The annual contribution for the Tax-Free Savings Account (TFSA) is set to increase by another $6,000 in 2022. That will put the cumulative contribution room at $81,500, at least for investors who have been eligible since its inception in January 2009. Today, I want to look at three top dividend stocks that are worth monitoring ahead of the New Year.
This energy stock offers big income for a 2022 TFSA
Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a Calgary-based company that provides transportation and midstream services for the energy industry. Shares of this dividend stock have climbed 22% in 2021 as of early afternoon trading on December 10. However, the stock has slipped 10% in the month-over-month period.
The company posted total revenue of $2.14 billion in the fourth quarter of 2021 — up from $1.49 billion in the previous year. In the year-to-date period, total revenue increased to $6.06 billion compared to $4.27 billion in the first nine months of 2020. Meanwhile, adjusted cash flow from operating activities rose to $786 million, or $1.43 per share — up from $524 million, or $0.95 in the previous year.
Shares of this dividend stock last had an RSI of 32, which puts Pembina just outside technically oversold territory. It offers a monthly dividend of $0.21 per share, representing a tasty 6.7% yield. Pembina can offer nice income for TFSA investors in 2022.
Don’t sleep on this dependable dividend stock right now
Great-West Lifeco (TSX:GWO) is a Winnipeg-based company that is engaged in the insurance and financial services space. This dividend stock has increased 26% in the year-to-date period as of early afternoon trading on December 10. Its shares have dipped 1% month over month. TFSA investors should consider this highly dependable stock as we prepare for 2022.
In Q3 2021, Great-West reported total base earnings of $870 million — up from $679 million in the previous year. Base earnings per share increased 27% from the previous year to $0.93. It was powered by higher equity markets across its jurisdictions. Meanwhile, assets under administration (AUA) climbed 11% from the prior year to $2.2 trillion.
This dividend stock last had an attractive P/E ratio of 10. It currently pays out a quarterly dividend of $0.49 per share. This represents a solid 4.6% yield.
TFSA investors: One more dividend stock to snatch up today
TransAlta Renewables (TSX:RNW) is the third and final dividend stock I’d recommend for TFSA investors on December 10. This Calgary-based company develops, owns, and operates renewable power-generation facilities. Shares of this dividend stock have dropped 17% in 2021 at the time of this writing. Investors should be eager to snatch up promising green energy stocks in their TFSA for the long haul.
The company released its third-quarter 2021 earnings on November 9. It saw comparable EBITDA jump $6 million from the prior year to $102 million. Meanwhile, it made solid progress on key solar and wind power projects. TransAlta stock is trading in favourable value territory compared to its industry peers. It offers a monthly dividend of $0.078 per share. That represents a strong 5% yield.
