The 7 best investments for the second half of 2022
As we enter the second half of the year, US stocks are off to their worst start in over 50 years. Them&P 500 The index had its weakest performance since 1970, as the Federal Reserve continued to raise interest rates to combat inflationary pressures.
Historically speaking, the stock market has always rebounded, so it’s important to keep a cool head. Investors need to find the best investments for 2022, to effectively exit the year with relatively large gains and set up their portfolio for massive long-term gains.
The current downturn presents a great opportunity for investors to stick to their guns and continue to invest with a long-term horizon in mind. Bear markets usually last no more than a year, while bull markets last much longer. Therefore, the seven best investments for 2022 will add considerable value to your portfolio.
|WNV||Vornado Real Estate||$29.97|
|A M||Antero Midstream||$8.77|
|O||Real estate income||$69.7|
Vornado Realty (WNV)
Vornado Realty (NYSE:WNV) is a leading office owner concentrated in New York City. It owns nearly 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 hammer blow lately due to valid concerns about outbound migration. Nonetheless, NYC has proven resilient despite the challenges. This is demonstrated by the improvement in VNO’s real estate metrics, with occupancy levels above 92.1% at the end of the first quarter.
Additionally, it generated a more than 16% increase in sales to $442 million in the quarter. With the stock down over 35% and dividend yields over 6%, VNO remains a high quality bet.
Antero Midstream (A M)
Based in Denver, Colorado Antero Midstream (NYSE:A M) 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 the outlook for its sector. However, as recent events have shown, the fossil fuel industry is not going anywhere anytime soon.
Europe will seek to maximize gas supply outside of Russia, which bodes very well for US producers such as Antero. Europe has set an ambitious target date of 2027 for sourcing gas outside of Russia.
Antero has grown its operating cash flow well over the years, and 2022 has been no different so far. Its cash flow from operations increased by 11.44% year over year, which puts it in a much better position to cover its dividends from its organic resources. It offers an eye-catching yield of over 7% with a payout ratio of over 320%.
Real estate income (O)
Real estate 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 expanding its presence, thereby reducing its operational costs. Its properties are located in the United States, United Kingdom, Spain and Puerto Rico, with an incredibly large clientele.
Over the past few years, it has done well to increase its revenue and expand its footprint. Sales increased from $1.22 billion in 2017 to $2.1 billion last year. Moreover, it has done well to maintain its high occupancy rates, growing its physical footprint by 134.50% during the aforementioned period.
This year’s results have also been remarkable, with first-quarter earnings nearly double those of the first quarter of 2021. The jump bodes well for investors in the dividend king, who is expected to increase payouts significantly this year.
Shares of the oil giant Chevron (NYSE:CLC) have exploded lately. Record oil prices due to the current geopolitical situation have helped push its stock price to multi-year highs.
Moreover, the rise in demand for oil has led to a rush for money. Its cash flow from operations increased nearly 50% to $8.1 billion in the first quarter, while free cash flow totaled $6.1 billion.
Additionally, the huge cash balance continues to accelerate its plans to boost its renewable fuels business. He agreed to buy Renewable Energy Group to develop renewable fuel feedstocks and has taken steps to expand its carbon capture and hydrogen businesses. These investments will pay a lot of dividends down the line as the company looks to shift to low-carbon energy in the future.
waltz disney (SAY)
entertainment giant waltz disney (NYSE:SAY) continues to fire on what has been a strong start to the year. The long-awaited return of its parks and experiences division has finally arrived, with the segment recording revenues of $6.65 billion. This is the highest revenue of the second quarter, significantly higher than its previous sales record of $6.17 billion.
Overall, the second quarter results were very encouraging, with sales growth of 23.3% over the previous year. For the full year, a 25.1% increase in sales growth is expected thanks to easier comparisons compared to the same period last year.
Moreover, a list of spectacular films promises to add a lot to its total sales. Additionally, the number of subscriptions is growing at a breathtaking rate, with Disney+ subscribers increasing by more than 400% between the first quarter of 2020 and the second quarter of this year.
Selling power (RCMP)
Selling power (NYSE:RCMP) has established itself as a market leader in providing cloud-based customer relationship management (CRM) services.
Additionally, it has expanded into adjacent markets such as marketing and e-commerce, which has contributed significantly to the rigidity of its subscription ecosystem. Despite double-digit growth over the past few years, the company has a path to continued growth in the same way over the long term.
Salesforce recently released its first quarter results, where sales jumped 24% year-over-year to $7.41 billion. Although net revenue fell 14% to $982 million, it far exceeded consensus forecasts. Additionally, it expects sales to grow 21% year-over-year in the second quarter and 20% for the full year.
In addition, it raised its operating margin forecast to 3.8% for the full year, an improvement of 0.2% from its previous forecast. Although its stock may remain under pressure due to the current market scenario, it remains an incredible bet with the ongoing digitization of large companies.
Apple (NASDAQ:AAPL) continues to amaze with its strong fundamentals and formidable long-term growth path.
As you might expect, at the heart of its success is the iPhone, which has established itself as the world’s leading smartphone brand. It accounts for more than 50% of the company’s total sales, and with the release of new models, including a 5G-enabled version, it continues to grow in popularity.
Additionally, the company has established itself as a leading software-as-a-service company, generating recurring sales through subscriptions. Its services, including cloud storage, digital content, payments, music and others, have contributed immensely to its early results. As a result, its division’s sales fell from $46.3 billion in 2019 to $68.4 billion last year.
Additionally, its ecosystem continues to expand through acquisitions. Over the past few years, Apple has acquired nearly 100 companies to bolster its technology skills. Despite his investments, he still left the second quarter with a whopping $28.1 billion in cash equivalents.
As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.