Long-term equity investors should never lose sight of the fact that there’s a company behind every stock they buy, sell or hold. A share of stock represents a proportionate ownership — or equity — stake in a real-life company that sells a product or offers a service. Stocks can be used merely as trading vehicles to be bought and sold for technical reasons to capture short-term gains, but investors with a long-term view should always consider the company behind the share. In other words, very often the best companies are also the best stocks.
A good company takes a comprehensive, long-term view of the markets it operates in, the products or services it offers, the customers it serves, and the communities and countries in which it operates. The best companies see the big picture and attempt to serve the best interests of all parties. Good companies manage finances well and create value for shareholders by providing quality products and services for customers while being conscious of the responsibilities they have to the community and the environment.
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Companies that stand the test of time and gain the respect of Wall Street and Main Street are committed to the kind of success that can be sustained over years, decades and even centuries. Those are the kinds of companies that make the best investments for individuals and institutions.
Today’s market environment is particularly challenging because it’s highly volatile and almost completely unpredictable. We have an unconventional president in the White House, wars are raging in the Middle East and Eastern Europe, geopolitical tensions are high, the U.S. national debt and deficit are soaring, inflation remains elevated, and the interest rate picture is unclear. In short, now may not be the time for speculating on low-quality companies that lack an established track record of success. On the contrary, right now is probably the best time to invest in the best companies in the world.
The companies on today’s list fit that bill. Each has had — and will continue to have — its ups and downs, but each one is a proven long-term winner over many market cycles and through all kinds of economies. Here are five of the best companies to invest in today:
— BlackRock Inc. (ticker: BLK)
— General Dynamics Corp. (GD)
— Microsoft Corp. (MSFT)
— Walmart Inc. (WMT)
— Consolidated Edison Inc. (ED)
BlackRock Inc. (BLK)
BlackRock has held the title of world’s largest asset manager for 16 years, ever since 2009 when it acquired Barclays Global Investors. As of its fiscal 2025 second quarter, the company has a staggering $12.5 trillion in net assets under management.
The company was founded in 1988 as a division of Blackstone Inc. (BX), and has performed brilliantly for investors and shareholders ever since. BlackRock’s product line includes mutual funds, exchange-traded funds (ETFs), separately managed accounts, private equity investments and just about anything else you can think of relating to money and asset management.
Wall Street is projecting 14.6% revenue growth for BlackRock in fiscal 2025, followed by 13.3% top-line growth in fiscal 2026. With a market cap of around $180 billion, shares are up 14.4% year to date through Aug. 13, and the dividend yield sits at 1.8% currently.
General Dynamics Corp. (GD)
General Dynamics also pays a dividend yield just south of 2%. While the yield itself isn’t much to write home about, that’s not the only thing for astute income investors to pay attention to. General Dynamics recently hiked its dividend payout 5.6% from the previous year, representing the 34th consecutive annual dividend increase. This illustrates stability and continued growth — two things that are also important to watch for dividend-minded investors.
General Dynamics is a strategically important defense contractor and has been for over 125 years since it was founded — as Electric Boat — to design and manufacture watercraft and submarines for the U.S. military. Today, the company makes nuclear subs, high-tech armored fighting vehicles, military aircraft, computer-powered weapons systems and advanced electronics.
Shares are on a run in 2025, advancing 22.4% through Aug. 13.
[Read: 7 Up and Coming Stocks to Buy in 2025]
Microsoft Corp. (MSFT)
There are very few stocks on the market that can be called “mega caps,” but MSFT is one of them. This software and enterprise application company has a market capitalization around $3.9 trillion, and has long been considered one of the world’s best companies.
Microsoft designs and produces advanced software and hardware and is an established leader in high-speed computing and electronic gaming. The company has remained relevant by embedding artificial intelligence, or AI, in its products through its Copilot AI assistant, which includes its legacy offerings like Microsoft 365, Windows 11 and Azure, its cloud computing platform. Azure is, in fact, the cornerstone of Microsoft’s AI strategy. It serves as a central hub for all of the firm’s AI development and deployment.
Microsoft has tens of millions of loyal customers and is a cutting-edge modern tech company, even after 50 years in business. The stock pays a small 0.6% dividend yield, preferring to reinvest the majority of profits back into its business and share buybacks.
Walmart Inc. (WMT)
Up until the fourth quarter of 2024, WMT was the world’s largest retailer by revenue. Although the company is expected to generate more than $698 billion in revenue in its current fiscal year, its size has finally been surpassed by online retail giant Amazon.com Inc. (AMZN), which is projected to post revenue of $708 billion this fiscal year and nearly $780 billion next fiscal year.
Walmart operates brick-and-mortar retail outlets through its Walmart USA segment, its Walmart International segment and its Sam’s Club warehouse club division. On top of its department stores, supercenter outlets, warehouse stores and neighborhood markets, it also has a thriving and fast-growing online operation that nicely complements its physical locations and competes directly with Amazon on price, service, inventory and delivery speed.
Walmart’s market cap sits just above $800 billion, and the stock pays a current dividend yield of 0.9%. The company has increased its annual dividend payout every year for 52 consecutive years, making it one of the market’s elite “Dividend Kings” — a term for stocks that have increased their dividend payouts to shareholders year-in and year-out for at least half a century.
Consolidated Edison Inc. (ED)
Regulated electric utilities are experiencing something of a resurgence on Wall Street and in the minds of individual investors. The renewed interest in electric companies is due to the ongoing data center boom being driven by AI, cloud computing, cryptocurrencies, 5G mobile technology and the ever-expanding data demands of the internet itself. Consolidated Edison is no exception to this trend. Shares are up 19.2% year to date as of Aug. 13, and may be heading even higher over time.
The company is a gas and electric utility serving New York City, New York’s Westchester County and parts of Northern New Jersey. This blue-chip stock is more than 200 years old and has proven for many decades that it’s one of America’s great companies, with a customer base exceeding 4.8 million individual and commercial customers.
While revenue growth won’t blow anyone away — Wall Street expects 6% growth this year and 4% next year — the stock does pay a strong dividend, which currently sits at 3.3%.
[Read: 7 Dividend Stocks to Buy and Hold Forever]
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5 Best Companies to Invest In Today originally appeared on usnews.com
Update 08/14/25: This story was previously published at an earlier date and has been updated with new information.