I think these dividend stocks could prove to be exceptional investments for 2022. Here’s why I’d buy them right now.
Playing the gold rush
Gold prices are rising sharply as inflation indicators continue to shock observers. The yellow metal has jumped around 70 dollars since the start of November to current levels of $1,865 per ounce. I think it could keep climbing too as it seems high inflation looks set to persist well into 2022.
I wouldn’t buy gold itself or a gold-backed financial instrument like an ETF to make money from this theme however. No, I’d buy dividend-paying UK mining shares which will benefit from rising precious metal prices.
Centamin (LSE: CEY) is one such dividend stock on my watchlist today. Right now, it offers a meaty 4.6% dividend yield for next year. I’d buy it despite the huge unexpected costs and production problems that mining shares are in constant danger of experiencing.
A penny stock for the green revolution
I’d also buy NextEnergy Solar Fund (LSE: NESF) for 2022, a UK share I think could provide excellent investor returns over the next decade. For next year, this penny stock carries a mighty 7% dividend yield.
I expect it to deliver big profits as demand for low-carbon energy steadily rises, meaning it should remain a generous dividend payer beyond next year too. NextEnergy has shelled out £200m worth of dividends since its IPO in 2014.
Renewable energy stocks like this are becoming increasingly popular as the theme of responsible (or ESG) investing takes off. This particular green share has invested in 99 solar farms across the UK and Italy. And, more recently, it’s dipped its toe into the battery storage sector, an industry that also appears set for strong growth due to its important role within renewable energy.
Generating power from solar panels can be temperamental and expensive. But I still think this could be a great share for long-term investors like me to own.
7.6% dividend yields
Any flare-up in the Covid-19 crisis could hit Georgia’s economy hard. This is owing to the rising importance of tourism to the country’s GDP. However, this isn’t stopping me thinking of buying Bank of Georgia (LSE: LSE: BGEO) for my shares portfolio for 2022. This particular share yields a terrific 7.6% for next year.
Rising inflation means that interest rates in the country are sitting at their highest for more than a decade at 10%. This is beneficial for the likes of Bank of Georgia as it allows them to make greater profits from their lending activities. Rates are likely to keep rising too as inflation in the country soars.
I also like this particular stock because personal wealth levels are on a long-term upswing that dates all the way back to the 1990s. Demand for financial products has soared as a consequence and looks set to continue surging as well. Interestingly, Georgia’s government expects national GDP to rise 6% in 2022.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.