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The volatility of the stock market has given me the opportunity to hold many cheap things. FTSE 100 Shares in 2022. If markets crash again, I’ll open the check again to buy more of the beaten bargains.
Specifically, I’m looking to buy more dividend stocks for my portfolio. History shows that dividend payments tend to keep pace with inflation and reduce the impact of inflation on my wealth.
Prevention of inflation
Additionally, stocks may currently outperform the broader stock market. Aegon Global Equity Income fund manager Mark Peden says:[US] In times of high inflation and inflation, companies that pay dividends tend to do better than others.He said.
This is a quality that US companies share with their counterparts here in the UK.
Peden saysDividends are an important part of long-term equity returns.He said. And he says, “The dividend.”It becomes more important when capital returns are more muted.” Like today.
In fact, the fund manager predicts that dividends will generate higher returns for investors in 2022 than at any time in the past 10 years.
I want to buy 2 FTSE 100 shares
Those comments reinforce my belief that buying dividend stocks is a smart strategy right now. With this in mind, here are two FTSE 100 stocks I’m considering buying using my Stocks and Shares ISA.
GlencoreThe dividend yield of 10.1% is one of the biggest on the FTSE 100. It faces a major challenge as macroeconomic conditions worsen and demand for commodities declines. But a strong dividend yield of 2.7 times means it looks well on track to meet its 2022 forecast target.
I like Glencore because of the wide range of products it markets and manufactures and its broad geographic footprint. This gives it better differentiation than many other mineral deposits and therefore superior strength at depth.
I think the business can be very beneficial to my wealth in the long run. Purchases of copper, iron ore, aluminum and other raw materials could rise on factors such as increased demand for consumer electronics, electric vehicle sales and massive construction activity in emerging markets.
Glencore trades at a rock-bottom forward price-to-earnings (P/E) ratio of 3.6 times.
Peden explainedHealth care, consumer staples and utilities“Like a good distribution stock to buy ownership.”Relative immunity from economic cyclesHe said. One such stock on my radar is renewable energy stocks. SSE.
Generating electricity from wind is not very reliable. This is a phenomenon to which the FTSE 100 income share is no stranger and has prompted dividend warnings in recent years.
However, I think this is underpinned by SSE’s dirt-cheap share price. Today, the price-to-earnings growth (PEG) ratio trades at just 0.5. Combined with the 5.5% dividend yield, I think SSE offers excellent overall value.
Also, as a long-term investor, I like SSE’s huge investment in expanding its green energy business. As the UK moves to reduce carbon emissions, there could be huge gains.