In brief:

• This article lists 10 Company Stocks to Watch in 2022.
• 5 stocks are selected from the top 10 Dividend Aristocrats based on expected annual return as indicated by Wallstreet’s analysts.
• 5 European stocks are selected from the top 10 European Dividend Aristocrats based on expected annual return as indicated by analysts.
• These top 10 stocks represent attractive long-term buys for dividend growth investors.

Investors around the globe are currently facing a volatile market with high inflation and fears of several interest hikes and the risk of a war scenario in Ukraine. Value stocks with a strong brand and a long-standing dividend track record could reduce some of this volatility.

In this article, we will be taking a look at the top 10 stock picks for 2022, based on 5 US and 5 European stocks.

 

1. Target (TGT) is a retail department store chain with nationwide US operations. As the eighth largest retailer in the United States, Target offers customers everyday essentials and fashionable, differentiated merchandise at discounted prices. After a strong performance over the last 5 years (+221.86%), the stock price pulled back and is year-to-date down -8.59%. However, Target has shown a consistently grown revenue and net income over the last 5 years and the company’s fundamental still look strong. The Wallstreet average target price is $279 (about a 30% increase).

2. Pentair (PNR) engages in the provision of water solutions for residential, commercial, industrial, infrastructure, and agriculture applications. Its portfolio of solutions enables people, businesses, and industries to access clean, safe water, reduce water consumption, and recover and reuse it. The Company reported strong figures over 2022 and anticipates full-year 2022 sales to be up approximately 6 to 9 percent. The Wallstreet average target price is $76 (about a 30% increase).

3. Medtronic (MDT) is the largest manufacturer of biomedical devices and implantable technologies in the world. The company serves physicians, hospitals, and patients in more than 150 countries and has over 90,000 employees. The company is a dividend aristocrat raising its annual dividend over 40 years in a row. The dividend yield is 2.36%, and it is safe when seeing the 50% payout ratio. The Wallstreet average target price is $128 (about a 24% increase).

4. Walmart (WMT) engages in the operation of retail, wholesale, and other units worldwide and is one of the most well-known dividend aristocrats with all its retail stores in the US. Walmart has been a consistently stable and popular stock. The food-inflation impact on consumers and Walmart’s customer still have to unfold, but Wallstreet’s Analyst’s forecast remains optimistic. The average target price is $167.5 (about a 24% increase).

5. Dover (DOV) is not only a dividend aristocrat but also a dividend king with over 50 years of consecutive dividend increases. Dover provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. Dover generated revenue of $7.9 billion in 2021 (Full-year), an increase of 18% (+15% organic) compared to the prior year. In 2022, Dover expects to generate EPS in the range of $7.45 to $7.65 (adjusted EPS of $8.45 to $8.65 vs. consensus of $8.49), based on full-year revenue growth of 8% to 10%. Dover has a leadership position in its industry and durable competitive advantages. The Wallstreet average target price is $197 (about a 23% increase).

 

 

6. Fresenius SE & Co. KGaA (FRE.XETRA) is a European health care group, that provides products and services for dialysis, hospitals, and outpatient medical care worldwide. The company is one of the few true European dividend aristocrats with 28 years of consecutive dividend increases. The company reported strong Q3-figures and will report the FY-2021 figures on February 22nd,2022. Fresenius SE  current dividend yield of 2.36% is 31% above its 5-year average. The 5-year average dividend yield is 1.80%. This indicates the stock may be undervalued today. The average target price is €50 (about a 35% increase).

7. Fresenius Medical Care (FME.XETRA) is a healthcare company from Germany with a market capitalization of approximately $20 billion. The company is the world’s leading provider of products and services for patients with renal diseases. Since the founding of the company in 1996, Fresenius Medical Care has been able to increase its dividend on average by 9% every year. The average target price is €67.5 (about a 17% increase).

8. Coloplast (COLO.CO) the global health company from Denmark develops products and services that make life easier for people with very personal and private medical conditions. Coloplast delivered solid Q4 organic growth of 10% and 32% EBIT margin. In the last quarter report, the organic revenue growth guidance remained unchanged, which is expected to be around 7%. The average target price is 1094 DKK (about a 17% increase).

9. Novartis (NOVN) is a swiss pharma company that researches, develops, manufactures, and markets healthcare products worldwide. Novartis also raised its proposed dividend for 2021 by 3.3% to 3.10 francs per share. This is the 25th increase since Novartis was founded in 1996. In Q4, top-line sales grew by 4% to 13.2 billion US dollars, in line with the consensus estimate, thanks to the strong performance of innovative drugs (+5%). The average target price is 89 CHF (about a 12% increase).

10. Wolters Kluwer (WKL.AS)  provides professional information, software solutions, and services in Europe, North America, the Asia Pacific, and internationally. This year the share price dropped from an all-time high back to around €88. The company fundamentals didn’t change much during the same period. For more than 30 years, Wolters Kluwer has increased or maintained its annual dividend per share in euros. Since 2007 Wolters Kluwer has been able to increase its dividend payout every year.  The average target price is €96 (about a 10% increase).

 

So, this was our Top-10 for 2022 stocks. Please keep in mind that investments in securities always involve the risk of capital losses, and past results do not guarantee future returns.

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