I have been looking for FTSE 100 shares to buy for my portfolio that could see significant catalyst events in 2022. I believe all of the five stocks outlined below meet this target, which is why I would acquire all of them for my portfolio right now.
Breaking up
One of the most obvious choices is GlaxoSmithKline. Next year, the group is planning to split in two, spinning off its consumer healthcare business. This will create two separate entities, which analysts believe will be worth more independently than they were as one.
There will always be a risk this scenario does not unfold, which is the most pressing danger to my investment thesis.
Unfortunately, the company is also planning to cut its coveted dividend next year. This is disappointing, but I would still buy the stock for my portfolio, considering its potential for growth after the split.
Recovery plays
A significant catalyst for British Land and Landsec next year will be the continued reopening of the UK economy.
Last year, these two commercial landlords reported a significant drop in the value of their property holdings as the pandemic gripped the country. This trend has now gone into reverse.
Half-year figures from both businesses show property valuations are increasing and levels of rent collection rising. I expect this trend will continue into 2022, which could act as a significant catalyst for both companies.
That is the primary reason why I would acquire these stocks for my FTSE 100 portfolio, but I will be keeping an eye out for potential risks. These include further coronavirus restrictions, which would almost certainly delay both companies’ recoveries.
FTSE 100 growth champion
WPP is another FTSE 100 stock I think could benefit from the global economic recovery. Like the two blue-chip stocks highlighted above, the firm’s revenues plunged last year as the world went into lockdown. The company took drastic action to reduce costs and improve its balance sheet.
Nearly two years later and the group is on the road to recovery. Revenues have bounced back, and it seems as if advertisers are only planning to increase their spending budgets from here.
Although further coronavirus restrictions could dampen this recovery, I am optimistic WPP has put the worst of the crisis behind it. As such, revenue growth may act as a catalyst for the shares next year.
Diversification
Associated British Foods’ diversification helped the group navigate the worst of the pandemic. Even though the company had to shut virtually all of its Primark stores due to coronavirus restrictions, revenues at the food business jumped.
Over the next 12 months, the company plans to open more Primark stores to capitalise on recovering consumer spending. These new store openings, coupled with generally higher levels of consumer spending, could act as a catalyst for the stock in 2022.
Some challenges that could impact growth over the next year include cost and wage inflation, which may impact demand and may push up costs for consumers.
