Here are the top 3 dividend-paying stocks in 2022 with yields as high as 10.1%⁠—for risk-averse investors looking for passive income, these might be perfect


Here are the top 3 dividend-paying stocks in 2022 with yields as high as 10.1%⁠—for risk-averse investors looking for passive income, these might be perfect

The start of 2022 has been eventful.

Earlier this week, data showed inflation jumped 7% in December, the fastest pace since June 1982. That prompted the Fed to hint at several rate hikes.

But with most savings accounts still paying less than 0.6% per year, things remain tough for investors looking to earn passive income.

The good news? Even in the current interest rate environment, you can find companies paying generous dividends to investors.

Rock-solid dividend stocks have the potential to:

  • Offer a plump income stream in good times and bad.

  • Provide diversification for growth-oriented portfolios.

  • Outperform the S&P 500 over the long term.

Here’s a look at three dividend-paying stocks that could be an opportunity for income investors in 2022.

Walmart (WMT)

People shop at a Walmart store in the south San Francisco bay area

Miscellaneous Photographs/Shutterstock

At a time when many brick-and-mortar retailers remain in the doldrums, the Walmart powerhouse stands out.

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The company runs a large retail business with approximately 10,500 stores under 48 banners in 24 countries. Through its “Everyday Low Prices”, Walmart attracts approximately 220 million customers to its stores and websites each week.

Walmart has thrived during the COVID-19 pandemic.

In the three months ended Oct. 31, 2021, revenue grew 4.3% year-over-year to $140.5 billion. Notably, same-store sales – a key measure of a retailer’s health – at Walmart US rose 9.2%.

The company has also capitalized on the e-commerce boom, which is often seen as a threat to brick-and-mortar retailers. Compared to two years ago, Walmart’s e-commerce sales in the United States are up 87%.

The retail giant began paying dividends in 1974 and has increased its payouts every year since.

With a quarterly dividend rate of 55 cents per share, Walmart offers an annual yield of 1.5%.

Verizon (VZ)

Verizon Wireless sign and trademark logo.  Verizon Wireless is a wholly owned subsidiary of Verizon

Ken Wolter/Shutterstock

When you make payments to a business every month, wouldn’t it be nice to take money out of it?

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Well, investors can do that with Verizon, one of the largest telecommunications companies in the United States, which also pays generous and reliable dividends.

Millions upon millions of people pay Verizon every month to use the company’s service. Its 4G LTE network covers 99% of the US population, and more than 230 million people are already covered by its 5G network.

Verizon has increased its payout each year and currently offers an annual dividend yield of 4.8%, a very generous amount in today’s market.

Business is also growing. The company’s wireless segment recorded 699,000 retail postpaid net additions in the third quarter of 2021. Total revenue increased 4.3% year-over-year to $32.9 billion. dollars for the quarter.

Despite Verizon’s strong business and rising dividend payouts, its shares have fallen 7% in the past 12 months. With so many stocks trading at new highs, Verizon could give contrarian investors food for thought.

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Ellington Financial (EFC)

Close up of financial building facade


If Verizon’s 4.8% return still isn’t juicy enough for you, check out Ellington Financial.

Based in Old Greenwich, Conn., Ellington Financial has a portfolio of financial assets that provide it with a predictable stream of income. It then passes these profits on to shareholders in the form of monthly dividends.

The Company’s investments include residential and commercial mortgages, mortgage-backed securities and consumer loans, among others.

Although Ellington is not a widely followed financial game, it stands out in today’s market due to the sheer size of its payout. With a monthly dividend rate of 15 cents per share and a current stock price of $17.55, the company offers a staggering 10.2% annual return.

In the third quarter of 2021, Ellington Financial generated basic earnings of $23.0 million, or 46 cents per share. Its book value per share at the end of September was $18.35.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


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