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A period of inflation indicates the generalized and sustained increase in goods and services, which results in people losing purchasing power, which negatively affects companies and those investing in the stock market. However, due to the period of war currently being experienced, COVID, and new trends in the world, we cannot ignore inflation.

We have assembled in this guide a list of the 10 best inflation stocks to buy, stocks that have not been adversely impacted by inflation during their history, and information so you can acquire them if you wish through our recommended broker.

The 10 Best Inflation Stocks to Buy in 2022

Listed below are 10 of the best inflation stocks available on our recommended eToro platform, which can be invested in to generate profits inclusive in periods of inflation.

  1. PepsiCo Inc. – Overall Best Inflation Stocks to Invest in Now
  2. American Tower Corporation – Best Inflation Stocks in Real Estate Industry
  3. Newmont Corporation – Best Inflation Stocks in Precious Metals Industry
  4. Baker Hughes Company – Best Inflation Stocks in Oilfield Services or Equipment Industry
  5. BorgWarner Inc. – Best Inflation Stocks in Trucks or Construction Industry
  6. Corning Inc. – Best Inflation Stocks in Electronic Components Industry
  7. KLA Corporation – Best Inflation Stocks in Semiconductors Industry
  8. Eastman Chemical Company – Best Inflation Stocks in Chemicals Major Diversified Industry
  9. EOG Resources Inc. – Best Inflation Stocks in the Oil & Gas Production Industry
  10. JD.US – Best Inflation Stocks in the Internet Retail Industry

A Closer Look at the Best Inflation Stocks to Invest in

Due to the sustained periods of inflation and the unstable situation we find ourselves in due to what is happening in the world today, we have decided to prepare a list of 10 of the best inflation stocks of very stable and high-performing companies that you may review in-depth, as well as indicators of their overall performance.

1. PepsiCo Inc. – Overall Best Inflation Stocks to Invest in Now

inflation stocksThe company was founded in 1965 and has its headquarters in Purchase, New York. Also, it has the largest portfolio of billion-dollar food and beverage brands globally, including 22 different product lines with annual retail sales exceeding $1 billion.

In addition to their main businesses – Frito-Lay, Quaker, Pepsi-Cola, Tropicana, and Gatorade – they also manufacture hundreds of other nourishing, tasty foods and drinks that bring joy to consumers worldwide. The company has 309,000 employees and is part of the Consumer Non-Durables sector and the Beverages Non-Alcoholic industry.

PepsiCo is listed on the NASDAQ under the ticker PEP. As part of our review, we noted that in 2004 the share was worth $25.27 and now has a value of $169.58, which represents a very large change in value. Additionally, its market capitalization is $239.3B, and it pays a dividend of 4.3 and a yield of 2.49%. Additionally, we observe a gross margin of 53.53%, a net profit margin of 14.38%, an operating margin of 11.52%, and a return on investment of 16.69%.

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2. American Tower Corporation – Best Inflation Stocks in Real Estate Industry

how does inflation affect stocksIn Boston, Massachusetts, the company was founded in 2011 and operates throughout the Americas, Europe, Africa, and Asia. American Tower Corporation is a real estate investment trust focused on developing, managing, and operating multi-tenant with a portfolio of over 170,000 communications sites.

American Tower is a Fortune 500, S&P 500, and Forbes Global 2000 company that provides the infrastructure for modern digital communications. Also, American Tower began in 1995 with 2,700 towers. Its portfolio now includes over 220,000 owned or managed sites worldwide and operates in two segments; rental and management and network development services.

It is available on the NYSE under the ticker AMT. Some relevant data is that in 2015 it had a market value of $95.73 per share, and it has increased by $256.60 per share. In addition, it has a market cap of $117.24B and pays dividends of 3.78 with a yield of 1.47%. Furthermore, among its key indicators, we found a gross margin of 46.41%, a net profit margin of 21.72%, an operating margin of 35.77%, and a return on investment of 5.01%.

best inflation stocks

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3. Newmont Corporation – Best Inflation Stocks in Precious Metals Industry

stocks for inflationNewmont Corp. was founded in 1921 by William Boyce and has its headquarters in Denver, Colorado. This mining company is engaged in exploring and producing natural resources, including gold, copper, silver, zinc, and lead. In addition to its mining operations in North America, South America, Australia, and Africa, Newmont Mining Corp also develops oil and gas resources.

