Seven hot dividend stocks to watch in 2022

Highlights

  • Lockheed Martin’s (NYSE: LMT) dividend yield is 3.03% and the P/E ratio is 15.82.
  • AGNC Investment Corp’s (NASDAQ: AGNC) dividend yield is 8.98%, with a market cap of US$8.3 billion.
  • Pfizer, Inc’s (NYSE: PFE) market cap is US$303 billion, and the dividend yield is 3.07%.

The dividend stocks are generally large companies and provide a steady stream of passive income to shareholders. They are generally impervious from the market volatilities. So, typically, these stocks offer double benefits to investors. On the one hand, they can earn from the gains in stock prices, on the other hand, they also earn from the regular dividend payouts.   

Here, we discuss seven dividend-paying stocks that are worth exploring.

Lockheed Martin Corporation (NYSE: LMT)

Market Capitalization – US$94.5 billion

Dividend Yield – 3.03%

Annualized dividend – US$11.20

The Bethsda, Maryland-based company is a defense contractor and provides high-end fighter aircraft. It is one of the world’s largest defence contractors. 

Hot Dividend paying Stocks to Watch Out For in 2022

The company earned revenue of US$65.4 billion in the fiscal year ended December 31, 2020. Its net income was US$6.83 billion for the fiscal year.

Its revenue and net income have been consistently growing over the last four years. Its cash and cash equivalent were US$2,727,000 as of September 26, 2021.

The stock closed at US$342.72 on Nov 26, 2021. Its YTD return marginally declined by 0.5%.

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Johnson & Johnson (NYSE: JNJ)

Market Capitalization – US$419 billion

Dividend Yield – 2.65%

Annualized dividend – US$4.24

The New Brunswick, New Jersey-based company is one of the largest, diversified healthcare companies. It earns revenue from three segments: pharmaceutical, medical devices & diagnostics, and consumer. 

For the year ended January 3, 2021, the company posted revenue of US$82.58 billion and net income of US$14.71 billion. However, its cash and equivalent declined to US$17.6 billion as of October 3, 2021, mainly because of the pandemic.

It has a P/E ratio of 23.8 and a forward P/E one-year of 16.38.

The stock closed at US$159.20 on Nov 26, 2021. Its YTD return is 1.72%.

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 Top dividend stocks to watch: Lockheed Martin, Johnson & Johnson, AGNC Investment Corp., Apple Inc., Walmart Inc., Pfizer, Inc., and AT&T Inc.

Pic credit: Pixabay 


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AGNC Investment Corp. (NASDAQ: AGNC)

Market Capitalization – US$8.3 billion

Dividend Yield – 8.98%

Annualized dividend – US$1.44

The Bethsda, Maryland-based AGNC is a real estate investment trust. It invests in residential mortgage pass-through securities and in collateralized mortgage obligations that come with a guarantee from the government enterprises like the Federal Home Loan Mortgage Corporation.

In the fiscal year ended December 2020, the REIT logged a loss of US$362 million against a net income of US$628 million in FY 2019.

However, it earned a net income of US$187 million in the third quarter ended September 30, 2021. The cash and cash equivalents were US$1.44 billion as of Sep 30, 2021.

Its P/E ratio is 5.98, and its forward P/E one-year ratio is 5.47. The stock closed at US$15.91 on Nov 26, 2021. Its YTD return is 3.39%.

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Apple Inc. (NASDAQ: AAPL)


Market Capitalization – US$2.7 trillion

Dividend Yield – 0.54%

Annualized dividend – US$0.88

The Cupertino, California-based technology company provides consumer electronics and personal computers. 


For the fiscal year ended Sep 25, 2021, it earned revenue of US$365.8 billion and a net income of US$94.68 billion. The cash and equivalents were US$34.94 billion at the end of FY 2021.

Apple’s P/E ratio is 27.9, and the forward P/E one-year ratio is 28.07. The stock closed at US$156.81 on Nov 26, 2021. Its YTD return is 21.17%.

Walmart Inc. (NYSE: WMT)


Market Capitalization – US$404 billion

Dividend Yield – 1.5%

Annualized dividend – US$2.20

The Bentonville, Arkansas-based retailer had more than 11,400 stores at the end of FY 2021. The company sells grocery items and general merchandise. 

For FY ended January 31, 2021, its revenue was US$559 billion and net income was US$13.5 billion. The cash and cash equivalents were US$22.8 billion as of July 31, 2021. 

It has a P/E ratio of 50.66 and a forward P/E one-year ratio of 22.90. The stock closed at US$144.90 on November 26, 2021. It declined 1.1% YTD. Its next ex-dividend date is December 9, 2021, with an amount of US$0.55 per share, payable on Jan 3, 2022.

Image description: Top dividend-paying stocks to watch in 2022. 

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Pfizer, Inc. (NYSE: PFE)


Market Capitalization – US$303 billion

Dividend Yield – 3.07%

Annualized dividend – US$1.56

This New York-based healthcare company has been one of the biggest gainers during the pandemic. The pharmaceuticals company sells vaccines for Covid-19, cancer, and other prescription drugs, including those for immunology and cardiovascular ailments.

For the fiscal year ended December 31, 2020, it reported revenue of US$41.9 billion and net income of US$9.6 billion. The cash and equivalents were US$1.97 billion as of October 3, 2021.

PFE’s P/E ratio is 16.07, and the forward P/E one-year ratio is 12.12. The stock closed at US$54.0 on Nov 26, 2021. Its YTD return is 46.69%.

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AT&T Inc. (NYSE: T)


Market Capitalization – US$173 billion 

Dividend Yield – 8.5%

Annualized dividend – US$2.08

The Dallas, Texas-headquartered company offers wireless and other services to clients. It is one of the largest wireless carriers in the US. 

For the fiscal year ended on December 31, 2020, the company reported revenue of US$171.8 billion and a net loss of US$5.37 billion. The loss could be attributed to the pandemic-induced disruptions, leading to an increase in non-recurring item costs. 

In FY 2019, its net income was US$13.9 billion.

Its cash and cash equivalents were US$21.27 billion as of September 30, 2021.

The company has a P/E ratio of 201.83 and a forward P/E one-year ratio of 7.26. The stock closed at US$24.22 on Nov 26, 2021. The stock declined 17.7% YTD.

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Bottomline

Despite the overwhelming blow of the pandemic, the dividend-paying companies managed to weather the impact. They haven’t stopped paying dividends to shareholders. Investors, however, must evaluate the companies meticulously before investing in the stock market. 

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