3 Income Stocks for 2022

Looking for some stellar income stocks for 2022? Here’s a trio of some of the best stocks on the market for income-seeking investors.

| More on:
Various Canadian dollars in gray pants pocket

Image source: Getty Images

Now that we’re in the final stretch of 2021, there’s never been a better time to rebalance your portfolio, particularly for income-seeking investors. Here are some stellar income stocks for 2022.

Bet on the banks to come through

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is not the largest of Canada’s big banks, but it is certainly unique. Scotiabank has expanded significantly in recent years into Latin America. Specifically, the bank has targeted Mexico, Columbia, Chile, and Peru. Those four nations are party to a trade bloc known as the Pacific Alliance.

A growing branch network within those member states has helped to establish Scotiabank as a preferred lender in the region. This has led to incredible growth during earnings season.

That’s not to say Scotiabank’s domestic segment isn’t performing well. The segment contributes to the overall performance of the bank, which is, in a word, impressive. In the most recent quarter, earnings topped $2.559 billion, or $1.97 per share, registering a 35% uptick over last year.

As one of the top income stocks for 2022, Scotiabank really shines. The bank recently announced a juicy 11% uptick this month, which brings the yield to an impressive 4.68%.

How about an income stream that mimics a tollbooth?

One of the most coveted aspects of an income investment is the ability to produce passive income. This is where the immense potential of investing in Enbridge (TSX:ENB)(NYSE:ENB) begins to emerge.

Enbridge is a true energy infrastructure behemoth. The company boasts a growing renewable energy segment and operates one of the largest pipeline networks on the planet. That pipeline network transports crude and natural gas around the U.S. and Canada, generating a recurring and stable revenue stream. Perhaps best of all is that the revenue stream is not based on commodity prices but rather on volume and distance. This makes it operate more like a tollbooth network.

Turning to dividends, that reliable business helps cover Enbridge’s impressive quarterly dividend. The yield on that dividend works out to an appetizing 6.92%, making it one of the better-paying dividends on the market. That factor alone makes Enbridge a great inclusion to any list of income stocks for 2022.

Adding to that appeal is the fact that Enbridge recently announced its latest annual uptick to that dividend, bringing it to an annualized payout of $3.44 per share. Oh, and this recent hike represents the 27th consecutive annual dividend hike by the company. Enbridge also plans to continue that annual cadence of 5-7% upticks through 2024.

+100 years of dividends and still paying

BCE (TSX:BCE)(NYSE:BCE) is another great option to add to any list of income stocks for 2022. BCE is huge telecom that boasts nationwide coverage, a reliable, diversified revenue stream, and over a century of dividend payouts without fail.

That’s a tough act to follow, but BCE does have more to offer investors. BCE also has a massive media segment, which consists of dozens of radio and TV stations. The company also has interests in professional sports teams. All of this means that BCE has multiple diversified revenue streams, all of which are complementary to its core subscription business.

Additionally, the global pandemic has made remote work and learning environments the norm for many. The need for a fast, consistent internet connection has become a necessity for office workers and students at home. This has served to expand an already impressive defensive moat further.

In terms of income, BCE offers investors a quarterly dividend with a juicy yield that currently stands at 5.28%.

Income stocks for 2022: Should you buy?

All investments carry some risk. Fortunately, the three stocks outlined above are some of the best options to consider within their respective segments. All of them offer a handsome dividend, strong growth potential, and some defensive appeal. In my opinion, one or more of these stocks would do well as part of a well-diversified portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou owns shares of Enbridge and The Bank of Nova Scotia. The Motley Fool recommends BANK OF NOVA SCOTIA and Enbridge.

More on Dividend Stocks

A bull and bear face off.
Dividend Stocks

The 3 TSX Stocks to Buy Before a Long-Term Bull Market Begins to Build

The TSX may not go bullish for a while, even when the economy recovers from a recession, but investors should…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

TFSA Investors: Make $200 in Monthly Passive Income With This 1 TSX Dividend Stock

Here’s an attractive dividend stock TFSA investors can buy now to earn $200 in monthly passive income.

Read more »

A plant grows from coins.
Dividend Stocks

TFSA Investors: How to Create $40,000 in Returns and Passive Income in 30 Years

If you think you'll need just $40,000 in passive income per year in retirement, your TFSA can get you there…

Read more »

stock analysis
Dividend Stocks

Buy These TSX Dividend Shares Next Week

Are you looking for dividend stocks to add to your portfolio? Buy these picks next week!

Read more »

edit Safety First illustration
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

These three dividend stocks are all high-quality companies with defensive operations, making them some of the safest investments in Canada.

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

3 Stocks to Anchor Your Portfolio in a Rocky Market

Three stocks are solid anchors in any portfolio today for their outperformance in a weak market and defiance of the…

Read more »

money cash dividends
Dividend Stocks

3 Solid Dividend Stocks That Cost Less Than $30

Given their solid financials and healthy cash flows, the following under-$30 dividend stocks are a good buy in this volatile…

Read more »

grow money, wealth build
Dividend Stocks

2 High-Yield Dividend Stocks With Rock-Solid Payout Ratios

These two dividend stocks offer unbelievably high yields of more than 7% and earn more than enough free cash flow…

Read more »