In this article, we discuss the 10 safe stocks to invest in for the long-term in 2022. You can skip our comprehensive analysis of these stocks and the current market situation, and go directly to 5 Safe Stocks To Invest in For The Long Term in 2022.
2022 started off on a tough note for the stock market. Inflation, and the Fed’s attempts to rein it in by raising interest rates, have put pressure on an economy that was working its way to recovery from the pandemic lows. Furthermore, the Russian invasion of Ukraine has put a strain on the global energy markets, bringing oil and gas prices to record highs. According to a monthly Bank of America survey of 300 money managers with a collective $1 trillion in assets, more than 60% of investors feel the economy will undergo stagflation, a phenomenon where high-interest rates meant to reduce inflation lead to stagnant growth and higher unemployment, eventually pointing towards a recession. 60% of these investors see a bear market in 2022, and more than half expect high inflation to be a permanent feature of the economy.
Still, there’s still plenty of opportunity in the market if you know where to put your money. Chief Investment Strategist at CFRA Sam Stovall thinks investors should not let the negative sentiments around the market dictate their investment choices, and that there is still great opportunity in the current scenario to go for some high-quality stocks.
Therefore, it would be useful to know which stocks currently present the safest investment choices. These include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), along with others mentioned below.
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Our Methodology
We picked high-quality blue-chip stocks that are considered safe investments in the current market scenario. A majority of these stocks also offer sustainable and consistent dividend payments, further highlighting their proven track record. Hedge fund sentiment around each stock has been derived from Insider Monkey’s database of 924 elite hedge funds, and provided to give readers better context for their investment choices.
Safe Stocks To Invest in For The Long-Term in 2022
10. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 30
Dover Corporation (NYSE:DOV) is a provider of industrial products, which includes equipment and services related to vehicle aftermarket parts, fueling solutions, imaging and identification, refrigeration equipment, solid waste handling, industrial automation and aerospace and defense.
Citi analyst Andrew Kaplowitz in January maintained a ‘Buy’ rating on Dover Corporation (NYSE:DOV), and bumped the price target to $221 from $218. The analyst sees strong revenue performance and prevalent strength in orders highlighting a sturdy demand for the firm’s offerings, which makes him confident over its 7-9% organic growth outlook for 2022.
Reporting its fourth quarter earnings on January 27, Dover Corporation (NYSE:DOV) posted an EPS of $1.78, which beat estimates by $0.11. Quarterly revenue of $1.99 billion was also above estimates by $73.28 million, and up 11.73% year-on-year.
Dover Corporation (NYSE:DOV) in December 2021 agreed to acquire companies Acme Cryogenics and RegO (Engineered Controls International) for $295 million and $631 million in cash, respectively. These acquisitions will help Dover focus on clean energy, as both firms offer services and components used in the production and distribution of cryogenic gasses which are used in multiple industrial applications.
Baird analyst Mircea Dobre called these two deals a good strategic fit for the company within its evolving portfolio. JPMorgan analyst Stephen Tusa in December noted that Dover Corporation’s (NYSE:DOV) ‘smart, high-return’ acquisitions enhance its portfolio quality and builds on a proven operating competency. He sees this combination making the stock seem like a ‘high multiple compounder’.
Out of all the hedge funds tracked by Insider Monkey, 30 were long Dover Corporation (NYSE:DOV) at the end of the fourth quarter, with combined holdings of $553.9 million. With roughly 803,000 shares valued at $145.87 million, Millennium Management of Israel Englander was the top shareholder of Dover Corporation (NYSE:DOV) in the fourth quarter.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG); Dover Corporation (NYSE:DOV) is one of the safest stocks to buy and hold for long-term in 2022.
9. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 62
The semiconductor industry is considered the ‘new oil’, given how important it is to powering the global economy. It is expected to reach new heights in the coming years, and Broadcom Inc. (NASDAQ:AVGO) is one of the biggest names in the space. It provides a range of semiconductor and software products, used in data center switches, wireless connectivity routers and fiber optics, as well as infrastructure solutions to operate digital ecosystems. As of April 4, shares of Broadcom Inc. (NASDAQ:AVGO) have seen a jump of 28.35% in the last 12 months, and 31.73% in the last six months.
On March 4, JPMorgan analyst Harlan Sur gave Broadcom Inc. (NASDAQ:AVGO) an ‘Overweight’ rating, noting that the firm’s business is continually accelerating, and its strong earnings results reflect leverage to its strategic end markets and strong product cycles. Baird analyst Tristan Gerra in March reiterated an ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) shares, noting that the firm enjoys strong demand which is expected to accelerate year-on-year this quarter.
Investors were seen buying up on Broadcom Inc. (NASDAQ:AVGO) in the fourth quarter, where 62 hedge funds held stakes in the semiconductor company with a combined worth of $4.79 billion. This is up from 50 hedge funds in the previous quarter with positions worth $2.7 billion. Cantillon Capital Management was the top shareholder of Broadcom Inc. (NASDAQ:AVGO) in the fourth quarter, with a position comprising of more than 1 million shares valued at $669.40 million.
