Top
Image Alt

The Investing Box

  /  Editor's Pick   /  4 of my favourite dividend stocks for 2022!

4 of my favourite dividend stocks for 2022!

Hand holding pound notes

I’m searching for the best dividend stocks to buy for my shares portfolio in 2022. Here are four big-yielding UK shares on my shortlist today.

#1: A big-yielding metals mammoth

I think Sylvania Platinum shares look unmissably cheap right now. The South Africa-focussed business trades on a forward P/E ratio of just 3.5 times at current prices. It also carries a 5% dividend yield for this fiscal year (to June 2022).

Prices of platinum group metals (PGMs) are slipping at the moment as concerns over demand from the critical automotive sector grow. It’s possible they could keep dropping too if semiconductor shortages keep hitting vehicle production rates.

That said, I expect PGM demand from carbuilders to rise strongly over the long term as emissions regulations tighten. And I think Sylvania could still have a brilliant 2022 if investor nervousness continues to grow and safe-haven demand for precious metals grows. So as a long-term value investor I’d use recent share price weakness at Sylvania as an opportunity to buy.

#2: A FTSE 100 dividend hero

Persimmon is one of my favourite FTSE 100 dividend stocks today. Its 8.8% dividend yield makes it one of the biggest yielders on the blue-chip index. I’d buy the housebuilder because I’m expecting another solid year of profits in 2022. Interest rates remain well below historical norms and the mortgage market is ultra competitive, helping first-time buyers to continue getting their foot on the ladder. The government’s Help to Buy loan scheme also remains in business, of course.

I’d buy Persimmon shares despite the problem of building product shortages that’s pushing up costs and might threaten construction work.

#3: Capitalising on rising infrastructure spending

The 4.7% forward dividend yields over at HICL Infrastructure for 2022 has also whetted my investment appetite. In fact, I think this income stock’s a particularly good buy as the economic stormclouds gather. This is because it invests in essential infrastructure, like highways, hospitals, railways and police stations. You know, the kinds of projects and assets that make society function.

HICL Infrastructure generates the lion’s share of earnings from the UK, though it also has some exposure to North American and European markets to provide a little strength through diversification. I think the company’s a top stock to own, even though higher-than-expected asset lifecycle costs can hit earnings.

#4: The property powerhouse

I’d also stock up on Primary Health Properties shares for the new year. This real estate powerhouse specialises in letting out healthcare properties, the kind of assets where rent collection will remain strong, even if the Covid-19 crisis continues and inflation keeps rocketing. Indeed, this dividend stock will benefit from a sustained inflationary rise as property values and rent levels will subsequently increase.

My main concern for Primary Health Properties comes from its hunger for asset acquisitions. I’m confident this will deliver decent profits growth in the years ahead. However, acquisition-led growth strategies do leave businesses open to making expensive mistakes that can hit shareholder returns. This UK dividend share boasts a 4.4% dividend yield for the year to September 2022.

The post 4 of my favourite dividend stocks for 2022! appeared first on The Motley Fool UK.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

More reading

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Primary Health Properties. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.