Portfolio development is an art, not a science. A few investors incline toward growth, some like value, some favor large easily recognized names, and others incline toward smaller companies. There’s nobody right answer with regards to building a portfolio. In any case, assuming the occasions of the past two years have taught any examples, one is that blue-chip stocks remain a leading choice for portfolio development. As things, for example, problematic innovation stocks and financial reopening trades have seen their fortunes viciously swing about, blue chips have would in general offer more stable, predictable returns. Companies with a long track record of growing earnings and profits that can withstand the occasional recession will more often than not give the most reliable long haul results. With interest rates soaring and geopolitical pressures at exceptional levels, the case for owning protective blue-chip stocks is more grounded than ever. Here are 10 of the best blue-chip stocks to buy for 2022.
1) Verizon Communications Inc. (ticker: VZ)
Verizon is one of the country’s three largest mobile phone networks. All three have battled lately; VZ stock is a couple of percentage points above its 52-week lows, for example. For growth and income investors, Verizon is the best pick of the pack. AT&T Inc. (T) is cutting its dividend amid its complicated corporate restructuring. Meanwhile, T-Mobile US Inc. (TMUS) doesn’t pay a profit at all. That leaves Verizon as the safest decision. Shares are paying a 5% profit yield and are back down to where they traded in March 2020 at the tallness of the COVID-19 sell-off. In any case, eventually, Verizon will start to reap the benefits of the 5G organization cycle and see opinion swing upward again. In the meantime, shares are selling for under multiple times earnings.
2) Walmart Inc. (WMT)
Walmart was one of the large American companies to completely hold its value during the great financial emergency. An investor who purchased WMT stock at the market peak in 2007 actually earned a small profit when the market bottomed in March 2009. That’s because Walmart is as protective of a blue-chip stock as can be found. Whenever the economy slows, a few customers have to trade down and get additional value from their purchases. Walmart, as the king of everyday low prices, can fit that bill. Walmart partook in a flood in demand in 2020, however results have slowed down since then as inflation and rising labor costs have placed a pleat on profit margins. Regardless, as the economy decelerates amid surging gasoline prices, Walmart could be positioned for another time of solid outperformance.
3) Kimberly-Clark Corp. (KMB)
Kimberly-Clark is a leader in manufacturing toilet paper and other sanitary and cleanliness related items. The company delighted in unusually strong sales during 2020 as toilet paper became a sought-after commodity. This naturally prompted a slowdown in 2021, in any case, as many individuals wound up having an excess inventory of Kimberly-Clark items that took a long time to deal with. Toss in the inflationary wave in input expenses, for example, wood mash, and Kimberly-Clark’s profits have slipped from 2020’s record levels. Analysts see Kimberly-Clark returning to pre-pandemic degrees of profitability in 2023, notwithstanding, which would put earnings at about $7 per share. That would amount to only a 17 times forward price-earnings ratio. Additionally, the stock offers a high profit yield of 3.8%.
4) Exxon Mobil Corp. (XOM)
Many decades, Exxon Mobil has been perhaps the most reliable energy investment. The company is absolutely gargantuan in scope, owning an unrivaled assortment of oil and gas fields, refineries, conveyance assets, and so on. It also will in general be counter-cyclical in nature. This means that Exxon Mobil is willing to keep investing in new assets in any event, when the industry in general is in a rut. During the 2014-2020 oil bear market, for example, Exxon continued to plow cash into its gigantic new offshore Guyana oil field when many competitors pulled back on their spending. Presently, with oil prices surging back to the triple digits, Exxon is reaping the rewards of its forward-thinking investment. On top of that, Exxon was one of only a handful of exceptional energy players not to slash its profit during the COVID-19 slump. That makes it a considerably more dependable blue chip for income investors. Shares as of now yield 4.3%.
5) JPMorgan Chase and Co. (JPM)
With interest rates surging and the Federal Reserve finally hiking its benchmark rate, it’d simply be natural to see bank stocks soaring. Be that as it may, they aren’t. JPMorgan Chase stock, for example, is down nearly 20% from its new highs. It appears traders are more stressed over a slower economy than thinking of the higher profit margins that will be coming for banks. That could be an amazing chance for investors who want to profit from rising interest rates and missed the main move higher. JPM stock is trading near multiple times earnings. It should see a lift to earnings with interest rates moving higher. Also, solid activity in areas, for example, investment banking can help results. As of now, the stock is offering a 2.9% profit yield in addition to its attractive starting valuation.