Richie Capital Group, an investment firm, mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here’s what the fund said:
“Broadcom (AVGO – up 36.5%) – The semiconductor device manufacturer reported an outstanding Fiscal Q4. Results (and guidance) exceeded Wall Street analyst expectations, and the company raised its dividend by 14% and announced a new stock-repurchase program. Semiconductor related revenue grew 17% while software revenue grew 8%. On the negative side, it was rumored that Apple, their largest customer, is making plans to develop their own wireless chips. This would be a blow to Broadcom. However, AVGO has a $15 billion contract with Apple that is good through 2023 and includes radio frequency parts such as amplifiers, filters and switches.”
8. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 63
Walmart Inc. (NYSE:WMT) is a supermarket giant with approximately 4,700 stores in the United States and more than 10,500 retail stores around the world. As of April 4, Walmart Inc. (NYSE:WMT) pays a dividend yield of 1.48%, and has grown its dividend payout to shareholders for 48 years in a row. This makes it an attractive stock to hold, given its dominance in the retail market and consistent history of paying dividends.
On February 18, Deutsche Bank analyst Krisztina Katai reiterated a ‘Buy’ rating on Walmart Inc. (NYSE:WMT) shares, noting that he remains increasingly confident on the firm’s long-term success after its Q4 results and 2022 outlook. Morgan Stanley analyst Simeon Gutman in March noted that he sees Walmart’s fintech startup ‘ONE’ creating a potential $1.6 billion revenue opportunity for the firm, and sees the market paying more attention to its growing list of alternative revenue streams which include advertising, healthcare, fulfilment and delivery services, and its third-party marketplace.
Walmart Inc. (NYSE:WMT) reported earnings per share of $1.53 in the fourth quarter, beating analysts’ estimates by $0.03. Quarterly revenue was recorded at $151.53 billion which outperformed analysts’ forecasts by $1.49 billion.
63 out of 924 elite hedge funds tracked by Insider Monkey were long Walmart Inc. (NYSE:WMT) shares at the end of the fourth quarter, with combined stakes worth $7.13 billion. This is down from 71 hedge funds with positions in the firm a quarter ago. GQG Partners was the top shareholder of Walmart Inc. (NYSE:WMT) stock in the fourth quarter, holding 10.42 million shares worth $1.5 billion.
7. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 64
Abbott Laboratories (NYSE:ABT) is a biopharmaceutical firm which deals in medical and health products around the globe. Along with an impressive pipeline of drug products, the company boasts selling 1.4 billion Covid testing kits since the start of the pandemic. It made $7.7 billion in testing revenue in 2021, and further expects to make $2.5 billion in Covid testing related revenue for 2022.
On March 1, BofA analyst Travis Steed reinstated coverage of Abbott Laboratories (NYSE:ABT) with a ‘Buy’ rating and $140 price target. He sees the firm boasting sustainable organic growth potential, best-in-class pipeline, and a diversified business with the ability to outperform in many different environments.
In the fourth quarter, 64 hedge funds were bullish on Abbott Laboratories (NYSE:ABT) shares, with total holdings worth $4.25 billion. This shows a positive trend from the previous quarter where 63 hedge funds held $3.61 billion worth of positions in the biopharmaceutical company. Ken Fisher’s Fisher Asset Management was the top shareholder of Abbott Laboratories (NYSE:ABT) in the fourth quarter, with a stake comprising of 8.76 million shares worth $1.23 billion. which was an increase of 5% in share ownership from the preceding quarter.
In the fourth quarter, Abbott Laboratories (NYSE:ABT) reported earnings per share of $1.32, which was above analysts’ estimates by $0.11. Quarterly revenue was recorded at $11.47 billion, which also outperformed analysts’ forecasts by $760.41 million.
Investment firm Richie Capital Group discussed Abbott Laboratories (NYSE:ABT) in its Q4 2021 investor letter, stating:
“Abbott Labs (ABT – up 20.08%) – Abbot Labs continues to benefit from resurging demand for Covid testing kits. The company is planning to increase their monthly production of BinaxNOW athome rapid tests to 100M a month, a 43% increase from current levels.”
6. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
The Procter & Gamble Company (NYSE:PG) is up next on our list of the safe stocks to buy and hold for the long-term in 2022. It is one of the biggest consumer goods companies in the world.
On March 22, Truist analyst Bill Chappell upgraded The Procter & Gamble Company (NYSE:PG) to ‘Buy’ from ‘Hold’, and upped the price target to $175 from $165. He expects the firm to “break away from the pack in 2022” owing to its range of trusted brands and product superiority over competitors.
The Procter & Gamble Company (NYSE:PG) posted an EPS of $1.66 in the fourth quarter, which beat analysts’ estimates by $0.01. Revenue for the fourth quarter was recorded at $20.95 billion, signaling an increase of 6.12% in comparison to the year-ago quarter, and exceeding analysts’ estimates by $617.36 million.
67 hedge funds reported owning stakes in The Procter & Gamble Company (NYSE:PG) during the fourth quarter, with combined holdings worth $6.61 billion. The largest shareholder of the firm during the fourth quarter of 2021 was GQG Partners, with 7.53 million shares worth $1.23 billion.
In early March, The Procter & Gamble Company (NYSE:PG) suspended all new capital investments in Russia after its invasion of Ukraine, whilst reducing its product portfolio to focus only on basic hygiene, health, and personal products.
Along with Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG); The Procter & Gamble Company (NYSE:PG) is an attractive stock for long-term investments.
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Disclosure. None. 10 Safe Stocks To Invest in For The Long Term in 2022 is originally published on Insider Monkey.
