15 Stocks That Can Weather Inflation

Inflation is hitting 40-year highs, eroding the buying power of each dollar that goes to essentials (like food, shelter, and energy) and nonessentials alike. A dollar well placed in the stock market, however, has a good chance of holding its ground and more.

Equities have long been viewed as inflation hedges, especially for companies that are in a position to offset their own rising expenses by passing the rising costs on to the end user. Some sectors will do better than others, and no inflationary cycle is exactly alike.

That said, here are 15 stocks that might do particularly well, given the economic moat around their businesses and their own records of profitable performance and growth.

5 Stocks Under $49
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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Kroger (NYSE: KR) is one of the nation's largest retailers. The Cincinnati-based company has nearly a half million employees at its 2,800 supermarkets and multi-department stores, 45 distribution centers, and even 142 jewelry stores in 35 states. That gives it a lot of scale and pricing power to withstand inflation. Kroger stock is trading at about $49 a share and with a dividend yielding 1.71%.

Brixmor Property Group (NYSE: BRX) is a New York City-based real estate investment trust (REIT) that owns 386 shopping centers anchored by major brands such as TJX Companies stores, Kroger and Publix grocery stores, and Ross Stores. The company is investing heavily in redevelopment, and a lot of its current leases are expiring in the next couple years, setting the stage for income-boosting rent increases. Brixmor stock is currently trading at about $26 a share and yielding about 3.62%.

ALSO READ: Here's Why This Retail REIT Isn't Worried About Inflation

Digital Realty (NYSE: DLR) owns and operates more than 280 data centers in 26 countries on six continents. The Austin, Texas-based REIT has grown from simple data storage to providing essential full interconnectivity among cloud service providers and digital networks spanning the globe. Digital Realty stock has sold off some lately after it took a 55% stake in a major African data center operator, but that buy just further solidifies this great company’s ability to compete and thrive going forward. Its stock has been trading at about $155 a share and yielding about 3%.

Costco (NASDAQ: COST) has about 830 warehouse stores in countries worldwide, with 572 of them in the United States. The Seattle-based retailer has a growing e-commerce business, pricing power against inflation, and a very loyal customer base that can help carry it through inflationary times better than many others. It’s a pricey stock, trading at about $503 a share lately with a yield of about 0.63%.

Global Partners (NYSE: GLP) says it fills about a million tanks a day at its 1,600 retail stations across the Northeast. The Boston-based company also operates 21 terminals, serving wholesale buyers along with all those retail and commercial customers at the end of the pipeline. The company’s stock is trading at about $27 a share and yielding an inflation-beating 8.68%.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Brookfield Infrastructure Partners (NYSE: BIP)(NYSE: BIPC) is one of the largest providers of critical infrastructure systems in the world. The Canadian company is involved in the movement and storage of energy, water, freight, passengers, and data. Its inflation resistance may well be bolstered by increased infrastructure spend in the U.S., too. BIP stock is currently trading for about $60 a share and yielding about 3.42%.

ExxonMobil (NYSE: XOM) is one of the world’s largest publicly traded energy companies, refining and marketing petroleum products on a massive scale. The Dallas-based multinational also owns and operates one of the world’s largest chemical companies. ExxonMobil stock is currently trading for about $72 a share and yielding an attractive 4.9%.

Southern Company (NYSE: SO) provides electricity and natural gas to more than 9 million customers in four states, as well as fiber optics and telecommunications services. Like all public utilities, there’s a natural moat around its core business courtesy of the market monopolies long granted to these providers of essential services. The Atlanta-based company’s stock has been trading at about $69 a share and yielding 3.85%.

Amazon (NASDAQ: AMZN) merits mention on this list because the moat around its business encircles so much of today’s world of e-commerce and data storage and more, including some very popular grocery stores. Earnings for this Seattle-based corporate giant are expected to just keep growing, inflation or no, and its stock price is now about $3,240 a share, which is actually down from a 52-week high of nearly $3,800. Keep in mind, it doesn’t pay a dividend. This ultimate growth stock doesn’t have to.

Vanguard Real Estate ETF (NYSE: VNQ) is an exchange-traded fund (ETF) that tracks the MSCI US Investable Market Real Estate 25/50 Index by investing in a weighted portfolio of REITs, many of which are in inflation-resistant sectors themselves. This is a nice way to buy exposure to a pool of 168 stocks that’s currently trading for about $109 a share and yielding 2.68%.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Federal Realty Investment Trust (NYSE: FRT) has a portfolio of high-quality properties -- mainly retail -- in and around affluent coastal markets such as Washington, D.C.; Boston; San Francisco; and Los Angeles. Federal Realty stock is trading at about $133 a share and yielding about 3.22%, and this Bethesda, Maryland, operation is also the only REIT on the short list of Dividend Kings, which are companies that have raised their dividends for at least 50 straight years. That’s a lot of economic cycles.

ALSO READ: Everything You Need to Know About Dividend Kings

Duke Realty (NYSE: DRE) is a well-regarded member of the industrial REIT sector, one of the hottest there is right now, given the ability for property owners to raise the rent while filling every corner they can provide of warehouse space. Indianapolis-based Duke Realty serves key supply nodes in 19 markets and bills itself as the nation’s largest domestic-only logistics REIT. Its stock is trading at about $60 a share and yielding 1.87%, but its total return in the past year is more like 57%.

ALSO READ: How to Calculate Total Stock Returns

Innovative Industrial Properties (NYSE: IIPR) is a pot stock, but not like the others. This San Diego-based operation buys and leases growing facilities to licensed medical marijuana providers and is already active in about 20 of the 35 states in which that’s legal. This is a dandy, inflation-resistant niche that’s seen the company’s stock soar since it went public five years ago, and shares now trade for about $210 a share and yield 2.86%.

Newmont (NYSE: NEM) is a good choice for gold bugs who don’t want to mess with owning the precious metal themselves but want to invest in its inflation-fighting value. The Denver-based company stakes its claim as the world’s largest gold miner. Newmont stock is trading at about $61 a share and yielding about 3.59%.

Walgreens Boots Alliance (NASDAQ: WBA) is not just relying on pharmaceutical and other sales inside its more than 9,000 stores across the country; it’s also building out a network of clinics to provide direct care. Plus, there’s digital sales. That’s a nice combination of essential services to combat inflation for the Chicago-based company whose stock is trading at about $54 a share and yielding 3.52%.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Inflation is going to come and go, and right now it’s really coming on. Rising interest rates will only complicate matters even more for investors, but the 15 companies we shared here are all have good prospects of handling rising prices just fine. Each and all can help position your portfolio for the months and years ahead.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Marc Rapport owns Amazon, Innovative Industrial Properties, and Vanguard Real Estate Index Fund ETF. The Motley Fool owns and recommends Amazon, Costco Wholesale, Digital Realty Trust, and Innovative Industrial Properties. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, and The TJX Companies and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy