The economy looks robust, so investing in a schedule is a wise choice. Job growth is strong, wages are increasing, and the stock market is buoyant. With healthy household finances, consumers are confident, and spending on major household appliances is set to rise. Economists and business leaders are optimistic, expecting the economy to maintain its expansion driven by solid fundamentals. You should invest as often and consistently as possible to buy stocks while they are still at a discount.
I have picked out three exceptional companies to invest in every time you get paid. Each company is a leader in its respective sector, and all three options are set to lock in long-term profits for your portfolio.
Let’s dive into these three payday stocks to invest in every time you get paid.
Best Payday Stocks: Taiwan Semiconductor (TSM)
Taiwan Semiconductor (NYSE:TSM) designs and manufactures integrated circuits and other semiconductor devices. Currently trading around $149, TSM has outperformed this year and is up 47% YTD.
In 2023, the semiconductor market was valued at $526.7 billion and is forecasted to reach $1.41 trillion by 2032, exhibiting a CAGR of 11.6%. As the industry expands due to the AI boom, high demand for data computation, and rising vehicle electrification, TSM’s dominant position will allow it to capture a significant portion of this growth.
In the first quarter of 2024, TSM reported robust financials and highlighted its growing ability. Revenue jumped 12.9% YoY to $18.87 billion, while net income and diluted EPS both increased 8.9%. TSM also logged a gross margin of 53.1%, operating margin of 42.0%, and net profit margin of 38%. Finally, the company is expected to experience continued growth, with management forecasting revenue to be between $19.6 billion and $20.4 billion for Q2 2024.
Controlling an estimated 90% of the world’s super-advanced chips, TSM continues to tighten its grip on the industry through its strategic expansion efforts. The company has recently invested $40 billion in a U.S. fabrication plant expected to become operational in 2027 or 2028. Combined with its plans to build factories in Germany and Japan, this move will significantly expand the company’s production capabilities outside its home in Taiwan and allow revenue to skyrocket.
Apple (AAPL)
Apple (NASDAQ:AAPL) is a multinational American technology company specializing in developing and designing consumer electronics. It is currently trading at about $190, an 11% increase year-over-year.
AAPL boasts revenue of $381.623 billion and a gross profit of $173.966 billion, representing a gross profit margin of 45.59%. EBIT Margin TTM was assessed at 30.98%, a mammoth 552.12% more than the sector median of 4.75%. Furthermore, the Return on Common Equity TTM was 147.25%, 3,782.84% more than the sector median of 3.79%. This shows Apple’s growth potential, both short and long-term, as well as its immense profitability.
The information technology industry is valued at over $9 trillion as of 2024, with projections to reach $12.42 trillion by 2028, representing an annual growth CAGR of 8.3%. This massive growth as an industry is paired with AAPL’s 23% market share in the smartphone industry and demonstrates that sector growth will translate to the company’s stock price. AAPL has also attempted to expand its artificial intelligence (AI) prospects, spending approximately $1 billion yearly on AI research. Attempts include partnering with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) to bring generative AI features to the iPhone, which would make headlines and further accelerate Apple’s dominance over the smartphone industry.
AAPL’s smartphone market supremacy and AI expansions are key factors that make it deserving of a recurring post-paycheck investment. I am confident that the stock will remain profitable while maintaining its longevity.
Best Payday Stocks: Abercrombie & Fitch (ANF)
Abercrombie & Fitch (NYSE:ANF) is a retail brand that sells casual American clothing. The stock is currently at about $172 and has shown a spectacular YOY growth of over 450%.
In 2023, Abercrombie & Fitch showed excellent financials, especially compared to the previous year. The net income grew from $2.82 million to $328.12 million from 2022 to 2023. This growth reflects about 11552% YOY, possibly due to an immense comeback from the weak financials in 2022. However, this improvement is not exclusive to 2023. In Q1 2024, the revenue increased from about $1 billion in Q4 2023 to $1.4 billion this quarter, demonstrating solid revenue growth.
The company constantly utilizes partnerships to promote its brand. This January, the company partnered with McLaren Racing, an F1 racing team. This partnership features six new tees, hoodies, and sweatshirts with the official McLaren racing design. The race car will also be featured at one of their stores, which are open for the public to view. With creative and regular partnerships like these, Abercrombie & Fitch shows innovative thinking.
Abercrombie & Fitch’s financials have improved dramatically over the past few years. The addition of its regular partnerships makes it a worthy payday stock to buy.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.