3 Dividend Stocks to Buy and Hold in 2022 and Beyond

Dividend stocks provide investors with a safe haven in all this turmoil, but these three trade at valuations you’ll want to hold and never sell!

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The Omicron variant has certainly thrown a wrench in everyone’s holiday plans. While vaccine companies continue to announce that there seems to be protection against the variant with their booster shot, restrictions continue to come down hard. It’s why dividend stocks can seem like a safe haven in these times of trouble.

But what about after the variant? In fact, what about after the pandemic? It will eventually come to an end, and when it does, you’ll want dividend stocks that still pay up. With that in mind, here are three strong dividend stocks I would buy before 2022 and hold forever.

TD stock

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a prime example of how well Canadian banks did during their market crash preparations. Not only did TD stock come out strong, but it continues to find new ways of bringing in revenue, clients, and capital.

TD stock has the highest exposure to credit cards, yet there is still even more room to grow, as the pandemic leads to an increase in usage. TD stock offers multiple ways of paying back loans, allowing its clients to pay the way they want. This has led to an increase in clients for several years, including in the wealth and commercial management sector.

Still, TD stock has the most excess capital of the Big Six banks with between $17 and $19 billion on hand, which could rise if it divests its stake in Schwab. As 2022 creates a normalized situation, it’s one of the dividend stocks you’ll be happy to have on hand. It currently upped its dividend to $3.56 per share per year. TD stock is up 26% year to date, with analysts giving it a target price of around $105. It currently trades in value territory at 12.15 times earnings.

Sun Life Financial

The financial industry in general is a strong place to look for safety, and that includes insurance. Sun Life Financial (TSX:SLF)(NYSE:SLF) is therefore a strong choice due to both its medium- and long-term outlook. Among dividend stocks, it remains strong on its path to future growth. This includes acquisitions, scaling out through Asia, and having $2 billion in excess capital and debt capacity. All while continuing to see strong performance in its core business.

And among dividend stocks, it’s a huge winner, recently increasing its dividend by 20%. It now offers a 3.82% dividend yield on top of a strong quarter. The company brought in net income of over $1 billion and aims to reach over 16% return on equity in the medium term.

Yet the company also remains in value territory, trading at 11.16 times earnings. Shares are up 13% year to date but have stabilized in the market pullback. So, now is a great time to jump on the stock.


Among the telecommunication companies, Telus (TSX:T)(NYSE:TU) continues to be the best bang for an investor’s buck. Of the top three, it managed to expand its 5G and wireline business far before its competitors. Its advanced fibre-to-the-home deployment has led to increased revenue, free cash flow, as well as customers. And that doesn’t look like it will slow down, not just in 2022, but at least until 2023.

And while Telus is already a deal compared to its peers, analysts believe further analysis remains to dig into Telus and its worth. So, among dividend stocks, it’s a prime time to pick up the stock, as it continues to grow and expand. It now offers a 4.43% dividend yield, trading at 31.21 times earnings. It’s not in value territory, but given its target price of $33, that’s still a strong upside of 14%.

Among these dividend stocks, Telus could be the clear winner in 2022 and beyond. The company continues to beat its competitors to the punch, bringing in free cash flow that will allow it to remain ahead for perhaps years. And that also means years of dividend increases.

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 Amy Legate-Wolfe owns TORONTO-DOMINION BANK. The Motley Fool recommends TELUS CORPORATION.

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