The market greeted the recent news about tariff cuts between the U.S. and China with great enthusiasm, as expected. The S&P 500 has climbed back to where it started the year, and if the new tariff deal doesn't derail consumer spending, the broader index could start to increase again.
As stocks rise, it's harder to find good deals. But a great stock doesn't have to be dirt cheap to be a bargain, and as Warren Buffett has advised, it's far better to find a great stock at a fair price than a fair stock at a great price. With that in mind, my three favorite stocks are all-weather buys that could supercharge your portfolio under any circumstances.
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1. MercadoLibre: Huge opportunity in Latin America
MercadoLibre stock (MELI -0.09%) is crushing the market this year, up 48%. It's a perpetual market-beater because it consistently reports fabulous results and has so much opportunity. Its core business is e-commerce where it's the dominant player in Latin America. Although it's the industry leader, e-commerce is underpentrated in the region, giving it a long growth runway, and it's always adding new members.
In the 2025 first quarter, unique buyers increased 25% year over year, and gross merchandise volume (GMV) was up 49%. Items sold increased 28%, and items per buyer increased from 7.2 to 7.4. That lower growth was due to the influx of new shoppers.
MercadoLibre has developed a robust financial-services segment originally intended to support shopping options on its platform but now a fully loaded, stand-alone business generating high sales. In Q1, monthly active users were up 31% year over year, and total payment volume increased 72%.
There's plenty of upside in this business as well, with a large underbanked population and an entrenched legacy banking system in some of its markets that's already being disrupted. High growth, especially in some of its lower-cost businesses, is leading to high profitability at scale. Operating income increased 45% in Q1 with a 12.9% margin, and net income was up 44% with an 8.3% margin.
On top of all that, MercadoLibre stock trades at a reasonable valuation of 38 times forward one-year earnings, making it an attractive buy today.
2. Dutch Bros: Incredible expansion opportunities
Dutch Bros (BROS 3.13%) is a U.S. coffee chain that just opened its 1,000th store. That's small in the world of restaurant chains, but it's double the store count the company had when it went public in 2021. What makes this stock so compelling is that, like MercadoLibre, it's reporting incredibly strong growth today, and it still has tons of future opportunity.
In 2025's Q1, revenue increased 29% year over year. Dutch Bros opened 30 new stores, but the revenue is also coming from increases in existing store sales. Same-store sales increased 4.7%, which include franchised stores and company-owned, same-store sales up 6.9%.
These are important growth drivers. As customers come in and discover the company's signature custom beverages, they're becoming more loyal and shopping there more often. Transaction growth increased 1.3% in the quarter, indicating higher engagement with the brand. Profitability is also improving, and net income increased from $16.2 million last year to $22.5 million this year.
At a recent investors' day meeting, management raised its total store-opening goal from 4,000 stores over the next 10 to 15 years to 7,000 stores long term. Its near-term aim is to reach 2,029 stores by 2029, which implies a major acceleration in store growth. It plans to open at least 160 stores this year.
Dutch Bros stock isn't cheap, trading at 86 times forward one-year earnings. But it deserves a premium valuation for its massive growth prospects.
3. Realty Income: The dividend superstar
Realty Income (O 1.63%) is a real estate investment trust (REIT) concentrated in retail properties. REITs in general are dividend winners because they pay out 90% of their earnings as dividends. Although they're known to be solid picks as a group, they are not all created equal. Realty Income stands out in a number of ways:
1. It pays its dividend monthly, which is an attractive feature for investors who rely on passive income.
2. It has paid the monthly dividend for more than 54 years, making it incredibly reliable.
3. It has raised its dividend for 110 consecutive quarters, an excellent track record for dividend growth.
4. It yields 5.8% at the current price, a very high yield for a stock of its reliability.
All of that is supported by the company's strong operating model and balance sheet. It's one of the largest REITs in the world, with 15,600 global properties. Some 80 percent are concentrated in retail, specifically in essentials retail like grocery and convenience stores, but it has been diversifying into other industries, like industrial and gaming, that are improving its margins.
Realty Income grows through acquiring smaller REITs and new properties, and it's well-funded with cash and credit to support its purchases. It sourced $335 billion in quality volume over the past four years, of which it purchased $31 billion, or 9%. Management sees a total addressable market (TAM) of $14 trillion.
This stock is an excellent choice for retirees or anyone looking for a top dividend stock to add to a diversified portfolio.
