5 High-Yielding Dividend Aristocrats Are 'Strong Buy' Stock Ideas for 2022

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Franklin Resources

This company is a mutual fund powerhouse and continues to grow its huge asset base. Franklin Resources Inc. (NYSE: BEN) is among the largest and most global investment managers. At times, 50% of its sales are from outside the United States, an advantage given a maturing U.S. market.
Franklin Resources offers its products and services under the brands of Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2, LibertyShares, and Edinburgh Partners.

The continuing bull market has proven to be a solid tailwind for the company, and while withdrawals from baby boomers may be a concern, the path forward looks solid.

Shareholders receive a 3.41% dividend. Citigroup’s Buy rating on Franklin Resources stock comes with a $43 price target. The consensus target is $36.70, and shares closed at $34.06 on Tuesday.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. It is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.

To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, garnering it a spot on the S&P 500 Dividend Aristocrats index.

Investors receive a 4.14% distribution. Goldman Sachs has set a $92 price objective on the Buy-rated stock. That compares with the much lower $78.71 consensus target. Realty Income stock had a $71.40 share price on Tuesday’s close.

These are two health care stocks from a sector that has dramatically underperformed, a top REIT, a commodity heavyweight with oil and inflation poised to shoot higher, and a financial giant that has seen assets under management continue to grow. All five will continue to pay investors dependable dividends, and they could be exceptional stocks to own if the going gets rough in 2022.