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Proprietary Data Insights Top Large Cap Value ETF Searches This Month
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The Juice’s Top Stock Picks For 2024 |
If it ain’t broke, don’t fix it. That’s our general consensus headed into 2024, a year The Juice thinks will be a strong one for the stock market: Don’t look now, but, as of mid-December, Uber Technologies (UBER) and DoorDash (DASH) are up 146% and 110% YTD … Everybody knows about Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Nvidia (NVDA), Tesla (TSLA), Microsoft (MSFT) and Google (GOOG). A mix of AI plays, household names and well-positioned companies in their spaces … Companies that dominate consumer markets by leveraging tech the way Starbucks (SBUX) — another one of our top stock suggestions — does via its mobile and digital platforms. These are the types of stocks to buy and hold for the long-term. That’s our core game plan for the coming year. After ensuring you’re well-positioned in what works well as the core of pretty much any long-term portfolio — the SPDR S&P 500 ETF (SPY) and Invesco QQQ ETF (QQQ) — spread your money across the aforementioned ten stocks. Create your own little mini ETF in SBUX, AAPL, AMZN, META, NVDA, TSLA, MSFT, GOOG, UBER and DASH. Your sentiment determines how much to allocate to each and how often. But, personally, we’re dollar cost averaging into the bunch with $500 to $1,000 a month. So, between $50 and $100 into each stock. We make our case for continued (or, in the case of SBUX, renewed) strength in these stocks at the links accompanying the ticker symbols. From there, The Juice still loves homebuilder stocks, which we were all over in 2023. PulteGroup (PHM), DR Horton (DHI), Lennar Corp (LEN), NVR, Inc (NVR) and M/I Homes (MHO) all continue to crush it. If you have the capital, consider a similar dollar cost averaging strategy we suggested for tech with the homebuilders. Those five tickers — PHM, DHI, LEN, NVR and MHO — are up 122%, 65%, 60%, 52% and 183%, respectively, YTD. From there, as we touched on earlier this month, we expect a return to dividend-paying stocks. Today, let’s get more specific. While we’re down with buying individual dividend payers, we think it makes more sense to go with an ETF. Do this — alongside all of the above — and you’re pretty well-diversified from an albeit primarily large cap and domestic perspective. To find the dividend-focused ETFs on the radars of your fellow investors, we set a filter in Trackstar, our proprietary sentiment indicator, for large cap value ETFs. You can see the names that came up at the top of this email. Taken together, these ETFs are down slightly so far in 2023. This makes sense given the high interest rates you have been able to get on your cash. However, we think this high-interest rate environment will not so slowly fade, making dividend stocks more attractive. We expect dividend ETFs, including the names on our Trackstar list to do better, if not outperform. Our top pick is the most searched among the group — the SPDR Portfolio S&P 500 High Dividend ETF (SPYD). With a nice and low expense ratio of 0.07%, SPYD is a passive ETF that mimics the returns of the S&P 500 High Dividend Index. So, we’re talking 80 high dividend-yield names from the larger S&P 500 Index, including SPYD’s top ten holdings:
While these stocks haven’t all been dogs in 2023 (the only two that were actually down on the year were KEY and ZION), most haven’t performed nearly as well as our top selections. Plus, this ETF can help further diversify your portfolio. To further broaden your scope, consider the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which tracks the S&P 500 Dividend Aristocrats Index, which is composed of companies that have increased their dividend payment for at least 25 consecutive years. Most have 40-year plus track records. With NOBL, which is up just 5% in 2023, you’ll broaden your industry exposure, which includes a position in big consumer and/or legacy names, such as Target (TGT), Lowe’s (LOW) and Clorox (CLX). The Bottom Line: How’s that for a 2024 game plan? If you’re lucky enough to have a thousand or two dollars to invest each month, you can build a nice, rather diversified, long-term portfolio using the names mentioned in today’s Juice. But it really doesn’t matter how much money you have. Given the ability to start investing with just a few dollars on countless online platforms, you can get the ball rolling with relatively little cash. As we begin to dive into how to prepare for retirement — in traditional and not-so-traditional ways — starting with this Thursday’s Juice and into 2024, we’ll detail exactly how you can start investing if you don’t have a ton of cash to spare. |
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