Got $3,000? 3 Top Dividend Stocks for 2022 and Beyond The Motley Fool Canada

Between 2013 and 2022, the company grew its total utility consumers from 470,000 to 1.24 million. The company has experienced powerful financial growth over the years, with revenues growing 150% and net income growing roughly 144% between 2014 and 2022. With Fortis, you will be hard-pressed to find risk, especially when it comes to dividends.

  • The rules identified 100 stocks for the month of January that were all ranked based on the above mentioned metrics with the exclusion of the market cap.
  • As you can see all 16 past watchlists are either exceeding or on pace to exceed my 12% annual return target.
  • Unfortunately, studies have shown that risk and yield tend to correlate once high-yield status (4%) is reached.
  • And that business is rock-solid thanks to steady cash flow from a wide variety of infrastructure assets.
  • My return forecast is showing a 32.45% potential total annual return for ViacomCBS over the next 5 years.

The stock had a market average gain of 4.75% in December and is up 54.16% since joining the watchlist in November of 2020. It is one of the better watchlist stocks with an average monthly return of 3.14%. Dividend yield theory suggests the stock is potentially about 6% overvalued.

ENB has a forward dividend yield of 7.79% and a massive payout ratio of 185.90%. Its significant cash flows support a high dividend payout ratio exceeding 100%. The stocks mentioned below have shown strong returns this year and have solid dividend policies. In addition to this, we analyzed these stocks through their overall financial health and balance sheets. The stocks are ranked according to their dividend yields, as of December 21. For this list, we selected dividend stocks with the highest returns in 2022 so far.

High Dividend Stock #20: Physicians Realty Trust

With most already moving on from fossil fuels, Brookfield Renewable is expected to pick up a lot of the slack. In doing so, Brookfield has one of the safest, most diversified portfolios of clean energy assets. As the world shifts away from carbon fuels, there’s no reason to think Brookfield Renewable Partners won’t take its place as the green industry leader. The rules identified 100 stocks for the month of January that were all ranked based on the above mentioned metrics with the exclusion of the market cap. I then computed a forecasted rate of return for the next 5 year period for each of the stocks. This return is based on forecasted earnings growth, a return to fair value and the dividend yield.

  • The best dividend stock to buy right now may very well be Life Storage, Inc.
  • That is the lowest expected growth rate on this list, but it is still above the median expected growth rate of 8.7% for S&P 500 stocks.
  • Majestic Auto Limited ventured into commercial real estate in 2015 by providing office space on lease and facility management services.
  • Its rate base is projected to increase to about $41.6 billion by 2026, which will likely drive its earnings and dividends.
  • As a result, few companies look more ready than KMI to generate consistent, dependable cash flow for their shareholders than KMI.

My watchlist for May performed very well adding 3.31%, beating SPY, and Vanguard Dividend Appreciation ETF (VIG) that finished the month with a loss of 0.07%. After this solid month the annualized rate of return for the watchlist improves from 13.87% to 15.29%, building a cushion above my long term target of 12%. Both SPY and VIG remain below the 12% threshold on an annualized basis over the 21-month tracking period. Because of that, we’re always on the lookout for great dividend stocks. With that in mind, we asked some of our contributors for their favorite dividend stocks for 2022 and beyond. Here’s why Enbridge (ENB -0.20%), NextEra Energy Partners (NEP -1.73%), and Enterprise Products Partners (EPD -1.13%) rose to the top of their lists.

Lists & Rankings

McDonald’s operates fast food restaurants around the world, including both company-owned and franchised stores. Get free access to thousands of stocks and ETFs listed on North America’s largest exchanges. (That led to censorship of the stadium stands.) Following widespread protests, China rolled back COVID restrictions in December. The country is now experiencing a health crisis that could have major economic effects globally.

Whitestone REIT (WSR)

As I’ve explained to members of the Tribe in previous months, there is one chart which really makes the case for EOG. But if I need to choose just one stock in the sector, it would be EOG Resources (EOG). What’s more, PM is in the process of becoming a hybrid addiction/healthcare company, which, while the morality is questionable, the business proposition is compelling.

Buying and holding these stocks over time and reinvesting the dividends gives investors the benefits of compounding. So make sure that the stocks you own are companies that are in defensive sectors that can deliver solid results no matter what is happening in the broader economy. Dividend Yield – This is a ratio of the stock’s annual dividend divided by the current stock price. So a stock that pays out $4.00 annually and has a stock price of $100 has a dividend yield of 4%. This means that the dividend yield may change frequently making dividend yield alone an imperfect measure for evaluating the quality of a dividend stock. As a dividend stock, the REIT stands out for its consistent and considerable dividend growth history (for a REIT) – 12 consecutive years of growth.

My Top 15 High Growth Dividend Stocks For June 2022

These stresses often manifested in flat cash distribution profiles or, in some cases, temporary reduction in distributions. “Corporate profitability has improved dramatically in 2021 and should continue to improve in 2022. We believe that as we emerge from pandemic-driven supply chain challenges, strong demand for manufactured goods and inventory replenishment should exist.

In its most recent quarter, Devon Energy’s unique divided structure resulted in a 7.77% dividend yield, well above The Street’s average. All things considered, EPR properties is one of the highest paying dividend stocks whose balance sheet looks perfectly capable of maintaining its payouts. If that wasn’t enough, however, EPR is undervalued with what looks like plenty of room to grow. With upwards of $300 million in cash to put to work and a $1 billion credit line that hasn’t even been touched, EPR properties is shaping up to be one of the best dividend stocks for 2022. Additionally, the drop in shares has increased the company’s very stable dividend to 4.95%.

My return forecast is showing a 15.46% potential total annual return for 3M over the next 5 years. The stock added 4.46% to its annual return in December and is up 15.57% since joining the watchlist in November of 2020. This equates to a 1.04% average monthly return that is more than sufficient to meet my 12% annual return target. Dividend yield theory suggests the stock is potentially about 89% undervalued. It has a very good payout ratio of about 20% and a good 5-year dividend growth rate of 9.86%. My return forecast is showing a 32.45% potential total annual return for ViacomCBS over the next 5 years.

A company with a payout ratio over 100% is paying out more in dividends than it is making in profits, a long-term unsustainable situation. A company with a payout ratio of 50% is making double in income what it is paying out in dividends, so it has ‘room’ for earnings to decline significantly without reducing its dividend. A company’s payout ratio gives a good gauge of how much ‘room’ a company has to pay its dividend. The lower the payout ratio, the better, because dividends have more earnings coverage. The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

Indian Oil Corporation Limited

More specifically, a dividend yield takes the same concept as a dividend and extrapolates it over the course of a year. Always expressed as a percentage, dividend yields are simple financial ratios that tell investors how much each share of a dividend stock will pay in dividends relative to its price each year. For example, a real estate investment trust (REIT) is required to pay out up to 90% of its earnings as a dividend.