My Top 10 High Yield Dividend Stocks For April 2022

In fact, over 400 of companies in the S&P 500 Index pay dividends. To help focus your thinking, you can choose to look at the Dividend Aristocrats. This is a select group of companies that have increased their dividend for at least 25 consecutive years. https://g-markets.net/helpful-articles/trading-the-inverted-hammer-candle/ As of July 1, 2022, there are only 63 stocks on this list which can make it easier to narrow down a search. Many investors know the importance of having a base of dividend stocks. These stocks provide investors with a regular source of passive income.

BRO’s most recent hike was announced in October 2022 – a 12.2% increase in the quarterly distribution to 11.50 cents per share. Perhaps less well known is that SJM is an equity income machine, having increased its dividend annually for 25 years, per S&P. Thanks to that track record, the stock was added to the Dividend Aristocrats on Feb. 1, 2023. That’s because regular dividend increases lift the yield on an investor’s original cost basis.

Regardless of how the labor market is doing, Cintas is a stalwart when it comes to being one of the best dividend stocks. The company has raised its payout every year since going public in 1983. However, those have been annual distributions up until this year, when the company switched to quarterly payouts. T. Rowe Price has improved its dividend every year for 37 years, including a 1.7% increase to the payout announced in February 2023.

My 3 Favorite Ultra-High-Yield Dividend Stocks to Buy Right Now

He believes the two main things to look for when dividend investing are cash flow and a long track record of a reliable dividend. To understand how to select the top dividend stocks, you’ll need to be familiar with some commonly used terms. If you’re new to dividend investing, here’s a brief explanation of what those terms mean. Enter your email address below to receive our daily newsletter that contains dividend stock ideas, ex-dividend stocks, and the latest dividend investing news. The screen uses the ratio of total liabilities to assets because it considers both short-term and long-term liabilities.

Even in tough times, like the Great Recession, or during the pandemic. To estimate fair value [FV], I reference fair value estimates and price targets from several sources, including Portfolio Insight, Morningstar, and Finbox. Additionally, I estimate fair value using the five-year average dividend yield of each stock. With up to 11 estimates and targets available, I ignore the outliers (the lowest and highest values) and use the average of the median and mean of the remaining values as my FV estimate. Telecommunications giant Verizon has been a great income stock over the years.

Hindustan Petroleum Corporation Limited

Gilead Sciences pays one of the most attractive dividends in the biotechnology sector. The company has a solid dividend track record, increasing its payout every year since it initiated one in 2015. Canadian oil pipeline giant Enbridge has been an outstanding dividend stock over the years. It has paid dividends for more than 68 years, including expanding its payout in each of the past 28 years. The company’s electric utilities serve 8.2 million customers across six states, while its natural gas utilities provide gas to 1.6 million customers across five states. Its businesses generate very stable cash flows backed by government-regulated rate structures.

Dividend levels are set by the board of directors based on consideration of the current company, industry and economic conditions. The top 10 in terms of dividend yield were selected for this listing. Its dividend is the second lowest on this list, and it also has the lowest yearly dividend growth rate, near 7%. The company has seen impressive growth, including nearly 24% yearly EPS over the last five years, and 12% expected yearly EPS growth over the next five years.

In August 2022, Illinois Tool Works raised its quarterly dividend by 7% to $1.31 cents a share, bringing its streak of annual increases to 51 years. However, the company notes that excluding a period of government controls in 1971, that streak would stretch to 58 years. Either way, ITW’s dividend sports a 10-year compound annual growth rate of 13%.

Dividend Stocks: Western Union (WU)

Its stable of longtime popular brands — including its namesake brand, Reese’s, Kit Kat, and Twizzlers — give it an enviable pricing power. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. I like the combination of a high yield, a solid business, and an attractive valuation. Majestic Auto Limited ventured into commercial real estate in 2015 by providing office space on lease and facility management services. Coal India Ltd is mainly engaged in mining and production of coal and also operates coal washeries.

• BRO’s most recent hike was announced in October 2022 – a 12.2% increase in the quarterly distribution to 11.50 cents per share.
• Analysts expect 9.5% yearly EPS growth for the next five years, and Morningstar gives the company a “B” financial health rating.
• That’s the power of being a consumer giant that has been able to adjust itself to changing consumer tastes without losing its core.
• All of the stocks that pass the initial screener criteria (44 this month) are then ranked based on quality and valuation.
• He particularly enjoys creating model portfolios that stand the test of time.

PepsiCo is also a Dividend Aristocrat and will likely become a Dividend King in the new year. With its strong product lineup and dividend, PepsiCo is arguably one of the best consumer staples stocks to buy right now. Enterprise Products Partners’ management has led the company conservatively and maintained a strong balance sheet. In addition, the company’s leaders have plenty of skin in the game with nearly one-third of the LP’s units owned by the management team. Many of the reasons that I like Energy Transfer also apply to Enterprise Products Partners (EPD 0.28%). It’s another midstream energy limited partnership (LP) that offers a high yield, solid business, and attractive valuation.

McDonald’s Corporation (NYSE:MCD)

Nordson’s (NDSN) addition to the Dividend Aristocrats on Feb. 1, 2023, boosted the industrial sector’s representation in the equity income benchmark. Brown-Forman (BF.B) is one of the largest producers and distributors of alcohol in the world. Jack Daniel’s Tennessee whiskey and Finlandia vodka are just two of its best-known brands, with the former helping drive long-term growth. Ecolab’s fortunes can wane as industrial needs fluctuate, though; for instance, when energy companies pare spending, ECL will feel the burn.

At the new quarterly dividend rate of $5.00 per share investors will only see a 2.46% dividend increase compared to 2022. This is not the type of dividend growth you like to see from a company that doesn’t sport a high dividend yield. But given that BlackRock has a strong history of better dividend increases I expect to see larger increases in the future. In February, the company reported its fourth quarter and full year 2021 results. Net income was $1.3 billion for the year, up 78% year-over-year.

The stock is trading slightly below its 52-week high, but it has an excellent track record for performance, outpacing the S&P 500 by an average of 5.5% per year over the last decade. But these kinds of pullbacks have historically been good buying points in this long-term uptrending stock. It has beaten the S&P 500 by an average of 4.6% per year over the last 10 years. Automatic Data Processing provides human resources, payroll, insurance and retirement services to corporations. The stock is off its 52-week high, but it’s still outperformed the S&P 500 by 7.4% per year over the last decade. For reference, the S&P 500 has averaged 12.2% yearly returns over the last decade.

Automatic Data Processing

Collectively, all 10 stocks appear to be potentially about 19% undervalued right now based on dividend yield theory. Indeed, the conglomerate’s dividend dates back more than a century. Even better, 3M has been delivering annual dividend increases to investors for 65 years. The most recent hike came in early February 2023 when the company bumped the quarterly payout by a penny to $1.50 per share.

Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as “fees”. His investors didn’t mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. That year Buffett’s hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as “fees”.

The company’s board of directors sets the dividend amount and makes decisions about raising (or lowering) dividends over time. The company sets the ex-dividend date, which fixes the date by which investors must own the stock in order to get a dividend payment, and the record date when the dividend is paid. Dividends are nice, but they aren’t the only factor to consider when buying a stock. Medical Properties Trust is a REIT that focuses, as its name indicates, on medical properties — primarily acute care hospitals. The company has increased its dividend payout for eight consecutive years.