Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Top five global value stocks for 2022
After years of US high-growth tech dominance, the sector has fallen out of favour as the world moves past Covid-19. In its place are the overlooked “value” stocks, such as energy and consumer staples. With interest rates set to rise, investors are actively buying value stocks. But as they do, the question is, how to identify value stocks.
Head of distribution at ETF Securities, Kanish Chugh, says one strategy is to target US companies with larger dividends, as only companies trading on lower prices can pay larger dividend yields:
AbbVie (NYSE: ABBV) – Develops, markets and distributes a range of healthcare products under the label Big Pharma. It works in immunology, virology, neuroscience and oncology. AbbVie is known within the pharmaceutical industry for its success in innovation. The company has more than ten programs in their final Phase and it recently posted solid fourth-quarter results largely in line with estimates.
Citigroup (NYSE: C) – Is one of the world’s largest commercial banks and fourth-biggest US lender by assets. ETF Securities says, “Its share price has underperformed its Wall St peers – JP Morgan and Bank of America – in recent years as the firm has exited non-US retail banking. Under its new CEO, the firm is focusing on commercial and retail banking in its home US market, doubling down on its highly regarded wealth management and trading divisions. As of February 2022, Citigroup currently has the lowest price-to-book value of the big Wall St banks.”
Boston Properties (NYSE: BXP) – Is one of the largest office property developers and managers in the world. Its portfolio consists of mainly high-end properties in Boston, Los Angeles, New York, and San Francisco. But BXP’s share price was hammered during Covid-19 and the ongoing trend to work from home. So far its share price is below pre-Covid levels, but it is still paying a strong dividend yield.
Bristol-Myers Squibb (NYSE: BMY) – Is one of the biggest names in global healthcare focusing on new drugs that can treat serious diseases such as cancers, heart diseases and arthritis. Its cancer-treating drugs Revlimid and Opdivo are the company’s two main products. The stock is also Buffett’s best blue-chip bargain stock. An anti-bubble high-yield opportunity that is trading at just 7.4X forward earnings.
Coca-Cola (NYSE:KO) – “Warren Buffett got his first job as a child selling Coca-Cola for his grandfather’s grocery store. As a young boy, he noticed just how easy it was to sell Coke. He became a shareholder in 1988, served 17 years on the board of directors, and is to this day the company’s biggest shareholder. Why does he like Coke? For a simple reason: it is a globally recognised brand that continues growing,” says ETF Securities.
