Investors faced more than their fair share of calamities in 2022. From raging inflation to lingering pandemic-related challenges to the outbreak of war in Europe, last year was seriously challenging.
The following five companies are positioned to navigate this brutal market environment better than just about any other business. All of them can help protect and grow your wealth in the coming year.
1. Lockheed Martin
The U.S. and many of its allies have supplied billions of dollars of military equipment to Ukraine, and they will need to be restocked. With the conflict between Ukraine and Russia showing no signs of ending soon, Ukraine will likely need much more in the way of security assistance.
NYSE: LMT
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Lockheed Martin (LMT 1.15%) produces several key weapon systems that Ukraine is using to defend itself. The defense contractor also manufactures the F-35 fighter aircraft, widely regarded as one of the most important defense platforms for the U.S. and multiple allied nations.
With demand for its products assured, Lockheed Martin is set to generate robust free cash flow in the coming years. It's committed to passing much of this cash on to its shareholders via stock buybacks and a steadily rising dividend payout, which currently yields a solid 2.5%.
2. ExxonMobil
Conflict in Europe is also increasing the demand for reliable sources of energy. U.S.-based producers, such as ExxonMobil (XOM 1.37%), stand to benefit from this trend.
NYSE: XOM
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Exxon generated a staggering $43 billion in net profits during the first nine months of 2022, driven by higher oil and natural gas prices. Although energy prices pulled back from their highs, they're likely to remain elevated in the coming years. That's because many oil and gas companies curtailed their spending on new growth projects, which is making it difficult for them to increase production.
But for Exxon investors, high oil and gas prices equated to hefty dividends and fortune-building share-price appreciation in 2022. Those gains appear set to continue, and the energy titan's shares currently yield an ample 3.3%.
3. Deere
Deere (DE 0.98%) is also benefiting from higher prices in its end markets. Elevated crop prices are driving farmers to invest in new and better equipment. That's leading to booming sales of Deere's tractors and other agricultural machinery.
NYSE: DE
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Deere sees more gains ahead. The company expects net profits to grow to as much as $8.5 billion in the coming year, up from $7.1 billion in fiscal 2022. With the company's roughly $1.3 billion in annual dividend payments, that projected level of profitability leaves plenty of room for Deere to boost its cash payout to investors. The farming equipment-maker's stock currently yields 1.1%.
4. Walmart
With inflation taking a toll on their budgets, consumers are searching for ways to save money. For many people, this means shopping at Walmart (WMT +0.37%).
NASDAQ: WMT
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The discount-chain leader is well known for its low prices. That's particularly true for its massive grocery business. The cost of groceries and dining out rose sharply over the past year, and more shoppers have turned to Walmart to reduce their food-related spending.
Higher sales should fuel Walmart's profit -- and, by extension, dividend growth. The shares of the retail colossus currently yield a respectable 1.6%.
5. McDonald's
The trend toward cost saving is also a boon for McDonald's (MCD 2.80%). When people want to trade down to less-expensive cuisine, they often think of the fast-food giant's Dollar Menu and other low-priced fare.
NYSE: MCD
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In addition to its discount-priced menu, McDonald's automated drive-thru lanes, convenient delivery service, and popular mobile app are helping it win market share. These increased sales and profits are leading to larger dividend payments for shareholders.
McDonald's recently upped its quarterly cash payout to investors by 10%, to $1.52 per share, boosting its annual yield to 2.3%. That marked the restaurant king's 46th consecutive year of dividend raises, a trend that's likely to continue for many more years to come.
