Often, the best stocks aren't the companies that burst onto the scene. Instead, it's the businesses with staying power, that keep competitors at bay, and can sustain decades of steady growth. Being a long-term investor is advantageous because it allows you to partner with these exceptional companies and reap the rewards as a shareholder.
But there are thousands of stocks to choose from, so identifying the right ones for your investment strategy is essential. Whether you're looking for growth, big dividends, or something in between, here are three stocks worth considering.
A stock for growth investors
Airbnb (ABNB 0.10%) has become a huge name in the hospitality industry. The company has amassed a nearly 20% share of the entire vacation rental market, primarily driven by its easy-to-use platform for people to list or book homes, condos, and other property.
The company came public during the pandemic, which hurt Airbnb's business because of the restrictions on travel. However, you can see below that it has roared back stronger than ever. Revenue has soared to more than $8 billion over the past year. In Q3, it approached 100 million nights and experiences booked, generating record revenue.
Airbnb's technology platform carries a strong profit margin, so the company is converting 40% of its revenue to free cash flow -- that's more than $3.2 billion in cash profits over the past year.
ABNB Revenue (TTM) data by YCharts
The short-term rental market is surging. Grandview Research estimates that the industry could grow 11% annually through 2030. Airbnb has an opportunity to take market share from hotels and other traditional lodgings, and the industry tailwinds should offer plenty of fuel for long-term growth. The stock is down almost 50% through the bear market, offering investors a great chance to buy shares of this thriving company for the long term.
A high-yield dividend idea
Anyone who owns a cellphone in the United States knows Verizon Communications (VZ -0.68%); not only is the company America's second-largest wireless network, but it blasts ads all over television as it fights for your business against the select few companies that control the telecom industry.
Verizon has spent billions of dollars over decades building its cell towers and other infrastructure that give you that sweet 5G connection. The business generates billions of dollars in cash flow from your wireless bills. The stock offers a hefty 6.4% dividend yield, and because Verizon spends just over half its profits paying it, investors can feel pretty good that the dividend is safe from any near-term cuts.
VZ Dividend Yield data by YCharts
The telecom market in the United States is pretty saturated -- I mean, who doesn't have a cellphone? Therefore, investors shouldn't expect anything exciting regarding growth. Analysts believe Verizon's earnings per share (EPS) will likely increase by an average of 4% annually over the next three to five years. However, the stock's high dividend yield could make it attractive to income-focused investors.
A stock to please everyone
Some investors want a stock that can potentially give them share price gains along with some income, too. Sports apparel giant Nike (NKE -0.74%) could be the stock that checks both of those boxes. Nike, known for its famous swoosh logo, is one of the world's most recognizable brands.
Nike sponsors many of the world's most prominent athletes, including LeBron James, Michael Jordan, and Cristiano Ronaldo. The company has steadily grown revenue on the back of its powerful brand. Nike's become an established dividend stock, too; management has raised the payout for 21 consecutive years.
NKE Revenue (TTM) data by YCharts
Sports are arguably more popular than ever -- look at the billion-dollar deals networks are paying for broadcasting rights. That probably bodes well for Nike as well. Analysts believe Nike's EPS will grow by an average of 9.5% annually over the next three to five years. That growth, plus a dividend chipping in a 1% yield, makes the stock a candidate for double-digit total returns moving forward.