The company is regarded as a leader in its field and is the only gold producer included in the S&P 500 index as of December 2021. As another achievement, in 2007, the company became the first gold mining firm to be included in the Dow Jones Sustainability World Index. In addition, Newmont Corp. is a leading provider of value creation, backed by robust safety standards, superior execution, and technical expertise.

Newmont Mining Corp. is listed on the NYSE under the ticker symbol NEM. Among some key characteristics, we can point out that the stock had a value of $25.15 per share in 2015 and is currently worth $84.21, in addition to its market cap of $66.81B and grants dividends of 0.67 with a yield of 0.79%. Additionally, we found that it has a gross margin of 19.49%, a net profit margin of 12.97%, an operating margin of 15.72 %, and a return on investment of 4.95%.

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4. Baker Hughes Company – Best Inflation Stocks in Oilfield Services or Equipment Industry

inflation stocks to buyFounded in 1987, the company is incorporated in Delaware, with its headquarters in Houston, Texas. Baker Hughes Company is a leader in integrated oilfield products and services, and digital solutions focused on the oil and gas value chain with the mission to provide customers with solutions to acquire, transport, and refine hydrocarbons more efficiently.

In addition to oilfield services, the company offers a variety of chemical, pipeline, and energy technologies, organized into four distinct segments: Oilfield Services, Oilfield Equipment, Turbomachinery & Process Solutions, and Digital Solutions. Additionally, the company has entered into a strategic partnership with Air Products and Chemicals, Inc. to develop hydrogen compression systems.

Under the ticker BKR, Baker Hughes Company trades on the NYSE. According to some relevant data, in 2019, the company’s share price was $22.19 per share, and currently, it is up by $37.20; in addition to that, its market capitalization is $35.48 billion, and it pays a dividend of 0.72, with a yield of 1.93%. Furthermore, we analyzed that the company has a gross margin of 19.73%, an operating margin of 7.70%, and a return on investment of -9.87%, among other key indicators.

inflation proof stocks

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5. BorgWarner Inc. – Best Inflation Stocks in Trucks or Construction Industry

stocks to buy during inflationFor over 130 years, BorgWarner has delivered innovative and sustainable mobility solutions to customers worldwide, leading the automotive industry to a cleaner, healthier, and safer future. Their product line includes automotive parts for electric, hybrid, and combustion vehicles, timing systems, transmission chains, and emissions systems.

There are four segments within the Company: Air Management, e-Propulsion & Drivetrain, Fuel Injection, and Aftermarket, and it is among the 25 largest automotive suppliers in the world. In addition, BorgWarner has acquired many other automotive companies over time, giving BorgWarner an extensive (as in large) history in the automotive field.

BorgWarner is listed on the NYSE under the ticker BWA. Our analysis reveals that in 2012, the stock had a market value of $33.81 per share and currently trades at $39.32 per share. Its market cap is $8.84 billion, and it grants dividends of 0.68 with a yield of 1.85%. Further analysis of the key indicators indicates that it has a gross margin of 19.25%, a net profit margin of 5.84%, an operating margin of 9.33%, and a return on investment of 8.76%.

stocks that do well in inflation

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6. Corning Inc. – Best Inflation Stocks In Electronic Components Industry

best stocks during inflationThe firm is headquartered in Corning, New York, originally founded in 1851. The company is a multinational technology company that provides solutions to a worldwide customer base in optical communications, consumer electronics, and life sciences. In addition, it achieves success through sustained investment in research and development, a combination of material, process innovation, and a network of trusted relationships with customers who are global leaders in their fields.

As one of the world’s leading innovators in materials science, Corning has created life-changing inventions for 167 years. They develop category-defining products using Corning’s unparalleled expertise in glass science, ceramics science, optical physics, and our deep manufacturing and engineering capabilities. Also, they transform industries and enhance people’s lives through them.

Under the ticker GLW, the company trades on the NYSE. According to some relevant data, the company’s value was $19.33 per share in 2011 and currently stands at $33.67 per share. Moreover, its market capitalization is $28.64 billion, and it gives a dividend of 0.99 with a yield of 2.92%. Among other key indicators, the research revealed a gross margin of 34.70%, a net profit margin of 6.19%, an operating margin of 14.64%, and a return on investment of 3.88%.

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7. KLA Corporation – Best Inflation Stocks in Semiconductors Industry

stocks that benefit from inflationEstablished in 1975 as KLA-Tencor, the company was renamed in 2019 and has its corporate headquarters located in Milpitas, California. As a semiconductor equipment manufacturer and a nanoelectronics-related company, KLA Corporation designs, manufactures and distributes yield management and process control systems.

