The Best Stocks to Buy With $25,000 Right Now

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If you have $25,000 that you’d like to build an investment portfolio with, you’re likely looking for the best stocks to invest in. But if you’ve never invested in the past or you’ve been out of the market for some time, you may not be sure which stocks to start with.

Of course, the perfect portfolio is relative. It should address your investment style and your appetite for risk. You may be able to use insights from articles like this one to figure out where you should start. So what stocks should you buy with $25,000?

The Portfolio Structure

Before we get into stock picks, it’s important to understand the portfolio structure I’m choosing and why. To build this particular portfolio, I’ll be considering the three most popular styles of investing as well as safety. To evenly distribute allocation, the stocks below are based on 45% growth and 45% income. The final 10% will be allocated to safety plays.

The Growth Allocation

The following stocks would fit well in the growth portion of this portfolio.

Amazon.com - A Flagship In Any Growth Portfolio

Amazon.com (Nasdaq: AMZN) has become a household name over the years as an e-commerce powerhouse. And, while the company controls over 37% of the United States’ e-commerce sector , that’s not the only driver of growth to consider.

Amazon Web Services (AWS) has grown to become a leader in cloud computing. In fact, that arm of the company’s business could generate $100 billion this year. And, revenue from its advertising platform has seen tremendous growth. These areas of the company’s business, in combination with its core e-commerce business, should keep the stock growing for the foreseeable future.

Nvidia - The Central AI Play

Artificial intelligence is just about everywhere. If you have a modern car, chances are that it offers AI lane assist. Your cell phone and some home devices, like Alexa, smart televisions, and even smart refrigerators, all feature AI capabilities.

But, what we know of AI today simply wouldn’t be possible without Nvidia (Nasdaq: NVDA) . The company’s GPUs laid the groundwork for the technology that powers artificial intelligence. And as an early innovator in the industry, the company has maintained its leadership.

The company also recently completed a 10-for-1 stock split transaction. This brought prices down to more reasonable rates, driving increased volume. Should this excitement continue, it will only expand on the growth Nvidia is likely to experience.

Meta - A Social Media Powerhouse

It seems like social media is ingrained in just about everything we do. And that trend isn’t likely to change anytime soon. So it makes sense to look for growth opportunities in the sector.

Meta Platforms (Nasdaq: META) is a great way to do just that. Meta owns leading social networks like Facebook, Instagram, and WhatsApp, to name a few. Between these platforms, the company boasts billions of monthly active users.

But social media isn’t the only place Meta shines. The company is also a leader in online advertising, where it continues to see significant growth year after year.

The Income Allocation

The following stocks would fit well in the income allocation of this portfolio.

Verizon Continues to Pay Strong Dividends

Verizon (NYSE: VZ) is a household name in the United States. The company operates one of the largest cellular networks in the country, and its market share shows its success. According to Statista , it controls more than 37% of the mobile phone market in the United States, giving it the stability you would expect out of an income stock.

And when it comes to income, Verizon pays plenty. The company currently offers a $0.66 quarterly dividend. That works out to a dividend yield that’s well over 6%.

Duke Energy Provides Dividend Stability

Utilities are some of my favorite places to look for dividends, and for good reason. Utility companies typically serve a relatively predictable network of customers. And as the population grows, that network grows, giving them the ability to predict and produce relatively stable revenue growth and pay dividends on their earnings.

Duke Energy (NYSE: DUK) is a prime example of that. The energy utility has become a powerhouse in the industry and has paid strong dividends throughout its history. At the moment, the company offers a $1.02 quarterly dividend, representing a 4.09% dividend yield.

And Duke Energy may be a double-play. While the company offers a meaningful dividend yield, it has also produced more than 11% price growth over the past year, giving investors yet another reason to dive into the stock.

Devon Energy’s Dividend Is Hard to Ignore

Sticking to energy companies, Devon Energy (NYSE: DVN) is another strong one to look at. Rather than focusing on the utility aspect of the energy sector, Devon Energy is one of the largest oil and natural gas exploration companies in the world, and it continues to grow. But, growth isn’t why I would consider investing in Devon Energy to build a $25,000 portfolio.

Devon Energy is a strong dividend payer. The company currently offers a $0.69 quarterly dividend, representing a 5.84% dividend yield.

The Safety Allocation

No portfolio would be complete without at least some safety allocation. When I look for safety, I like to look at precious metal ETFs. After all, when the market isn’t performing well, precious metals tend to head up.

In particular, you may want to hedge your bets with the Franklin Responsibly Sourced Gold ETF (NYSEARCA: FGDL) . This is a portfolio of responsibly sourced gold that offers safety from market risk and can hedge today’s high inflation. Consider adding it to your portfolio to balance out your risk.

The Bottom Line

The best investment portfolios are typically well-diversified and consider the balance between assets. The stock picks above were chosen, not just because every company offers a strong investment opportunity, but also because they’ll work well together in a portfolio.

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