In my experience, dividend stocks are the best portfolio guard in times of market downfall. During those times, when my earnings from capital gains suffer a huge blow, dividend stocks are often my saviours.

2022 is almost here. My hopes are high that this year will finally rejuvenate the whole economy without the lingering after-effects of the pandemic. Even then, I prefer to maintain my comfort investment zone by putting my money in dividend stocks. But which ones should I buy? Here are my two picks for 2022 and beyond.

Financing the underserved markets

Main Street Capital (NYSE:MAIN) is one of my top picks for earning a stable and growing passive income. With a trailing dividend yield of 5.39%, it’s climbing the growth ladder with its distinctive approach.

The unique investment strategies coupled with the outstanding performance of the investment firm’s diverse portfolio has led to a 28% year-on-year increase in net investment income for the third quarter of 2021. Additionally, one of the key reasons for its growth is its focus on the underserved lower middle market.

The capital financing company not only increased its monthly dividend by 2.4% in the recent third quarter but has also announced a supplemental income for December. Furthermore, the group has also announced a further increase in monthly dividends in the first quarter of 2022.

Main Street Capital has managed to maintain a healthy reputation for itself in its field. But the equity finance firm’s key growth factor can also lead to its demise. If the value of its assets drops, it will significantly affect the net investment income. In the worst-case scenario, the loss of this income could result in a cut or outright suspension of dividends.

Nevertheless, Main Street Capital’s past performance has given me enough confidence to depend on this dividend stock for regular income.

Energy company topping the dividend stock list

The Canadian-based company, Suncor (NYSE:SU), is known for developing petroleum resource basins. The $38bn business is the supplier of energy to the majority of North America. What makes Suncor one of my personal favourites is its growing energy portfolio. Moreover, the continuous investments in strategic assets coupled with a concentration on renewable energy sources are setting the path for explosive growth for this dividend stock. At least, that’s what I think.

It’s worth mentioning that the energy firm has been paying dividends consecutively for the past 15 years. In addition, its relatively low refining costs are one of its most significant advantages versus competitors. As a result, Suncor can maintain impressive margins even during challenging times. With a trailing dividend yield of 3.22%, this business on my top dividend stock list, especially since management announced a 100% increase from December onwards.

Despite the substantial progress, the energy exploration company is facing continuous setbacks in its hometown. The lack of adequate pipeline capacity is an ongoing and major challenge. Undoubtedly, it is a considerable hindrance towards increasing margins further.

Still, Suncor’s management’s commitment towards its shareholders and accelerating future growth is something I think is worth considering for my portfolio.

Final thoughts

Paying out large chunks of capital to shareholders as dividends leave little left over to reinvest into operations. But the regular stream of passive income outweighs this shortcoming in my mind. And with growth stocks reaching some lofty valuations, dividend stocks remain my preferred strategy to growing wealth today.

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned at the time of writing. Views expressed on the companies and assets mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.