Investing in stocks is an effective way to help build and grow your wealth to better prepare yourself for retirement. You should pay special attention to growth stocks , as the capital gains you can enjoy from holding them over the long term can greatly accelerate your path toward financial freedom. Such stocks usually do not pay dividends, as the underlying business is reinvesting all of its profits and cash back into growth initiatives.
When it comes to choosing the right growth stocks to own, you should look at several important attributes to help you decide: The company needs to have a strong brand or a competitive edge that allows it to thrive. Its business should enjoy strong tailwinds that can help it grow for the foreseeable future. It should be managed by a competent team that can help it adapt to new trends and stay relevant in a fast-changing business world.
Let's look at three such businesses that have these attributes, making their stocks fast growers. 1. Adobe Adobe ( ADBE 0.
43% ) is a software provider famous for its portable document format (PDF), which is used by millions worldwide. The company manages multiple software-as-a-service platforms, including Document Cloud which deals with PDF-related services, and Creative Cloud which allows users to conveniently generate images and text with search commands and prompts. Adobe reported stellar earnings for its fiscal 2023 (ending Dec 1, 2023).
Revenue rose 10.2% to $19.4 billion, with 94% of that coming from subs.