Product lines of the company include Chip Manufacturing, Substrate Manufacturing, Reticle Manufacturing, Packaging Manufacturing, Compound Semiconductor / MEMS / HDD Manufacturing, and Instruments; as a global company, it operates locations in China, Europe, India, Israel, Japan, Korea, Singapore, Taiwan, and the United States.

KLA Corporation’s stock is traded on NASDAQ under the ticker KLAC. First, we analyze some relevant data, such as that it had a value of $113.91 per share in 2019 and has now tripled to $336.09. Additionally, its market cap is $50.72B, and it pays dividends of 4.05 with a yield of 1.20. Furthermore, we determined that it has a gross margin of 60.15%, a net profit margin of 24.66%, an operating margin of 38.94%, and a return on investment of 22.78%.

inflation stocks

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8. Eastman Chemical Company – Best Inflation Stocks in Chemicals Major Diversified Industry

best stocks for inflationThe firm was founded in 1920 and is located in Kingsport, Tennessee. Eastman Chemical Company is a global manufacturer of specialty materials. They operate across four business segments: Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. Also, it is a global specialty materials company providing products for use across a range of industries, including transportation, construction, and consumables.

The company is committed to delivering innovative and technology-based solutions while maintaining its commitment to safety and sustainability and now operates more than 50 manufacturing facilities worldwide and employs approximately 14,000 individuals.

On the NYSE, the company is listed under the ticker EMN. Our studies revealed that in 2021 and 2022, its price has varied, but it currently stands at $108.23. Additionally, its market cap is $13.8 billion, and the stock pays a dividend of 2.9 with a yield of 2.68%. Among other key indicators, we also analyzed its gross margin of 24.02%, its net profit margin of 9.45%, its operating margin of 14.01%, and its return on investment of 8.04 %.

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9. EOG Resources Inc. – Best Inflation Stocks in the Oil & Gas Production Industry

best inflation stocksEOG Resources Inc. is an American energy company active in the exploration, development, production, and marketing of crude oil and natural gas worldwide. Founded in Houston, Texas, the firm was originally a subsidiary of Enron Corp, becoming a separate company in 1999.

With proven reserves in the United States, the Republic of Trinidad, the People’s Republic of China, and the Sultanate of Oman, select other international areas from time to time. EOG Resources, Inc. is one of the largest explorations and production companies in the United States. Its goal is to be among the best in the field regarding cost, return, and emissions and to play an important role in the industry’s long-term future.

The company is listed on the NYSE under the ticker EOG. Some of the relevant data we examined was that in 2003 the share was worth $9.23 and now is worth $123.46, achieving an extremely significant increase in value. In addition, the company’s market capitalization is $72.33B, and the dividend yield is 1.88%. Additionally, we analyzed the key indicators and found that it has a gross margin of 45.59 %, a net profit margin of 15.24 %, an operating margin of 37.71 %, and a return on investment of 10.08 %.

stocks for inflation

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10. JD.US – Best Inflation Stocks in the Internet Retail Industry

is inflation good for stocksThe company was established in 1998 and is headquartered in Beijing. Among its products are digital items such as computers and mobile devices, household goods, sports equipment, and media manufactured by JD.com, Inc. and its subsidiaries. The Company is China’s largest retailer, online or offline, and the world’s third-largest Internet company by revenue.

As a result of investing in cutting-edge technologies, JD.com is shaping the future of retail in China and beyond. They are developing innovative solutions for all aspects of their business utilizing big data, artificial intelligence, robotics, computer vision, virtual and augmented reality, unmanned vehicle systems, and more.

On the NASDAQ, JD.com is listed under the ticker JD.US. According to the data we reviewed, its share price was $25 in 2014 but is now worth $56.51, doubling its value; and its market capitalization is $76.78B, but it does not pay dividends. Further, we analyzed its key performance indicators and found that it has a gross margin of 13.41%, a net profit margin of 1.57%, an operating margin of 0.35%, and a return on investment of 5.96%.

inflation stocks to buy

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How to Judge the Best Inflation Stocks to Buy

Now that we have reviewed the top 10 inflation stocks available on the eToro platform let us look at some of the characteristics to consider or values to ensure profitability.

Performance Vs. Broader Markets

Last year, US inflation rates blasted through the roof, and the trend will continue in 2022. In January, annual inflation spiked to 7.5%, a record level last seen in 1982. In contrast, there is indeed no commodity directly related to inflation stocks. We can analyze the main exchange-traded funds that own inflation-related stocks and how they have performed during this inflationary period in January 2022.

