10 Stocks to Make You Richer in 2021

The stock market may be changing, but the rules of investing haven’t. When you buy stocks, it’s more important than ever to make sure you’re investing in companies that you’re willing to buy and hold for the long term.

Whether 2021 marks the beginning of your investing journey or you’re already an established stock aficionado, these are 10 stocks that could enrich your portfolio and bring amazing returns not only next year but in the years to come.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Megacap company Alibaba (NYSE: BABA) has been hit with some headwinds of late, slapped with antitrust fines by Chinese regulators and grappling with the shock termination of affiliate Ant Group’s initial public offering. The IPO was slated to raise more than $34 billion, which would have made Ant Group’s public debut the largest in recorded history.

Despite these bumps in the road, shares of Alibaba are still up by more than 15% year to date. The holding company boasts a wide range of profitable subsidiaries in its portfolio, including major retail, technology, and e-commerce brands.

During the first and second quarters of fiscal 2021 (ended on June 30 and Sept. 30), Alibaba reported year-over-year revenue growth of 34% and 30%, respectively. By the end of the second quarter, Alibaba recorded 757 million annual active consumers from its retail businesses, and a grand total of 881 million monthly active users on these platforms. Alibaba’s cloud computing business is also proving to be a key source of revenue growth for the company, as sales in this division during Q1 and Q2 grew year over year at a rate of 59% and 60%, respectively.

Companies as large as Alibaba will always experience a mixture of headwinds and tailwinds over the course of doing business. But its exponential growth doesn’t appear to show signs of slowing down anytime soon, and investors can reap the benefits.

ALSO READ: 3 Top Large-Cap Stocks to Buy in December

Teladoc Health’s (NYSE: TDOC) massive footprint in the highly lucrative virtual care space is fast endearing it to investors in search of long-term, sustainable growth. The company’s financial performance prior to the pandemic was stellar -- it reported year-over-year revenue growth figures of 79% in 2018 and 32% in 2019.

That being said, this year has been one of unprecedented gains for Teladoc. The company’s third-quarter revenue rose 109% from the year-ago period, while its revenue from the January to September period was up 79% compared with the same time frame in 2019. There were also 163% more visits on Teladoc’s platform during the first nine months of 2020 than during the same window last year.

Shares of Teladoc have returned more than 600% for investors in the five and a half years since the company went public. Although the pandemic has certainly increased the need for Teladoc’s services, the demand for telemedicine is here to stay.

Cannabis consumer packaged goods retailer Green Thumb Industries (OTCMKTS: GTBIF) has had a far better 2020 than most of its rivals, and investors are expecting great things from the company in the new year. During the first nine months of 2020, Green Thumb Industries reported three consecutive quarters of triple-digit revenue growth. Revenue during these quarters surged at a rate of 268%, 167.5%, and 131.1% from the year-ago periods. Green Thumb’s first-half 2020 revenue alone surpassed its reported revenue for all of last year.

The company’s launch of an e-commerce site earlier this year will further expand its consumer footprint. It also opened six additional retail locations during the second quarter alone, which is no small feat in light of the current economic climate combined with the strain that extended closures and lockdowns have placed on other cannabis retailers.

Analysts think that Green Thumb Industries will grow its earnings by 20% annually over the next five years. Given the company’s stellar performance despite this year’s highly volatile stock market (not to mention the usual regulatory and legal headwinds facing cannabis retailers), this stock looks like a smart buy to add to your basket of stocks heading into 2021.

Vertex Pharmaceuticals (NASDAQ: VRTX) has a portfolio of highly profitable cystic fibrosis drugs and a research and development pipeline featuring a range of candidates targeting other rare genetic diseases.

Vertex has remained virtually recession-proof throughout 2020, reporting year-over-year revenue growth of 77% in the first quarter and 62% in the second and third quarters. The company’s generally accepted accounting principles (GAAP) and non-GAAP (adjusted) net income increased during each of these periods as well. The company is particularly known for its blockbuster medicine Trikafta, which raked in product revenue of $895 million in Q1, $918 million in Q2, and $960 million in Q3. When the U.S. Food and Drug Administration (FDA) approved Trikafta last fall, the approval was tremendous news for cystic fibrosis sufferers because roughly 90% of individuals with the disease could be treated under the drug’s indication.

Management is forecasting Vertex’s full-year product revenue to hit somewhere between $6 billion and $6.2 billion, a significant jump from its 2019 revenue ($4.2 billion). With analysts anticipating that Vertex will grow its earnings 25% each year in the upcoming five-year period alone, investors looking to add some serious growth to their portfolio should take another look at this stock.

ALSO READ: 2 Underrated Biotech Stocks to Buy Now

Energy stocks have generated decidedly mixed performance in 2020, but Brookfield Renewable Partners (NYSE: BEP) is one player in this sector that has certainly stood out above the rest. Shares of the company have climbed 62% since the beginning of the year.

The top energy stock reported third-quarter funds from operations of $157 million, a figure that represented double-digit growth from the same quarter last year. On Dec. 11, Brookfield Renewable Partners announced its purchase of a 360-megawatt distributed generation development platform in a deal with Exelon Generation. Management stated that the deal “will enhance Brookfield Renewable’s position as an owner-operator of one of the largest commercial and industrial distributed generation portfolios in the U.S. with approximately 2,000 megawatts of operating and under development capacity and 400 investment grade customers.”

