With the current market turbulence, with rabid investors chasing after the hottest tickers, dividend stocks are often ignored. We apologize, but this video didn't load.
Here you can see other videos from our team. A steadily growing stream of dividends will help you sleep better at night, as Barclays likes these 3 dividend stocks to beat the S&P 500 in 2022. With savings accounts paying next to nothing these days, who wouldn't want to earn passive income? Recent studies prove that dividend stocks have the potential to:
Over the long haul, the S&P 500 will outperform the S&P 500. If you look at three dividend stocks, investment banking giant Barclays has given an overweight rating. With inflation running hot, many investors are concerned about interest rate hikes from the Fed in the year 2022, which could be worth purchasing in 2022 with extra cash. Banks are generally good at doing well in a rising interest rate environment. Higher rates indicate a stronger economy in which people can afford to pay the loans, and they get to charge more to lend money. JPMorgan Chase is the largest bank in the U.S. with a total of $3.8 trillion in assets. The stock has climbed 36 per cent over the past year, despite the fact that it was trading at around US $168 per share. Barclays sees a lot of upside ahead in JPMorgan, as it has an overweight rating on the bank and a price target of US $202. Business has improved a lot from the Pandemic-pained days of 2020. JPMorgan produced US $3.74 per share in earnings in Q 3 of 2021, a 28 per cent increase from the US $2.92 per share earned in the year-ago period.
JPMorgan isn't the only bank that has given a pay raise to shareholders this year. Goldman Sachs, Bank of America and Morgan Stanley have increased their dividends. If you don't want to pick individual stocks, you can easily build a passive income portfolio using your spare change. Tech stocks with recurring cash flows and healthy balance sheets can deliver solid cash payouts, even though they aren't well known for their dividends. When the tech giant started paying quarterly dividends in 2004, it was paying investors US $0.08 per share. The dividend rate of Microsoft is now at US $0.62 per share, which is a total payout increase of 675 per cent.
The stock has a dividend yield of only 0.7 per cent. It remains an attractive choice for many income investors because of Microsoft's highly reliable dividend growth management, which has raised the payout for 12 consecutive years. On October 27, Barclays reiterated an overweight rating on Microsoft and raised the price target on the stock to US $363, up about 10 per cent from current levels. Microsoft is close to US $330 per share at the moment. You can buy fractions of shares using the popular app that allows you to buy as much money as you want to spend. This one is for real yield-hungry investors. Shell Midstream Partners owns, develops, and acquires pipelines and other midstream and logistics assets. It pays quarterly distributions of US $0.30 per limited partner common unit.
SHLX stock trading at US $12.18 per unit translates to a jaw-dropping annual yield of 10.1 per cent Ultra-high- yielding stocks, especially those from the volatile energy sector, which might seem too good to last. On October 19, Barclays upgraded Shell Midstream Partners from equal weight to overweight and set a price target of US $14 per unit. Steven Ledbetter, Shell Midstream's CEO, believes that the market is undervaluing the partnership's units and its ability to deliver over the long term. In the latest earnings conference call, he said that we are looking at options, such as using excess cash for a potential buyback program or increasing distributions in the future. The right dividend stock can be a solid investment. But remember, stocks of all kinds are volatile and often correlate with each other. If a market-wide downturn happens, even blue-chip dividend stocks could get pummeled.
If you want something that has little correlation with the stock market and might offer even bigger potential, check out fine art contemporary artwork, which has outperformed the S&P 500 by a commanding 174 per cent over the past 25 years, according to the Citi Global Art Market chart. It's becoming a popular way to diversify because it's a real asset with little correlation to the stock market. Citi found that the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years on a scale of 1 to 1, with 0 representing no link at all. Investing in art used to be an option only for the ultra rich, like Banksy and Andy Warhol. This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise partners with brands it trusts and believes may be helpful to the reader. The article is not intended to be construed as advice. It is provided without any warranty of any kind.