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5 Stocks That Have the Potential to Build Generational Wealth

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Five Stocks Worth Considering for Long-Term Investment

Investing requires patience, much like preparing a good barbecue. With the right stocks, you can build generational wealth over the years while resting easy at night. However, selecting these stocks is key, as few companies manage to perform exceptionally over the long term.

Where should you invest $1,000 today? Our analyst team has identified the 10 best stocks to consider right now. Learn More »

Fortunately, top-tier companies do exist. Below are five standout firms leading their industries, offering growth potential that could sustain decades of steady expansion.

Hourglass with money on a table.

Image source: Getty Images

1. Amazon

As e-commerce gains traction, Amazon (NASDAQ: AMZN) stands out with a significant share of the U.S. online market—about 40%. Its robust supply chain gives it a competitive advantage, especially since e-commerce only comprises 16% of total retail in the U.S. Amazon is expanding into various sectors, including grocery, healthcare, and automotive sales.

Additionally, Amazon leads the global cloud industry, positioning it well for growth powered by artificial intelligence (AI). This diversification creates ample long-term growth opportunities as the sectors of cloud computing and e-commerce expand further.

2. Coca-Cola

Despite its longstanding business model, Coca-Cola (NYSE: KO) continues to grow. The company offers a range of beverages, including sodas, waters, and juices under well-recognized brands. Interestingly, around 68% of people in emerging markets—who account for 80% of the global population—still do not consume commercial beverages. This gap presents significant growth opportunities.

Coca-Cola is a key holding for Warren Buffett’s Berkshire Hathaway and boasts a record of 62 consecutive annual dividend increases. Investors who buy and hold Coca-Cola stock could be rewarded with considerable passive income over time.

3. Realty Income

Real estate remains a popular investment strategy. Realty Income (NYSE: O) operates as a real estate investment trust (REIT), allowing investment in commercial properties without direct ownership. It offers a higher dividend yield—currently at 5.7%—and unique monthly dividend payments, which is relatively rare.

O Chart

O data by YCharts

Realty Income has a track record of paying and increasing its dividends for 32 years, thanks to its operational model based on net leases with consumer-facing businesses. This approach has proven resilient, even during economic downturns, such as the COVID-19 pandemic.

4. Philip Morris International

Often thought of as a paring industry, tobacco stocks like Philip Morris International (NYSE: PM) have adapted, particularly with next-generation nicotine products. Innovations such as heat-not-burn devices and oral nicotine pouches are seen as alternatives to traditional cigarettes.

Though Philip Morris continues to sell traditional products globally, next-gen items now account for 42% of its net revenue, highlighting its transition and growth potential in this area.

5. Take-Two Interactive Software

The video game industry continues to thrive, especially among younger audiences. The global gaming market is projected to reach $257 billion by 2028. Take-Two Interactive Software (NASDAQ: TTWO) owns leading game developers like Rockstar Games and Zynga, known for popular franchises such as Grand Theft Auto and NBA 2K.

^SPXTR Chart

^SPXTR data by YCharts

With a competitive edge stemming from its intellectual property, Take-Two is often compared to Walt Disney in the gaming sector, as its franchises have developed loyal followings and significant revenue opportunities.

Explore Your Investment Options

Have you ever felt you missed out on successful stocks? The current market offers another chance to consider valuable investments.

At specific intervals, our analyst team recommends “Double Down” stocks—companies they project to perform well in the near future. This is your opportunity to engage with promising stocks before they’re no longer available:

  • Nvidia: A $1,000 investment in 2009 would now be worth $351,127!
  • Apple: A $1,000 investment in 2008 would be valued at $40,106!
  • Netflix: A $1,000 investment in 2004 is now worth $642,582!

The current recommendations include three noteworthy companies—available to you when you join our advisory service.

See the 3 stocks »

*Stock Advisor returns as of May 19, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Realty Income, Take-Two Interactive Software, and Walt Disney. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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