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Top 3 Dividend Growth Stocks for 2022

As 2022 starts, I like to look ahead and think about my top 3 dividend growth stock picks for the New Year. This year I am choosing Merck (MRK), Amgen (AMGN), and Lockheed Martin (LMT). But before we examine these three stocks, let’s review last year’s picks.

How Did I Do Last Year?

Last year I picked Dollar General (DG), International Business Machines (IBM), and Lockheed Martin (LMT). You can see in the chart below that Dollar General was up 13.2%, IBM was up 18.4%, and Lockheed Martin was up 3.4%, with dividends reinvested. This performance was decent in absolute terms, but of course, the S&P 500 Index, Dow 30, and NASDAQ Index performed better in 2021.

However, dividend growth investing is a long-term endeavor, not a one-year pick and dump. All three stocks gave investors dividend increases in 2021. Dollar General increased the quarterly dividend rate 12.5% to $0.36 per share, the 6th year in a row. IBM boosted the quarterly dividend rate 0.6% to $1.64 per share for the 26th annual increase. Lastly, Lockheed Martin raised the quarterly dividend rate 7.7% to $2.80 per share for the 19th year in a row…

The Stock Market Marches Upward

The year 2021 was another excellent one for returns making it three years in a row that investors have done well. The S&P 500 Index was up 29.9%, the NASDAQ was up 22.1%, the Dow 30 was up 18.7%, and the Russell 2000 was up 14.7%. In addition, the indices are trading near their all-time highs…

Top 3 Dividend Growth Stocks for 2022

Merck’s Stock Has Gone Nowhere

The first dividend growth stock I picked for the New Year is Merck, the pharmaceutical giant

Amgen for Biotech

My second pick for a dividend growth stock is Amgen, the world’s largest biotech company…

Lockheed Martin for Hypersonics

For the third stock, I pick Lockheed Martin again. The company is the largest defense contractor globally by revenue…

Please read the complete article at my profile on Seeking Alpha for Top 3 Dividend Growth Stocks for 2022.

Disclosure: Long DG, IBM, AMGN, LMT


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2 thoughts on “Top 3 Dividend Growth Stocks For 2022

  1. I have never been a dividend investor but am curious about how happy you are with your dividend stock returns over the past few years compared to total market returns? Would you have been better off with a broad-based ETF/index fund?

    1. For many people, an ETF or Index fund can work. I use index funds for my retirement portfolio. However, I have done well with my dividend growth portfolio over time, generating a passive income stream. The dividend yield on the S&P 500 out total world index is low.

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