3 Dividend Stocks for Passive Income in 2022

This year I’m collecting passive income from Suncor Energy (TSX:SU)(NYSE:SU) stock.

| More on:

In 2022, the stock market is down significantly, but you can still collect significant income from dividend stocks. With lower stock prices come higher dividend yields, all other things the same. If you were holding an all-tech portfolio at the start of the year, you’d be hurting now. But if you’d invested in dividend stocks, you wouldn’t be down that much, and you’d have had the opportunity to get higher yields on the positions that did go down in price. In this article, I will explore three dividend stocks I’m getting passive income from in 2022.

Suncor Energy

Suncor Energy (TSX:SU)(NYSE:SU) is a Canadian integrated energy company. It pays a dividend that currently yields about 3.6%. Suncor Energy profits off the rising oil prices we’re seeing today. The firm makes money by extracting and selling oil and gas, so the higher oil prices go, the higher Suncor’s revenue goes. That should lead to higher profits in the short term. In its most recent quarter, SU delivered excellent results:

  • $4 billion in adjusted funds from operations (AFFO)
  • $2.9 billion in earnings, up 259%
  • $728 million in net debt reduction

It was a great showing. Not only did earnings grow, but debt was reduced, paving the way for higher earnings in the future.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is another dividend stock that I’m collecting passive income on this year. I’ve been building my position in TD since 2018. Today, it’s one of the biggest holdings in my portfolio.

There’s a lot to love about TD Bank.

First, it’s geographically diversified, with a strong presence in both the U.S. and Canada.

Second, it’s going to close a major deal this year that will make its U.S. business the sixth-largest bank in the United States.

Third and finally, it’s a great dividend play, boasting not only a solid yield, but also a stellar dividend growth track record. If you invest in a company like TD, you can easily see your entire investment come back to you in dividends alone over a few decades. So, it’s very much a passive-income play worth considering.

Apple

Apple (NASDAQ:AAPL) is a stock you might be surprised to see on this list. It’s a tech stock, and tech stocks aren’t known for paying dividends. But Apple does indeed pay one. With a 0.67% yield, AAPL’s payout isn’t the biggest on earth. But it has the potential to grow with Apple’s earnings over time.

Speaking of Apple’s earnings…

They have been steadily increasing over the last few years. In its most recent quarter, AAPL managed 9% revenue growth, which was not sky high, but earnings grew more than revenue did. The company has a lot of advantages that give it pricing power, such as a strong brand identity and an interconnected ecosystem of products that’s not easy to leave. Over the years, Apple stock has stood out for its reliably solid returns. Supply chain problems notwithstanding, that should be the case in the future as well.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has positions in The Toronto-Dominion Bank and Suncor Energy. The Motley Fool recommends Apple.

More on Dividend Stocks

Make a choice, path to success, sign
Dividend Stocks

Is Fortis Stock a Buy for its Dividend Yield?

Fortis has increased the dividend for 51 consecutive years.

Read more »

Middle aged man drinks coffee
Dividend Stocks

Is Brookfield Stock a Buy, Sell, or Hold for 2025?

BAM stock recently jumped after beating earnings. But is it still a buy, or is it better to wait?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Top Canadian Utility Stocks to Buy in November

Are you looking for some top Canadian utility stocks to own? Here's a look at three must-have options for any…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is First Capital REIT a Buy for its 4.8% Yield?

First Capital is a REIT that offers you a tasty dividend yield of 4.8%. Is this TSX dividend stock a…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

TFSA Passive Income: 3 Stocks to Buy and Never Sell

Stocks like Fortis Inc (TSX:FTS) are worth holding long term.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

Canadian Utility Stocks to Buy Now for Stable Returns

Given their regulated business, falling interest rates, and healthy growth prospects, these three Canadian utility stocks are ideal for earning…

Read more »

nuclear power plant
Dividend Stocks

The Best Canadian Stocks to Buy and Hold Forever in a TFSA

TFSA investors can buy and hold these Canadian stocks to generate above-average, tax-free returns over the next decade.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is Telus Stock a Buy for its 7.3% Dividend Yield?

Although the 7.3% dividend yield Telus offers is attractive, it's just one of many reasons why the telecom stock is…

Read more »