KEY POINTS

  • There’s no such thing as a sure winner in the stock market, especially among stocks that could make you rich.
  • However, PayPal, Realty Income, and Disney are solid choices, especially from a long-term perspective.
  • All three have massive competitive advantages and market-beating return potential.

The best way to get rich in the market isn’t by investing in penny stocks, trading on the stock market, or any other hazardous method.

The ideal (and most reliable) approach to “get rich” through stocks is to acquire stable firms and retain them for as long as they remain solid businesses. Here are three that both new and seasoned investors should consider.

PayPal (NASDAQ:PYPL)

PayPal is a large corporation with 429 million active users and more than $1.2 trillion in annual payment volume. Unfortunately, it’s also one of the worst-performing equities on the S&P 500 (^GSPC) index, having declined by more than 60% thus far in 2022.

To be fair, there are several compelling reasons for this. First, PayPal’s recent active user growth has been slow. The firm has acknowledged that its growth targets (that is, 750 million users within a few years) were unlikely to be met. Instead of focusing on new user acquisition, PayPal is now prioritizing monetizing its existing user base.

Despite this being a kick in the teeth for investors, it’s critical not to overlook PayPal’s massive power. PayPal is far and away the most popular payment site on the web. The first quarter exhibited continued growth and overall strength at PayPal, which resulted in 15% revenue growth in its core business. During the quarter, consumers made 47 transactions on average, 11% more than a year ago. PayPay also has substantial financial flexibility. The firm has nearly $5 billion in free cash flow each year and may invest heavily in future growth.

Realty Income (NYSE:O)

Realty Income is one of the finest dividend stocks in the market, and for a good reason. The firm has paid 624 consecutive monthly dividends to its shareholders. The real estate investment trust, or REIT, has also increased its payout for 99 straight quarters at an annualized growth rate of 4.4 percent. This makes it one of the longest-paid firms on Wall Street. It’s not only an income play; since 1994, they have returned 15.3% on average each year.

Realty Income invests in single-tenant commercial spaces, most occupied by retail tenants. As of the most recent data, Realty Income has more than 11,200 properties in the United States and Europe.

Don’t be alarmed by the term “retail.” Most of Realty Income’s tenants are recession-resistant and e-commerce headwind resistant. Walgreens Corporation (NASDAQ:WBA), Dollar General Inc. (NYSE:DG), FedEx Corporation (NASDAQ:FDX), and Walmart Inc. (NYSE:WMT) are just a few of Realty Income’s top tenants. As a result, this high-yielding dividend growth stock has done an excellent job generating long-term wealth for investors.

Walt Disney (NYSE:DIS)

The pandemic severely impacted Disney‘s business, with many of its theme parks and cruise lines closed or restricted for almost 2 years. Additionally, its blockbuster movies were unable to be shown in movie theaters. And its theme parks in Asia are still shut down.

On the other hand, Disney’s fundamental operations have strengthened. Reservations for its Walt Disney World theme parks are frequently at maximum capacity. Its movie franchises are back in action. In addition, Disney’s merchandise sales and cruising sector is flourishing. Furthermore, due to the outstanding subscriber growth of Disney+, Hulu, and ESPN+ streaming services, Disney has established a vast recurring revenue source previously unheard of (Disney+ went live in late 2019).

Disney‘s business is more robust than before the pandemic, and it will continue to grow as its streaming service develops. But unfortunately, its stock is also approaching its five-year low.

Buy to get rich in the market

These are three highly successful enterprises with a track record of growth and success. However, there are some serious economic headwinds now, so it’s only natural to anticipate volatility to continue for a while. In a decade or two, investors who buy these will be happy they did, but they should expect some turbulence in the meantime.

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