Top 3 Dividend Stocks For 2022

2021 is in the books, so let’s look ahead to the my top 3 dividend stocks I’ll be adding in 2022 –

PepsiCo (PEP) 

PepsiCo right now is by no means a value buy- right now.

We posted a video about the 5 dividend stocks we’re buying and holding forever and PepsiCo was one of them.

We have been running an experiment buying a share a week of $PEP until we hit 100, which should wrap un in early May, 2022.

Truth be told, if not for this experiment, I might not be buying right now- as we hit new all time high’s almost weekly!

My favorite stat about PepsiCo is their revenue diversity in 2020 –

Check that out – 55% of revenue was from Food and 42% outside the USA! More revenue from food means they aren’t “just a soda company.”

In 2022, PepsiCo should increase their dividend for the 50th consecutive year, making them a dividend king.

We’ll keep adding until we hit 100 shares, then start selling covered calls. Sometimes it’s part of the plan to pay up for superior quality!

Intel (INTC) 

Intel was also included in a recent YouTube video we made about 4 dividend growth stocks that could see huge share price returns in the coming years.

In a nutshell, Intel is the largest manufacturer of semiconductors by revenue and ships nearly 85% of the global supply of microprocessors.

They have a new CEO in Pat Gelsinger who’s infused some excitement into this tech giant and could potentially start a Microsoft like turnaround.

Intel is expected to grow in cloud computing and is asking the federal government for help in manufacturing chips.

Intel also has plans to manufacture chips for their competitors which could also be a big revenue boost in the coming years.

They have been increasing their dividend for 7 years and have a low payout ratio, which will allow for many years of dividend increases to come.

I would not be surprised to see Intel over $100 in the next several years if all things break right.

AT&T (T)

AT&T has been beaten down, dogged on and left for dead by many in the dividend investing community.

Not us.

Yes, you guessed it, we did a recent video on three reasons we’re buying AT&T and Verizon.

AT&T will be combining their WarnerMedia with Discovery, then spinning that combo into it’s own publicly traded entity.

The best part?

AT&T will be receiving $43 billion in cash, securities, and retention of debt combination.

But the best part, I think, is that AT&T shareholders will receive stock representing 71% of the WarnerDiscovery company.

WarnerDiscovery plans to spend more on new content than Netflix did in 2020, and this could be big.

Disney is finding out the hard way that new content is king, and an existing library will only carry you so far.

And as for AT&T, they’re focusing on their bread and butter – telecommunications.

There are three major players in the US – Verizon, AT&T & T-Mobile in that order. Which makes it very difficult for competitors to build a network and seriously compete.

The unfortunate news is that AT&T will be “right sizing” or cutting their dividend after the departure of WarnerMedia.

This will knock them out of the dividend aristocrats, which will force many aristocrat ETF’s to dump them as well, and dividend investors have followed suit as well.

Some analysts think the the post spin-off yield could be north of 6%, but it’s more likely to be 4%-5%. Which is just phenomenal!

So, we are excited to keep adding AT&T and let the dividend increases start all over again when the spinoff is finalized.

Until next time and keep investing in yourself!

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