Top Dividend Stocks to Buy and Forget in 2022

Looking for some of the top dividend stocks for 2022? Here are three top choices to buy and forget for decades of income.

| More on:
grow dividends

Image source: Getty Images

If you’re a fan of dividends, then finding the right mix of income-producing stocks is important. Now that the end of the year is just two weeks away, there’s no time like the present to find those investments. Fortunately, the market provides plenty of options to consider, and there are some top dividend stocks to buy and forget for 2022.

Will you buy these top dividend stocks?

When it comes to earning dividends, there are certain areas of the market that are natural candidates. Telecoms and utilities are perfect examples.

That’s precisely why investors should take a close look at both Telus (TSX:T)(NYSE:TU) and Canadian Utilities (TSX:CU).

Telus is one of the largest telecoms in the country. Telecoms have always been well regarded as defensive stocks. Since the pandemic started, that view has shifted. If anything, the appeal of telecoms such as Telus has only increased.

The need for steady internet and wireless connections has grown. This is due to more office workers and students working and studying from home. If anything, both have become a necessity. It’s not just for work and study either — the entertainment industry relies on telecoms too. Streaming services that provide audio and video content for homebound subscribers have pushed data use (and by extension, Telus’ revenue) up considerably.

In terms of a dividend, Telus offers an appetizing 4.46% yield.

Canadian Utilities currently holds the title for the longest consecutive annual dividend increases. The company stands at 49 consecutive years at present. When (not if) Canadian Utilities hits that half-century mark, it will be Canada’s first Dividend King.

The company boasts an impressive portfolio of regulated assets that continue to generate a handsome and recurring revenue stream. Prospective investors should keep in mind that regulated contracts typically span decades or longer.

Canadian Utilities also has a keen eye towards acquisitions, which provides an avenue of growth. Both efforts help feed the impressive and stable dividend, which works out to a juicy 4.91% yield.

What about some clean energy?

Renewable energy is growing in importance with each passing year. The science is largely accepted. More importantly, the need for that change is now trickling down to utilities and consumers. This has created a whole new market opportunity for renewable energy investors.

One such option to consider is TransAlta Renewables (TSX:RNW). TransAlta operates a growing portfolio of facilities that are located in Canada, the U.S., and Australia. Those assets are also diversified across different technologies, including solar, wind, hydro, and gas.

As impressive as that sounds, there’s still much more to consider. TransAlta and other renewable energy companies boast a competitive advantage over their traditional fossil-fuel peers. In short, traditional utilities are straddled with huge transition costs to get off fossil fuels. Those efforts will take years and cost billions.

By comparison, TransAlta’s facilities are already renewable. This means the company can invest in growth and continue to provide a juicy dividend.

That dividend, which is paid out on a monthly cadence, carries an impressive 5.16% yield. This handily makes TransAlta one of the top dividend stocks for your 2022 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 has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

More on Dividend Stocks

grow money, wealth build
Dividend Stocks

Got $3,000? 3 TSX Growth Stocks to Buy in January 2023

Top TSX growth stocks that look appealing for 2023.

Read more »

woman data analyze
Dividend Stocks

Need Passive Income? Turn $15,000 Into $851 Annually

This passive-income stock is already climbing higher, up 16% in the last three months! Yet it's still valuable, so you…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Top TSX dividend stocks now appear oversold.

Read more »

Dividend Stocks

For $100 in Passive Income Each Month, Buy 1,500 Shares of This REIT

REITs such as Northwest Healthcare can enable investors create a passive-income stream as well as benefit from capital gains.

Read more »

A colourful firework display
Dividend Stocks

2 Canadian Growth Stocks (With Dividends) to Start 2023 With a Bang

Here are two of the best dividend-paying Canadian growth stocks you can invest in at the start of 2023 and…

Read more »

sale discount best price
Dividend Stocks

4 Insanely Cheap Canadian Stocks to Buy for Passive Income

The recent bear market has created some incredible bargains, especially for those looking for passive income. Here are four cheap…

Read more »

A bull outlined against a field
Dividend Stocks

3 Cheap Stocks I’d Buy Before the Bull Market Arrives

Undervalued TSX stocks such as Savaria and Well Health can help investors generate market-beating gains when markets recover.

Read more »

Increasing yield
Dividend Stocks

5 Canadian Dividend Stocks With Yields of 4% or More

If you want dividends that yield over 4%, you don't have to look far. Here are five large-cap Canadian stocks…

Read more »