2 Non-Oil Dividend Stocks That Are Crushing the Market in 2022

2022 has been a choppy year for equity markets as inflation concerns and rising interest rates clash with ongoing supply chain challenges and geopolitical tensions. But one industry has been uniquely insulated from the broader market sell-off -- oil and gas. A mismatch in global demand and supply of crude oil and natural gas, thanks to years of underinvestment in oil exploration and production, has led to tight supply and higher prices. The market expects oil and gas companies to profit from higher oil and gas prices bidding up the S&P Energy Select Sector Index by nearly 39% this year, even as the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite are all down for the year.

However, some folks may not want to directly invest in oil and gas companies since their valuations are already looking expensive. Instead, it may be a better idea to invest in an industrial company, like Caterpillar ( CAT 0.02% ), that has exposure to oil and gas while its overall performance doesn't hinge on that industry booming or busting. Meanwhile, defense giant Lockheed Martin ( LMT 1.01% ) has a multi-year backlog of projects with the U.S. government and its allies that give it steady revenue streams independent of the war in Europe.

Source: Motley Fool

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