3 Stocks to Consider Buying with Your Stimulus Check

As the next round of stimulus checks starts to roll out, many Americans are excited to pay off their debts and boost their savings. However, many of the recipients of these checks aren’t necessarily in dire economic situations, which means they will have a little more disposable income than usual. While some might be tempted to spend that money on consumer products or a vacation, perhaps one of the smartest things to do is invest in strong companies and put that money to work.

It’s not often that the government mails out checks to millions of people across the country, so make sure you take full advantage of the opportunity and explore some new investment opportunities that can pay off over the long run. Below, we’ve put together a list of 3 stocks to consider buying with your $600 stimulus check. Each one of these stocks currently trades at under $100 per share and has something different to offer. Keep reading below if you are interested in using the extra money to boost your investment accounts.

Chegg (NYSE:CHGG)

First up on our list is a growth stock that is changing the way that students learn. Chegg offers a direct-to-student learning platform that helps young minds of all ages to perform their best in the classroom with interactive lessons, live tutoring, and more. The company started with renting and selling textbooks to students but has since focused on developing its e-learning platform. That seems to be paying off, as Chegg expects to see total net revenue for FY 2020 come in between $626-628 million, which would represent a year-over-year increase of over 50%.

With many students and teachers forced to adapt to remote learning last year thanks to the pandemic, the company experienced huge subscriber growth. In Q3 Chegg reported a 69% year-over-year growth in subscribers which has helped the company improve its cash flows substantially. The chances are good that Chegg’s growth is only just getting started, as there is a potential market of 102 million students across the U.S. and other countries. Consider adding shares of this growth name with your stimulus check if you are interested in a company that could potentially transform the education industry, which has been due for an overhaul for quite some time.

Cisco Systems (NASDAQ:CSCO)

Thanks to historically low interest rates, investing in strong dividend-paying stocks could be another great way to spend your stimulus check. After all, adding shares of a company that will provide cash flows to your account over the long term could help you make the most out of the extra money. Cisco Systems is a solid option thanks to its 3.24% dividend yield and its strong financials. Dividend investors should also be interested in Cisco thanks to the fact that the company has increased its dividend payouts for 9 consecutive years.

Cisco designs and sells high-performance computer networking systems to customers all over the world. While the company has strong financials and a diversified business model, several growth drivers could potentially send shares higher in the coming months. With steady demand for data center solutions, plenty of companies migrating to cloud networking, and 5G core deployments on the horizon, Cisco stock offers legitimate upside along with steady dividends.

JD.Com (NASDAQ:JD)

The last stock on our list comes with some risk as it is a company based in China but could turn out to be a very rewarding way to spend your stimulus check. JD.com is a Chinese e-commerce company that operates in two major business segments. The company provides an online retail marketplace where consumers can purchase things like electronics, home appliances, and other merchandise. JD also provides marketing and display advertising that allows third-party merchants to sell their products on its platform. As China’s largest online retailer by revenue, JD is well on its way towards becoming an e-commerce powerhouse in one of the world’s fastest-growing consumer economies.

JD’s Q3 revenue grew by 29% year-over-year largely thanks to its third-party logistics business and more people shopping from home during the pandemic. The company also has stakes in a fintech company called JD Digits as well as JD Health, both of which are intriguing prospects to investors consider. The stock recently hit new all-time highs but has pulled back to offer a decent entry point for investors that are looking to add shares. Just keep in mind the added headline risk with companies based in China before you invest.