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2026 is just around the corner.
Investment banks, analysts, and investment managers are making their predictions for where the S&P 500 will end 2026.
I’m not here to make a prediction - I know that I don’t know.
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Here’s what I do know - buying great businesses is the way to build long-term wealth.
You know that we look for businesses that generate healthy, consistent cash flow and, most importantly, believe in paying the owners.
We want companies that distribute a share of their profits back to us in the form of dividends.
Let’s dive in!
26 Ideas, Two Saturdays
Because 26 companies is a lot to digest at once, I’ve decided to split this list into a two-part series:
Part 1 (Today): The first 13 stocks that have landed on my radar.
Part 2 (Next Saturday): The remaining 13 companies to round out the list.
To be clear, I haven’t completed a deep dive into most of these companies just yet.
These are companies that have piqued my interest, and ones I’ll be watching closely as we move into 2026.
26. Penske Automotive Group ($PAG)
Company Profile
Penske is one of the world’s largest automotive retailers and a leading international transportation services company. They operate hundreds of retail dealerships across the US and UK, alongside a significant commercial truck segment and a large stake in Penske Transportation Solutions.
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Why It’s Interesting
Local Monopolies: Dealerships benefit from state laws that limit competition, creating a protected local moat.
The Service Department: While car sales can be cyclical, the service and parts departments provide high-margin, recurring revenue.
Rising Complexity: As vehicles become more complex, owners are less likely to DIY, driving more business back to specialized dealer service centers.
25. Invitation Homes ($INVH)
Company Profile
Invitation Homes is the premier single-family home leasing company in the United States. They own and manage a massive portfolio of high-quality homes in areas with strong job growth and great schools.
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Why It’s Interesting
The Rent vs. Buy Gap: With US home prices and mortgage rates high, renting a single-family home has become a more affordable and flexible alternative in many places.
Economies of scale: Invitation’s size means lower cost for maintenance and management, that a “mom-and-pop” landlord simply cannot match.
Valuation: Despite strong occupancy rates near 97%, the stock is offering a higher dividend yield than the historical average.