10 Best Inflation Protection Stocks Of May 2024 (2024)

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Merck & Company is a pharmaceutical giant that develops drugs to treat everything from cancer to shingles. It has an “A” financial health rating from Morningstar.

Analysts expect MRK’s earnings and sales growth to be 467.5% and 6.2%, respectively, in 2024, which could help the share price grow at a rate well above inflation. The big jump in earnings is expected to more than offset the earnings decline of 68.5% in the 2023 fiscal year. If this occurs, the company will be back on a trajectory of increasing earnings.

Merck has steadily increased its dividend since 2011, with the total payout rising 5.8% per year over the last 10 years.

The company’s forward price-earnings ratio, or P/E ratio, is 13.5. While that is based on anticipated earnings for the next fiscal year, it indicates that if MRK can achieve those results it is currently trading at an attractive valuation. The lowest P/E reading over the last five years is 13.1.

Headquartered in the United Kingdom, AstraZeneca is one of the largest global pharmaceutical companies. The company has 178 projects in its pipeline at various stages of testing and development.

Analysts expect AZN’s earnings and sales to increase by 6.9% and 10.8%, respectively, in the 2024 fiscal year. The company has held its dividend payouts stable over the last decade, and it has earned an “A” financial rating from Morningstar.

AZN’s forward P/E is 15.5, and its current P/E is 35.5. Over the last five years, the company’s P/E ratio has ranged from 32.7 to over 100, indicating the stock is currently trading at an attractive valuation.

Cencora is a pharmaceutical wholesaler, providing drugs to retail chains, hospitals and healthcare providers.

It has the highest average yearly stock return on the list over the last decade at 15.9% per year. COR also has the lowest dividend yield on the list. However, the company has been increasing the dividend by an average of 8.1% per year over the last decade.

Morningstar gives COR an “A” financial rating. EPS and sales are expected to increase by 12.2% and 11.3%, respectively, in fiscal year 2024.

Cencora has a forward P/E of 16.7. Considering the earnings are expected to grow by more than 10% per year, that is a fair valuation for COR stock.

Church & Dwight manufactures and distributes household and personal hygiene products, including cat litter and deodorant. Best known for its Arm & Hammer brand, the company produces a wide range of products that are household names.

The company has increased dividend payouts by an average of 6.2% per year over the last decade. It has an “A” financial rating from Morningstar.

Analysts expect 2024 fiscal year sales and EPS to rise by 4.4% and 8.5%, respectively.

CHD’s forward P/E is 28.0. Over the last five years, the company’s P/E ratio has ranged from 19 to 60, making now an average time to buy the stock in terms of valuation. In other words, it is not cheap, nor is it overly expensive.

Becton, Dickinson and Company develops and supplies a wide array of medical products to countries around the world.

BDX has raised its dividend payout by about 5.7% per year for the last decade.

Morningstar gives the company an “A” financial rating. EPS and sales are expected to increase by 6.0% and 4.7%, respectively, in fiscal year 2024.

BDX has a P/E of 56.8. This is a fair valuation for the stock based on historical norms, as it rarely trades below 40 and has traded above a P/E of 70 for extended periods.

Mondelez International was spun off from the Kraft Heinz Company (KHC) in 2012. It produces many well-known snack food brands, such as Halls, Trident, Cadbury, Oreo and Chips Ahoy.

MDLZ has an “A” financial rating from Morningstar, and the company pays a great dividend. The dividend has increased at an average of 11.7% per year over the last decade. Furthermore, analysts project EPS growth of roughly 8.4% per year over the next five years.

The stock is priced moderately with a P/E of 18.4. Values over the last five years have ranged between 15.5 and 40, so the stock is near the lower end of that range, indicating a favorable valuation.

Procter & Gamble provides household and personal products, including brands such as Tide, Charmin, Pantene and Pampers.

The company pays an attractive dividend. Plus, the dividend has increased an average of 4.6% per year over the last 10 years. PG also has an “A” financial health rating from Morningstar.

The stock is trading at a fair valuation with a P/E of 27.2. That is a common reading for PG stock over the last few years. The lowest reading in the last five years is a P/E of 21.3.

CMS Energy is a utility that supplies its customers with natural gas and electricity. It has a “B” financial rating from Morningstar.

For 2024, analysts expect CMS’s sales to grow by 9.5% and earnings to gain 7.4%. The latter is in line with the five-year annualized EPS growth estimate of 7.8%.

The company has the second-highest dividend yield on our list, and it has increased its dividend by an average of 6.7% per year over a decade.

The current P/E is 20.1, indicating CMS stock is trading at an attractive valuation relative to historical norms. P/E values have ranged between 16.8 and 31.7 over the last five years.

NiSource is a natural gas and electricity distributor in several states, serving approximately 4 million customers.

The company has the highest dividend yield on the list and a “B” financial health rating from Morningstar.

Analysts project 7.5% EPS growth and 13.1% sales growth in fiscal year 2024.

The current P/E is 18.7, which is relatively low for NI stock, indicating it is currently trading at an attractive valuation. The lowest P/E over the last five years is 15.5.

Pepsico is one of the world’s most recognized beverage and snack brands, selling products like Gatorade, Lays and, of course, Pepsi.

The company has an attractive dividend yield and has steadily boosted its payout by an average of 8.3% per year over the last 10 years. PEP also has an “A” financial rating from Morningstar.

PEP’s sales and EPS are expected to grow by 3.6% and 7.1%, respectively, in fiscal year 2024. Analysts project longer-term annualized EPS growth of 7.0% over the next five years.

A P/E near 25 is common for PEP stock, and the current P/E is 26.7. Values have ranged between 11.9 and 40 over the last five years.