Slow growth, rising unemployment, and escalating inflation are the hallmarks of the economic cycle known as stagflation. Stagflation, according to Moody’s, is defined as CPI inflation that is at least 1% higher than the equilibrium target set by the central bank. The economy must experience these circumstances for longer than 6 to 12 months in order for there to be stagflation. For 2022, Moody’s has lowered its prediction for global economic growth to 2.7%. Any policy errors could make a worldwide recession more likely. Defensive industries including gold, consumer goods, healthcare, energy, and utilities fare well during economic turbulence.
Insider Monkey highlights the 10 best stagflation stocks to buy now. The Canadian company Wheaton Precious Metals Corp. was established in 2004 and has its headquarters in Vancouver. The business is a provider of precious metals, such as cobalt, palladium, gold, and silver. Shareholders received the $0.15 third-quarterly cash dividend for 2022 on September 8. The Colorado-based business DaVita Inc. offers renal dialysis treatments to those with chronic kidney failure. The business expects 2022 EPS of $7.50 to $8.00, which is $0.84 higher than the analyst consensus. Apartment communities are owned, managed, acquired, and developed by MAA, a real estate investment company. Rent must still be paid even during economic downturns, which is good news for businesses like MAA. It is therefore among the greatest stagflation stocks to purchase right now. California-based energy services holding firm Sempra. As of September 26, the company has a dividend yield of 2.91%. Given the continued high demand for energy equities, it is one of the stagflation stocks to purchase right now. The Southern Company is a producer and distributor of electricity. As of September 26, the company has a dividend yield of 3.72%. The Southern Company was recently named by BofA as one of the businesses with an above-market and secure dividend yield. For more details, click 10 Best Stagflation Stocks To Buy Now.