Investors have been hunting for yield in a volatile 2022, but the uncertain economic outlook means that they might want be more selective as the calendar turns to a new year. One way to do that is to find stocks with a history of growing their dividends and beating the market, not just making one-time payouts, and having a healthy balance sheet. The stocks below have a dividend yield above 3% and a payout ratio below 50%, suggesting that there is little risk of a dividend cut in the near future. Additionally, they’ve been consistent growers, with a five-year annual dividend per share growth above 7% and total return above the S & P 500’s. The stock on the list with the biggest dividend yield is Devon Energy at more than 8%, as the oil and gas company has showered investors with cash from higher commodities prices. However, this stock may not be the name to pick for investors who want stable returns. Shares are up nearly 40% in 2022, but Devon had negative price returns in 2020 and 2018. Morgan Stanley , by contrast, has been a more stable stock for investors over the past five years. The investment bank hiked its dividend by 11% after the second quarter, helping to ease the pain of a weaker banking environment in 2022. Shares of Morgan Stanley are down about 13% this year on a price basis, however. The stock with the best total return over the past five years is retail giant Target , at nearly 20%. The stock has underperformed this year as the company has struggled with changing consumer spending habits, but that may create an opportunity for investors. Target’s stock is now trading below its five-year average for the forward price-to-earnings ratio, according to FactSet.
