User-friendly platforms such as Robinhood make investing as accessible as ever, especially to tech-savvy millennials. The amount of Millennials that are now investing in stocks has increased tremendously over the past few years.
As most of you probably already know, long-term investing is the safest and most effective method of building wealth through the stock market. So, it’s essential to focus on resilient companies, and if you’re going to invest in riskier stocks, make sure that you have other, low-volatility stocks in your portfolio as well.
It’s also smart to invest in sectors and companies that you’re familiar with, while also being prepared to wait and let your money work for you — it takes time.
If you’re looking to build a solid investment portfolio this year, we’ve got you covered. Here are top 10 stocks to buy ASAP:
- Netflix: Streaming services aren’t going away anytime soon, and Netflix is at the top of the game. Netflix stock has been steadily going up for a while now, and during the pandemic, its membership base grew by over 25 million. Netflix is also constantly expanding its offerings of shows, movies, and limited series that keep consumers coming back for more. Analysts predict that the company will continue to grow by more than 40% each year for the next five years, so this is definitely a stock you’ll want to buy if you haven’t already.
- Dexcom: Dexcom is one of the biggest market movers in the continuous glucose monitoring (CGM) device industry, and has grown substantially since the Covid-10 pandemic began. The G6 CGM system, (the company’s flagship product) is a source of significant revenue for the company. Dexcom reported over 40% revenue growth in 2020’s first quarter, 34% in the second, and 26% in the third. The company is also getting ready to come out with its next-generation CGM system, the G7, soon, which will lead to greater growth and revenue for them.
- The Trade Desk: A demand-side digital advertising platform that reported a 16% growth in revenue during the first 9 months of 2020. Digital ad spend increasingly outpaces traditional forms of advertising and it doesn’t look like this trend is going away any time soon. In the third quarter of 2020, mobile video and audio spending on the Trade Desk’s platform grew 70%.
- Clorox: A company known for its reliability, Clorox consistently increases its dividend, which currently yields about 2.3%. Clorox has continued to raise its dividend for over 40 years in a row. Sales have increased during the pandemic, of course, so the company is at a very strong point right now as well. This is a safe dividend to have from a trustworthy company.
- NVIDIA: a leading developer and manufacturer of graphics processing units, NVIDIA shares have gone up 120% in the past year. The lucrative and in-demand industry the company operates in has allowed it to avoid being caught up in the market’s sharp highs and lows over the past year or so. NVIDIA also reported a strong increase in revenue in the first three quarters of 2021.
- Pinterest: The social media platform has been around for quite a while, but it’s continuing to grow in popularity. It’s a fun and creative platform where users can get inspiration in a variety of different subjects. Also, many companies are taking advantage of Pinterest’s popularity and choosing to advertise their products there. Pinterest’s global monthly users have been increasing during the pandemic and it doesn’t look like they’ll be slowing any time soon as many report the platform being a source of peace and a nice break from apps such as Instagram and Twitter.
- Walmart: As one of the world’s top retail leaders, Walmart continued to thrive during the pandemic and is a very safe stock to buy and hold for years. Walmart is also a company that raises its dividends consistently for at least the past 25 years) that has upped its dividend consecutively for more than 40 years.
- Innovative Industrial Properties: A real estate investment trust (REIT) that operates in the cannabis space, Innovative Industrial Properties has managed to avoid many common pitfalls that top cannabis stocks seem to be faced with. The REIT has maintained a zero-debt balance sheet and has increased its net income by over 200% in the last year or so. Innovative Industrial Properties’ dividend also yields 2.8% based on current share prices.
- Fulgent Genetics: This company makes a variety of genetic testing kits for different conditions such as hereditary cancers and other diseases. And although the stock is about 367% higher than it was one year ago, it’s still trading for under $100. Demand for Fulgent Genetics’ tests has increased tremendously during the pandemic, and the company reported a strong increase in revenue for 2020.
- Verizon: A great company for those wanting to invest in the 5G revolution. Verizon’s dividend pays a yield of 4.3%, which is above average. At the beginning of the pandemic, Verizon’s revenue took a bit of a hit. However, as things get back to normal and as the company continues to expand its 5G network, it will be a trustworthy company to invest in.
At the end of the day, the importance of diversifying your portfolio and not putting all of your eggs in one basket holds true. Warren Buffett said that “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”
Investing is for the long term, and these companies are almost guaranteed to increase your earnings.
As always, we advise all readers to do their own due diligence before purchasing any company. To learn more about investment goals, the stock market, and strategies for success, check out our other blog posts for more Millennial investing tips.