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- These 3 Stocks In My Portfolio Have Crushed The Market In 2022
These 3 Stocks In My Portfolio Have Crushed The Market In 2022
The S&P 500 has been down as much as 24% in 2022. These 3 stocks have been CRUSHING the market.
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Today we’ll be exploring the 3 stocks that have held up the best for me in 2022.
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These 3 Stocks In My Portfolio Have Held Up The Best In 2022
Highlights
Healthcare, Energy, and beverage stocks have held up well in 2022.
United Healthcare has been a strong performer due to its diversified business model.
Pepsi and Exxon Mobil are both stable companies with strong histories of dividend growth.
2022 So Far
2022 has been the year for stocks to come back to Earth.
After a stimulus-fueled rally pushed us from 2020 COVID lows to astronomical heights in the span of less than 2 years, the market is finally giving us a much-needed correction.
Growth without pullbacks or corrections is unhealthy and unsustainable in the long run. Like a plant needs pruning, stocks need pullbacks to grow.
Growth stocks have been especially hammered this year, with some pandemic darlings down over 75% (see: PTON -77% YTD). Dividend stocks have been no exception to the carnage. The Vanguard Dividend Appreciation ETF (VIG) is down 9.72% YTD.
But not all dividend stocks have suffered.
I have 3 stocks in particular that have outperformed my other holdings YTD. With the S&P 500 hovering around -20% for the year, the fact that all 3 of these stocks are in positive territory means that they are each BLOWING away the overall market’s returns.
I’m excited to break down each of these businesses for you! These names may be familiar to you but that’s the beauty of investing—you can own boring companies that sell the stuff people use every day and become very wealthy. You may even learn something new about these businesses as well.
Let’s jump in!
Stock #1: United Healthcare (UNH)
United Healthcare has chugged along quite nicely this year. The insurance/healthcare solutions company is one of my strongest conviction holdings and is up 5.52% this year at the time of publishing. United Healthcare's business consists of 2 divisions: Healthcare and Optum.
Healthcare
The Healthcare division's goals are:
• Offer a full range of health benefits
• Enable affordable coverage
• Simplify the healthcare experience
• Deliver access to high-quality care
Optum
Optum’s goal is to:
• Deliver care aided by tech & data
• Empower people, partners, and providers with the tools they need to achieve better health.
Optum serves customers through 3 segments:
Optum Health: Provides care directly through local medical groups.
Optum Insight: Provides data, analytics, research, consulting, and tech solutions to hospitals.
Optum Rx: Offers a full spectrum of pharmacy care services that are making drugs more affordable.
Dividend Breakdown
10-Year Dividend Growth Rate: 23.52%
Dividend Payout Ratio: 18.56%
Dividend Yield: 1.29%
Years of Dividend Growth: 12
For more on United Healthcare, check out my thread:
I spend hours deep diving into $UNH business so you don’t have to
Here’s what you need to know 🧵
— Dr. Dividend🥼💰 (@DrDividend47)
12:57 PM • Sep 1, 2022
Stock #2: Pepsi (PEP)
Aside from making snacks and drinks, Pepsi has been as stable as they come in 2022. Shares are up 4.83% at the time of publishing and the beverage and snack giant is showing its prowess as one of the most recession-proof stocks there is.
Pepsi's business consists of 7 divisions: PepsiCo Beverages North America, Frito-Lay North America, Quaker Foods North America, Europe, Africa, Middle East, and South Asia, Latin America, and Asia Pacific, Australia, New Zealand, and China.
PepsiCo Beverages North America
The PepsiCo Beverages North America Division has products such as:
Pepsi
Gatorade
Mountain Dew
Aquafina, and
Tropicana
It also had product partnerships with Unilever’s Lipton Tea and Starbucks.
PepsiCo Beverages North America Division contributed to 32% of 2021 earnings.
Frito-Lay North America
The Frito-Lay North America Division has products such as:
Lays
Doritos
Ruffles
Cheetos
Fritos
It also includes a partnership with the Strauss group for Sabra brand chips and dips.
Frito-Lay North America accounted for 25% of 2021 earnings.
