It has the highest average yearly stock return on the list over the last decade at 15.9% per year. However, the company has been increasing the dividend by an average of 8.1% per year over the last decade. Cash on hand is nearly five times the current portion of long-term debt, and cash from operations for the last fiscal year was nearly double capital expenditures. Diversifying your portfolio and investing in assets that have traditionally outpaced the rate of inflation is the best way to prepare your portfolio for inflation.
But if your goal is to prevent inflation from destroying your purchasing power, I bonds can be a smart choice. The Street is increasingly bullish on the name, giving it a consensus recommendation of Strong Buy, up from Buy at this time last year. Of the 19 analysts issuing opinions on IQV, 14 rate it at Strong Buy, four say Buy and one has it at Hold. IQVIA Holdings (IQV, $255.57) formerly known as Quintiles and IMS Health, brings technological solutions to healthcare problems.
- Tech stocks slumped in 2022 as rising rates curbed the performance of growth stocks.
- All purchases involve risk and may result in damages, partial or total loss.
- Further, consumers usually keep buying basics like protein even if their real incomes shrink with rising inflation.
- Stag Industrial’s dividend growth has slowed to a crawl during 2018, totaling just under 3 percent.
- The latter is in line with the five-year annualized EPS growth estimate of 7.8%.
Industry Insights
The firm is also thriving in 2022, with a 36 percent increase year-to-date. It has received six Strong Buy ratings, fifteen Buy ratings, eight Hold ratings, and one Strong Sell rating. Gold shares have had a sharp decline recently but are still up 7 percent year-to-date. The analyst community believes the company has significant upside potential, with a $28.05 price objective representing a 38 percent increase from current levels. Overall, the business has 10 Strong Buy calls, nine Buy calls, and five Hold ones, resulting in a consensus Buy rating with solid conviction. Together with a series of recent, complementary purchases, these factors contribute to Medical Properties Trust’s rising fundamentals.
Ten best inflation-proof investments
Due to tough times, the bank has been forced to reduce debt but being a leading bank, the prospects of future growth are higher. The stock price peaked at $93 and then dropped to $60 before rising to the current trading level. The cybersecurity stocks have become a high-growth sector and is attracting a lot of investor attention. Its diversified operations within the energy sector give it an excellent advantage of benefitting from growth within every segment of the energy sector. From exploration to production, chemical and refining, and marketing, Chevron has expanded its operation within all. This makes it an excellent stock for investment as investors get exposure Best stocks for inflation 2022 to a well-integrated energy stock.
- Five sectors are considered more inflation-proof than their peers.
- BofA Securities analysts (Buy) note that the firm has made significant progress since the 2016 merger of Quintiles and IMS Health.
- I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
- The company has rediscovered its mojo, and the market expects sales to rise 54% in 2022 as AMD consolidates its lead in the high-end enterprise chips market.
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Look for stocks with pricing power
B2Gold (BTG, $4.35) is a senior gold miner with operating mines in Mali, the Philippines and Namibia. BTG also has reserves and development projects in a variety of additional locations. The company was founded in 2007 and is headquartered in Vancouver, British Columbia. Now that President Vladimir Putin’s army is attacking its next-door neighbor, inflation concerns are worsening.
Artemis launches first market-neutral fund
Chevron has a record of a strong balance sheet and good financial performance (excluding the year 2020). In the recent financial report, the company reported record-high free cash flow. As a result, the company was able to pay a higher dividend, a disciplined capital growth program, and a significant debt paydown with a year-end net debt ratio comfortably below 20%. The bank’s credit quality has substantially improved during the fiscal year 2021 owing to improved credit extensions. The bank reported a remarkable decline in provision for credit losses. The share price is on an upward streak since the start of the year and has appreciated by 60% during the year 2021 and it continues to climb.
Further, many consumers are less interested in investing in the stock market when interest rates are high, preferring safer options like Treasury bonds or high-yield savings accounts. Meanwhile, the stock trades at just 25.2 times analysts’ 2022 EPS estimate – a valuation the bulls contend is compelling. Last September, the company increased its quarterly dividend from $1.02 to $1.15, approximately 13%. This increase is sufficient to keep up with even the current strong inflation rate.
Oakmark is up 5.18% in the last month and 4.17% for the past three months, Carlson said. The fund owns only 51 stocks, and 31% of the holdings compose its 10 largest positions. Roughly 37% of the fund is in financial services companies, which should do well as interest rates increase, Carlson counseled. To pay dividends, a corporation must come up with cold, hard cash to compensate shareholders. Once the money is distributed to the shareholders, it is no longer accessible for use by the firm.
Commodities
Stanley Black & Decker is a world-leading provider of tools and storage, commercial electronic security, and engineered fastening systems since 1843. The company is a leading global diversified company based on revenue. It is number one in tools and storage, number 2 in security services, and a global leader in engineered fastenings. Apple is one of the popular stocks because of its trillion-dollar market capitalization. Not only the stock, but Apple products have also become very common and are used in daily life.
This has provided an edge for the company in the iron ore market as it significantly lowers costs. VALE should also benefit from strong demand for nickel, as the metal is used in electric vehicle batteries. Plus, copper prices have also rebounded and are trading in all-time-high territory. You’ll want to invest in companies that either benefit from inflation or can pass on rising prices to the consumer.
Services
Further, the prices of the food -at-home category increased by a staggering 13.5% YOY in the same period. So the company’s businesses, which span the gamut of food production, remain very well-positioned. BHP is another one of the A-rated (Strong Buy) stagflation stocks in the POWR Ratings system. Included in this overall score is a Stability Grade of B, due in part to BHP Group’s massive balance sheet and its exceptional management team. Both of these were integral to the company’ cutting costs and streamlining operations during the poor pricing environment of the last decade. Vale is another one of the B-rated stagflation stocks in the POWR Ratings universe, translating into a Buy.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products. Only 13 stocks on North American exchanges met the criteria above. The list was thinned to 10 based on the highest five-year growth estimates. PEP’s sales and EPS are expected to grow by 3.6% and 7.1%, respectively, in fiscal year 2024. Analysts project longer-term annualized EPS growth of 7.0% over the next five years. Over the last five years, the company’s P/E ratio has ranged from 32.7 to over 100, indicating the stock is currently trading at an attractive valuation.
One of the best ways to do this is by investing in an index fund tracking a market index, like the S&P 500. Investing in index funds allows you to diversify your portfolio and can produce average annual returns between 7% and 10%, depending on the market. The company recently published its full-year results for the year 2021. Revenue was reported at $15.6 billion which grew by 20%, owing to robust customer demand.