Top Dividend Stocks to Buy and Forget in 2022

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Top Dividend Stocks to Buy and Forget in 2022's Profile


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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.



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