Maybe, just maybe, the worst is over. The S&P 500 Index has regained nearly half of its loss this year. However, it's still possible that we're only seeing a temporary bounce.
Some investors could opt to simply avoid the stock market altogether. But this could be a good opportunity, especially for anyone wanting to lock in higher dividend yields with many stocks still well off their highs. Here are three dividend stocks that I think are good picks to buy in an uncertain market.
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1. Air Products & Chemicals
During tumultuous times, track records especially matter. Air Products & Chemicals (APD 1.14%) certainly has an outstanding record as a Dividend Aristocrat with 40 consecutive years of dividend increases under its belt.
Air Products' dividend yield currently tops 2.7%. Its dividend payout has increased by a compound annual growth rate (CAGR) of 10% since 2014.
Underlying this impressive dividend track record is a strong business. Air Products ranks as the largest supplier of hydrogen in the world. It's also a leader in providing helium and liquid natural gas (LNG) technology. The company's customers range across multiple industries, including chemicals, electronics, food and beverage, manufacturing, and refining.
Air Products expects that its adjusted earnings per share will jump 13% to 15% year over year in 2022. The company's long-term growth prospects look bright with its focus on developing carbon-capture and clean hydrogen projects.
2. Innovative Industrial Properties
Innovative Industrial Properties (IIPR -2.79%) is helping customers go green in a different way. The real estate investment trust (REIT) specializes in buying properties from cannabis operators and leasing the properties back to the operators.
IIP has only been in business since 2016. Since initiating a dividend program in 2017, though, the company has increased its dividend by more than 1,000%. IIP's dividend currently yields over 3.4%.
The REIT's business boomed even during the highly uncertain period in 2020 when lockdowns 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 soared 75% year over year in the fourth quarter.
IIP shouldn't have a tough time keeping its growth streak going. Most of the markets where it currently operates remain in their early stages. There are also another 18 states where IIP doesn't own properties that have already legalized medical cannabis.
3. Medical Properties Trust
Medical Properties Trust (MPW 3.36%) is another REIT that income investors will probably really like. The company focuses on owning hospitals, with 440 facilities and 46,000 licensed beds in nine countries.
Some healthcare REITs have struggled with maintaining their dividend payouts in recent years. Medical Properties Trust, though, has increased its dividend for eight consecutive years. Its dividend yield currently tops 5.7%.
You don't have to worry that inflation will affect Medical Properties Trust very much. The company has inflation-based rent escalators built into its contracts.
Medical Properties Trust CFO Steve Hamner said in the company's Q4 conference call, "Our pipeline of opportunities for 2022 is robust." Those growth opportunities should continue well into the future. Medical Properties Trust is the kind of dividend stock you can buy during an uncertain market and sleep well at night.
