Since the beginning of the year, negative factors multiplied and cast a shadow of doubt in the minds of investors who want to build a financial market portfolio. Le Revenu helps you find the least risky stocks to invest in and avoid disappointment.
The return of the health crisis, the war in Ukraine, inflation and energy crisis, the situation has become more difficult for an investor who wants to start in the stock market.
Between the resistance to growth and the risk of recession on the other hand, stock markets seem to be hesitant. Determining which stocks can best resist these contradictory signals is not easy.
First, you need to set some ground rules. In a period of high volatility, it is always better to avoid speculative securities (large differences in stock market prices), inverse securities as well as cyclical securities – which are highly dependent on the development of the economic situation -.
It is also best to avoid – and this is new in 2022 – growth stocks that risk being pressured by concerns about future growth.
Therefore, exit values such as LVMH, L’Oréal or Dassault Systèmes which even by posting strong results, could be the subject of big statements with all the bad news about interest rates.
But what remains if you want to do better than Livret A or Life Insurance?
Therefore, choosing the values is necessary in order not to be mistaken from the beginning. Remember that a stock market price that falls 50% must increase 100% to return to its initial price.
So it is better not to make a mistake at first and follow some rules.
• Choose a low-risk security whose results are consistent year after year.
• Prefer companies with strong growth prospects and low supply chain risks.
• Preferring companies that take care of their shareholders by paying regular and safe dividends.
• Preference for companies of reasonable value.
Thus, getting big capital gains without taking a lot of risks is still possible even for those who are new to the stock market.
It is still essential to choose the right securities that allow the portfolio to perform well, including when the economic environment is challenging.
Always with the idea that putting money in the stock market is above all a long-term investment horizon (at least 5 years). Here are our choices.
The media giant is gradually showing its ability to grow without now selling its former Universal Music Group (UMG).
Its two main businesses, advertising with Havas and television with Canal Plus, are beginning to gain momentum. Editis, for its part, was driven by a revival in the book sector.
Finally, the action presents an undeniable speculative interest associated with a possible increase in the capital of Bolloré, its main shareholder (30%). The title resists the gloom of the markets and loses only 3% since the firstVerse January.
At nearly 15.5 times the estimated net income for fiscal year 2023, its valuation doesn’t seem excessive to us for a global media leader.
With less debt, the group remains poorly exposed to rising interest rates. Perfect in the current context.
After a successful fiscal year 2021 (the Suez takeover bid), the water and waste giant has everything to please him.
Thanks to a model based primarily on the contract price index, the company appears well armed against inflation.
It is also rarely seen in Ukraine and Russia (0.3% of sales). The outlook is encouraging: Veolia expects “strong organic growth” in sales.
The planned cost reductions (saving 350 million euros) will allow to improve profitability. A “defensive” stock of full growth in a deteriorating context.
It is the core value for all those who want to build a stock market portfolio.
The title almost never disappoints, whether in periods of stock market euphoria or during crises. Result: +15% over one year, +77% over five years, +151% over 10 years, +362% over 20 years.
Growth potential depends mainly on the steady increase in global demand for industrial gases.
But the company is positioning itself more and more in the field of energy transition, which may allow profit margins to advance. The icing on the cake: Free stock distribution every two years and a safe return with a minimum return of 2.5%. Buys.
Construction and major franchises got off to a good start to the year in terms of activity with a growth of 26% to €12.8 billion.
Increase in airport traffic and improvement in construction margins allow the group to confirm annual targets.
In the stock market, the price-earnings ratio is expected to be at 13.9 for the current fiscal year, and then at 12.3 for 2023. That’s not excessive in an environment where rates are rising.
Finally, the dividend policy will remain attractive. Yenshi paid a cash dividend of €2.90 per share for fiscal year 2021, which is supposed to increase next year. The group has traditionally weathered the crisis well thanks to its portfolio balance.
Evidence of its flexibility, stake (-0.5% since 1Verse January) far outperforms the CAC 40 (-8% in 2022). Buys.