2 Big Dividend Stocks Yielding at Least 9%; RBC Says ‘Buy’

The new week kicked off on a negative note, as all 3 major indexes pulled back from record highs. The uncertainty about the COVID-19 Omicron variant cast a pall over investors already cautious about the impact of rising inflation.

But according to RBC chief US equity strategist Lori Calvasina, investors shouldn’t get too worked up. In fact, Calvasina takes a guardedly optimistic view of 2022. At the bottom line, Calvasina writes, “We continue to expect 2022 to be a year of solid but more moderate returns in the S&P 500 than what we’ve experienced in 2021.”

But how she gets there commands some interest. Calvasina notes, “Most of our economic tests suggest that the S&P 500 should end up north of 5,100 – a reminder that the strong economy that empowers the Fed to move should ultimately win out.” That would suggest a 12% gain on the S&P index; while significantly lower than this year’s 21% gain, it’s definitely enough to keep investors in the black.

With that outlook in mind, RBC has tapped two high-yield dividend stocks (yielding 9% or better) as Buying propositions going into 2022. While these are usually defensive portfolio positions, dividend stocks do have the advantage of ensuring an income stream no matter what the market conditions. Let's take a closer look.