Here is a basket of the top 25 best US stocks to invest in 2021. These are the best stocks to buy right now if you are looking for the best companies to grow your portfolio for long term. These companies have solid track records and are expected to continue growing year by year.
We compiled these US stocks picks with the following criteria: strong fundamentals, great profit return, index inclusion, and innovative potential. Many of the stocks from our picks also pay out dividends. That’s a big bonus!
Note that we included the TP (Target Price) and BBP (Buy-Below-Price) of each stock at the end section of the article. The target price is our valuation based on price movement, momentum, and average financial analysts’ target. The BBP is the margin to buy the stock to earn a profit of 10% or more. Let’s start!
Microsoft (Ticker: MSFT) is also one of the Big 4 Trillion Market Cap companies in the USA. Having a 2 trillion market cap, Microsoft is also the Top 1 from Forbes Just 100 Companies. It truly deserves the number one spot among the Best US Stocks to Invest in 2021. MSFT pays out regular dividends to its stockholders four times a year. Yay!
Microsoft was founded by Bill Gates and Paul Allen, two of the richest men in the world. The company is also one of the most successful software companies in the world with many famous subsidiaries, including Skype, LinkedIn, Xbox Game Studios, GitHub, and many more tech companies.
Do not miss reading: “Top 5 Reasons Why We Invest in Microsoft Stocks.”
Mastercard (Ticker: MA) is one of the best global payment technology companies in the world. The company provides financial solutions in more than 210 countries around the world—Mastercard processes around $3.6 trillion transactions per year.
This credit card giant continues to innovate technology to serve faster digital payments. Mastercard has over 350 billion market capitalization. It is listed in the S&P 500 index. As of today, Mastercard has a dividend yield of 0.47%. We love this stock as it rewards dividends four times a year.
Alphabet (Ticker: GOOG) is a holding company and mainly known as the parent company of Google and its many businesses and product lines including Android, Google Search, YouTube, apps, maps, ads, Nest, Google Ventures, Google Capital, cloud, healthcare, and many more.
Don’t miss reading: Google Stock Target Price and Stock Analysis
Simply put, choose Alphabet if you want a “bet” on “Alpha” investments. Alphabet is one of the largest companies in the USA in terms of revenue. The company ranked 9th at the Fortune 500 companies. It is the fourth US company that achieved 1 trillion market capitalization.
Amazon (Ticker: AMZN) is among the largest companies in the US in terms of revenue. This giant retail and cloud services company reported a $386 billion revenue in 2020, up 38% amidst the pandemic. Amazon was founded by Jeff Bezos, who is also its CEO and the owner of The Washington Post.
AMZN is listed in the Nasdaq 100 and S&P 500 index. It is also one of the Big Four Tech Companies alongside Google, Apple, and Microsoft. Amazon is the second US company to have reached the trillion market cap.
Apple (Ticker: AAPL) is one of the most iconic brands in the world. It is a giant tech company that invented the Macintosh, iPhone, iPad, Mac, Apple Watch, Apple TV, and many more innovative products and services.
Apple Inc. created notable software platforms including iOS, macOS, watchOS, tvOS, and online services App Store, Apple Music, iCloud, and Apple Pay.
Apple Inc. is the first US company that reached the trillion market cap in history. Just recently, it crossed the 2 trillion market cap. It is the Number 3 company among the Fortune 500 companies ranking in 2021.
Despite the coronavirus, Apple has recovered and continued its rising trend. AAPL is currently among the top stocks listed in the Dow Jones, Nasdaq 100, and S&P 500.
Tesla (Ticker: TSLA) is the highest valued car manufacturer in the world. This earth-friendly company specializes in the production of all-electric vehicles and sustainable energy ecosystem. Tesla is currently listed in the Nasdaq 100 and S&P 500 index and has over 700 billion market capitalization.
Is it too late to invest in Tesla? It’s not too late if you’re into long term investing and if you’re thinking about the potential of EV in the next 10 years.
Tesla is one of the most controversial stocks. Its skyrocketing trend could dive any time its CEO Elon Musk makes an awkward tweet. TSLA also became the most shorted stocks in the US, taking the place of Apple. Nonetheless, buying on the dip and market crash could be profitable while applying some trailing stops.
Visa (Ticker: V) is the No. 1 payment processor in the world. Dating back to 1958, Visa has become a reputable payment brand providing digital currency solutions in more than 200 countries worldwide.
A year ago, Visa processed 138.3 billion transactions. V stock is included in the S&P 500 and Dow Jones Industrial Average index.
