As we head into the year’s second half, the U.S. stock is off to its worst start in over 50 years. The S&P 500 index has had its weakest showing since 1970, as the Federal Reserve continues raising interest rates to fight inflationary pressures.
Historically speaking, the stock market has always rebounded, so it’s important to stay level-headed. Investors need to find the best investments for 2022, to effectively ride out of the year with relatively strong gains and set up their portfolio for massive long-term gains.
The current downturn presents an excellent opportunity for investors to stick to their guns and keep investing with a long-term horizon in mind. Bear markets typically don’t last for more than a year, while bull markets last for significantly longer periods. Hence, the seven best investments for 2022 will add massive value to your portfolio.
VNO | Vornado Realty | $29.97 |
AM | Antero Midstream | $8.77 |
O | Realty Income | $69.7 |
CVX | Chevron | $139.35 |
DIS | Walt Disney | $95.78 |
CRM | Salesforce | $172.45 |
AAPL | Apple | $142.29 |
Vornado Realty (VNO)
Vornado Realty (NYSE:VNO) is one of the top office landlords concentrated in New York City. It owns close to 20 million square feet of office space in the Manhattan area. It benefits from its scale granted by its massive portfolio of assets.
VNO stock has taken a hammering of late due to valid concerns over outbound migration. Nevertheless, NYC has proven to be resilient despite the challenges. This is evidenced in VNO’s improving property metrics, with occupancy levels beyond 92.1% at the conclusion of the first quarter.
Moreover, it generated over a 16% bump in sales to $442 million during the quarter. With the stock down over 35%, and dividend yields over 6%, VNO remains a high-quality bet.
Antero Midstream (AM)
Denver, Colorado-based Antero Midstream (NYSE:AM) owns and operates midstream energy infrastructure. Gas-focused Antero has performed remarkably well over the years but has fallen out of favor with investors who are bearish on its sector’s prospects. However, as recent events have shown, the fossil fuel industry isn’t going anywhere anytime soon.
Europe will be looking to maximize gas supplies outside of Russia, which bodes incredibly well for U.S.-based producers such as Antero. Europe has set an ambitious target date of 2027 to source all its gas supplies outside of Russia.
Antero has grown its operating cash flows well over the years, and 2022 has been no different so far. Its operation cash flows shot up 11.44% on a year-over-year basis, putting it in a much better position to cover its dividends from its organic resources. It offers an eye-catching yield of over 7% with an over 320% payout ratio.
Realty Income (O)
Realty Income (NYSE:O) is a high-quality real estate investment trust (REIT) with a portfolio of over 11,000 properties.
It has effectively diversified its risk by growing its footprint, thereby reducing operational costs. Its properties are located across the U.S., U.K, Spain, and Puerto Rico, with an incredibly vast customer base.
Over the past few years, it’s done well to grow its revenues and expand its footprint. Sales went from $1.22 billion in 2017 to $2.1 billion last year. Moreover, it’s done well to keep its occupancy rates high, taking its physical footprint up 134.50% during the period mentioned above.
This year’s results have been remarkable as well, with first-quarter revenues nearly double what was posted in the first quarter of 2021. This jump bodes well for investors of the dividend king, which is likely to boost payouts this year significantly.
Chevron (CVX)
Shares of Oil giant Chevron (NYSE:CVX) have skyrocketed of late. Record oil prices due to the current geopolitical situation have helped take its stock price to multi-year highs.
Moreover, the rising oil demand has led to a gusher of cash. Its cash flows from operation have risen by almost 50% to $8.1 billion during the first quarter, while free cash flows total $6.1 billion.
Additionally, the massive cash balance continues accelerating its plans to boost its renewable fuels business. It agreed to buy Renewable Energy Group to develop renewable fuel feedstocks and has taken steps to build its carbon capture and hydrogen businesses. These investments will pay a lot of dividends down the line as the company looks to pivot towards lower-carbon energy in the future.
Walt Disney (DIS)
Entertainment giant Walt Disney (NYSE:DIS) continues to fire on all cylinders on what has been a solid start to the year. The much-awaited comeback in its parks and experiences division is finally here, with the segment reporting $6.65 billion in revenues. It’s the highest second-quarter revenue figure, significantly higher than its previous sales record of $6.17 billion.
Overall, results for the second quarter were highly encouraging, with top-line growth at 23.3% from the prior year. For the full year, it’s expected to get a 25.1% boost in sales growth due to easier comps from the same period last year.
Furthermore, a spectacular film slate promises to add plenty to its total sales. Moreover, subscription numbers are increasing at a breathtaking pace, with Disney+ subscribers increasing by over 400% from the first quarter of 2020 to the second quarter this year.
Salesforce (CRM)
Salesforce (NYSE:CRM) has established itself as a market leader in providing cloud-based customer relationship management (CRM) services.
Moreover, it has expanded into adjacent markets such as marketing and eCommerce, which significantly contributed to its subscription ecosystem’s stickiness. Despite delivering double-digit growth over the past several years, the firm has a path toward continue growing in the same fashion over the long term.
Salesforce recently posted its first-quarter results, where sales shot up 24% on a year-over-year basis to $7.41 billion. Though net incomes dropped 14% to $982 million, they came in well ahead of consensus forecasts. Also, it expects sales to rise 21% year-over-year in the second quarter and 20% for the whole year.
Additionally, it raised its operating margin guidance to 3.8% for the full year, a 0.2% improvement from its previous guidance. Though its stock could remain under pressure due to the current market scenario, it remains an incredible bet with the ongoing digitization of large businesses.
Apple (AAPL)
Apple (NASDAQ:AAPL) never ceases to amaze with its robust fundamentals and tremendous long-term growth runway.
As one would expect, at the heart of its success is the iPhone, which has established itself as the leading smartphone brand in the world. It represents over 50% of the company’s total sales, and with the release of new models, including a 5G-compatible version, it continues to gain more popularity.
Furthermore, the business has established itself as a top-tier software-as-a-service business, generating recurring sales through subscriptions. Its services, including cloud storage, digital content, payments, music, and others, have contributed immensely to its top-line results. Consequently, sales from its division have risen from $46.3 billion in 2019 to $68.4 billion last year.
Moreover, its ecosystem continues to expand through acquisitions. Over the past few years, Apple has purchased nearly 100 companies to strengthen its technological competencies. Despite its investments, it still exited the second quarter with a massive $28.1 billion in cash equivalents.
On the date of publication, Muslim Farooque 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.