The S&P 500 index closed 2025 with a 16% gain, according to data recorded on December 31. This marks the third year in a row the benchmark has rallied by at least 15%, an event that has occurred only twice before in its history.
While the overall stock market is considered historically expensive, opportunities for value still exist, requiring more scrutiny from investors. The removal of minimum deposit requirements and commission-free trades by many online brokers has made investing more accessible than ever.
For investors with $1,000 available, three companies are presented as notable considerations for the new year.
Telecom company AT&T is cited for its high dividend yield, clear value, and predictable cash flow. The expansion of 5G networks into rural areas and a surge in broadband customer additions, including over 200,000 net fiber customers added per quarter, are noted as catalysts. The company's net debt has reportedly declined from $169 billion in March 2022 to under $119 billion by September 2025. AT&T's dividend yield is 4.6%, and its forward price-to-earnings ratio is 10.8.
Advertising technology firm The Trade Desk, which was the worst-performing S&P 500 stock in 2025 after losing 68% of its value, is also mentioned. The decline is linked to tariffs imposed by President Donald Trump affecting some clients. Analysts suggest tariffs may be a temporary shock and that economic expansions typically last longer than downturns. The company's Unified ID 2.0 technology is highlighted as an alternative to tracking cookies. Its shares are valued at less than 18 times forward-year earnings.
NextEra Energy, America's largest electric utility by market value, is the third company. It has delivered positive total returns for shareholders in 21 of the last 24 years. The company benefits from predictable electricity demand and operates in areas with limited competition. Its focus on renewable energy, generating significant capacity from solar and wind, is noted as a differentiator, leading to lower generation costs and high single-digit earnings growth. The company has raised its base annual dividend for 31 consecutive years and has a forward P/E ratio below 20. Increased electricity demand from data centers due to AI adoption is also mentioned as a factor.
A separate analysis by The Motley Fool's Stock Advisor service identified ten stocks for investors, which did not include AT&T. The service's total average return is reported as 968%, compared to 197% for the S&P 500. Past recommendations for Netflix and Nvidia were cited as examples of high returns.