3 income shares for 2022

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Now that we are in the home stretch of 2021, there has never been a better time to rebalance your portfolio, especially for income seeking investors. Here are some stellar income stocks for 2022.

Bet on the banks to get by

Bank of Nova Scotia (TSX: BNS) (NYSE: BNS) is not the largest of the major Canadian banks, but it is certainly unique. Scotiabank has grown considerably in recent years in Latin America. Specifically, the bank has targeted Mexico, Colombia, Chile and Peru. These four nations are part of a trading bloc known as the Pacific Alliance.

A growing network of branches in these member states has helped make Scotiabank a preferred lender in the region. This has led to incredible growth during earnings season.

That’s not to say the home segment of Scotiabank isn’t performing well. The segment contributes to the overall performance of the bank, which is, in a nutshell, impressive. In the most recent quarter, profits topped $ 2.559 billion, or $ 1.97 per share, up 35% from a year ago.

As one of the top-grossing stocks for 2022, Scotiabank really shines. The bank recently announced a juicy 11% rise this month, bringing the yield to an impressive 4.68%.

How about a revenue stream that mimics a toll plaza?

One of the most coveted aspects of an income investing is the ability to generate passive income. This is where the immense potential for investment in Enbridge (TSX: ENB) (NYSE: ENB) begins to emerge.

Enbridge is a true giant in energy infrastructure. The company has a growing renewable energy segment and operates one of the largest pipeline systems on the planet. This pipeline system transports crude and natural gas to the United States and Canada, generating a recurring and stable revenue stream. Best of all, perhaps the income stream is not based on commodity prices but rather volume and distance. This makes it work more like a network of toll booths.

When it comes to dividends, this reliable company helps cover Enbridge’s impressive quarterly dividend. The yield of this dividend amounts to 6.92%, which makes it one of the best paid dividends on the market. This factor alone makes Enbridge a great inclusion in any income equity list for 2022.

Added to this is the fact that Enbridge recently announced its latest annual increase in this dividend, bringing it to an annualized payout of $ 3.44 per share. Oh, and this recent hike represents the 27e consecutive annual increase in the dividend by the company. Enbridge also plans to continue this annual rate of 5-7% increase through 2024.

+100 years of dividends and still paying off

AEC (TSX: BCE) (NYSE: BCE) is another great option to add to any income stock list for 2022. BCE is a huge telecom that offers nationwide coverage, a reliable and diverse source of income, and over a century of flawless dividend payouts.

It’s a tough act to follow, but BCE has more to offer investors. BCE also has a massive media segment, which consists of dozens of radio and television stations. The company also has interests in professional sports teams. All of this means that BCE has multiple and diversified revenue streams, all of which are complementary to its core subscription business.

Additionally, the global pandemic has made remote working and learning environments the norm for many. The need for a fast and consistent internet connection has become a necessity for office workers and students at home. This made it possible to further widen an already impressive defensive gap.

In terms of income, BCE is offering investors a quarterly dividend with a juicy yield that currently sits at 5.28%.

Income stocks for 2022: should you buy?

All investments involve some risk. Fortunately, the three stocks outlined above are some of the best options to consider in their respective segments. All of them offer a good dividend, strong growth potential and a certain defensive appeal. In my opinion, one or more of these stocks would do well as part of a well-diversified portfolio.


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