10 Dividend Stocks to Buy in 2022
There are several advantages to investing in dividend-paying firms, especially if you want to do so for the long run. Aside from generating constant income, many dividend-paying companies are in conservative industries that can weather economic downturns with less volatility. Dividend-paying corporations frequently have significant amounts of cash and are thus strong companies with excellent long-term success prospects.
The consistency of dividends is a major factor to consider when buying shares. Not every company must produce a dividend, but a consistent, predictable income stream adds good ballast to the return of a portfolio. Dividend is a periodic payment made from a company's earnings and given to a subset of its shareholders.
When attempting to uncover stocks that pay large dividends, investors may employ a metric known as dividend yield. The dividend yield is a percentage-based financial measure that illustrates how much a firm pays out in dividends each year in relation to its stock price. A dividend yield is computed by dividing the yearly dividend per share by the share price.
I've discovered ten great dividend stocks to consider in 2022. The stocks are as follows:
Citigroup (C)
Citigroup is a financial services business based in the United States. It is one of the four major banks in the United States, along with JP Morgan, Bank of America, and Wells Fargo, and has a 4% domestic deposit market share. Citigroup pays quarterly dividends and will pay out a total of $2.04 per share in 2021. At the current share price, this equates to a 3.2 percent yield. This is the greatest rate of return among the Big Four US banks. Earnings per share were $10.14 in 2021, resulting in a strong dividend coverage ratio of 5.0. Citigroup will also return $7.6 billion to shareholders through share buybacks in 2021. For the year, the total capital return to shareholders was $11.8 billion. Buybacks should assist in enhancing earnings per share in the future.
Citigroup now trades at roughly 80% of its tangible book value (TBV), or what the business would be worth if it were liquidated. In comparison to its Big Four counterparts, this is a low valuation. If the firm can demonstrate that it is carrying out its transformation goals, its value may grow.
Starwood Property Trust, Inc. (STWD)
Starwood Property Trust is a diversified finance business principally focusing on the real estate and infrastructure industries. The company's investment portfolio comprises commercial mortgage loans, commercial MBS, and other commercial real estate-related debt. It also invests in residential mortgage loans and residential MBS. Commercial first and subordinated mortgages, mezzanine loans, preferred stock, some residential mortgage loans, and other real estate debt investments are all part of the Real Estate Commercial and Residential Lending category. The Real Estate Property division is responsible for acquiring and managing equity interests in stable commercial real estate holdings, such as multi-family complexes, that are held for investment purposes.
Aviva (AV.L)
Aviva is a British financial services firm that offers insurance, savings, and investment products. With a 23 percent share of the UK life and savings market, the firm is the UK's largest insurer. Analysts anticipate Aviva will pay out dividends of 22.2p per share to shareholders in 2021. At the present share price, this corresponds to a yield of somewhat more than 5%. Earnings for 2021 are estimated to be 47.9p, resulting in a dividend coverage ratio of 2.2.
Aviva has taken initiatives in recent years to streamline and improve its company, and this looks to be paying off. In its H1 results, which were released in August 2021, the company reported its highest UK general insurance sales in a decade, record flows in its savings and retirement segment, and a 17 percent increase in adjusted operating profit. The company also stated in its first-quarter results that it plans to return at least £4 billion to shareholders by the end of 2022, beginning with a repurchase of up to £750 million. It's value is still cheap. The stock now has a forward-looking price-to-earnings (P/E) ratio of approximately 9.5. This is significantly lower than the FTSE 100 index's median P/E ratio of 16.1.
OneMain Holdings, Inc. (OMF)
OneMain Holdings, Inc. is a consumer finance firm that provides personal loan origination, underwriting, and servicing to non-prime consumers. It operates in the following segments: Consumer & Insurance, and Other. Through its integrated branch network, digital platform, and centralized operations, the Consumer & Insurance business provides service for secured and unsecured personal loans, optional credit and non-credit insurance, and associated products. Other SpringCastle Portfolio activities and non-originating operations are included in the Other section. The firm was created on August 5, 2013, and is based in Evansville, Indiana.
BP (BP.L)
BP is one of the major energy firms in the world. Previously an oil and gas corporation, it is presently converting to a renewable energy enterprise. It intends to become a net-zero firm by 2050. BP has lowered its dividend distribution in recent years in order to increase its renewable energy expenditures, but the stock's yield remains appealing today. Analysts estimate BP will pay total dividends of 21.7 cents per share for the fiscal year ending December 31, 2021, which amounts to a yield of roughly 4.1 percent at the current share price and currency rate.
New Residential Investment Corp. (NRZ)
New Residential Investment Corp. is a real estate investment trust that seeks to create long-term value for investors by investing in mortgage-related assets, such as operating companies, that provide good risk-adjusted returns. Origination, Servicing, MSR Related Investments, Residential Securities, Properties, and Loans, Consumer Loans, Mortgage Loans Receivables, and Corporate are its business segments. General and administrative costs, management fees and incentive compensation, corporate cash and related interest income are all included in the Corporate section. The firm was created in 2011 and is based in New York, New York.
Taylor Wimpey (TW.L)
Taylor Wimpey is a major residential property developer in the United Kingdom. The firm, which builds anything from one-bedroom flats to six-bedroom detached houses, built 14,087 homes last year. While Taylor Wimpey suspended dividend payments in 2020 owing to the COVID-19 interruption, the business has restarted payments and appears to be on track to make some cash payouts in the coming years.
Analysts anticipate that the business will pay total dividends of 8.68p per share to shareholders in 2021. At the current share price, this equates to a dividend yield of approximately 5.4 percent.
Annaly Capital Management, Inc. (NLY)
Annaly Capital Management, Inc. invests in and finances residential and commercial real estate. It is organized into four investment groups: agency, residential credit, commercial credit, and middle market lending. The agency group invests in mortgage-backed securities issued by government agencies. Residential Credit is a non-agency residential mortgage asset group that includes securitized products and entire loan markets. Commercial mortgages, loans, securities, and other commercial real estate debt and equity investments are all part of the Commercial Real Estate category. The Middle Market Lending division provides funding to middle market enterprises supported by private equity across all capital structures.
Rio Tinto (RIO.L)
Rio Tinto is one of the world's major mining and metals enterprises. It operates in 35 countries and specializes in the manufacturing of iron ore, copper, aluminum, and minerals. Rio has handed out some significant dividends in recent years. Dividends totaled $5.57 per share in 2020 for the company. Analysts predict that the firm will pay out a total of $9.97 in dividends in 2021. At the current share price, this equates to a yield of approximately 13.1 percent. Rio is now benefiting from rising commodity prices. Higher commodity prices have increased revenues, allowing the corporation to pay out a series of special dividends to shareholders.
Lumen Technologies, Inc. (LUMN)
Lumen Technologies is a technology and communications firm that serves people and companies all around the world. It offers an integrated platform that combines network assets, cloud connection, security solutions, and voice and collaboration capabilities to assist organizations in making better use of their data and adopting next-generation technology. In late March, the corporation announced the hiring of Chris Stansbury as chief financial officer (CFO). Stansbury was most recently senior vice president and CFO of Arrow Electronics Inc., where he was in charge of the company's worldwide financial operations.
