There will always be dips in the stock market, but shares of profitable and growing companies are always a relatively safe way to build lasting wealth. Here are two solid companies with excellent growth prospects that you can buy now.

1. Microsoft

Microsoft (MSFT 0.83%) is a great stock to buy because of its strong brand, tremendous profitability, and flexible growth strategy that can quickly adapt to new opportunities. The company was quick to respond to the artificial intelligence (AI) trends that swept the corporate space last year, and this is leading to strong business momentum.

Microsoft is a no-brainer in almost any market environment because of its lucrative subscription-based business model. Investors can sleep easy knowing they own shares in a company that provides essential software for students and professionals and has the financial strength to invest in growth and pay regular dividends.

Last year, Microsoft generated net profit of $88 billion on revenue of $245 billion and paid out a quarter of its profits to shareholders in the form of dividends, giving it a yield of 0.72 percent.

These financial resources have enabled Microsoft to stay one step ahead of the competition in the field of AI. Apple is preparing for its AI debut with Apple Intelligence, and Microsoft announced Copilot in early 2023, a generative AI-powered assistant that brings significant improvements to Office, Windows, and other enterprise software services.

More and more companies are adopting Copilot. In the quarter ending June, the number of Copilot customers increased by 60% compared to the previous quarter. The feedback so far for Microsoft has been excellent, and more companies are coming back and hiring more people for the service.

Momentum across Microsoft’s business is driving solid growth, with revenue up 15% year over year in the most recent quarter. Accelerated investment in AI infrastructure may result in some pressure on margins in the short term, but paves the way for potentially significant growth in the long term.

Wall Street analysts expect Microsoft’s earnings to grow by 13 percent per year over the next few years, which should provide satisfactory returns for long-term investors.

2. Netflix

Netflix (NFLX 0.57%) is another profitable business that is currently experiencing a major boom. Although several new streaming services have entered the market in recent years, Netflix remains the clear market leader with 277 million subscribers worldwide.

Netflix generated a net profit of $7 billion last year on revenue of $36 billion. That equates to a high profit margin of 20%. Netflix achieves outstanding margins despite the company spending billions every year on new films and series.

Netflix has become a go-to place for top filmmakers and studios to produce blockbuster content, and that should continue to drive profits in the years to come. There are more than a billion broadband internet subscriptions worldwide, giving Netflix plenty of room to grow.

One strategy Netflix is ​​using to attract new members is to produce localized content that appeals to different cultures. India is currently one of Netflix’s biggest growth markets. The company recently received a boost from the hit series Heeramandi: The Diamond Bazaar And Amar Singh Chamkila. This shows how Netflix’s profitability finances a large content budget that can be used to cast a wide net for more subscribers.

Global paid subscriptions grew 16% year over year in the second quarter, driven by a large amount of new content and management’s efforts to discourage password sharing. Netflix won’t always grow its subscriber numbers by much, but it can still increase shareholder returns by expanding its profit margin and increasing earnings per share.

Wall Street analysts expect Netflix to grow 28% annually over the next few years. As Netflix continues to release new content and gain more subscribers, investors can expect the stock to be worth significantly more in ten years than it is today.