3 dividend stocks to buy in an uncertain market

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Maybe, just maybe the worst is over. the S&P 500 Index has recouped nearly half of its loss this year. However, it is still possible that we only see a temporary bounce.

Some investors might choose to simply avoid the stock market. But it could be a good opportunity, especially for those looking for higher dividend yields, with many stocks still well below their highs. Here are three dividend-paying stocks that I think are good choices to buy in an uncertain market.

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1. Atmospheric and chemical products

During tumultuous times, track records are especially important. Atmospheric and chemical products (NYSE: ODA) certainly has an exceptional record as a dividend aristocrat with 40 consecutive years of dividend increases under his belt.

Air Products’ dividend yield currently exceeds 2.7%. Its dividend payout has increased by a compound annual growth rate (CAGR) of 10% since 2014.

Behind this impressive dividend history is a solid company. Air Products is the world’s largest supplier of hydrogen. It is also a leader in providing helium and liquefied natural gas (LNG) technology. The company’s customers are spread across multiple industries, including chemicals, electronics, food and beverage, manufacturing and refining.

Air Products expects its adjusted earnings per share to jump 13% to 15% year over year in 2022. The company’s long-term growth prospects look promising with its focus on development carbon capture and clean hydrogen projects.

2. Innovative industrial properties

Innovative industrial properties (NYSE: IIPR) helps customers go green in a different way. The real estate investment trust (REIT) specializes in buying properties from cannabis operators and leasing the properties to operators.

IIP has only been in business since 2016. However, since launching a dividend program in 2017, the company has increased its dividend by more than 1,000%. IIP’s dividend is currently yielding over 3.4%.

The FPI’s business boomed even during the very uncertain period of 2020, when containment measures were in place. Today, IIP owns 105 properties in 19 states with several of the largest multi-state cannabis operators among its tenants. Its revenue and profit both climbed 75% year-over-year in the fourth quarter.

IIP should have no trouble maintaining its growth streak. Most of the markets it currently operates in are still in their infancy. There are also 18 other states where IIP does not own properties that have already legalized medical cannabis.

3. Medical Properties Trust

Medical Properties Trust (NYSE:MPW) is another REIT that income investors will likely like very much. The company is focused on owning hospitals, with 440 facilities and 46,000 licensed beds in nine countries.

Some healthcare REITs have struggled to maintain their dividend payouts in recent years. Medical Properties Trust, however, has increased its dividend for eight consecutive years. Its dividend yield currently exceeds 5.7%.

You don’t have to worry that inflation will affect the Medical Properties Trust a lot. The company has integrated rent indexation based on inflation into its contracts.

Medical Properties Trust Chief Financial Officer Steve Hamner said on the company’s fourth quarter conference call, “Our pipeline of opportunities for 2022 is strong.” These growth opportunities are expected to continue in the future. Medical Properties Trust is the type of dividend stock you can buy during an uncertain market and sleep well at night.

10 stocks we prefer to Air Products & Chemicals
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Keith Speights owns Air Products & Chemicals and Innovative Industrial Properties. The Motley Fool owns and recommends innovative industrial properties. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.