At the beginning of 2022, SPDR Gold Trust ETF had a price per share of $169.43 and is now $183.81, iShares Core S&P 500 ETF had a price per share of $464.19 and fell a lot during periods of inflation but recovered and today is at $444.95. Finally, Vanguard Real Estate ETF had a price per share of $108.95 at the beginning of 2022 and is now at $109.12.

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Operating Costs And Break-Even Price

By referring to inflation stocks, we are referring to many business lines such as Real Estate, Precious Metals, Oil and Gas Production, and Chemicals, among other industries, as you can see by looking over our top 10 inflation stocks.

In order to reach the break-even point, we must ensure that the operating costs of the companies are lower than the revenues they generate so that they are profitable. We can obtain income from holding their shares in addition to dividends. The price of a barrel of oil, according to OPEC, is approximately $106.07 per barrel. After discounting operating costs, the break-even point for companies associated with the oil industry is $41 per barrel. This means that these companies have made an approximate $65 per barrel.

Furthermore, the items discussed in this report and the recommended actions are well above their break-even points, even during periods of inflation. Therefore, you can be assured of achieving profitability even if it takes some time.

Dividend Program

Dividends represent the amount of profit distributed among the company’s shareholders. Therefore, the dividend is an income received by the shareholder due to owning the company. As a result, this would be a decisive factor in choosing a stock, as it generates additional income within the stock, which can be saved or reinvested.

KLA Corp., for example, offers a dividend of 4.05 with a yield of 1.20%, while Pepsico offers a dividend of 4.3 with a yield of 2.49%, and American Tower Corp. offers a dividend of 3.78 with a yield of 1.47%. Most of the inflation stocks presented here have dividend programs, except for JD.COM.

Are Inflation Stocks A Good Investment?

This article discusses the characteristics of companies that offer these inflation stocks and positive indicators that have supported these stocks over time, including periods of great economic change around the world.

For those of you who are uncertain whether investing in inflation stocks is a good idea, we have prepared a series of variables that provide evidence to support why this would be a good option to diversify your portfolio.

Protection Against Inflation

The name of these types of stocks derives from the fact that inflation does not significantly impact these companies’ production costs, margins, or sales volume. Instead, these companies manage to hold their prices and take full advantage of the inflationary environment to increase consumption and value.

As the market is volatile and no specific sector could benefit from high inflation, in the list mentioned above, you can see that these stocks remained stable during the last period of inflation or even got better.

Diversification Of Portfolios

People like to diversify their investment portfolios; however, given the current state of the economy, it is advisable to include inflation-related stocks in your portfolio that will provide you with a guarantee that the price will remain or rise despite the adversities and that you will be able to generate income and dividends, so that you may accumulate or reinvest that money in actions that generate a steady income.

Low Volatility

Due to the nature of inflation stocks, which are usually the stocks of very large and financially well-supported companies, their actions tend to follow a pattern of maintaining their price while gradually increasing it. Nevertheless, since the growth is a bit slow, it is a good investment for those looking for a long-term income.

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Inflation Penny Stocks

In the first instance, you should be aware that the list of the 10 best stocks to buy for inflation which we reviewed previously through eToro, refers to very large companies with adequate capital and historical data to ensure their prices have held up well throughout these difficult times.

Inflation penny stocks were created because small and new companies wished to raise funds for their operations by issuing shares below $5 (US) or £1 (UK). In addition to its high volatility, this product is very much affected by market speculation, which is often manipulated, so you must keep up to date.

Here are two of the best inflation penny stocks of companies that promise to have great development and be supported throughout periods of inflation. It is possible to find the first one on the eToro platform, but the second one should be accessible from another platform.

Harmony Gold

inflation proof stocksFounded in 1950, Harmony Gold is a gold mining company based in Randfontein, South Africa, operating in South Africa and Papua, New Guinea. It is also involved in exploring, extracting, and processing gold deposits and uranium, silver, and copper exploration.

Harmony Gold trades on the NYSE under the symbol HMY. In addition, the company currently has a price per share of $4.8, a market capitalization of $2.972B, a dividend yield of 0.96%, a gross margin of 13.91%, and a net margin of 1.7%.

