5 Stocks That Could Create Lasting Generational Wealth

The United States is the world's largest economy. And what's the engine that drives it? The American consumer. It's a decades-long story. U.S. consumer spending routinely contributes over half of America's economic output, and that ratio is currently approaching 70%.

Perhaps unsurprisingly, some of the best-performing stocks during that time have been consumer-facing brands you probably know and love.

Do you want to build lasting generational wealth? Consider buying and holding these five stocks.

Image source: Amazon.

1. Amazon

E-commerce is a way of life in America thanks to Amazon (NASDAQ: AMZN). The leading online retailer in the United States possesses roughly 40% of America's e-commerce market. Its size and scale give it a competitive advantage because no company has successfully matched Amazon's breadth of selection, low prices, and quick delivery.

Additionally, Amazon's ability to expand outside of e-commerce, into cloud computing, artificial intelligence (AI), streaming, advertising, and new retail categories, has made it one of the top-performing stocks of this century. The company's exposure to these megatrends offers the stock long-term upside, making it a worthwhile investment for any long-term investor.

2. Netflix

Slowly but surely, consumers are cutting the cord, moving from broadcast and cable television to streaming services. Netflix (NASDAQ: NFLX) pioneered the streaming industry and is currently the world's largest streaming service with over 301 million paying subscribers at the end of last year. The company's profit margins have exploded over the years as its increasingly larger subscriber base has grown revenue faster than its content spending.

There is a lot of competition in the streaming space, but Netflix continues to flex its staying power. The company has multiple growth levers to pull, including ad-supported plans and expansions into live sports and mobile gaming. The company is now a cash cow that should continue to reward long-term investors for the foreseeable future.

3. Axon Enterprise

The dynamic social and political landscape in the United States today makes Axon Enterprise (NASDAQ: AXON) a crucial role player in the safety of Americans and the country's law enforcement. The company is a leading provider of non-lethal equipment and bodycam devices. The bodycam market is poised to more than double in size over the next decade.

Additionally, Axon Enterprise has moved into software, selling crucial technology to law enforcement that enables better handling of logistics and operations, as well as evidence management. The surging interest and resulting investments in public safety have driven rapid growth for Axon Enterprise, producing market-beating returns that could continue.

4. Colgate-Palmolive

Some items, such as toothpaste, are so ingrained in our habits that we don't think about them when we purchase them. Colgate-Palmolive (NYSE: CL) has been a reliable wealth-building stock for decades, simply because people never stop using goods like toothpaste and soap. Colgate-Palmolive has done so well that it has managed to pay a dividend and raise it for 62 consecutive years.

Toothpaste is Colgate-Palmolive's standout product; the company possesses approximately 41.1% of the global toothpaste market and 32.4% share of the manual toothbrush market. Additionally, the company's Palmolive brand is the leading liquid hand soap brand in America, and its pet nutrition brand, Hill's, is tops among veterinary clinics across the country. Investors could easily see steady performance from Colgate-Palmolive for decades more to come.

5. Walmart

It's hard to leave Walmart (NYSE: WMT) off this list. After all, Walmart is the country's leading retailer. Approximately 90% of the U.S. population lives within 10 miles of a Walmart store. The company is known for leveraging its massive size -- $693 billion in trailing-12-month revenue -- to source and sell goods at low prices and razor-thin margins, thereby starving its competitors.

Due to its massive footprint, Walmart has managed to compete with Amazon in the e-commerce space and is the second-largest online retailer in the United States today. Since people shop at Walmart for many of their basic and discretionary goods, the company has been resilient through the years. Walmart has paid and raised its dividend for 51 consecutive years. As long as people continue to spend money, Walmart is likely to continue growing its bottom line and increasing that dividend for the foreseeable future.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Axon Enterprise, Colgate-Palmolive, Netflix, and Walmart. The Motley Fool has a disclosure policy.