Visa is one of our favorite fintech stocks for long term because of its continuous payment innovation, the growing volume of Visa cardholders, and increasing partner networks.
Despite the covid19 pandemic, Visa’s net income rose 10% to $10.9 billion according to their full year 2020 report. Visa also rewards regular dividend payments to its stockholders four times a year.
Starbucks (Ticker: SBUX) is a prominent coffee company and the world’s largest coffeehouse chain with over 32,050 stores worldwide. It is one of the World’s Most Admired Companies and one of the World’s Most Valuable Brands. Starbucks has more than 135 billion market cap and currently listed among the S&P 500 companies.
Why should you invest in Starbucks stock? Number reason, it’s because it has a solid dividend yield (currently 1.53%). SBUX is one of the top dividend-paying stocks in the USA. The company pays dividends to its shareholders four times a year.
NVIDIA (Ticker: NVDA) is a cutting-edge computer company that designs, manufactures, and markets graphics processing units (GPUs) used in gaming, data centers, and artificial intelligence (AI). The company was founded in 1993. For decades, NVIDIA led the field of visual computing by reinventing and transforming computer graphics.
NVDA stocks also pay dividends four times every year. NVIDIA is currently among the top stocks listed in the NASDAQ 100. The growth potential of this stock is as positive as to how cloud computing is forecast to grow in the years to come.
Walmart (Ticker: WMT) is the one of the largest retailers in the world. The giant market chain recorded $523 billion in revenue, surpassing Amazon in 2020. It has more than 400 billion market capitalization.
Walmart is one of the top components of the S&P 500 and Dow Jones 30. It is the Number 1 among the Fortune Top 500 Companies in 2021.
Walmart is also generous in terms of dividends. The company pays its stockholders dividends every quarter of each year. Walmart has been steadily growing, and the potential of eCommerce is a significant venture.
11. JPMorgan Chase
JPMorgan Chase & Co. (Ticker: JPM) is one of the oldest financial institutions in the US and one of the largest banks in the world. With a history dating back over 200 years, its assets under management are now worth more than $2.6 trillion.
JPMorgan Chase operates around the world with more than 100 global markets. JPM’s hedge fund unit is also one of the biggest hedge funds in the world.
It is ranked 8th at Fortune’s Most Admired Companies and 19th at Fortune 500. With over 480 billion market cap, JPM stock is among the top components of the S&P 500 and Dow Jones Industrial Average index. JPM pays dividends quarterly.
Salesforce.com (Ticker: CRM) is one of the top-notch cloud-based companies. It is the world’s number 1 Customer Relationship Management (CRM) platform. More than 150,000 companies worldwide use Salesforce to grow their businesses.
The company is among the components of the S&P 500 and Dow Jones Industrial Average. Salesforce 1 year price return is more than 26%. Beginners and long term tech investors like CRM stock.
Square (Ticker: SQ) is an online payment technology company that offers point-of-sale solutions, analytics, and reporting tools. It has more than 120 billion market cap. We think that Square will benefit from the growing cashless transactions and the future of digital payment ecosystem.
Netflix (Ticker: NFLX) is the world’s leading streaming entertainment service, with 195 million paid memberships in over 190 countries. The company reported additional global paid net subscribers of 28.1 million in the first 9 months of 2020 and during the pandemic lock-down.
The streaming entertainment giant currently ranked 115th in Fortune 500 Companies. NFLX has over 220 billion market cap and is listed in the S&P 500 and NASDAQ 100 index.
Adobe (Ticker: ADBE) is an American company founded in 1982. It creates multimedia and creativity software products, including Photoshop, Acrobat Reader, Creative Cloud, Document Cloud, and Experience Cloud.
According to Adobe, over 90% of the world’s creative professionals use Adobe Photoshop while Adobe Creative Cloud mobile apps have been downloaded over 376 million times.
Adobe is among the top stocks listed on the NASDAQ 100 and S&P 500. The company has over 300 billion market capitalization. Adobe makes recurring income from paid subscriptions to its products. It is also showing a growing trend in the charts year by year.
PayPal (Ticker: PYPL) is a digital payment platform with over 277 million active account holders in more than 200 markets around the world. It has product segments, including Braintree, Venmo, and Xoom. PayPal lets consumers and merchants receive money in more than 100 currencies, withdraw funds in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PYPL has over 320 billion market cap and is listed both on the S&P 500 and NASDAQ 100 index. This digital and mobile payment platform continues to expand its services.
McDonald’s (Ticker: MCD) has been here since 1940. It is one of the world’s leading fast-food chain company with more than 36,000 restaurants in more than 100 countries, serving over 69 million customers daily. The food chain giant has more than 175 billion market capitalization.
