The FTSE 100 index has barely moved in 2022 as investors battle multiple concerns. For example, the British pound (GBP/USD) has crashed to the lowest level since the 1980s while inflation has soared to a four-decade high. The Impacts of Brexit and the ongoing crisis in Ukraine has pushed investors away from stocks. Here are the best FTSE 100 dividend stocks for 2022.
Shell (LON: SHEL) is one of the best FTSE 100 dividend stocks to invest in in 2022. The Shell share price has soared by over 40% in 2022, helped by the soaring oil and gas prices. Its revenue and profitability have also bounced back in the past few months. As a result, the company has decided to boost its dividends.
With crude oil averaging about $90 per barrel and natural gas at a record high, there is a likelihood that Shell will continue doing well this year. Notably, Shell has room to boost its dividend to match that of other oil and gas companies like Chevron and Exxon. For one, Shell pays a lower dividend than Chevron even though it has a higher free cash flow. Shell has an annual dividend yield of 3.61%.
BP (LON: BP) is another good FTSE 100 dividend stock. Like Shell, BP is having a solid year as the price of crude oil and natural gas remained at an elevated level. As a result, the company announced bumper earnings recently and the management decided to hike dividends. Notably, BP has managed to slash its total debt by more than $10 billion.
BP share price has risen by more than 30% this year. And with a dividend yield of 4.1%, the stock will likely continue finding bids.
HSBC (LON: HSBA) is a leading global bank with major operations in Asia and Europe. It has a market cap of over $127 billion, making it the tenth biggest bank in the world. It is also the biggest bank in Europe.
HSBC share price has dropped by about 2% in 2022 as concerns about a recession in Europe and Asia remain. These concerns have been partially offset by the rising interest rates in its key markets. Higher rates lead to more profitability for banks since it leads to higher margins on loans.
HSBC has also been in the spotlight as its biggest shareholder continues pressing the company to break itself apart. The company has argued that such a move will not be worth it and that it will be highly expensive. HSBC has a dividend yield of over 4%.
Other quality FTSE 100 dividend stocks for 2022 are Lloyds Bank, Rio Tinto, Glencore, and Anglo American.