What makes a company "incredibly profitable"?

A company is considered incredibly profitable when it consistently generates substantial earnings relative to its size and industry. Companies like Apple, Microsoft, and Amazon have proven they can turn billions in revenue into significant profits year after year. This financial strength often indicates good management, strong business models, and competitive advantages in their markets.

Why are profitable companies considered less risky investments?

Profitable companies are often seen as safer investments because they have proven business models that generate consistent earnings. This financial cushion helps them weather economic downturns, invest in growth opportunities, and potentially return money to shareholders through dividends or stock buybacks. Their established profitability also typically leads to more stable share prices compared to companies that aren't yet profitable.

What are dividends and why do profitable companies often pay them?

Dividends are regular payments companies make to their shareholders from their profits. Many highly profitable companies like Microsoft and Johnson & Johnson pay dividends because they generate more cash than they need for operations and growth. As a shareholder, you receive these payments either as cash or additional shares. Dividends provide you with income while you own the stock, regardless of whether the share price goes up or down.

How does a company's profitability affect its stock performance?

A company's profitability often directly influences its stock performance. Consistent profits typically support higher stock prices over time as investors value the proven ability to generate earnings. Profitable companies can also reinvest in their growth, pay down debt, return cash to shareholders through dividends, or buy back shares—all actions that can positively affect stock prices. However, stock prices also reflect future expectations, so even highly profitable companies may see price declines if investors believe their future profitability will decrease.

6 handpicked stocks

Incredibly Profitable Stocks

Invest in some of the world's most profitable companies, carefully selected by our professional analysts. These established market leaders have proven track records of strong financial performance and global influence.

Han Tan | Market Analyst

Published on May 19

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Apple, Inc.

AAPL

Current price

$257.58

Microsoft Corporation

MSFT

Current price

$517.43

Amazon.com Inc.

AMZN

Current price

$221.97

Meta Platforms Inc (Facebook)

About This Group of Stocks

Our Expert Thinking

These companies have mastered the art of generating substantial profits. Their strong track records, financial stability, and ability to weather economic downturns make them attractive investments, especially for those new to the market.

What You Need to Know

Companies in this group tend to have more stable share prices than those without consistent profits. Many also pay dividends, providing extra income while you hold their stock. Their financial cushion can help them survive challenging market conditions.

Why These Stocks

Each company in this selection has demonstrated exceptional ability to generate profits over time. They're established market leaders with global influence and strong financial performance, making them solid choices for investors looking for stability with growth potential.

Group Performance Snapshot

6 of 6

Stocks Rated Buy by Analysts

6 of 6 assets in this group are rated Buy by professional analysts.

1.8%

Group Growth

This group averaged a 1.8% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

💰

Profit Powerhouses

These companies don't just make money—they generate billions in profits year after year. Their consistent financial strength can translate to long-term value for shareholders.

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Built to Last

When market conditions get tough, these profit leaders have the financial resources to weather the storm. Their stable foundations make them especially appealing for cautious investors.

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The Smart Starting Point

Financial experts often recommend profitable, established companies like these for beginners. They offer a balance of stability and growth potential that's hard to match.

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