Some key S&P/ASX 200 Index (ASX: XJO) shares have been chosen as alternatives by fund managers.

There was a complete heap of volatility throughout the previous couple of months as considerations have grown about inflation and rising rates of interest.

Completely different companies are being impacted in several methods by these impacts.

However, there are just a few names which will really have the ability to generate greater revenue on this surroundings.

The 2 fund managers – Geoff Wilson from Wilson Asset Administration and Dr Philipp Hofflin from Lazard Asset Administration – have been speaking to Livewire Markets and advised {that a} recession is probably going over the following 12 months and a half.

However, Hofflin identified a few ASX 200 shares that may very well be worthwhile to personal as a result of they can stay steady:

Coles is without doubt one of the largest grocery store companies in Australia with a market capitalisation of $25 billion in response to the ASX.

The grocery store enterprise was one of many picks by Hofflin. He really picked each grocery store ASX 200 shares, Coles and Woolworths Group Ltd (ASX: WOW), however his choice is Coles.

Why Coles? The given purpose was the truth that it has no debt and a “robust” steadiness sheet, in response to the feedback reported by Livewire.

Wilson stated:

Have a look at the businesses with good steadiness sheets, low ranges of debt and those with robust enterprise franchises as these have the potential to prosper, even in tough instances.

Woodside Power Group Ltd (ASX: WDS)

Power large Woodside was one other choose by Hofflin.

It was advised that Woodside may very well be a great choose if there’s a recession just like the mid-70s when inflation was persistent.

Woodside is one other ASX 200 share that has a minimal quantity of debt after merging with the oil and fuel division of BHP Group Ltd (ASX: BHP).

It was additionally famous that Woodside may very well be one of many ASX 200 shares to profit from the power provide points.

Power costs have been elevated because the Russian invasion of Ukraine, which might assist income, web revenue after tax (NPAT) and money move.

Based on the estimate on CMC Markets, Woodside might pay an annual dividend per share of $3.63 in FY22. That interprets right into a grossed-up dividend yield of 16.3%. That might be among the many largest yields paid in 2022 out of all of the ASX 200 shares, other than just a few miners.