Best Dividend Stocks to Buy and Hold in 2022

Hey, guys so in this article, I'm going over five top dividend stocks for 2022. Yes, there are tons of stocks that pay dividends but this list includes ones I think have a lot of potentials and have high relatively stable dividend payouts for generate income passively. I'll cover the stats, and news, In this article, I am going to cover five stocks.

I will go over some reliable ways to choose good dividend stocks. Well, the first thing I look at is a company's earnings and free cash flow, and does the company have strong long-term expected earnings growth? Ideally, we want to see about 5% or more expected growth. Something else to consider is low debt-to-equity ratios. 

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This means you ideally want to see ratios less than 2 which would indicate that companies are relying more on the equity generated by shareholders than the debts incurred from lenders. I also really like to look at dividend payout history. So how consistent are they with their paths?

And finally, didn't companies need to be durable for the long run, he needs to consider how well they placed and how well they thrive in the respective industries. So look for moats or competitive advantages. Now that we know what to consider when choosing dividend stocks. Now I want to share my top picks for dividend stock investments for 2022. 

First Stock 

The first dividend stock we're talking about today is Enbridge ($ENB). Enbridge is a multinational pipeline company headquartered in Canada, and they're responsible for managing the longest expensive pipeline system in North America. Right now stock price of Enbridge is trading at $44.42 with a 52-week low of $34.09, and a 52-week high of $44.75. 

Their one-year price chart shows pretty spectacular growth in the last year where we started at just over $35 then the share rose consistently all the way up to about $43 per share back in October or November dropping back down to $37. And since then, it's really shot back up. 

They have a total market cap of $90 billion with a P E ratio of 19.7 and earnings per share is $2.26. And they have a current dividend yield of 6.07%. Right now, their valuation measures show that they have a price-to-book ratio of 2.07.

The profit margin is sitting at 13.15%. And they have reasonable return equity of 9.89%.This is all in revenues of $47.07 billion in the last 12 months, they have $350 million in total cash a current ratio of 0.49.

And if we look at their payout ratio, we can see that it's 116.3%, which is very, very high, but it's okay concerning the fact that they have a lot of cash on hand on a scale of one to five one being strong by and five being a sell.

The rating of Enbridge is 2.3, meaning it is a buy and the average analyst price target is $44.99, which is just a hair above the current price. So to start off, the British dividend yield is about 6%, which compared to many s&p 500 companies is very, very high. So obviously this should excite shareholders because it tells us two things. 

One, you'll make a high dividend income, and two well, this isn't the oil company that sits on a lot of cash. It's a company competing in a tough but durable industry and they are thriving, at least for the last few decades growing the dividend yield for the past 27 years. 

So why and how is Enbridge doing so? Well, if we look at the company's cash flow on its balance sheet, the company's net operating cash flow has either been stable or growing for the past five years, the revenue grew over 20% year over year in its most recent earnings update and the only thing to possibly be concerned about is the company's net debt to equity ratio of well over one which is definitely considered quite high.

However, the fact that the company sits on a lot of cash and can pay up so much and dividends should tell us how cash-rich Bridget's and the company continues to prove its durability through its identity and its business deals. They're managing the largest pipeline system in North America.

This should already leave shareholders feeling relaxed, but if you look further into the company's involvement, you can really see that this company is working closely with various energy authorities to ensure greater energy delivery to different parts of the United States.

Including its ridgeline Expansion Project Opportunity, and its real Bravo pipeline project and bridges also bring its resources overseas to countries like France, where it's currently involved in its St. Nazaire offshore wind project. Overall, I really do think that Enbridge has a strong long-term future and it's a great dividend stock to consider for your portfolio.

Second Stock 

The second dividend stock we are talking about today is Prudential ($PRU). Prudential is 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 US. 

So right now, one share of Prudential is trading at $109.54 with a 52-week low of $86.41 and a 52-week high of $124.22. Their one-year price chart shows pretty consistent growth for the last year. But we did see a correction very recently. They have a market cap of $41.187 billion, and a very low P E ratio of 5.62, which is great earnings per share of $19.50.

And they have a current dividend yield of 4.39% in five years expected PEG ratio of 1.62. And they have a price-to-book ratio of 0.69. Their current profit margin is sitting at 10.9%. And they've returned equity of 11.92%.

