It may not even occur to you as you go shopping, but many of the brands that you know and love are actually publicly traded companies. This means you can invest in their stocks on the open market and participate in their success. But does it make financial sense to invest in companies just because you use their products?
Here are some of the reasons why you may want to consider investing in the stocks of your favorite brands.
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You Know Their Products Well
Famous investors from Peter Lynch to Warren Buffett have touted the idea for decades that you should invest in what you know. If you’re an avid Costco shopper, for example, you likely know very well how the store operates, what products it offers and how its customer service and product quality match up to its competitors. If you can remove emotion from the equation and analyze these facts objectively, you could have a leg up when determining whether or not a company is a good investment.
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You’re Contributing To Your Own Success
When you buy a company’s stock, you become a part-owner. Granted, the percentage of the company you will own, even with a big purchase, is minuscule, but you still participate in the success of the stock the same as any institutional investor. When you spend money at your favorite store, you’re directly contributing to your own success by generating sales. The same is true if you refer all your friends and they become customers also.
You May Receive Perks
Some companies reward their shareholders with various perks. Royal Caribbean, Carnival and Norwegian Cruise Line, for example, offer their shareholders onboard credit for owning at least 100 shares, according to Tiicker. Whirlpool offers shareholders a 30% discount with the purchase of just one share. And Berkshire Hathaway not only grants access to its annual shareholder meeting, which is a globally televised, two-day event that fills a sports arena, but it also gives 8% off a Geico insurance plan if you own a single share.
You May Get Cash Payouts
Most well-known, established brands pay cash dividends to shareholders as a way of distributing their profits. If you’re a fan of cash-back credit cards, buying stocks that pay a dividend should be right up your alley. The S&P 500 index, which consists of the 500 largest companies in America, currently pays a dividend yield of 1.25%, but some popular brands, like Pepsi, pay as much as 4.31%, according to Yahoo Finance. That’s more than you could earn from most government bonds and high-yield savings accounts and it doesn’t even factor in the capital appreciation potential of the stock.
Popular Stocks To Consider
Here are some of the most well-known, beloved companies in America that you could consider investing in. As always, do your own homework and make sure that a company matches your investment objectives and risk tolerance before committing any money. Each stock’s details were sourced from Yahoo Financial.
Coca-Cola (KO)
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Stock price as of July 9, 2025: $69.48
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YTD performance: 13.22%
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5-year performance: 84.14%
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Dividend yield: 2.88%
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One-year analyst price target: $77.83
PepsiCo (PEP)
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Stock price as of July 9, 2025: $134.48
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YTD performance: -9.80%
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5-year performance: 17.62%
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Dividend yield: 4.31%
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One-year analyst price target: $149.15
Home Depot (HD)
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Stock price as of July 9, 2025: $371.04
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YTD performance: -3.41%
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5-year performance: 68.78%
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Dividend yield: 2.51%
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One-year analyst price target: $418.64
Apple (AAPL)
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Stock price as of July 9, 2025: $211.14
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YTD performance: -15.48%
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5-year performance: 126.84%
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Dividend yield: 0.51%
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One-year analyst price target: $228.60
Microsoft (MSFT)
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Stock price as of July 9, 2025: $503.51
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YTD performance: 19.92%
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5-year performance: 145.21%
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Dividend yield: 0.67%
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One-year analyst price target: $522.26
Amazon (AMZN)
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Stock price as of July 9, 2025: $222.54
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YTD performance: 1.44%
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5-year performance: 39.85%
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Dividend yield: N/A
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One-year analyst price target: $241.82
Walmart (WMT)
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Stock price as of July 9, 2025: $96.81
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YTD performance: 7.70%
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5-year performance: 144.15%
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Dividend yield: 0.96%
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One-year analyst price target: $108.95
Costco (COST)
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Stock price as of July 9, 2025: $982.09
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YTD performance: 7.44%
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5-year performance: 227.61%
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Dividend yield: 0.53%
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One-year analyst price target: $1,056.36
Key Points To Remember
No stock is going to perform better simply because you own its shares. But investing in companies that you like can still pay dividends, literally and figuratively. In addition to feeling like you’re part of the company that you shop at, when you’re interested in investing, you’re more likely to stick with it. And the longer you remain invested in the stock market, the more likely you are to enjoy long-term success. Just remember that even the best company isn’t immune to the business cycle and will have its inevitable ups and downs. This is why a balanced, diversified portfolio can be a great way to reduce your risk while still maintaining your long-term upside.
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This article originally appeared on GOBankingRates.com: Why You Should Be Investing in Coca-Cola, Home Depot and 6 More of Your Favorite Brands
