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10 S&P 500 Stocks to Buy for Long-Term Outperformance

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Do you own Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) or Netflix (NFLX)?

Congratulations if you do, because these members of the Standard & Poor’s 500-stock index are up anywhere between 26% and 79% so far this year – and in the case of Netflix, its nearly 80% gains have come despite a 17% slide in July due to lower-than-expected subscriber growth.

With four months left in the year, you’re sitting pretty. Passive investors? Not so much. The problem is, as of mid-July, the four aforementioned S&P 500 stocks (according to research by S&P Dow Jones Indices) accounted for half the return of the index. At the time of the research, the index had gained about 6%, which means those four stocks accounted for 3 percentage points, and 496 companies accounted for the other 3.

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It’s troubling that so few stocks are accounting for the lion’s share of the returns, but the message right now is clear: It’s a “stock picker’s market.” Thus, while every investor probably should have at least some money invested in an index fund, right now, those same investors should consider piling into a few individual S&P 500 stocks.

Here are 10 of the index’s best options not just for the rest of 2018, but for several years beyond that.

SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond

Data is as of Sept. 5, 2018.

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