One of the first lessons investors learn when looking to buy high-yield dividend stocks, whether it’s ahead of 2022 or any other year, is that, in general, the higher the yield, the more risk a stock has.
When stocks sell off, the dividend yield naturally increases. So, you can assume that higher yield stocks are cheaper, and they are often cheap for a reason.
Just because the market views them as higher risk doesn’t mean they aren’t worth an investment, though. And often, like other value stocks, these cheap stocks offer investors some of the best opportunities.
So, if you’re an investor that prefers to own dividend stocks and earn passive income, here are three of the most dependable, high-yield dividend stocks to buy for 2022.
One of the safest high-yield dividend stocks you can buy for 2022
If you’re looking for a high-yield dividend stock that you can buy with confidence, Enbridge (TSX:ENB)(NYSE:ENB) is easily one of the best to consider.
The most important thing for dividend investors is that the company has a stable business and high-quality operations. This way, they can consistently make their dividend payments and return cash to investors.
And with Enbridge, not only does the company consistently pay its dividend, it has for 27 consecutive years, it’s also increased its dividend payments. This is why it’s one of the best high-yield dividend stocks to buy for 2022. Not only does it offer an attractive yield of more than 7.1%, but it’s also a dividend growth stock.
Enbridge’s long-life assets allow it to earn a tonne of cash flow, a lot of which is returned to investors. However, Enbridge also invests a considerable amount in future growth, which is why it can consistently increase its dividend payments.
So, if you’re looking for a dependable high-yield dividend stock to buy for 2022, Enbridge is one of the best to consider.
A high-quality Canadian real estate stock
Often you can find some of the most reliable high-yield dividend stocks in the real estate industry. And today, one of the best you can buy is PRO REIT (TSX:PRV.UN), a mostly industrial REIT with operations that are predominantly located in Eastern Canada.
The REIT also owns retail and office properties. However, roughly three-quarters of its income comes from its industrial properties, a sub-sector of real estate that continues to offer some of the best long-term growth potential. PRO REIT does happen to have a higher payout ratio at the moment, which is something to keep an eye on. However, it operates in the highly resilient real estate industry and has some high-quality assets.
So, not only is PRO REIT a reliable, high-yield dividend stock that you can buy for 2022, but the fund is also somewhat undervalued, especially in comparison to other industrial REITs, which have been some of the top performers over the last couple of years.
This makes it one of the best high-yield dividend stocks you can buy today as you collect a tonne of passive income from its 6.6% dividend all while you wait for PRO REIT to reach its fair value.
A high-quality stock that’s made for dividend investors
Another excellent stock that dividend investors should strongly consider is Alaris Equity Partners (TSX:AD.UN), a fund that’s been made for dividend investors.
Alaris is an investment fund that finds high-quality, usually privately owned businesses to take a preferred equity position in. Alaris looks for businesses that are in excellent shape and can use its cash to accelerate their growth.
And because Alaris looks to take a non-controlling stake, it’s appealing for both parties, which is why Alaris is such an excellent high-yield dividend stock to buy for 2022.
It might not take a controlling position. However, Alaris makes sure that its investments generate monthly cash distributions, which it then uses to pay out to investors.
This is why it’s such a high-quality stock for passive income seekers. It’s also highly reliable, weathering the storm exceptionally well through the pandemic.
So, if you’re looking for a high-quality dividend stock to buy for 2022, Alaris stock currently yields an impressive 6.9%.
