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2 Dividend Aristocrats For 20% Returns In 2022

Jan. 03, 2022 4:41 AM ETSWK, VFC14 Comments


  • 2021 was one of the best years in market history, and after 12 years of 19% annual returns, stocks are 32% historically overvalued.
  • But it's always and forever a market of stocks and not a stock market. Today, you can still find wonderful blue-chips for any investment need, goal, or time horizon.
  • Today, VFC, SWK, and one high-yield blue-chip represent three great dividend aristocrats that analysts expect to soar 20% to 30% in 2022 alone.
  • Together, they yield 2.9%, more than Vanguard's high-yield ETF, and are expected to deliver 12.2% long-term returns, 1% more than the aristocrats, and 0.5% more than the Nasdaq.
  • That means potentially triple the long-term inflation-adjusted returns of the S&P 500, and all from three of the world's highest quality and most dependable dividend growth blue-chips. This is a recipe for a potentially rich 2022 and beyond, and a great way of making your own luck on Wall Street in the new year.
  • Looking for more investing ideas like this one? Get them exclusively at The Dividend Kings. Learn More »

economic recovery in 2022 after the fall due to the covid19 coronavirus pandemic. Businessman pointing 2022 graph corporate future growth plan

Pavel Muravev/iStock via Getty Images

It's been a crazy few years for stocks. In 2018 we saw two corrections including a 20% correction at the end of the year that resulted in the only negative year for the market in the


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This article was written by

Dividend Sensei profile picture

Dividend Sensei (Adam Galas) is an Army veteran and stock analyst with 20+ years of market experience.

He is a founding author of the investing group The Dividend Kings which focuses on helping investors safeguard and grow their money in all market conditions through the highest-quality dividend investments. Dividend Sensei and the team of analysts (Brad Thomas, Justin Law, Nicholas Ward, Chuck Carnevale, and Sebastian Wolf) help members invest more intelligently in dividend stocks. Features include: 13 model portfolios, buy ideas, company research reports, and a thriving chat community for readers looking to learn how to invest more intelligently in dividend stocks. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VFC, SWK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Dividend Kings owns VFC, and SWK in our portfolios.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (14)

Oilcadaver profile picture
2 Dividend Aristocrats For 20% Returns In 2022 checked

Reasons To Potentially Buy SWK

very safe 1.7% yield

TLDR. 20% Return (headline of bs post) in 2022 is actually 1.7% yield.
Well done Sensei
Andrew Feazelle profile picture
Still waiting for my IRA money to clear. Here's what I'm thinking: Add to BWA (Bank of America pick for 2022), add fractional shares to GOOG and AMZN, add to BTI and maybe a little ENB since it works good inside IRA's.

In 2021 I only added to EPD under 22 and that worked for me. If Morningstar gives me a higher FV maybe I would add above 22. But kinda the same story for ENB; both are hovering around 90% of Morningstar FV.
george the animal steele profile picture
ill stick with pbr and omp
To logorrhea we can add cute. Annoying to say the least.
@elba Oops! There actually is word for it. Should be "graphorrhea." Really. And cute.
Dividend aristocrat VFC, and SWK, didn't do much last year. Valuation on SWK, is the best of the two.
Willow Street Investments profile picture
@Money 29 "Dividend aristocrat VFC, and SWK, didn't do much last year"

Hence, the author is recommending them.
Dividend Sensei profile picture
@Money 29 Strong growth in fundamentals that the price didn't keep up with is why analysts think both will do very well in 2022.

And of course, I'm only concerned about the long-term.
The market has doubled over the past three years, a performance not seen since the 1997-9 three-year period. Not that many stocks today with a reasonable margin of safety in my view. I *want* to put more cash to work but these days I have to wait for dips in individual securities (e.g. LEG, VICI) to meet my investment discipline. And I only buy a 1% position at a time. Very hard to be a thief in this market.
Dividend Sensei profile picture

Hard but not impossible.

Remember it's always and forever a market of stocks and not a stock market.

You don't even have to be 100% individual blue-chips.

The "core and explore" approach Ritholtz recommends, which Wall Street calls shadow indexing, is a way to achieve instant diversification and still achieve superior yield, growth, valuation, and long-term returns.

Dividend Kings is introducing five such portfolios, as simple as can be (we call the Simple Retirement, Simple Growth, Simple Yield, Simple Value and Simple Ultra SWAN) that's based on this very principle.

10 model portfolios in total, five actively managed and five that are basically ETFs that you can set, forget, and rebalance once per year.

It's all about doing what works best for your risk profile, goals, or simple how much time you want to devote to managing your hard-earned savings.
You discuss the 2 (VFC and SWK) but then mention 3 stocks (including LEG) but don't discuss the 3rd one.
Montana13 profile picture
@Cailean investing from across the pond I thought it was obvious he did not discuss the third one, also.
But few spoke up. I invested more in the IWD ETF Friday, it will beat these returns in 2022.
Dividend Sensei profile picture
@Cailean investing from across the pond

To learn more about LEG you have to read the full version of the article with a 2 week free trial at Dividend Kings.

Willow Street Investments profile picture
Bought vfc in 2021 for ira....own swk in ira since 2004
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