BofA Securities Out With Its 11 Top Stock Picks for 2022

Materials: Eastman Chemical

This stock has rallied smartly off the March lows and is another safe haven for conservative investors. Eastman Chemical Co. (NYSE: EMN) engages in the provision of specialty chemicals. It operates through the following segments.

The Additives and Functional Products segment includes chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The Fiber segment offers cellulose acetate tow for use in filtration media, primarily cigarette filters.

The Advanced Materials segment of Eastman Chemical produces and markets its polymers, films and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets.

The Chemical Intermediates segment consists of large-scale and vertical integration from the cellulose and acetyl, olefins and alkylamines streams to support operating segments with advantaged cost positions.

Investors receive a 2.56% dividend. The BofA Securities price objective was last seen at $125. The consensus target is higher at $134.43. Shares closed on Friday at $118.68.

Real Estate: Welltower

This company pays a solid distribution and is a pure play on the aging U.S. population. Welltower Inc. (NYSE: WELL) is a fully integrated and self-administered real estate investment trust (REIT) invested across the full spectrum of health care real estate.

The company also offers property management and development services. As of last year, Welltower had ownership interests in nearly 1,400 facilities in high growth markets in the United States, the United Kingdom and Canada, across senior housing triple-net, senior housing operating, skilled nursing/post-acute and medical office buildings.

Shareholders are paid a 2.93% distribution. The BofA Securities price target is $95. The consensus target is $93.08, and the stock closed on Friday at $83.20.

Utilities: NRG

This stock has made a nice run off the lows and is a solid idea for more conservative investors. NRG Energy Inc. (NYSE: NRG) in as an integrated power company in the United States involved in the producing, selling and delivering electricity and related products and services to 3.6 million residential, industrial and commercial consumers.

The company generates electricity using natural gas, coal, oil, solar, nuclear and battery storage. The company also provides system power, distributed generation, renewable products, backup generation, storage and distributed solar, demand response, energy efficiency, advisory and on-site energy solutions, as well as carbon management and specialty services.

In addition, NRG trades in electric power, natural gas and related commodities; environmental products; weather products; and financial products, including forwards, futures, options and swaps. Further, the company procures fuels, provides transportation services, and directly sells energy, services and products and services to retail customers under the NRG, Reliant, Green Mountain Energy, Stream, XOOM Energy, and other brand names.

Investors receive a safe 3.21% dividend. The BofA Securities price objective of $46 compares with a $45.20 consensus figure and Friday’s close at $40.49.

For investors looking to add stocks for a diversified portfolio, the 11 top picks for 2022 from BofA Securities are the ideal list to work from. Given the potential for year-end volatility, it may make sense to buy partial positions now and perhaps pick up the balance in January.

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