Green energy stocks are likely to flourish under a Biden presidency, and as a key player in this sector, Brookfield Renewable Partners could have some serious upside opportunity. The stock’s dividend, which currently yields just shy of 5%, is another big draw for investors looking to add extra cash to their portfolio.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As the first doses of the COVID-19 vaccine Pfizer (NYSE: PFE) developed and studied with BioNTech (NASDAQ: BNTX) are being distributed, some investors are still on the fence.

The vaccine, which interim data showed to be 95% effective in stopping people from becoming infected with the coronavirus, was granted an emergency use authorization (EUA) by the FDA on Dec. 11. The EUA and ongoing distribution efforts are a huge step forward in the fight against this deadly virus. Pfizer’s vaccine will be one of the first to reach the public, and the company intends to distribute hundreds of millions of vaccine doses over the next year.

Pfizer is sure to profit from its COVID-19 vaccine, which should make its investors richer in the coming year as a result. However, key questions remain about the long-term potency of the vaccine, not to mention the challenges of supply chain and storage logistics. There are also a number of other promising coronavirus stocks that could make big waves in 2021 if their vaccines are approved.

Here’s the key takeaway -- Pfizer is a great stock, but there are other compelling reasons to buy the company that go beyond the success of its coronavirus vaccine. Its generous 4.1% dividend yield, flourishing biopharma portfolio, and the recent merger of its subsidiary Upjohn with Mylan that formed new generic-drugs giant Viatris are just a few.

Semiconductor manufacturing company Broadcom (NASDAQ: AVGO) already operates in a sector that tends toward recession resistance. Shares of the company have grown by about 32% year to date, and during fiscal 2020 (ended Nov. 1), Broadcom generated 6% year-over-year net revenue growth.

There was more good news for investors in Broadcom’s fiscal 2020 earnings report. CFO Tom Krause stated, “Despite the challenges presented by the ongoing pandemic and macroeconomic uncertainties, we achieved record profitability, generating $11.6 billion of free cash flow in fiscal 2020. As a result, we are raising our target common stock dividend by 11 percent to $3.60 per share per quarter for fiscal year 2021."

Broadcom’s dividend currently yields 3.4%, well above the S&P 500’s average of 2%. Management expects the company’s Q1 fiscal 2021 revenue to grow by 13% from the same quarter in fiscal 2020, while analysts think that Broadcom will increase its earnings by around 8% annually over the next five years.

ALSO READ: 3 Top Tech Stocks to Buy During a Recession

McCormick’s (NYSE: MKC) products may be a staple in many investors’ pantries, but its stock has plenty to offer as well. The consumer staples stock has a long history of growing its dividend, which yields 1.5%. Because McCormick has increased its dividend every year for more than three decades, it’s a Dividend Aristocrat, a title that few stocks carry.

McCormick isn’t a stock to buy if you’re looking for lightning-speed growth, but its steady returns and dependable dividend can still help you build investment wealth. In both the second and third quarters of this year, the company grew its sales by 8% on a year-over-year basis.

CEO Lawrence E. Kurzius has cited “sustained consumer preference for cooking more at home” during the pandemic as a key driver of the company’s revenue. For the whole of 2020, management expects the company will grow its sales by somewhere between 4% and 5% from 2019.

Telecom giant T-Mobile (NASDAQ: TMUS) is one of the household names capitalizing on the 5G revolution. The company reported unprecedented total net additions and postpaid net additions to its customer base during the third quarter -- approximately 2 million in each category. T-Mobile also reported 56,000 prepaid net additions and nearly 700,000 postpaid phone net additions during the three-month period.

The company’s total third-quarter revenue ($19.3 billion) represented 74% growth on a year-over-year basis. As “America’s largest 5G network covering 270 million people,” T-Mobile has a leg up above other top competitors rolling out fifth-generation wireless technology and is a viable play for growth-seeking investors.

Shares of Walmart (NYSE: WMT) have gained approximately 22% since the year began, and the stock has quickly cemented itself as one of the few true stalwarts of the pandemic era. Walmart also happens to be a Dividend Aristocrat, having boosted its dividend every single year for more than four decades (which almost makes it a Dividend King). The stock currently yields 1.5%.

Walmart increased its total revenue by 8.6%, 5.6%, and 5.2% on a year-over-year basis during the first, second, and third quarters, respectively. The company’s e-commerce sales during these same quarters grew 74%, 97%, and 79% year over year, which isn’t surprising given the increased demand for food delivery and online shopping solutions that has been so prevalent throughout the pandemic.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As a long-term investor, you should focus on stocks that you're willing to hold for three to five years at bare minimum. Regardless of whether another market crash is looming in the near future or years away, and you tend toward more aggressive investing, risk-averse investing, or a combination of both, avoid limiting your portfolio to just one or two favored stocks or industries.

Ideally, your basket of stocks should portray a heterogeneous collection of industries and therefore bring a variety of catalysts to your portfolio (i.e., growth, value, dividends, etc.). Set your sights on companies and industries that you fundamentally believe in. If you’re considering a company for your portfolio and the thought of holding it for three to five years makes you squirm, it may be wise to look elsewhere.

Finally, be sure to counteract riskier investments with a wide variety of recession-resistant companies. If and when the market does slump, a portfolio anchored by great companies will help you better manage unforeseen volatility and mitigate your losses.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Green Thumb Industries, and Teladoc Health. The Motley Fool recommends Broadcom Ltd, McCormick, T-Mobile US, Vertex Pharmaceuticals, and Viatris Inc. The Motley Fool has a disclosure policy.