Market conditions currently seem confusing and vague as lingering coronavirus tribulations serve as a backdrop to the complex market and economic environment. The consumer price index from December 2021, showed the highest upsurge of prices since 1982, largely driven by low labor supply and supply chain constraints, but demand continues undeterred. The expected high-interest rates might tamp down on inflation and ultimately benefit the bank stocks, but might also impact broader economic growth.
In this article, we’ll take a closer look at some of the best long-term stocks you can buy now to maximize your returns.
Here are the 5 best long-term stocks to buy in 2022
- British American Tobacco PLC (BTI)
- ConocoPhillips (COP)
- MasterCard Inc. (MA)
- Mosaic Co. (MOS)
- Louisiana Pacific Corp (LPX)
1. MasterCard Inc.
While the MasterCard’s logo appears on many debit and credit cards, the company doesn’t extend lines of credit or take deposits; instead, it serves as an intermediary whose main work is to process payments. With the revenue generated from the transaction fees levied on, MasterCard’s profits seem to move in line with the consumer economy. For instance, during the period of inflating prices and high demand, revenue grew by 30% and ultimately the net income went up by 46%. Besides this traditional business plan, there are many growth opportunities with market expansions; pay later systems and buy now, especially in the traditional cash-based global markets.
Second, on our list of the best long-term stocks to buy is ConocoPhillips; it’s the third-biggest oil company in the United States. Most recently, ConocoPhillips has been very active in Texas, with a deal to buy Royal Dutch Shell PLC Permian assets for about $9.5 billion. This comes after the acquisition of Concho Resources in 2020 and highlights the company’s dedication to maintain and expand its presence within the United States. The company’s 2022 capital expenditure plan is targeting around 7 billion dollars of shareholder returns. The back-to-back acquisition of Permian properties improves the company outlook with development flexibility, asset diversity, and greater cash flow generation.
3. Louisiana Pacific Corp (LPX)
The number of properties for sale decreased by 57% since the year 2019 causing the prices to rise as builders strive to mitigate. As a result, new homes for sale grew by 12%, putting Louisiana Pacific, manufacture of building materials in a great position to make some contribution and also benefit. Offering products such as engineered wood products, oriented strand board, and siding, Louisiana Pacific Corp was named Home Depots merchandising partner for lumber. As a result, LPXs share price rose by over 90% in 2021. Over the next few years, it’s expected that LPX engineered wood products and oriented strand board business will benefit from the growth in the US property market.
4. Mosaic Co. (MOS)
Mosaic was founded back in 2004, after the merger of Cargill’s crop nutrition division and IMC Global, two renowned brands in the food and mining industries. The entity produces phosphate and potash fertilizers, essential inputs, and requirements for agricultural products. Since 2020, the increased demand for their products from farmers alongside existing international supply constraints sent prices for potash and phosphate up 134% and 100% respectively. Meanwhile, MOS shares have risen over 40% in 2021, and fertilizer producers in the United States posted their top gains in years. In November 2021, Mosaic’s volume sold reduced, but the revenue sales for potash and phosphate grew 67% and 49% respectively, further underscoring the impact of inflated prices. Besides the high prices that cushioned the top-line growth, recently the company seems to have embarked on various transformation initiatives over the past few years and this has resulted in rising cash flow, lower costs, and improved operational efficiency.
5. British American Tobacco PLC (BTI)
Based in London, British American Tobacco sells tobacco, cigarettes, and other nicotine products. Recently, the stock has been pretty hot, rising around 17% in December 2021. From an assessment viewpoint, the entity has an impressive price-earning ratio of 11, lower than key competitors Altria Group Inc. and Phillip Morris International. It isn’t surprising that British American Tobacco pays one of the best dividends among its peers, offering a 58% dividend payout ratio and 7.1% dividend yield.