Investors come in all shapes and sizes. And they have all kinds of strategies for growing those portfolios. Some like to day trade penny stocks. Others like cryptocurrencies. Some dream of paydays of earnings, others put their money into growth stocks. Then there are the blue chip supporters.
Preferred stocks represent companies that are among the most popular on Wall Street. They are well-established family names, and are among the market leaders in their field.
What else makes a preferred stock? Well, preferred stocks are financially sound. They have a history of dependable earnings, and they have market limits that range in the billions.
Preferred stocks often offer reliable dividends.
Another thing to know about preferred stocks is that they are seen as safer investments than small stocks, cryptocurrencies or meme stocks. This means that you can trust them to give you solid growth over a long period of time. And this is just the ticket you need to provide a solid foundation for any retirement portfolio.
Here are seven reliable stocks to buy in 2022:
- ExxonMobil (New York Stock Exchange:XOM)
- Pfizer (New York Stock Exchange:PFE)
- from Broadcom (NASDAQ:AVGO)
- prudent finance (New York Stock Exchange:PRU)
- general dynamics (New York Stock Exchange:JD)
- PepsiCo (NASDAQ:PEP)
- Toyota (New York Stock Exchange:TM)
Blue chip stocks to buy: Exxon Mobil (XOM)
Market value: $291.6 billion
Profit return: 5.1%
Founded in 1870, Exxon has an interesting place in American history.
Wilbur and Orville Wright became famous for using Exxon oil products on their first successful flight in 1903. Exxon products were used on Charles Lindbergh and Amelia Earhart’s flights over the Atlantic in the 1920s.
Third-quarter earnings included revenue of $73.79 billion and earnings per share of $1.58. This number was Exxon’s largest adjusted quarterly profit since 2014.
Furthermore, Exxon announced that it will begin a share buyback program of up to $10 billion over the next two years.
Jenin Way, a Barclays analyst, says Exxon’s 8-K regulatory filing indicates that Exxon expects fourth-quarter earnings of $1.96 per share, which would be 14% higher than analysts’ expectations.
Market value: $312.7 billion
Profit return: 2.8%
These days Pfizer is best known for its coronavirus vaccine, which is currently one of three vaccines approved for use by the Food and Drug Administration.
Pfizer generated nearly $36 billion in vaccine sales in 2021. That’s roughly equal to what it made for all of its products in 2020.
Certainly, vaccine sales will continue to be a driver of Pfizer’s revenue. In particular, variants require that a double dose of the vaccine require at least a single booster dose — and potentially, even more then to keep people fully protected from Covid-19.
The company got another boost in January when the Centers for Disease Control and Prevention recommended a Pfizer Covid-19 booster dose for children ages 12 to 15.
But it’s also important to remember that Pfizer is not a single trick game. The drug company makes everything from balms Advil to Chapstick lip balms and Viagra, the erectile dysfunction drug.
Blue-Chip stocks to buy: Broadcom (AVGO)
Market value: $255.6 billion
Profit return: 2.3%
Broadcom is headquartered in San Jose, California, and operates in the semiconductor business. It designs, develops, manufactures and supplies semiconductor and infrastructure products for data centers, broadband carriers, wireless carriers and network customers.
Fourth-quarter revenue was $7.4 billion, an increase of 15% over last year. Diluted earnings per share were $4.45.
The company said it expects to report $7.6 billion in revenue in the first quarter of 2022, which would be a 14% increase from the first quarter of 2021.
The company said its dividend increased 14% to $4.10 per share, and announced a $10 billion share buyback program.
“Our infrastructure programs continue to grow steadily as we focus on strategic clients,” said CEO Hook Tan. “Thanks to the strength and breadth of our intellectual property portfolio, we continue our ability to provide leading-edge, best-in-class solutions for semiconductors, expanding our leadership in our franchise markets.”
Harsh Kumar, analyst Piper Sandler, raised the company’s target price on AVGO’s stock from $680 to $750.
