Now is a good time for investors to prepare for the New Year. Looking to maximize IRA or 401(k) contributions before the year ends can ensure a healthy portfolio ready to tackle individuals’ needs in retirement. This has led to this list of IRA contribution stocks.

However, the question is how to find high-quality stocks with strong track records and promising long-term prospects to put in an IRA. After all, thousands of stocks are on the market, with many promising options to consider.

In creating a list of IRA-worthy stocks, I’ve picked three that have historically provided either excellent returns over the long-term, alongside dividend growth (the first two), or growth-related upside potential that may be worth taking some near-term risk (the last pick on this list).

Without further ado, let’s dive in.

Pepsi (PEP)

PepsiCo (NASDAQ:PEP) is an attractive stock partly due to the company’s consistent and growing dividend. Currently, PEP stock provides shareholders with a quarterly payout of $1.27 per share, resulting in a 3% annualized yield. As a “Dividend Aristocrat,” PepsiCo has consistently increased dividends for over 25 years. The company’s recent financial performance, with Q3 earnings per share of $2.24 and revenue of $23.45 billion, surpassed expectations. 

Despite a recent pullback, PepsiCo is well-positioned for growth, aiming for a 13% annual earnings increase in 2023. This, along with its diversified product portfolio and consistent financial performance, makes PEP stock an appealing choice for investors.

A renowned and stable player in the industry, PepsiCo boasts diversified operations and consistent sales growth. PepsiCo’s Board of Directors declared a quarterly dividend of $1.265 per share, reflecting a 10% increase from the previous year. This aligns with PepsiCo’s annualized dividend rise to $5.06 per share. The dividend will be paid on January 5, 2024, to shareholders of record as of December 1, 2023. This marks PepsiCo’s 51st consecutive annual dividend increase, highlighting its commitment to shareholder returns.

Microsoft (MSFT)

Microsoft’s (NASDAQ:MSFT) stock has surged impressively this year, with MSFT stock making an impressive 12.6% gain over the last month, including a 5% gain in the past week alone. This move has resulted in MSFT stock hitting a record high of more than $384 per share. Under Satya Nadella’s leadership, the tech giant now boasts a $2.75 trillion market cap. 

Year to date, the stock has soared 54%, outpacing the S&P 500’s 17% increase. Microsoft’s Q1 2024 earnings report exceeded expectations, particularly in its Azure cloud unit, contributing to Q1 revenues of $56.5 billion, beating consensus estimates by 4% and showcasing a robust 13% year-over-year growth. This makes it one of those IRA contribution stocks to consider.

Microsoft’s Q1 2024 earnings showcased impressive results, beating revenue expectations with $56.5 billion, a 13% year-over-year growth. Strong demand for personal computing, intelligent cloud, and productivity segments contributed to these results. 

Azure revenue surged nearly 30%, surpassing guidance. Profits reached $40.2 billion, driven by a 16% increase in gross profit, leading to a 25% year-over-year rise in operating income at $26.9 billion. Notably, these numbers exceeded consensus by 12%, highlighting Microsoft’s efficient management.

Zoom Communications (ZM)

Before gaining pandemic fame, Zoom Video Communications (NASDAQ:ZM) was already making strides with its web conferencing platform. Going public in 2019, its innovative features propelled popularity and stock value, establishing it as a key player in remote work solutions.

Zoom faced a 10% year-long return drop but demonstrated strong financials. In Q3, total revenue reached $1.14 billion, up by 3.2%, with enterprise revenue rising 7.5%. Fiscal year 2024 projects total revenue between $4.51 billion and $4.51 billion, highlighting Zoom’s growth strategy.Zoomtopia 2023 showcased Zoom’s innovation with new products like Zoom Docs and AI-enhanced meeting tools, emphasizing collaboration improvement.

Advances in customer support and event management tools position Zoom as a multifaceted tech powerhouse, demonstrating dedication to technological excellence. With steady financial growth, Zoom presents itself as one of those promising IRA contribution stocks in the tech sector for long-term investors to consider.

On the date of publication, Chris MacDonald 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.