Investors can benefit from looking deeper into the holdings of top-performing indices and ETFs. While the Nasdaq Composite has plenty of exciting companies available, investors may want to narrow their focus toward the Nasdaq 100. This index has outperformed the Nasdaq Composite, the S&P 500 and many others. However, it wouldn’t make sense to buy all 100 companies. You could just consider the top Nasdaq stocks to buy instead.
The three Nasdaq stocks to buy on this list have rising revenue and plenty of long-term growth opportunities. Two of these picks offer steady dividend payments with impressive growth rates. The third stock doesn’t offer dividends but has generated meaningful returns for long-term investors.
Marriott International (MAR)
Marriott International (NASDAQ:MAR) offers growth at a reasonable price. The stock trades at a 25 P/E ratio and offers a 1.03% yield. Shares are up by 10% year-to-date and have gained 78% over the past five years.
Marriott delivered 4.2% year-over-year comparable sales growth in the first quarter, which international markets heavily contributed to. Net income was $564 million in the quarter, while revenue reached $1.54 billion. Marriott regularly delivers high profit margins, and this quarter was no different. The hotel chain ended up with a 36.5% net profit margin.
The company also has an impressive dividend growth rate. A high dividend growth rate allows investors to enjoy stock price growth and have enough cash flow by retirement. Marriott International raised its dividend 21% earlier this year. Shareholders will receive a quarterly dividend of $0.63 per share instead of $0.52 per share.
Cintas (CTAS)
Cintas (NASDAQ:CTAS) offers business supplies and safety equipment for more than one million companies. Its vast customer base and essential resources make it a compelling pick for long-term investors. The stock has an enticing record, with a 20% year-to-date gain and a 205% increase over the past five years. Cintas has a $72 billion market cap, a 49 P/E ratio and a 0.76% yield.
Just like Marriott, Cintas also has an impressive dividend growth rate. The company hiked its quarterly dividend by 17.4% last year. Cintas has raised its dividend for 40 consecutive years. The firm can support the elevated dividend with its net income growth rate. Q3 FY24 results revealed a 9.9% year-over-year growth rate for revenue and a 22.0% increase in net income.
Cintas is currently rated as a Moderate Buy. The highest price target of $790 per share indicates that the stock can gain an additional 11%.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is only one of two Magnificent Seven stocks that don’t offer dividends. While investors can speculate about whether Amazon may give out dividends by the end of the year, you don’t have to do much speculating to discover that the stock has a 26% year-to-date return. Shares have almost doubled over the past five years as Amazon continues to capitalize on multiple verticals.
Amazon’s online marketplace is the company’s claim to fame and is still the largest business segment. Online marketplace sales were key to the company’s 13% year-over-year revenue growth in the first quarter. Amazon Web Services grew by 17% year-over-year to reach $25.0 billion. That growth rate is an acceleration compared to the previous quarter, indicating demand is heating up. Artificial intelligence tailwinds should further boost Amazon Web Services in the quarters ahead.
The tech giant also makes money from groceries, advertising, streaming and other segments. Amazon’s Advertising services segment was a notable performer, with 24% year-over-year revenue growth in Q1 2024.
On this date of publication, Marc Guberti held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
