For the stock market, inflationary pressures have historically tended to be something of a mixed bag: Many companies struggle, while others put up a relatively strong performance and can even benefit from unusual economic and monetary dynamics. In order to put investors on the trail of stocks that could perform well in this age of elevated inflation, we put together a panel of Motley Fool contributors and tasked them with identifying top picks for riding out these uncertain times. Keith Noonan (Broadcom): Semiconductors make the world go round.
For more than a decade, growth stocks have been in favor on Wall Street. To begin with, dividend stocks have a much better long-term track record than companies that don't pay a dividend. A report from J.P. Morgan Asset Management, a division of JPMorgan Chase, found an almost 500% higher annualized return from companies that initiated and grew their payouts between 1972 and 2012 (9.5% annual return), relative to stocks which didn't pay a dividend over the same four-decade stretch (1.6% annual return).
Shares of Broadcom Inc. (NASDAQ: AVGO) traded today at $521.30, eclipsing its 52-week high. So far today approximately 174,000 shares have been exchanged, as compared to an average 30-day volume of 1.7 million shares. Over the past year, Broadcom Inc. has traded in a range of $344.42 to $521.30 and is now at $517.31, 50% above that low. Broadcom – the combined entity of Broadcom and Avago – boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio