10 Safe Stocks To Invest in For The Long Term in 2022

In this article, we discuss the 10 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.

Photo by Stephen Dawson on Unsplash

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. 

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.

5. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 70

The Coca-Cola Company (NYSE:KO) is a dividend aristocrat, and has raised its dividend payments to shareholders for 60 consecutive years. This is testament to the firm’s market dominance and financial stability over the course of many decades. Its Coca Cola beverage is a household product all around the globe. Warren Buffett, arguably the world’s most famous and successful investor, has been building his position in The Coca-Cola Company (NYSE:KO) for decades, and is also the top shareholder of the firm in the fourth quarter with 400 million shares valued at $23.68 billion. In total, 70 hedge funds were long on the company shares during the fourth quarter, up from 61 hedge funds a quarter ago.

In the fourth quarter, The Coca-Cola Company (NYSE:KO) reported an EPS of $0.45, exceeding consensus estimates by $0.04. Quarterly revenue was up 10.08% year-on-year, coming in at $9.47 billion and outperforming analysts’ estimates by $579.32 million.

Evercore ISI analyst Robert Ottenstein in February maintained an ‘Outperform’ rating on The Coca-Cola Company (NYSE:KO) shares, and increased the price target to $70 from $63. Ottenstein sees the beverage-maker improving its long-term outlook and business model, and notes potential for continued sales growth of 5-6%, steady dividend increases and share buyback programs. The Coca-Cola Company (NYSE:KO) announced in February that it expects to resume its share repurchases in 2022 with a net repurchase of approximately $500 million.

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) provides healthcare and pharmaceutical products around the globe. It ranks as a popular dividend aristocrat which has grown its dividend payments for 59 years in a row.

On March 2, analyst Geoff Meacham of BofA reinstated coverage of Johnson & Johnson (NYSE:JNJ) with a ‘Neutral’ rating and a price target of $185. Given the current macro and geopolitical environment, he likes the firm’s ‘safe haven’ status, and also remains bullish on its near-term growth prospects.

Johnson & Johnson (NYSE:JNJ) posted an EPS of $2.13 for the fourth quarter, exceeding estimates by $0.01. Revenue for Q4 was recorded at $24.80 billion, signalling a boost of 10.36% year-on-year. As of April 4, Johnson & Johnson’s (NYSE:JNJ) share price has jumped 9.03% in the last 12 months, and 11.91% in the last 6 months.

Out of all the hedge funds tracked by Insider Monkey, 83 reported holding positions in Johnson & Johnson (NYSE:JNJ) at the end of the fourth quarter, with combined stakes worth $7.38 billion. Fundsmith LLP was the top shareholder in Johnson & Johnson (NYSE:JNJ) during the fourth quarter, with a stake consisting of 7.21 million shares valued $1.23 billion.

Distillate Capital, an investment firm, talked about many stocks in its Q2 2021 investor letter, and Johnson & Johnson (NYSE:JNJ) was one of them. The fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 158

Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google and its related platforms. With a market cap of  $1.86 trillion, it is one of the most successful companies in the world. In late March, Times Magazine released its list of ‘100 Most Influential Companies In The World’ for 2022, and not surprisingly Alphabet Inc. (NASDAQ:GOOG) ranked among the list.

On March 10, Deutsche Bank analyst Ben Black initiated coverage of Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and a price target of $3,150. He noted that the company is a structural winner from the secular trend of commerce and services shifting from physical venues to digital store mediums, and sees the firm perfectly positioned to benefit from the growing importance of e-commerce within global retail.

For the fourth quarter, Alphabet Inc. (NASDAQ:GOOG) posted revenue of $75.33 billion, which showed an increase of 32.39% year-on-year and beat estimates by $3.50 billion. EPS was recorded at $30.69, outperforming analysts’ estimates by $3.41. As of April 1, Alphabet Inc. (NASDAQ:GOOG) has seen its share price soar 26.44% in the last 12 months, and 5.18% in the last 6 months.

Popular hedge funds held major stakes in Alphabet Inc. (NASDAQ:GOOG) during the fourth quarter of 2021. In total, 158 hedge funds were bullish on the company shares, as opposed to 156 in the previous quarter. TCI Fund Management was the top shareholder of the tech firm over the fourth quarter, with a $8.54 billion stake consisting of 2.95 million shares.

Vulcan Value Partners, an investment firm, gave its views regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2021 investor letter. The fund said:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 262

Microsoft Corporation (NASDAQ:MSFT) is a tech giant which provides software and computer hardware services around the globe. It also recently featured on Time Magazine’s list of the most influential companies in the world.

Jefferies analyst Brent Thill on March 16 noted that Microsoft Corporation’s (NASDAQ:MSFT) emerging Power Platform, which is used for app-building and data insights, could be the company’s ‘next growth engine’ and a “multi-billion dollar growth pillar’, with the long-term user opportunity of over 1 billion, as compared to 20 million users today. He gave Microsoft Corporation (NASDAQ:MSFT) a ‘Buy’ rating and a price target of $400.

In the fourth quarter, Microsoft Corporation (NASDAQ:MSFT) reported earnings per share of $2.48, beating consensus estimates by $0.16. $51.73 billion in revenue for the quarter was an increase of 20.09% year-on-year, and exceeded estimates by $938.45 million.

262 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) in Q4 2021, with combined holdings of more than $75 billion. This shows growing investor confidence over the previous quarter, where 25o hedge funds were shareholders of the firm. Fisher Asset Management held a position in Microsoft Corporation (NASDAQ:MSFT) consisting of 26.84 million shares worth more than $9 billion, making it the top shareholder of the firm in the fourth quarter.

Investment firm ClearBridge Investments talked about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter. Here’s what the fund said:

“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. The bulk of these contributions came from U.S. mega-cap growth stocks Apple and Microsoft which continued to uniquely act both offensively and defensively as they have through most of the pandemic.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 279

Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of safe stocks to buy and hold long-term in 2022. Deutsche Bank analyst Lee Horowitz in March initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a ‘Buy’ rating and a price target of $4,100. He believes the market does not fully appreciate the upside associated with the firm’s retail revenue and Amazon Web Services, and sees a “highly compelling” risk/reward at current levels. The online retail giant recently closed an $8.5 billion deal to purchase film studios MGM, which will add more than 4,000 film titles to Amazon’s Prime Video streaming service.

Investor confidence is up on Amazon.com, Inc. (NASDAQ:AMZN). In the fourth quarter, 279 hedge funds were long on the company shares, as compared to 242 hedge funds a quarter ago. Fisher Asset Management held 2.16 million shares of Amazon valued at $7.22 billion, making it the top shareholder of the firm in Q4 2021.

Amazon.com, Inc. (NASDAQ:AMZN) posted an EPS of $27.75 in the fourth quarter, beating analysts’ estimates by $24.09. Quarterly revenue stood at $137.41 billion, signalling a jump of 9.44% year-over-year but falling below consensus estimates by $173.16 million.

Here is what Davis Funds, an investment firm, had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:

“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Amazon, trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”

You can also take a look at 15 Biggest Natural Gas Companies In The World and Larry Robbins’ Top Stock Picks.

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Disclosure. None. 10 Safe Stocks To Invest in For The Long Term in 2022 is originally published on Insider Monkey.