Every January, one of the best strategies is to invest in the top Dogs of the Dow.
While 2020 wasn’t a great year for the Dogs, most other years have done very well.
In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%. In 2015, they were up 2.6%. In 2014, they were up about 11%.
Better, all of the Dogs pay dividends.
As for the 2021 Dogs of the Dow, most are doing well so far. Since January 2021:
- Chevon (CVX) with a yield of 6.05% — ran from $82 to $96
- IBM (IBM) with a yield of 5.23% – ran from $120 to $137
- Dow (DOW) with a yield of 5.11% – ran from $54 to $60
- Walgreens (WBA) with a yield of 4.72% – ran from $40 to $49
- Verizon (VZ) with a yield of 4.27% — fell slightly from $57 to $54
- 3M (MMM) with a yield of 3.37% – ran from $168 to $184
- Cisco (CSCO) with a yield of 3.23% — ran from $44 to $58
- Merck (MRK) with a yield of 3.24% — ran from $75 to $77
- Coca-Cola (KO) with a yield of 3.07% — ran from $52 to $55
- JP Morgan (JPM) with a yield of 2.89% — ran from $123 to $157
While we’re not sure of the 2022 Dogs of the Dow just yet, here are some other top stocks you may also want to consider for New Year 2022. Those include:
Lithium Americas (LAC)
The lithium bull market is far from over.
For one, countries around the world are pushing for millions of electric vehicles to hit the roads.
Two, President Biden unveiled an executive order targeting 50% of U.S. new car sales to be electric by 2030, as reported by Barron’s.
However, for that to happen, we must have far more lithium supply. Even the International Energy Agency warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”
It’s another reason investors may want to consider lithium stocks, such as Lithium Americas, especially with its construction activities at Caucharí-Olaroz on track to achieve first production by mid-2022 on the initial 40,000 tonnes per annum operation.
Affirm Holdings (AFRM)
Affirm Holdings is involved with the popular “buy now, pay later” market.
According to Barron’s, “BNPL is gaining popularity given that interest rates are ultralow, reducing costs for consumers. Other fintech apps have entered the market, including Affirm, a pure play on the sector, and PayPal (PYPL). Apple (AAPL) is also developing a BNPL service with Goldman Sachs Group (GS), its credit-card partner.”
Two, AFRM just posted incredible earnings, with solid guidance.
AFRM just provided solid earnings and raised its guidance. The company’s gross merchandise volumes (GMV) more than doubled year over year to $2.5 billion. Its active customer base rocketed to 7.1 million. Revenues were up 70% to $261.8 million. As for 2022, the company sees GMVs running higher by 70%, with revenues of between $1.16 billion and $1.19 billion.
First Solar (FSLR)
Solar stocks, like First Solar (FSLR) are well worth owning now.
All after the White House said it wants solar to account for nearly half of electricity supply by 2050. At the moment, solar powers about 3% of the grid, says CNBC. By 2050, it could be up to 45%. All in an effort to decarbonize the energy industry.
According to Energy.gov:
“The U.S. Department of Energy (DOE) today released the Solar Futures Study detailing the significant role solar will play in decarbonizing the nation’s power grid. The study shows that by 2035, solar energy has the potential to power 40% of the nation’s electricity, drive deep decarbonization of the grid, and employ as much as 1.5 million people—without raising electricity prices.”
In addition, the U.S. just pledged to reduce emissions by up to 52% over the next several years. Europe wants to cut CO2 emissions by up to 55% by 2030. China says it’ll stop releasing CO2 in the next 40 years. In short, it may not be a good idea to bet against green energy stocks.
Advanced Micro Devices (AMD)
Shares of AMD are now at $105, and still show no signs of slowing.
In its most recent quarter, the company posted Q2 revenues of $3.85 billion, which came in above expectations for $3.62 billion. Cash on hand is up to $3.79 billion.
“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” said AMD president and CEO Lisa Su, as quoted by TheFly.com. “We are growing significantly faster than the market with strong demand across all of our businesses. We now expect our 2021 annual revenue to grow by approximately 60 percent year-over-year driven by strong execution and increased customer preference for our leadership products.”
Helping, a good deal of analysts raised their target prices.
- Citi raised its target to $100 from $95.
- Mizuho raised its target to $110 from $107.
- BMO Capital raised its target to $80 from $75.
- Benchmark raised its target to $110 from $100.
- Rosenblatt raised its target to $150 from $135.
- Susquehanna raised its target to $130 from $125.
- Northland raised its target to $125 from $116.
Cassava Sciences (SAVA)
While this trade does carry a bit more risk, much of the negativity is priced in, we believe.
The stock pulled back after a firm called into question the quality and integrity of its Alzheimer’s test results in a “citizen’s petition.” The firm also asked the US FDA to halt of the SAVA trials until there’s further investigation.
Firing back, SAVA CEO Remi Barbier said, as quoted by Bloomberg, said “I’ve never heard of a Citizen’s Petition for a pre-Phase 3 drug, especially on a drug that appears to be as safe as simufilam. We see the filing of a citizen’s petition as a technique intended to add to the pile of fear and doubt generated by their initial document.”
Riley analysts even said SAVA is a buy on weakness, given the “numerous inconsistencies” in the petition. Plus, he reminded investors that SAVA had “highly favorable” engagement with the US FDA, including an agreement for pivotal Phase III studies.
Also, shares of SAVA may soon be a “blood in the streets” opportunity.
As noted in a company press release, “Cassava Sciences is aware of allegations that are being made by a party that admitted it holds a short position in the Company’s stock. (A short position allows an investor to profit from a drop in the Company’s stock price.) Cassava Sciences believes claims made by this party regarding scientific integrity are false and misleading. The Company stands behind its science, its scientists and its scientific collaborators, and is responding to ensure the facts are known and respected.”
