Dividend shares aren’t all the time identified for producing scorching positive factors. Nevertheless, traders have flocked to some dividend payers this yr as the general market has tumbled.

A number of the largest winners are among the many elite group of S&P 500 members which have elevated their dividends for at the least 25 consecutive years. Listed here are the three greatest Dividend Aristocrat shares within the first half of 2022.

1. ExxonMobil

ExxonMobil (XOM 2.23%) ranked because the hands-down largest winner amongst Dividend Aristocrats within the first six months of the yr. The vitality big has elevated its dividend for 39 consecutive years. Its shares skyrocketed greater than 40% within the first half of 2022.

That spectacular achieve is definitely loads decrease than it may need been. At its peak in early June, ExxonMobil inventory was up greater than 70%. There’s one key purpose for this sturdy efficiency: excessive oil costs.

Nevertheless, predictions that oil costs might fall have brought about many vitality shares, together with ExxonMobil, to tug again in latest weeks. A number of components have contributed to expectations of decrease costs, together with OPEC’s choice to spice up oil manufacturing and the Federal Reserve’s rate of interest hikes, which might calm down the financial system.

2. Chevron

It’s going to most likely come as no shock that one other Dividend Aristocrat from the vitality sector has delivered large positive factors up to now this yr as effectively. Chevron (CVX 1.20%) has elevated its dividend for 35 years in a row. The inventory is up near 25% yr to this point.

The identical tailwinds which have pushed ExxonMobil’s super efficiency have additionally labored to Chevron’s profit. Particularly, the Russian invasion of Ukraine and the lead-up to the navy battle spurred an inflow of investments in Chevron and different vitality shares.

Like ExxonMobil’s, although, Chevron’s share value is now effectively beneath its excessive mark set just a few weeks in the past. At one level, Chevron inventory had soared 54% yr to this point. The identical considerations about falling oil costs that brought about ExxonMobil’s pullback additionally resulted in Chevron’s shares declining.

3. AbbVie

Two sectors have carried out the perfect up to now this yr: vitality and healthcare. We have already got a few vitality shares as the highest Dividend Aristocrats of 2022. The third-place spot belongs to a healthcare inventory: AbbVie (ABBV 0.42%). This large drugmaker has elevated its dividend for 50 consecutive years. And its shares have jumped round 12% yr to this point.

AbbVie’s sturdy dividend yield of almost 3.7% has little question attracted some traders. The inventory’s low valuation (shares at the moment commerce at lower than 11 occasions anticipated earnings) is also a draw.

In all probability the most important purpose for AbbVie’s market-beating efficiency this yr, although, is that the corporate has chalked up a number of regulatory wins for its medication in latest months. Rinvoq picked up U.S. approvals for treating energetic ankylosing spondylitis and ulcerative colitis, and Skyrizi received U.S. approval for treating Crohn’s illness.

Are they buys now?

I feel that every one three of those high-flying Dividend Aristocrat shares are nonetheless good picks to purchase now. My view is that the vitality and healthcare sectors are the two greatest sectors to put money into beneath the present market dynamics. ExxonMobil, Chevron, and AbbVie stand out as stable decisions in these areas.

ExxonMobil and Chevron are the highest leaders within the oil and fuel trade. Whereas gas costs would possibly average considerably, I count on that they’ll stay excessive. Particularly, my expectation is that the European Union’s transfer to ban greater than two-thirds of Russian oil by the tip of the yr will assist each of those shares.

AbbVie faces the lack of U.S. exclusivity for its top-selling drug, Humira, in 2023. Nevertheless, the corporate’s success in successful new accredited indications for Rinvoq and Skyrizi bodes effectively for its future prospects. I feel that Humira’s upcoming lack of exclusivity is already largely baked into AbbVie’s share value. That is nonetheless a superb inventory to purchase, for my part, particularly for income-seeking traders.