugely successful rheumatoid arthritis drug Humira. However, of late, the company has looked to diversify its revenue streams by developing new drugs and expanding treatment options for existing ones.

Moreover, its dividend is safe, with an awesome yield of more than 4%. Additionally, it has raised its dividend payouts in the past eight years with a payout ratio of roughly 44%. Hence, ABBV stock makes for an excellent long-term pick in the pharma space, with solid fundamentals and a robust outlook ahead.

Dividend Stocks To Buy: Enbridge (ENB)

Enbridge (ENB) sign on the head Enbridge office in Toronto, Canada.

Source: JHVEPhoto / Shutterstock.com

Dividend Yield: 6.9%

Enbridge is a fast-growing Canadian oil company, which has set some lofty expansions for its future. It is focused on expanding its asset base and pivoting to renewable energy down the line. From 2022 to 2024, it plans to invest a colossal $9 billion for its expansion efforts. This will significantly improve its capacity to drive massive shareholder rewards.

Enbridge recently raised its dividend and affirmed its top and bottom-line targets. It expects its adjusted EBITDA to rise from $13.9 billion this year to $14.3 billion in 2022, representing a considerable 3% growth. Moreover, it raised its dividend by 3%, making it eight consecutive years of dividend growth. Additionally, its dividend is ranked among the top-tier mid-stream companies at 7%.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/7-of-the-best-high-yield-dividend-stocks-for-2022-to-buy-now/.

©2024 InvestorPlace Media, LLC