Millionaire investors searching for income stocks to buy have a different problem than the rest of the market players. They need to balance their portfolio’s preservation of capital against generating income on capital. 2022 is an exceptional year for meeting both requirements. Bonds and stocks both fell this year. Since all of the picks have a good value score, those that have strong growth give investors a bonus. Chances are good that companies growing their free cash flow will increase the dividend payout regularly in the years ahead.

Income Stocks to Buy: Altria Group (MO)

In its third quarter, Altria Group (NYSE:MO) posted non-GAAP earnings per share of $1.28. Its revenue fell slightly by 2.2% to $5.41 billion. Altria also narrowed its growth guidance in the range of 4.5% to 6% from last year. The conservative guidance pleased investors. It gives management the flexibility to react to adverse marketplace conditions ahead.

Most importantly, the company has healthy growth to support a steady increase in its dividend. MO stock pays a dividend of $3.76, which yields almost 8%. Altria has novel products in the e-vapor market. Adult smokers may transition to the healthier alternative. They may fulfill their desires and needs as government regulators add further restrictions on the smoking industry. Investor concerns on Altria’s ownership in Juul are winding down. Shareholders are comfortable with the company navigating the regulatory bodies in the heated tobacco space.

Income Stocks to Buy: Bank of Montreal (BMO)

Bank of Montreal (NYSE:BMO) bounced back to around $100, even after posting lower earnings. The Canadian bank also raised its dividend by 3% to CAD 1.43. BMO’s commercial customers are holding up well in the lending segment. They have a strong capital base. Chief Executive Officer Dave Casper said that the bank will see demand drop slightly as the economy weakens. This could extend into the New Year. As the economy enters a recessionary period, BMO is in a strong position. It had strong loan growth in 2022.

The bank acquired more clients and benefited from a large increase in its businesses. Investors should expect BMO’s asset-based lending in the auto dealer market to remain strong. The firm manages its risks well. For example, it watches its client’s exposure to risks closely. It is also choosey with the clients it accepts.

Income Stocks to Buy: Best Buy (BBY)

Naysayers who thought that Best Buy (NYSE:BBY) gave consumers a showroom for Amazon.com (NASDAQ:AMZN) missed out on BBY stock gains. Year-to-date, AMZN stock is down by almost 45%, while BBY stock is down around 15%. Still, Best Buy pays a dividend that yields around 4%.

In the third quarter, the retailer posted comparable sales falling by 10.4%. Despite the slowdown, it expects full-year non-GAAP operating income to rise above 4%. Best Buy has a healthy cash flow, which is enough for it to resume its $1 billion stock buyback. Best Buy expects this holiday period to look different from last year. CFO Matt Bilunas said that consumers are shopping less early this year.

Fortunately, Nov. sales are similar to historical levels. Shareholders should expect healthy demand for televisions. In addition, virtual reality is a potentially popular item this year. Gaming is an exciting form of entertainment for people. Best Buy offers those customers a chance to explore those goods.

Income Stocks to Buy: Blackstone (BX)

Blackstone (NYSE:BX) recently liquidated its stake in MGM Grand and Mandalay Bay Resort. VICI Properties (NYSE:VICI) will buy the 49.9% stake. Blackstone will pocket over $700 million, earned in under three years. The sale strengthens the Blackstone Real Estate Investment Trust’s liquidity. On Dec. 2, investors grew increasingly concerned about Blackstone’s redemption curb.

The firm is limiting redemptions to just 0.3% in December. BREIT investors requested redemptions of $1.8 billion in October or 2.7% of net asset value. Investors may only speculate that Asian holders are withdrawing their holdings. Investors in Asia are facing a credit and real estate bubble. Blackstone has enough liquidity to control the asset redemptions. The value of its real estate portfolio should not change by much. This will attract income investors on BX stock, whose dividend yields 5.8%.

Canadian Imperial Bank (CM)

Canadian Imperial Bank (NYSE:CM) shares plunged by around 7% after posting fourth-quarter results. Revenue grew by 6.5% Y/Y to CAD 5.39 billion. However, the provision for credit loss rose to CAD 436 million. This is up by 459% from last year. CIBC said that although PCL is higher, its balance sheet remains strong. It will strengthen its business by focusing on a disciplined deployment of resources. With a CET1 ratio of 11.7%, CIBC may generate internal capital through its exposure to growth in risk-weighted assets.

The bank’s expenses are growing in the mid-single digit percentage. From 2023 through 2025, CIBC is confident that it can grow its bottom line and deliver on positive operating leverage. For example, it has the flexibility to strengthen revenue by increasing fees. In the mortgage sector, the bank achieved a deeper relationship with 92% of its client base. In the commercial loan market, CIBC expects growth from its U.S. segment.

Devon Energy (DVN)

Devon Energy (NYSE:DVN) is one of the best energy firms to own. The company posted revenue growing by 56.5% Y/Y to $5.43 billion in Q3. This sets up strong momentum for Q4 beating market expectations. CEO Rick Muncrief targets conservative growth in the range of 0% to 5% in Q4. Chances are good that the company will exceed that goal. It is a multi-basin operator that is testing new zones. This will result in higher operating income in the next few years. DVN stock pays a dividend of $5.17, which yields 7.55%.

Devon could raise its dividend after completing opportunistic transactions that strengthen its cash flow. It is unlikely to overpay for assets, which protects investors from excess risks. In 2023, Devon will benefit from an increase in well spud counts. In addition, its acquisition activities will add meaningfully to results. Strong oil prices will lift Devon’s free cash flow. To offset higher taxes, it has a net operating loss carry forward of around $1 billion.

Realty Income (O)

Realty Income (NYSE:O) carries a dividend yield of 4.73% at the moment. With its high investment-grade assets, the grocery segment moved the most. Conversely, in Realty Income’s higher-yielding assets, the cap rate moved by less. Fortunately, the company has good relationships with clients. This results in responsive management of the cost of capital.

On the industrial side, cap rates are moving significantly. For example, Amazon is canceling plans to take industrial assets. Fortunately, Realty Income has a diverse portfolio of assets to minimize shareholder risks. To broaden its sector exposure, the company completed its acquisition of Encore Boston Harbor. This marks Realty’s first ownership in the gaming industry. Investors should expect management’s historically strong performance to keep its dividend growing.

On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.