Two Must-Have Stocks for 2022

Bank stocks - the right ones - will make "spectacular" investments, according to Tim. Tim believes there's "deep value" to be had in well-run community and regional banks under "normal" circumstances, but in an inflationary and rising rate environment such as the one we'll find ourselves in in 2022, the opportunities get even richer.

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What's more, Tim and I both also like the "right" real-estate investment trusts (REITs) and business-development companies (BDCs).

With banks, Tim likes Northeast Community Bancorp Inc. (Nasdaq: NECB), a cash-rich, superbly run lender based in White Plains, N.Y., that's heavily involved in the lucrative multifamily-residential-construction market. Simple "financial physics" means banks like Northeast that manage to grow their loan portfolio smartly as rates rise will enjoy turbocharged stock-price gains and, very likely, dividend hikes.

NECB trades at just above $11 and yields more than 2.1%, which, believe it or not, falls on the lower end of the regional bank stock dividend spectrum.

Tim expects you'll own this stock far beyond 2022 or even 2023. His recommendation: "Buy NECB, put it away, and forget about it for five, six, or eight years. When you finally do get around to checking your statement, you'll be blown away."

I've got another high-profit prospect lined up.

One of my personal top picks for 2022 is one of the aforementioned BDCs - Golub Capital BDC Inc. (Nasdaq: GBDC), a Chicago-based firm I recommended to my readers back in October.

BDCs are a kind of closed-end fund that plays a crucial role in the world of corporate finance. Like venture capital (VC) funds, BDCs are able to funnel capital to the small and mid-sized firms that can't get financing in more conventional ways - either by loaning money or taking so-called "equity" (ownership) stakes.

But VCs are typically private firms that get their financing from institutions or wealthy, accredited investors. BDCs, on the other hand, are publicly traded and dole out the cash they raise from the retail crowd.

Golub invests in software and healthcare ventures and is known as a terrific loan underwriter. Golub has benefitted from a great deal of insider buying. As my readers will tell you, that's one of my favorite "Buy" signals - insiders sell for all kinds of reasons, but they only buy when shares are headed higher. GBDC shares were trading at $15 mid-week last week, which is certainly an attractive price for this stock, but it looks even better when you factor in the 8% dividend payout.

Pick up NECB and GBDC at market when trading opens today, and hold on to them for the long term.