The first half of 2025 featured a volatile and unpredictable stock market. Enthusiasm for a new U.S. presidential administration got the year off to a good start, with the S&P 500 Index — considered a representation of the broad stock market — rising about 2.7% in January.
As President Donald Trump’s trade and tariff policies began to take shape, however, the market became apprehensive. By the close on April 8, the market had sold off dramatically, and the S&P had registered a loss of about 15.3%. In response, the president largely paused his tariff regime and entered into negotiations with America’s most important trading partners. The market responded positively and has been on an upward trend ever since. As of the close on July 3, the S&P recovered all its losses and had logged a year-to-date return of about 6.8%.
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The impressive rebound from its 2025 lows has demonstrated the remarkable resilience and upward momentum of this market. Despite unanswered questions surrounding future corporate earnings, the economy, interest rates and the world’s geopolitical situation, it’s become clear that — at least for now — being on the sidelines of today’s equity market could be a serious mistake.
But, how should a retail investor invest in such tumultuous times? The answer is the same today as it has been during other times of increased volatility. Don’t invest expecting short-term gains, diversify your holdings and — perhaps most importantly — buy good stocks, which is to say buy quality companies that have established track records of long-term success.
Each of the five stocks on the following list fits that bill. They each represent a different sector — providing diversification — and they’re each proven winners over the long haul. The companies on this list may not end up at very the top of the market, but they’re all good stocks with excellent potential for long-term capital appreciation:
| Stock | Market Capitalization | Forward Dividend Yield |
| Costco Wholesale Corp. (ticker: COST) | $437 billion | 0.5% |
| Microsoft Corp. (MSFT) | $3.7 trillion | 0.7% |
| T-Mobile U.S. Inc. (TMUS) | $271 billion | 1.5% |
| JPMorgan Chase & Co. (JPM) | $814 billion | 1.9% |
| Digital Realty Trust Inc. (DLR) | $59 billion | 2.8% |
Costco Wholesale Corp. (COST)
COST pioneered the big-box retail industry almost 50 years ago by bringing warehouse shopping and wholesale prices to the retail shopper. This company’s customer loyalty is unrivaled, and its ability to innovate and adjust with the times has been remarkable.
COST operates close to 1,000 warehouse-style stores in the U.S and 12 other countries. It functions as a wholesale club, and has over 133 million members who pay annual dues to save money by buying in bulk.
Owning COST provides investors with exposure to the vital consumer staples sector. As of July 3, the stock has handily beaten the market with a year-to-date return of 8%, and has appreciated a remarkable 222.8% for the five years ending on the same day. The company has a market cap of close to $437 billion and pays shareholders a forward annual dividend of $5.20 a share, which works out to a yield of 0.5%.
Microsoft Corp. (MSFT)
The technology sector has been the primary driver of the remarkable market returns we’ve seen over the past decade and a half. MSFT is a global leader in the tech industry, and a good stock for any investor to consider right now.
With a market cap of $3.7 trillion, MSFT is one of just a handful of companies that can be called “mega-cap.” This technology juggernaut has been designing and selling state-of-the-art hardware and software solutions to businesses and individuals around the world for 50 years, but what makes it a good stock to buy today is the leadership role it’s taking in the emerging cloud computing, artificial intelligence (AI) and quantum computing industries.
Microsoft’s Azure AI Accelerator chip trains advanced AI large language models. The chip is used in Azure data centers and to power major AI platforms like Microsoft Copilot and Azure OpenAI. The company’s Azure Cobalt CPU is a powerful, general-purpose cloud computing processor that maximizes efficiency in the cloud. And, with an eye toward the future, the company’s Majorana 1 quantum computing chip — just unveiled in February — uses topological qubits for quantum research and, if all goes as planned, will someday help scale quantum computing for industrial use.
MSFT represents the best of the past and the future in the tech sector. It pays a forward annual dividend of $3.32 a share, which works out to a current yield of 0.67%.
T-Mobile U.S. Inc. (TMUS)
A well-rounded portfolio of good stocks should include at least one company from the communications services sector. TMUS is worth considering by any investor, large or small.
TMUS is a global leader in wireless telecom. The company has a market cap topping $271 billion and has appreciated more than 9% year to date, as of July 3. It’s a mobile phone services and equipment company that interacts with consumers online and through its more than 5,000 brick-and-mortar retail locations.
TMUS offers both pay-as-you-go and contract mobile phone plans and internet services, along with all the latest phones, accessories and equipment. High-speed communications is a dynamic industry, and TMUS is at the forefront. The company has proven itself to be innovative and adept at cashing in on the growing demand for global connectivity.
TMUS is not an income stock, per se, but it does have a healthy forward dividend yield of about 1.5%.
JPMorgan Chase & Co. (JPM)
JPM is a blue-chip financial stock that can trace its history back to the 18th century. Its more modern predecessors include the Bank of Manhattan, J.P. Morgan & Co. and Chase National Bank. Today, it has a market cap of close to $814 billion.
The company’s Chase banking division provides deposit and lending services nationwide. Its investment banking and wealth management segment offers asset management, brokerage and banking to high-net-worth individuals and institutions globally.
Under the able leadership of its high-profile CEO, Jamie Dimon, JPM has appreciated 23.4% year to date as of July 3. That’s impressive considering the S&P 500’s 6.8% gain over the same period.
The stock has demonstrated impressive long-term performance over the years — over 100% capital appreciation for the five years ending July 3 — but should also be recognized for consistently increasing its annual dividend. As of 2025, JPM has increased its dividend for 15 consecutive years. Its current forward annual dividend is $5.60 per share, which equates to a current yield of 1.9%.
Digital Realty Trust Inc. (DLR)
Right now is a good time to be in the data center business. The Magnificent Seven companies, OpenAI and other tech firms will likely spend well more $1 trillion building data centers in the U.S. over the next five years.
DLR is a $59 billion real estate investment trust, or REIT, that operates 308 full-service data centers in the U.S. and around the world. It also offers valuable consulting services, state-of-the-art hardware, advanced software, and cloud-based data storage and retrieval services to all its clients.
The stock is up 13.8% for the year ending July 3, but some analysts on Wall Street think it has more room to grow. Truist Securities reiterated its “buy” rating on the stock on May 12, and the equity research team at Jefferies also maintains a “buy” rating on the name.
In a research report dated July 1, CFRA equity analyst Kenneth Leon assigned four out of five stars to DLR while reaffirming the “buy” rating he has on the company. In the report, Leon asserts that DLR simply cannot keep up with demand, while noting that the company is currently building a new $2.6 billion data center in Northern Virginia. It’s also spending $1.5 billion on three new data centers in Europe and an additional $291 million on facilities in Asia. CFRA has a 12-month price target of $195 on the stock, which would represent about 13% upside from its July 3 closing price of $172.6.
This REIT has a dependable forward dividend yield of 2.8%.
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5 Good Stocks to Buy for the Second Half of 2025 and Beyond originally appeared on usnews.com