This is all on revenues of about $70 billion in the last year. If we look at the balance sheet they have total cash of $28.38 billion and a current ratio of 0.99 their current payout ratio is 23.58% with a five-year average dividend yield of 4.25%.

What are 5 dividend stocks for the long term to buy in 2022?

Right now the rating of Prudential is 3. This means it is a hold and the average analyst price target is $117.62 which is about 6% higher than the current price of $109.54. 

So, Prudential's current dividend yield sits at over 4% with a quarterly dividend amount of $1.20. This is pretty high. And if we look at the company's recently announced earnings, although the company reported a year-over-year loss in revenue, its net income grew by 47.5% year over year to $1.21 billion, which isn't enormous growth in profits.

For the most part, the company has seen an upward trend and its cash flows for the past 15 years. And Prudential like I said is industry Titan being one of the largest insurance companies in the US if you want to assess the company's durability against its competitors. 

It was reported that Prudential had a 5.8% market share for all insurance companies in 2020. In fact, the company reached all-time lows that year, so it was pretty cool to see them recover beautifully within the next year. More specifically, they beat out the s&p 500 in total returns for 2021.

Which is insanely awesome for shareholders to see as other insurance companies slowly recover from the pandemic because of the current state of the economy, it will likely be able to deliver higher dividends in the future if interest rates rise.

This is definitely more bullish news concerning the fact that the Federal Reserve is planning on raising rates. So, keep your eye on $PRU for the long run as a strong dividend stock.

Third Stock

The third stock we're talking about is Verizon ($VZ). Verizon is an American multinational telecommunications corporation known for being one of the largest wireless carriers in the US right now. One share of Verizon is trading at $54.66 with a 52-week low of $49.69 in a 52-week high of $59.85. 

They've dropped about 10% In the last year but starting in December of 20.2. We have seen a small recovery, the current market cap is $229.453 billion. They have a PE ratio of 10.28 and earnings per share of $5.32.

And they have a current dividend yield of 4.73%. They have a five are expected PEG ratio of 3.54 and a price-to-book ratio of 2.78. They have a very strong profit margin of 16.51% and great return equity of 29.67%.

They're definitely cashing rich with total cash of about $2.92 billion, and the current ratio is 0.78, which could be better now their payout ratio is sitting at about 47.65% with a five-year average dividend yield of 4.46%.

Right now analysts are reading Verizon as a 2.7, meaning it is between the buy and hold and the average analyst's price target is $60.32 which is about 10% higher than the current price of $54.66. So as I mentioned, the resident's current dividend yield sits at about 4.7% with a quarterly dividend amount of 64 cents. 

Which are high paying dividend stocks for 2022?

For the most part, the company's earnings have remained relatively stable, and it is noteworthy that the company's net income still grew year over year. Although that growth was small. We should be more excited about the fact that Verizon sits on a lot of cash and that's seen a substantial upward trend in its net operating cash flow for half a decade.

Now with this amount of cash sitting in the company's accounts, it's no wonder that Verizon is paying out pretty hefty dividends to its shareholders. And yeah, one reason why I really like Verizon is because it is a leader in its industry. Currently, Verizon is still leading in terms of mmWave spectrum, which basically allows Verizon to enable operators to offer 20 gigabytes per second and strong hotspot capability.

As of right now, mmWave spectrum strength is one of the leading metrics or indicators of a competitive wireless carrier. And yeah, this puts Verizon in a very comfortable position. They're also making moves to expand, enhance or adjust their business so that it can be a part of a favorable economic future. 

For example, the company is planning on participating in more eco-friendly ways of seeking renewable energy. So that telecommunication activities can continue with minimal impact on the environment. And if you continue to expect Verizon to be as proactive and as cutting edge with its technology.

I certainly think that there is a place for this giant in the long run, which of course is great for shareholders looking for those dividend payouts. Overall, I think Verizon is a very worthy Demonsaw and one that you should at least consider having on your watch list. 

Fourth Stock

So number four on our list is Philip Morris ($PM). Philip Morris is an international Swiss American multinational cigarette Manufacturing Corporation that's known for its manufacture and distribution of Marlboro. Right now one share is trading at $102.48 with a 52-week low of $84.30. And a 52-week high of $112.48. 