Quaker Foods North America
The Quaker Foods Division has products such as:
Quaker Oats
Rice-A-Roni
Pearl Milling Company Products
Quaker Foods accounted for 3% of 2021 earnings.
Rest Of The World
PepsiCo does a substantial amount of business in Europe, Africa, Australia, and Asia. The company leans on its core products:
Lays
Doritos
Mountain Dew
Aquafina
Cheetos
Rest Of The World accounted for 40% of 2021 earnings.
Dividend Breakdown
10-Year Dividend Growth Rate: 7.77%
Dividend Payout Ratio: 63.66%
Dividend Yield: 2.58%
Years of Dividend Growth: 50👑
Stock #3: Exxon Mobil (XOM)
In a year riddled with supply chain issues, inflation, and threats of war, no sector has benefitted more than the energy sector. Exxon Mobil (XOM) is up an astounding 76.4% YTD and oil demand is very likely here to stay due to the worldwide energy shortage.
Exxon Mobil has 3 primary business divisions: Upstream, Downstream, and Chemical.
Upstream
The Upstream division is responsible for the:
Exploration
Development
Production &
Marketing of Oil & Natural Gas
Upstream accounted for 64% of 2021 earnings.
Downstream
The Downstream division is comprised of:
Fuel Production
Fuel Sales
Manufacturing
Logistics
Pipelines
Downstream contributed to 8% of 2021 earnings.
Chemicals
The Chemicals division produces:
Olefins
Polyolefins
Aromatics
And a variety of other Petrochemicals.
These chemicals are used in plastics, packaging, synthetic rubber, bumpers, flexible PVC, medical equipment, and more.
Chemicals contributed to 28% of 2021 earnings.
Dividend Breakdown
10-Year Dividend Growth Rate: 5%
Dividend Payout Ratio: 25%
Dividend Yield: 3.22%
Years of Dividend Growth: 39
Final Thoughts
The biggest benefit of diversification is that when the overall market is in the dumps like it has been in 2022, you'll have some stocks that will keep your portfolio afloat. The 3 stocks I mentioned (UNH, PEP, XOM) each come from different sectors, yet have held their own against the broader market.
UNH, PEP, and XOM have been great additions to my portfolio, and I'm excited to see how they continue to perform. I think they could be great long-term investments for anyone looking to diversify their portfolio.
Memes Of The Week
Rumor has it that Sam Bankman-Fried (fraudulent founder of FTX —the now defunct crypto exchange) has filmed a sex tape with the CEO of his other fraudulent company Alameda Research. An anonymous FTX employee is threatening to leak it and some people are patiently waiting for some reason:
After (presumably) being visited by the 3 ghosts of Christmas, Jeff Bezos has decided to give away large portions of his wealth. This made me LOL:
Ohio scares the fuck out of me and I will never visit out of fear of running into one of these wretched things:
Some golden tweets:
Had to throw a funny cat pic:
This is just cool:
The Dose Of Dividends Podcast Is Available Now!
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Pick Stocks Like A Sniper
The number one question I get from people is, “How do you know which metrics to use when researching a stock?” There are hundreds to choose from and it can be incredibly overwhelming. I felt overwhelmed when I started too, so I decided to write a book to help people skip over the overwhelming part of stock picking and confidently jump right in!
My book, “Stock Market Sniper: How To Use The Metrics That Matter To Pick The Most Profitable Stocks” is out now! You’ll walk away from this book knowing the metrics that matter when investing and how to use them to pick the best stocks for your portfolio. These metrics have led me to pick stocks that have outperformed the S&P 500 YTD and contribute over $1,300 in dividend income. Check it out here.
If you’re reading this, chances are you’ve been overwhelmed by the amount of metrics you can use to analyze a stock. It’s not your fault, the stock market is a complicated place.
But it doesn’t have to be.
I’ve written the book, “Stock Market Sniper” to share the metrics that have brought success to me and so many other investors.
After reading this book, you’ll be able to find the metrics that matter most when investing and be able to use them to pick the best performing stocks with confidence.
Helpful Resources Are Here!
Don’t forget to check out my website full of awesome free resources to jumpstart your investing! 👇
Here’s my list of the best resources for financial freedom, enjoy!
Thanks for reading, if you liked this issue remember to tell a friend!
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