IAMGOLD Corp

stocks to buy during inflationIAMGOLD Corporation is a Canadian mid-tier gold mining company whose principal activities include exploring, developing, and operating gold mining properties. It operates globally in North America, South America, and West Africa. The company’s mining projects include Rosebel gold, Essakane Gold, Westwood Gold, Sadiola Gold, and Yatela.

IAMGOLD Corp trades on the NYSE under the symbol IAG. Despite having no dividends, it has a gross margin of 0.23%, a price per share of $3.68, and a market cap of $1.77B.

Where To Buy Inflation Stocks

eToro was started in 2007 by Ronen Assia and Jonathan Assia in Israel and is now one of the largest online brokers in the world and secure due to regulations by the FCA, ASIC, and CySEC. Also, the platform is considered to be the “world’s leading social trading network,” with more than 20 million users. Additionally, eToro offers more than 2,000 different financial assets that you may trade, leveraged, or without.

eToro – Overall Best Place To Buy Inflation Stocks

stocks that do well in inflationYou must first open a trading account with eToro to invest in inflation stocks. Therefore, you will have to verify your identity on the platform by uploading your respective IDs, and only then will you be able to deposit funds. It is important to remember that in the USA, the minimum deposit for eToro is $10, which can be made via credit card, debit card, or PayPal, among other methods.

Upon registering and creating your account, you should sign in to your account and look for one of the 10 inflation stocks we recommend in this guide to gather more information about the companies using eToro’s market information and analysis features.

You will need to place the stock you wish to buy in the eToro search engine and click the “Trade” button. Here you will have to decide whether you wish to buy the stock (underlying asset) or as a CFD. However, it would help if you remembered that with a CFD, you use leverage but do not own the stock.

eToro offers 24/7 customer service, and if you are a novice, you can use the copy trade option and analyze the movements of more experienced traders to make money. You can even use the demo version, which provides $100,000 of free trades, to make purchases of inflation stocks until you are confident enough to move to the live account.

best stocks during inflation

eToro allows you access to 19 international markets, including the NYSE and NASDAQ, which can aid you in finding the most appealing inflation stocks to trade. Now let us examine the positive aspects of this platform, which offers the opportunity to trade inflation stocks with zero commissions.

Pros:

  • Inflation stocks are available for purchase at a 0% commission
  • You can buy inflation stocks on 17 international markets
  • Free Demo Account of $100,000
  • An easy-to-use platform for beginners
  • Regulated by the FCA, ASIC, and CySEC
  • It has one of the best stock apps on the market
  • Over 20 million individuals participate in social trading
  • Traders' Ready-Made Investment Portfolios

75.26% of retail investor accounts lose money when trading CFDs with this provider

Conclusion

Considering the present climate of uncertainty, it is desirable to have security over our investment portfolio; therefore, investing in inflation stocks of supported companies with robust indicators and good dividends could be an excellent idea.

Suppose you are interested in investing after reading our top 10 inflation stocks. In that case, we recommend that you do so through a regulated, safe, and reliable broker like eToro, which also offers 0% commissions, and only requires a minimum deposit of $10.

eToro – Overall Best Place to Buy Inflation Stocks

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75.26% of retail investor accounts lose money when trading CFDs with this provider

FAQs

Should I buy inflation stocks now?

As these conditions persist, it is prudent to diversify your portfolio with stocks from resistant and defensive companies to the effects of inflation to ensure greater security in your stock investments.

What are the best inflation stocks to buy now?

From the top 10, we recommend Pepsico with a market capitalization of $239.3B and dividends of 4.3 with a yield of 2.49% and American Tower Corp. with a market capitalization of $117.24B and dividends of 3.78 with a yield of 1.47%.

Can you invest in inflation stocks?

Yes, you can invest. You have to locate a reputable, safe, and regulated broker that provides inflation stocks and participates in many markets, such as eToro, which participates in 17 markets, including NASDAQ and NYSE.

Are inflation stocks a good investment now?

These are good investments as the risk of these stocks collapsing in periods of inflation is low, thus protecting your portfolio even if the profits may not be very high due to the relatively infrequent fluctuations in prices.

Where is the best place to buy inflation stocks?

With eToro, you can find our top 10 inflation stocks by creating an account and trading for as little as $10 with 0% commission.

How do I buy inflation stocks in eToro?

Create an account, provide the necessary documents to verify it, and deposit a minimum of $10; only then can you search for inflation stocks on eToro's platform.

About Alejandra Martinez
About Alejandra Martinez

Multimedia designer, specializing in communication and English-Spanish translation. Interested in economics, history, literature, and geopolitics.

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