Most people have stocks in their investment portfolio, and for a good reason. According to Ibbotson Associates, stocks have reliably returned an average rate of 10% annually since 1926.² This is higher than the return you’re likely to get from many other investments. However, be cautious with stocks. You could buy stock in established, blue-chip companies that have a fairly stable stock price, pay out dividends, and are considered relatively safe. If you choose to invest in smaller companies, such as startups or penny-stock firms, your returns are much more volatile.