Prudential Finance (PRU)
Market value: $43.4 billion
Profit return: 4%
I know insurance companies aren’t very exciting. I know. I used to live in Connecticut, which is pretty much the insurance capital of the United States. We jokingly referred to it as “America’s filing cabinet,” which I think would make a good country emblem.
But if you’re excited about having a solid retirement portfolio and getting out of the rat race to work more than 40 hours a week, PRU stocks start looking a little better.
Make that much better.
Prudential deals with life and retirement insurance, mutual funds, annuity products and long-term disability insurance. Its reach has extended beyond its roots in New Jersey (where it was founded in 1875) and now operates in more than a dozen countries.
Despite a rough 2020 due to the coronavirus pandemic, PRU stock was able to rebound again in 2021. The company sold its insurance business in Korea and Taiwan, in addition to its record-keeping business and a portion of its annual business. Transactions allowed Prudential to reinvest the proceeds into higher growth products and increase revenue in 2021.
Third-quarter income was $1.53 billion, compared to $1.487 billion in the same quarter last year. Earnings per share were $3.90, or 20 cents a share, better than they were a year ago.
The company also announced a $1.5 billion share buyback program.
Blue-Chip stock to buy: General Dynamics (GD)
Market value: $59.2 billion
Profit return: 2.2%
If you want more exciting leadership stocks, then maybe General Dynamics is for you. The Virginia-based defense contractor is involved in the tanks, missiles, missiles, submarines, fighters, and electronic devices of the US Army.
Defense stocks are worth considering in any portfolio due to today’s geopolitical realities. North Korea continues to launch missile tests from time to time. The United States has a cold relationship with Russia, which threatens Ukraine and is now operating in Kazakhstan.
I love General Dynamics because it is heavily involved in the US Armed Forces. It is a major player in creating and improving the technology US forces need to give them an advantage in any conflict.
as Investor This also includes high-tech solutions such as secure cloud communications systems, robotics, and aerospace technologies, Louis Navilier writes.
Furthermore, GD stock offers a solid dividend yield of over 2%.
Market value: $277.7 billion
Profit return: 2.4%
PepsiCo is a consumer discretionary company best known for its soft drinks.
But the company stands behind many of America’s most famous brands. They include Lay’s Potato Chips, Doritos Snack Chips, Quaker Oats and Tropicana Smoothies.
Despite higher costs and supply chain issues in the third quarter, PEP shares managed to beat analysts’ expectations for both earnings and revenue. The company posted $20.19 billion, versus analyst expectations of $19.39 billion. Earnings came at $1.79 per share, versus $1.73 per share that analysts had expected.
The company revised upwards its estimate for the full year, saying it expects revenue growth of 8% instead of the 6% it previously forecast. Chief Financial Officer Hugh Johnston said the company is raising prices due to supply chain issues, and expects additional increases in the first quarter of this year.
Argus analyst John Staszak raised the company’s target price on PEP stock from $180 to $195, saying the company is well-run with a valuable portfolio of brands.
Blue-Chip stock to buy: Toyota (TM)
Market value: $240.7 billion
Profit return: 3.2%
Toyota does not have a high social media profile as some companies do. Not hosting its CEO Saturday Night Live. It didn’t have an exciting and exciting merger with a Special Purpose Acquisition Company (SPAC) last year. And no one in the C-suite indulges in space flight.
Everything Toyota does is make cars, trucks and SUVs. He does a darn good job.
In fact, Toyota is the #1 auto maker in the US for the first time. Recently announced 2021 sales figures show that the Japanese company has toppled general motors (New York Stock Exchange:GM) sold the most cars in the US last year.
The company sold 2.33 million vehicles in the United States last year, an increase of 10.4% from a year ago.
And because it does things the right way, Toyota is also making headway in the lucrative field of electric vehicles. In October, it announced a $3.4 billion investment in battery development and production in the United States. The project includes a $1.3 billion battery factory scheduled to open in 2025.
At the date of publication, Patrick Sanders did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 he was head of the investment advisory division of US News & World Report. Follow him on Twitter at @1 Patricksander.