All of us are bias when we come to investing and just about everything else in our lives. Depending on how you earn your income, you are likely to look to that sector first. Depending on the products and services you use, you might look to them second. You use them and can keep an eye on them.
During COVID when many people stayed in and around their homes, the number of pets increased. You can look at the companies which provided pet food and if you have a pet, maybe which companies provide the other costs of owning a pet. If you have one, hopefully you have the best cat or dog or whatever you own.
According to the American Pet Association, in 2019Americans spent $95.8 billion on their pets up 5.7% from 2018. During 2020, the number went over $100 billion.
Nielson Co which does data and market measurement shows sales of leashes, collars and dog houses has been growing in double digit numbers. Between April and June they were up 16%, up another 13% in the summer and in the fall they went up 15%.
How can you invest? Adam Mayers of the Wealth Builder invesment newsletter noted 4 companies:
Zoetis based in New Jersey, its stock is up 20% to $161.36, the dividend yield is 0.5% and PE ratio is 46.5%
There are ETFs such as the Harvest Healthcare Leaders Income ETF which holds 20 of the largest global health care companies including Zoetis.
Elanco Animal Health was spun off from Eli Lilly in 2019 and recently purchased Bayer Animal Health for $6.89 billion.
Merck & Co animal health business is a division but it generates $4.4 billion or about 10% of Merck’s reveue.
Linking to dividend paying stocks, often you are drawn to companies with a monopoly or near monopoly or similar to a utility. However, there are many companies to invest in and sometimes the answer has 4 legs and is in your home. In 2021, be open to opportunities, keep the bulk of your investments to something you know are bias in and 2021 will be another good year.
There are more questions than answers, till the next time – to raising questions.