3 Dividend Kings That Should Crush The Broader Market in 2022
Over the past several weeks, investors have been fleeing premium-laden growth stocks in favor of high-quality defensive plays. This flight to safety is being driven by the dual headwinds of historically high inflation rates and the prospect of tighter monetary policies from the Federal Reserve in 2022. Nowhere is this trend more apparent than in the select group of companies known as Dividend Kings, which is an elite group of S&P 500 companies that have boosted their dividends for a minimum of 50 consecutive years. Speaking to this point, the best-performing Dividend King stocks of late have all been in highly defensive sectors such as consumer goods.
As the Federal Reserve is expected to roll out multiple interest rate increases this year in an attempt to curtail inflation, this ongoing mass capital migration toward defensive sectors is likely to continue for the foreseeable future. This trend, in turn, should be a major catalyst for shares of consumer-goods giants Colgate-Palmolive (NYSE: CL), Hormel Foods (NYSE: HRL), and Procter & Gamble (NYSE: PG) in 2022. Here's why these three Dividend King stocks ought to deliver market-beating returns for shareholders this year.
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Source Fool.com
