Are you looking for solid stocks that offer a reliable income stream? If so, you may want to take a closer look at dividend stocks. These investments can provide you with regular payouts, which can help you to meet your financial goals. In addition, dividends can also help reduce your portfolio’s overall risk. Here are some tips on how to get started with dividend investing.
1. Decide how much risk you’re willing to take on. Dividend stocks can be riskier than other types of investments, so it’s important to choose those that match your risk tolerance.
2. Look for high-quality companies. When choosing dividend stocks, it’s important to focus on quality businesses with strong businesses.
Investing In Dividend Stocks 2022
Exxon Mobil Corp. (XOM)
The main oil and gas firms have had a problematic seven years. Since the oil price collapsed in 2014, most energy corporations have decreased their payouts to stay afloat. The only exception was Exxon Mobil. Despite a short-term drop in profits, management maintained its hefty payout.
Enbridge Inc. (ENB)
Oil and gas producers aren’t the only ones reaping dividends from the energy sector. Midstream firms are in charge of storing, transporting, and distributing crude oil, natural gas, and refined goods.
Toyota Motor Corp. (TM)
In recent years, most auto stock traders have focused on electric vehicles or EV companies. That’s understandable; there’s certainly been a lot of activity, and new product launches out of the emerging EV space.
Intel Corp. (INTC)
Investors generally don’t think about technology companies as big dividend payers. However, there are some exceptions, particularly in more mature tech firms. For example, Intel is a cash cow thanks to its large and stable semiconductor business for personal computers and data center machines. While these are not huge growth markets, they represent a stable business and have enjoyed a boost from pandemic-related demand.
Lockheed Martin Corp. (LMT)
The defence industry didn’t have a great 2021. The Biden administration’s decision to pull out of Afghanistan caused investors to sell off the sector broadly. Despite that, Lockheed Martin keeps piling up new contracts with the U.S. government and foreign powers, solidifying its status as one of the best dividend stocks to buy for 2022.
Raytheon Technologies Corp. (RTX)
Raytheon is another large defence contractor. Raytheon was formed by a merger with United Technologies in its present form. That entity, in turn, spun off several businesses, such as elevators and air conditioning. This left Raytheon focused on aerospace, drones, satellites and cybersecurity.
JPMorgan Chase & Co. (JPM)
It might seem too late to buy the next stock on the list of the best dividend stocks to buy for 2022. After all, JPMorgan shares have advanced about 25% in 2021 and trade near all-time highs. However, don’t overlook how much the biggest U.S. bank’s core business has grown over the same span.
New York Community Bancorp Inc. (NYCB)
For investors wanting a safe higher-yielding bank, there’s New York Community Bancorp. The firm is a specialized regional bank focusing on lending for multifamily properties in the New York City metropolitan area. The bank makes loans with a low loan-to-value ratio, ensuring that it suffers minimal losses even during economic busts.
Westpac Banking Corp. (WBK)
Turning to international banks, Westpac also looks attractive. The company is one of the titans of the Australian banking industry. However, shares have slumped from $20 to $15 in recent months. That’s partly due to China’s economic weakness bleeding into the prices of critical Australian commodity exports such as iron ore.
Grupo Aval (AVAL)
Sticking with international banks, there’s Colombia’s Grupo Aval. The holding company controls stakes in four of Colombia’s leading banks, a Central American banking franchise and other Colombian subsidiaries involved in infrastructure and concession assets such as toll roads.
Investing In Dividends Stocks 2022
- Exxon Mobil Corp. (XOM)
- Enbridge Inc. (ENB)
- Toyota Motor Corp. (TM)
- Intel Corp. (INTC)
- Lockheed Martin Corp. (LMT)
- Raytheon Technologies Corp. (RTX)
- JPMorgan Chase & Co. (JPM)
- New York Community Bancorp Inc. (NYCB)
- Westpac Banking Corp. (WBK)
- Grupo Aval (AVAL)