The perfect stock for your IRA needs to provide growth, stability, or dividend income -- or some combination of the three. The best investment options really depend on your personal circumstances, but a great stock has to fulfill a role. Younger retirement savers need to prioritize growth, whereas people approaching retirement might want to find a more reliable company that produces passive income. These three stocks might not all be the best thing for everyone, but each of them does a great job of fulfilling a particular role in a traditional or Roth IRA.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a useful stock for investors who have a need for growth. The tech giant averages nearly 20% annual growth, but it can be acquired at a reasonable valuation with a forward price-to-earnings (P/E) ratio of only 27. That's especially relevant for investors building a Roth IRA.
The company has also developed real staying power by achieving leadership status in multiple growth industries. Alphabet leads the global market for internet search and digital advertising with its Google and YouTube products. Its Android products completely dominate mobile operating systems worldwide. It's also a major player in cloud computing. Alphabet spends heavily to retain its competitive position across diverse categories, too. The company has already invested more than $15 billion on research and development and $2 billion on acquisitions so far this year.
Source Fool.com