MCD pays dividends every quarter of each year. With a dividend yield of 2.20% and an annual dividend of $5.16, it’s one of the favorite stocks of dividends investors.
McDonald’s has also been affected by the coronavirus, as many restaurants temporarily closed. But long-term investors took that opportunity to buy more stocks. MCD stock is now back on a bullish trend.
18. Advanced Micro Devices
Advanced Micro Devices (Ticker: AMD) is the only company in the world that has both high-performance graphics and high-performance computing technology. Founded in 1969, AMD is now one of the world’s leading semiconductor companies. AMD stock belongs to both NASDAQ 100 and S&P 500 index.
AMD has over 120 billion market cap. The high-end chip maker recorded Q1 2021 revenue of $3.45 billion and a net income of $555 million.
Boeing (Ticker: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners, defense, space, security systems, and service provider of aftermarket support. The company has more than 130 billion market cap and is among the top components of Dow Jones and S&P 500.
In every crisis, there is an opportunity. That’s what long term investors of BA stocks have been doing when the price of BA stock dropped down during the pandemic. While air travel is not back to normal, 1-year price return of BA stock is around 32%. Always trade with caution.
ServiceNow (Ticker: NOW) was founded in 2004. It offers digital cloud-based solutions and serves more than 6,200 enterprise customers around the world. 80% of the Fortune 500 companies use ServiceNow.
From the Q1 2021 report, ServiceNow already made $1.29 billion subscription revenue. That is 30% YOY growth. Cloud computing is a very resilient business, and it continues to grow. NOW is currently listed in the S&P 500. It has more than 115 billion market cap.
Facebook (Ticker: FB) is a social-network company founded in 2004. With more than 1 billion daily active users, Facebook now owns other successful platforms, including Instagram, WhatsApp, Messenger, Oculus, Workplace, Portal, and Novi.
Facebook ranks No. 10 in the Most Innovative Companies in 2020, presented by Boston Consulting Group and No. 34 in Fortune 500 Companies in 2021. FB has around 1 trillion market cap and listed among the top stocks in the NASDAQ 100 and S&P 500.
22. NextEra Energy
NextEra Energy (Ticker: NEE) is the world’s largest producer of wind and solar energy, with more than 45,500 megawatts of net generating capacity. The company is one of America’s largest capital investors in infrastructure, with $50-55 billion planned investments through 2022.
With over 160 billion market cap, NEE stock is among the components of the S&P 500. The company also pays quarterly dividends. The annual dividend of NEE stock is $1.54.
UnitedHealth Group (Ticker: UNH) is the largest healthcare company in the world in terms of revenue. The company offers health care insurance, software, and data consultancy services.
UNH has over 382 billion market cap. It is among the top stocks listed in the S&P 500 and Dow Jones index.
UNH rewards quarterly dividends to its shareholders. The annual dividend is $5.80. Sweet!
24. Home Depot
Home Depot (Ticker: HD) is the largest home improvement retailer in the US. Founded in 1978, the company has more than 2,200 stores across North America.
HD has over 350 billion market cap and is listed among the selected stocks in the S&P 500 and Dow Jones Industrial Average index. The company also pays quarterly dividends. The annual dividend is $6.60.
25. Berkshire Hathaway
Berkshire Hathaway (Ticker: BRK.B) is the giant holding company of legendary investor, Warren Buffett. It is one of the favorite stocks of millennials. The company ranked No. 6 in Fortune 500 Companies in 2021 is among the largest companies in the USA in terms of revenue.
Berkshire Hathaway also has a stock portfolio of popular companies like Apple, Coca-Cola, American Express, Bank of America, Wells Fargo, among others.
BRK.B has over 650 billion market cap and is among the finest stocks listed in the S&P 500. Berkshire Hathaway also manages well-known brands, including Dairy Queen, Fruit of the Loom, NetJets, GEICO, Helzberg Diamonds, Pampered Chef, and Kraft Heinz and many more.
|JPMorgan Chase (JPM)||162||178|
|Advance Micro Devices (AMD)||100||110|
|NextEra Energy (NEE)||79||87|
|Home Depot (HD)||316||348|
|Berkshire Hathaway (BRK.B)||273||300|
Disclosure: I am a long term investor of some of the stocks mentioned. I wrote this article myself, and it expresses my own opinion. This content is for information purposes only and should never be considered as professional advice. Every investor has different risk tolerance and goals. Always do your own research to meet your goals. All investments have risks. Risk only capital you’re not afraid to lose. I have no business relationship with the companies whose stocks have been mentioned.
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