There was palatable fear earlier this week, ahead of the staggering consumer price index number that came out Wednesday, and with good reason. The 9.1% increase for June was the highest since June of 1981, and some even feel that it could have been closer to 10%. Either way, Americans are paying more for everything. While the peak inflation narrative is working its way across Wall Street, and we may see improved numbers next month as oil has plummeted, only time will tell.
One thing inflation does is ravage stock portfolios. With both the Nasdaq and the S&P 500 in bear market territory, it makes sense to look for stocks that do well in inflationary times and pay dependable dividends. We screened our 24/7 Wall St. research universe looking for stocks in sectors that have historically done well, and energy, gold and real estate showed up in a big way. The timing looks right for both energy and gold, as both sectors have been slammed recently.
We then screened those three sectors looking for stocks rated Buy at major Wall Street firms that come with dependable dividends and offer solid entry points. Seven companies look like great ideas now and for the rest of 2022. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Agnico Eagle Mines
This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold-mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States and Sweden.
The company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. The stock has been crushed as gold has sold off last year’s highs. And with a surge of inflation, you can bet many savvy portfolio managers are ready to add back top companies like this. Agnico Eagle has declared a cash dividend every year since 1983.
Shareholders receive a 3.62% dividend. The BofA Securities price target on Agnico Eagle Mines stock is $60, but the consensus target is higher at $90.21. Shares closed almost 2% higher on Wednesday at $44.74.
Exxon Mobil
The recent back-up in oil pricing has this integrated giant trading at levels printed earlier this year and offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
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