Over the past few weeks, the stock market's wild volatility reminded everyone that investing isn't always easy. It's fun when stocks go up and up, but downturns do happen. They always have, and always will, even if the catalyst that causes them changes. Still, building wealth with stocks doesn't have to be complicated.
The playbook is straightforward: Buy high-quality companies, preferably at attractive prices, and hold them for as long as the underlying businesses perform. That's it.
The recent downturn is a fantastic opportunity to shop for easy wealth builders -- stocks you can confidently buy and hold through the market's chaos. Here are three prime examples. Whether you prefer growth, high dividends, or a little of both, there is something here for you.
1. A "Magnificent Seven" stock for growth investors
Amazon (AMZN 3.62%) has been on the slide due to tariff tensions between the U.S. and China. A report by Reuters suggests that roughly half of the sellers on Amazon's marketplace operate out of China. Therefore, Amazon shoppers are bound to notice significantly higher prices as the tariffs on Chinese imports take hold. Higher prices could easily slow consumer spending habits.
NASDAQ: AMZN
Key Data Points
However, this could be a temporary headwind as Amazon and consumers adjust. Prolonged tariffs could push business to domestic suppliers, which can utilize Amazon's massive fulfillment network. Fortunately, Amazon's other key businesses could be less vulnerable to tariffs, including its cloud unit, the company's most significant profit driver, and its Prime membership base, which includes additional perks like Prime Video.
Amazon may stumble, but tariffs won't topple America's de facto e-commerce leader. The stock now trades about 25% off its high. Analysts estimate that Amazon will grow its earnings by an average of 20% annually over the long term. I think that's plenty to justify scooping up this "Magnificent Seven" stock at its current price-to-earnings (P/E) ratio of 32.
2. A recession-resistant blue chip stock to buy and hold forever
PepsiCo (PEP 1.24%) has stood the test of time. The global food and beverage giant behind brands like Pepsi, Mountain Dew, Frito Lay, Doritos, Cheetos, Quaker, and many others has seen numerous recessions, wars, and political administrations, yet it continues to perform. PepsiCo is a Dividend King, with 52 consecutive annual dividend increases, a testament to the company's durability.
NASDAQ: PEP
Key Data Points
People may cut back some during tough times, but groceries are probably a top budget item in most households. The company's trailing-12-month sales haven't declined more than 10% since the early 2000s. As for tariffs, PepsiCo may have to deal with higher costs on imported ingredients, but the company faces limited exposure to retaliatory tariffs. China accounted for a tiny portion of PepsiCo's business last year, and it looks like the Trump administration aims to negotiate deals with other countries.
You won't mistake PepsiCo for a growth stock. Analysts expect the company to grow earnings by less than 5% annually over the long term. However, the dividend currently yields 3.8%, the highest on its record. It helps compensate investors for the lower growth rate. Investors could reasonably expect 8% to 9% total annual returns, which can compound wonderfully over a multidecade period. PepsiCo is one of the few businesses resilient enough that investors can buy it with plans to hold it indefinitely.
3. A 7.4% dividend yield for income investors
British American Tobacco (BTI 0.56%), a global tobacco and nicotine products conglomerate, isn't for everyone. However, tobacco stocks tend to shine in volatile markets. Nicotine is infamously addictive and resilient to price increases, making tobacco stocks very steady businesses during recessions and could minimize any tariff impact.
Additionally, tobacco companies typically pay larger dividends than most. British American Tobacco yields 7.4% at its current share price.
NYSE: BTI
Key Data Points
High dividend yields are sometimes a red flag because they could signal financial problems in the underlying business. That doesn't look to be the case here. British American Tobacco's U.S. listed shares pay a quarterly dividend totaling approximately $2.96 per share. Using the company's 2025 earnings estimates, that's a dividend payout ratio of only 65%. That's plenty of financial cushion, and tobacco companies take their dividends very seriously. Income investors can rest easy.
The company is slowly transitioning from its legacy cigarette business to new products like vapes and oral nicotine pouches. Analysts estimate that British American Tobacco will grow earnings by 4% annually over the long term. Even modest growth can generate 10% to 11% annualized total returns because the massive dividend starts you off at more than 7%. That makes the stock an easy wealth builder, especially if shareholders reinvest the dividends over time.