Best Stocks To Invest In For 2016

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Investing is your key to achieving your financial goals, and one proven way to do this is by investing in stocks. But the most important thing is to pick the right stocks and hold them for years through market ups and downs to let the power of compounds work its magic. Only then can you create real wealth.

Best Stocks To Invest In For 2016

But where do you find stocks that can make you good money in a few years? Here are three to get you started, each with incredible growth potential.

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American Water Works (AWK -2.29%) has a reputation as a boring stock, but you wouldn’t want it to influence your investment decision if you knew the stock was multi-version proven. He has what it takes to collect even more in the coming years. Therefore.

Holding fundamentally strong stocks over the long term is a proven wealth-building strategy. Image source: Getty Images.

First, American Water processes and delivers more than a billion gallons of water a day to keep business going no matter what. Second, it has predictable capital deployment plans that almost guarantee profits, and dividends grow with profits. This will definitely be reflected in the share price. Third, President Biden’s aggressively campaigned infrastructure bill is already underway, and clean water is one of his top priorities. America’s Water Works is in the best place.

Over the next decade, American Water plans to spend $22 billion to $25 billion, mostly on infrastructure improvements. This is critical to getting regulatory approval for rate increases that can then be passed on to your customers. In addition to regulatory capital expenditures (CapEx), American Water is also looking to leverage acquisition opportunities to drive growth. Since 2015, the company has made 106 acquisitions.

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The company expects annual earnings per share (EPS) and dividend growth of 7-10% over the next five years. American Water is a best-in-class dividend utility stock that has increased its dividend every year since going public in 2008. These dividends have significantly boosted stock returns over the years – a trend I believe will continue.

Brookfield Renewable Partners (BEP -1.46% ) (BEPC -0.41% ) wants to increase its annual dividend by 5% to 9% and provide an annual return of 12% to 15% over the long term. It’s an easily achievable goal given the company’s enormous growth opportunities as the world transitions from fossil fuels to clean energy. Given that Biden also offered an excellent climate plan that emphasizes clean energy, Brookfield is a clear winner in the making.

Brookfield is one of the largest publicly traded renewable energy companies and one of the best bets in the industry because of its diversity: the company is primarily in hydropower, but has recently expanded into solar and wind, so hydropower now only makes up about 66% of its portfolio. In fact, management predicts that within ten years, solar energy will be the main source. Brookfield is on a massive pipeline of nearly 23 gigawatts of renewable electricity as of the most recent quarter, nearly 20% more than its existing installed capacity.

In the past, Brookfield had such impressive growth that it was able to pass a significant portion of its earnings to shareholders in the form of regular dividend increases. Since management has already committed to future dividend growth, you can comfortably beat the market over the long term with this stock.

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The coronavirus recession hit Mastercard (MA 0.97%) last year, but it didn’t take long for the stock to recover, with Mastercard shares hitting record highs earlier this month. If you’re wondering how much this $364 billion market cap company can get, it’s the limit for one simple reason: the ongoing mega-shift from a cash society to a cashless society. As one of the largest payment processing companies in the world, making money on every transaction with its cards, Mastercard is riding an explosive growth bomb. As of December 30, 2020, the company issued 2.8 billion Mastercard and Maestro cards.

Mastercard’s position in the ever-evolving fintech industry can be questioned, but the company has been very adept at innovating and launching products to keep up with the times. A great example is Mastercard’s cryptocurrency program; hosts crypto cards and facilitates cryptocurrency transactions on its network. The company is also looking to create multiple revenue streams outside of its traditional business, such as interbank money transfers and business-to-business payments – addressable markets worth billions of dollars.

With so much growth engine ahead, Mastercard should be able to generate high operating margins and piles of cash like it has in the past. The stock has grown phenomenally over the past decade, and its future looks just as bright.

The best thing about owning Brookfield Renewable Partners, American Water Works and Mastercard is that you don’t have to worry about where their growth will come from. These companies know their business and know exactly how to take advantage of opportunities, which is why their stocks can bring you significant long-term returns.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends Mastercard. The Motley Fool has a privacy policy.

American Water Works AWK $133.40 (-2.29%) $-3.12 Brookfield Renewable Partners L.P. BEP $31.84 (-1.46%) $0.47 Brookfield Renewable Corporation Inc. BEPC $33.61 (-0.41%) $0.14

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Calculated from the average return of all stocks recommended since the start of the Stock Advisor service in February 2002. Profitability as of 10/05/2022.

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Calculated on a weighted income scale from 2002. Volatility profiles based on calculations of the standard deviation of return on investment in services over the last three years.

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Invest better with The Motley Fool. Get stock recommendations, portfolio guidance and more from The Motley Fool’s premium services. In the current market, it is not easy to determine which stocks are worth investing in. Which will pay the best dividends? Which of them will be profitable in 5 years? The best way to answer these questions is to do your research and read articles on the subject. Here we have listed the top 10 stocks you can invest in right now! So what are the best stocks to buy now?

Note that investing in the best stocks to buy now does not mean that it is a good idea to invest all your capital at once. It is the other way around. Even the best stocks to buy now do best over the long term with a minimum investment horizon of 10 years. The cost averaging effect can be used to build a portfolio of stocks over a longer period of time based on a reasonable average cost.

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Fractional stocks are good for small portfolios where investors can put small amounts of money month after month or quarter after quarter. It’s also important to keep a close eye on the company’s key metrics and earnings announcements over time. If the fundamental indicators of the company change in an unfavorable direction, there is an opportunity to sell the position.

Also, for the first time in over a decade, we will likely see multiple interest rate hikes in 2022 and beyond. This means that the stock market is likely to be lower compared to the last 10 years. Therefore, it is even more important to be careful with any investment activity.

Amazon is a long-term growth stock and their business performance on the e-commerce platform is excellent. However, they did make the list of the best stocks to buy in the Best Virtual Reality Stocks category. Amazon’s cloud services have become a major source of revenue, and there are many opportunities for further development in this area.

More and more products are released as software-as-a-service and run on Amazon’s cloud infrastructure. Amazon made the list of the best virtual reality stocks thanks to its cloud technology and IT prowess. Since 2008, every significant drop in price has been used by institutions and private investors as a buying opportunity, even with a staggering price-to-earnings ratio of 81 or more.

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If you look at a 10-year chart, you can be stunned by the performance of stocks. Amazon is currently at an all-time high, 20 times higher than in 2011.

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