1. AbbVie
AbbVie offers both dividends and reliability. The company’s dividend now has 3.9%. A $20,000 investment would accumulate about $780 in yearly income. AbbVie is also a Dividend Titan and has a long history of yearly dividend increases.
Do not be concerned about the impending loss of their patent exclusivity in the United States for AbbVie’s best-selling drug Humira in 2023. The company should be in a good position to rapidly offset any revenue drops thanks to a strong upcoming product line.
2. Devon Energy
Devon Energy ( DVN -3.85% ) gives a twist with its dividend. The gas and oil producer pays a variable dividend plus a fixed dividend that is based on its excess free cash flow. Devon expects a dividend yield of around 8 percent. That is enough to give you $1,600 in yearly income with an initial $20,000 investment.
But can you depend on Devon’s dividend in 2022 because some of it is variable? I believe so. CEO Rick Muncrief said in the recent 4th quarter conference phone call that the company is in a good place to increase its free cash flow by more than 70 percent this year. With the market dynamics now in play for the gas and oil industry, that goal looks very reachable.
3. Enterprise Products Partners
This strength for gas and oil markets should also work to Enterprise’s advantage. It is a leading midstream energy company that uses pipelines for storing and transporting natural gas, crude oil, petrochemicals, and natural gas liquids.
An investment of $20,000 would give $1,550 in yearly income based on Enterprise’s current dividend yield of 7.75 percent. The actual total might be even more. Enterprise Products Partners has raised its dividend distribution for twenty-three straight years. Watch for this inspiring streak to keep going in 2022.
All of these companies could potentially boost your yearly income given their product quality, market penetration and overall strong leadership. But with all things, you should invest for diversification among industries and company sizes for the best chances of a large and plentiful cash flow.
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