Do you have $1,000? 2 incredible growth stocks to buy and hold forever

Bull and bear markets come and go, but great companies can stay in your portfolio and increase your returns over the years. Although strategies like market timing can be tempting, the reality is that these don’t work and can actually cause you to lose money quickly.

Instead, investing cash in all types of markets and only in companies that are quality investments that align with your portfolio goals can ensure you benefit from both the best and worst days of the market.

Now, if you have $1,000 that you want to invest in whole shares or fractional shares, you should consider the following two companies.

1. UnitedHealth Group

UnitedHealth Group (UNH 1.23%) is one of the world’s largest healthcare companies by revenue and a loyal dividend payer. The company has increased its dividend every year for 15 consecutive years and maintains a payout ratio of about 51% of earnings.

At the time of writing, the annual dividend is a generous $8.40 per share, while the yield based on current share prices is around 1.5%. This return is roughly equivalent to the average dividend stock trade on the stock market S&P 500 pays.

UnitedHealth’s business addresses a broad range of essential needs facing healthcare consumers today. The UnitedHealthcare segment offers everything from individual insurance plans to employer group plans, as well as benefits for retirees and Medicare recipients. Its Optum segment enables the full spectrum of healthcare for both consumers and healthcare providers, with solutions including software-enabled solutions and analytics and pharmacy services.

Over the past 12 months, UnitedHealth Group posted a profit of $14 billion on revenue of about $385 billion. In addition, operating cash flow of around $10 billion was generated during this period. The company ended last quarter with over $31 billion of cash on its balance sheet, providing sufficient liquidity to maintain its dividend commitment to shareholders.

This dividend has increased by almost 95% over the last five years. Looking back, annual sales have also increased by more than 50% over the last five years, while profits have increased by around 60%. UnitedHealth’s steady growth trajectory, based on its core healthcare products and services, provides an overall level of resiliency, even in a volatile operating environment.

While rising medical costs, an increase in Medicare Advantage claims and the financial fallout from a data breach earlier this year have impacted the company’s cost of doing business, its financials are still in solid shape and its industry leadership remains indomitable.

For investors looking for consistent dividend income and a company that tends to deliver gradual gains across a wide range of market environments, UnitedHealth Group could be an attractive portfolio addition.

2. Uber technologies

Above Technologies (ABOVE -1.23%) has come a long way since its beginnings as a start-up less than two decades ago. Today the company is one of the largest ride-hailing and food delivery service providers in the world. According to Statista, the company controls about 25% of the global ride-hailing and taxi market.

Many growth and technology-focused stocks have struggled during the pandemic and in the aftermath as high inflation and a challenging economic environment have increased the cost of doing business across a range of sectors. While Uber’s ride-hailing segment suffered a massive downturn at the height of the pandemic, its food delivery segment helped keep the business afloat. The company aggressively reduced costs and worked to become more efficient in the recovery period that followed.

Uber is already benefiting from a certain capital shortage in certain areas of its business because drivers and delivery people are not directly employed. Instead, the company receives commissions for each trip or delivery completed. Uber also operates a freight and logistics service that connects shippers and carriers, and in October 2022 launched its own advertising services to allow brands to interact with consumers while driving.

The company also makes money from Uber One subscriptions, which allows users to access savings on Uber and Uber Eats. Monthly memberships start at just $9.99.

These diverse sources of income ensure constant sales and profit growth. While growth in the freight segment has slowed, delivery and mobility are providing significant impetus. In the second quarter of 2024, total gross bookings increased 19% year over year to $40 billion, with mobility gross bookings increasing 23% and delivery gross bookings increasing 16% year over year.

Total revenue was just under $11 billion, up 16% from the same quarter in 2023. Net income, meanwhile, was just over $1 billion, a staggering 158% increase year-over-year . Uber’s cash flow is also positive: free cash flow was $1.7 billion in the quarter, up 51% from what it reported a year ago. The company’s advertising division continues to go from strength to strength, generating more than $1 billion in revenue in the second quarter of 2024 alone.

Uber continues its expansion into the world of autonomous vehicles. This includes a partnership with alphabetWaymo, which will bring autonomous driving services to Austin and Atlanta in early 2025, as well as a partnership with WeRide to provide autonomous vehicles to Uber platform users in the United Arab Emirates. Uber shares have seen a nearly 30% increase since the start of 2024.

Investors looking to get in on the action may find that sooner rather than later is a good time to open or add to a position in this technology stock.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rachel Warren holds positions at Alphabet. The Motley Fool has positions in and recommends Alphabet and Uber Technologies. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.