These resource stocks offer an inflation edge

Article Excerpt

Nobody can predict trends in inflation or interest rates with any consistency. On the other hand, many investors have done very well over long periods by applying our Successful Investor method to their investments. This includes holding stocks that will do well with inflation—but will also prosper in an environment of stable consumer prices. Two such stocks we recommend are Imperial Oil, now prospering from rising oil and gas prices in an inflationary environment, plus Newmont, given gold’s traditional role as a hedge against inflation. Both stocks are buys. IMPERIAL OIL LTD., $70.57, is a buy. The company (Toronto symbol IMO; Shares o/s: 669.1 million; Market cap: $46.4 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No. 1) and Suncor. U.S.-based ExxonMobil (New York symbol XOM) owns 69.6% of the company. Imperial continues to benefit from the sharp rise in crude prices following Russia’s invasion of Ukraine. In the quarter ended March 31, 2022,…