It’s 2022 and it’s quite fair to say that the world is facing a global recession. What does that have to do with dividend payout stocks, you ask.
Well, this article should be of interest to individuals who have a business and are searching for places to invest.
Even with the current events which call for scepticism in today’s market, investing in dividend payout stocks is a very good way to store money and preserve wealth for a long period.
Dividends are not entirely complicated to understand, they are payouts of company earnings for every share of a stock you own.
So, since you are looking to invest, here are the top best dividend payout stocks you can buy in 2022;
Top Dividend Payout Stocks To Pick
- Enbridge($ENB): Enbridge is a multinational pipeline company in Canada and they are responsible for managing the longest pipeline system in North America.
Its dividend yield is 6.07% which compared to many S&P 500 companies is very high(the average of S&P 500 companies is 2%).
This should excite you because it tells you 2 things: high dividend income and lots of cash! They have been constantly growing at an annual rate of 10% and have a good payout history.
- Prudential($PRU): They are an American financial corporation managing subsidiaries that provide insurance, investment management and other financial services.
They are one of the largest insurance companies in the USA. Their dividend payout stocks yield sits at over 4%.
If you assess the company’s durability, you’d find out that the company reported its all-time low in 2020 but it bounced back just the next year.
Due to the current state of the economy, it’ll likely be able to deliver higher dividends if interest rates rise. This is one to keep an eye out for in the long run as a strong dividend stock.
- Verizon($VZ): Verizon is a multinational telecommunications corporation known for being one of the largest wireless carriers in the US.
Its dividend yield of 4.73%. For the most part, the company’s earnings have remained relatively stable and it is noteworthy that the company’s income still grew year over year even though the growth was small.
Verizon sits on a lot of cash and has seen a substantial upward trend in its net operating cash flow for half a decade.
Before making any moves, it’s important to pay attention to these criteria when considering dividend payout stocks;
- The company’s earnings on cash flow: does the company have strong long-term expected growth? Ideally, we want to see about 5% expected growth.
- Low debt to equity ratios: This means that you’d ideally want to see ratios less than 2 which would mean that companies are relying on equity generated by shareholders rather than the debts incurred from lenders.
- Dividend payout history: It shows how consistent they are with their payouts.
- Durability: if the company will be durable for the long run
There you have it! Payout stocks for you to look at, as well as criteria to guide your decisions. However, bear in mind that this isn’t financial advice, do sufficient research before investing. This is just a brief analysis of some dividend payout stocks.