One year ago, the price of Philip Morris was about $85. It consistently rose all the way to above $105 Back in September and dropped back down to about $85 Back in November, and December. And since then, it's really shot up in price with a small correction recently, they have a market cap of $158.827 billion with a PE ratio of 17.58 and earnings per share of $5.83.

They have a current dividend yield of 4.8%. Right now they have a five-year expected PEG ratio of 2.5 with a very healthy profit margin of 29%. And in the last 12 months.

They've hit revenues of $31.41 billion. They have total cash of $4.5 billion with a current ratio of 0.92. And we can see that their payout ratio is at 4.05% with a five-year average dividend yield of 5.19%. 

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Right now, Philip Morris's analyst rating is 2.2, meaning it is by and the average analyst price target is $114.02 which is about 14% higher than the current price of $102.48. So the number that you guys care about is 4.8%.

That is Philip Morris's current dividend yield. They are paying out a quarterly dividend amount of $1.25. The company's recently announced earnings found that Philip Morris's revenue grew around 8% year over year.

Which is a bullish sign for the company's earnings capabilities as well as earnings potential. If we take a look at the company's annual cash flow, we can also see that its net operating cash flow is relatively stable as it fluctuates between eight to $10 billion. 

This is another positive sign to see for the company as it shows that Philip Morris is either really good at saving their cash or really good and reinvesting their cash into themselves as well as paying out to shareholders so that they can generate a similar amount of cash the following year. 

If we look at the prospects of the corporation's survival in developed markets, like Europe, or the United States will know that anti-tobacco measures are being heavily adopted because of the health concerns that come with tobacco. This you guys will definitely hinder the company's growth for the future and is a hit considering Philip Morris has lost major funding in the world's biggest markets.

However, there is still plenty of hope for the company as it is now widening its appeal in influence to developing markets such as Africa, where smoking has risen significantly, despite lowering rates of wealth throughout the continent. They definitely have the funds resources and longevity to continue selling their products overseas. 

So success in smaller international markets is definitely a possible future for the company. I actually really don't like tobacco and I think it's terrible for you, but we're talking about dividend stocks and I think this is one that you guys should have on your watch list.

Fifth Stock

The fifth dividend stock we're talking about today is the Vanguard ETF ($VYM). The high dividend yield index fund. This ETF basically tracks stocks and the FTSE high dividend yield index.

Which includes companies with the highest dividend yields and the current market price is $110.74 with a dividend yield of about 2.75%, the debt expense ratio of 0.06%, which is very, very low and definitely great news for an investor like you. 

There's a 52-week low of $95.89 and a 52, week high of $114.97. It's also interesting to look at some of the equity characteristics. So we can see that the average price-to-earnings ratio is 16.3. The average price-to-book ratio is 2.7.

And the average return on equity is 15.1%. The earnings growth rate is also quite strong at 9.8%. Here we can see the average annual returns performance. And you can see that for the last year, we're at about 26.14%.

The last three years were 16.58%. And the last five years it was 11.67%. Definitely a very, very strong performance. And if you guys had invested $10,000 into this ETF 10 years ago, you'd currently have over $30,000. 

So looking at the portfolio composition, we can see that some of the biggest sectors are consumer staples, financials, health care, as well as industrial CTF cares for under 10 different stocks with total net assets of $55.1 billion. And, some of the largest holdings are Johnson Johnson, JP Morgan Chase, Home Depot, and Procter and Gamble. 

2022 High Dividend Stocks List

So overall, $VYM is such a great pick because you guys can invest in many different stocks with high dividend yields at the same time, like I mentioned earlier, this ETF carries companies like Johnson Johnson, JP Morgan, Home Depot, Procter and Gamble make of America and many other well-established companies. 

It's worth noting that 10 of the largest holdings in this ETF make up about 20% of the ETFs entire portfolio. So while the stock has substantial investments in space companies, their portfolio is still pretty well diversified. The Lion's holding still makes the ETF one of the most stable among the major dividend ETFs out there. 

In fact, you guys probably know that the s&p 500 has dropped this year, but the dividend ETF that experienced the smallest loss in value was $VYM. I want to emphasize this again, but this ETF has an expense ratio of just 0.06%, which is extremely cheap. If you want to invest in dividend stocks but want a safer and more diversified bet with a low expense ratio, then I really do think that $VYN is one of the best options out there. 

Before investing in anything I want you guys to do your own due diligence I'm not a financial advisor.