2022 has been tough to navigate as a retail investor. The Russia-Ukraine conflict along with surging global inflation has seen many parts of the market depressed this year. However, I’m always keen to remain optimistic. Therefore, with 2023 around the corner, I’m on the hunt for some FTSE 100 stocks I can buy in the New Year and hold for the long run. Here are two I have my eye on today.
GSK
The first is pharmaceuticals giant GSK (LSE: GSK). The stock has struggled lately, down nearly 12% year to date.
However, I think the New Year could be a great time to add the stock to my portfolio. Firstly, GSK has posted strong results so far in 2022. In its most recent update, the business announced sales growth of 9%, up to nearly £8bn. And as a result, the firm raised its full-year outlook, with growth in sales now expected to come in between 8% and 10%. This comes on the back of it already raising its guidance in its half-year update, showing that the business is going from strength to strength.
Elsewhere, I also like the moves GSK has made this year to streamline. The most noticeable of these was the demerger of its consumer healthcare business Haleon. The split will allow GSK to reorganise its operations and place greater emphasis on the development of vaccines and medicines. It also managed to siphon off £7bn in debt as part of the move.
What’s also enticing about the stock is the meaty dividend yield it offers. With a yield of around 7%, this offers me some protection against inflation. As we enter 2023, the passive income stream generated from GSK shares seems to be a smart play.
In the short term, the business could face headwinds such as rising costs as inflation continues to rise. However, for a long-term buy, I like the look of GSK.
SMT
The second stock I like the look of is Scottish Mortgage Investment Trust (LSE: SMT). The trust has seen 40% shaved off its value in 2022 as investors have turned their back on growth stocks.
Despite this, I think Scottish Mortgage could be a solid buy at its current price. The diversity it offers my portfolio is attractive. With over 100 companies under its umbrella, including some unlisted businesses, I gain access to a variety of stocks under one investment.
What I also like is Scottish Mortgage’s investment style. By this, I mean that management buys for the long run. The managers measure performance over a more-than-five-year timeframe. And while past performance is no indication of future returns, the last five years have seen SMT return 77% to shareholders. Impressive.
Inflation will continue to weigh the stock down in the short term. And its heavy weighting in China could see it suffer in the months ahead. However, I believe in the long run that this weighting will bear fruit. I’d be happy to buy in the New Year and hold for a decade.
The verdict
Unfortunately, I won’t have the cash to buy both of these next month. I should have enough to buy one for now, so I’ll probably look to pick up GSK first.
