The stock market remains one of the best ways to grow capital over time. And while it can be helpful to have millions in the bank, a simpler – and entirely sensible – strategy is to invest relatively small amounts on a regular basis. Even $200 can go a long way, provided it’s invested in quality companies that can generate excellent returns over the long term.

There are many such companies on the market. Let’s now look at two examples that are worth investing in: DexCom (NASDAQ: DXCM) And Novartis (NYSE: NVS).

1. DexCom

DexCom is going through a rough patch right now. After the company released its second-quarter results, its shares plummeted. But even taking that decline into account, DexCom’s shares have outperformed the market over the past decade:

DXCM Total Return Level data by YCharts.

It’s worth noting, however, that it hasn’t been a smooth ride — the diabetes-focused medical device specialist has seen several corrections similar to the last one over the past decade. But unless DexCom’s long-term prospects have changed, the stock is still worth investing in, especially while it remains in the red.

Management cited several reasons for DexCom’s mixed second-quarter results and disappointing third-quarter guidance. First, the pace of continuous glucose monitoring (CGM) device launches is not as fast as hoped.

Second, revenue per customer in the U.S. is declining because patients took up the rebates on DexCom’s newest CGM, the G7, more than the company expected. The problem with the rebates, however, is a short-term one.

The more important issue for DexCom is whether it can remain competitive with its biggest competitor in this space. Abbott Laboratories. Fortunately, these two market leaders have only just begun to capitalize on the global CGM opportunity. As Abbott reported earlier this year, there are half a billion (and growing) adults with diabetes worldwide, and only 1% of them currently have access to CGM technology.

DexCom is challenged to reach most of these patients. The company does not operate in many countries with large numbers of diabetics. Most patients live in developing countries, where most of them may not be able to afford CGM devices.

Still, DexCom has progressed over time and entered new territories. Last year, the company entered the South American market with the launch of its DexCom One in Argentina. Among other things, DexCom One is a more affordable option for price-conscious customers and regions. The company should continue to develop new, better and hopefully more affordable options that give it greater access to patients worldwide.

DXCM sales data (annual) by YCharts.

DexCom’s revenue and profits have grown significantly over the years. I’d bet that DexCom has the potential to beat the market for years to come. And with $200, you can buy two shares and still have some cash left over.

2. Novartis

Novartis is one of the world’s most important pharmaceutical companies and has a wide range of drugs for several therapeutic areas. In contrast to the more volatile company DexCom, Novartis is the epitome of stability and therefore an excellent choice for risk-taking investors. However, the stock has underperformed the market over the last decade:

NVS Total Return Level data by YCharts.

However, Novartis recently entered a new era after spinning off its generics business into a standalone company. The generics market is fiercely competitive and it is difficult to gain a competitive advantage because, unlike advanced therapies, generics are not protected by patents.

Novartis will now focus exclusively on developing brand-new drugs. Recent approvals include Fabhalta, a drug for paroxysmal nocturnal hemoglobinuria (a rare blood disorder), which received the green light in the US in December. And the company is currently awaiting approval of atrasentan, a potential drug for a kidney disease called IgA nephropathy.

Novartis’ sales growth rate is expected to improve in the medium term thanks to newer approvals and the fact that the company no longer has to work with its former generics division. In the second quarter, sales rose a solid 9% year-on-year to $12.5 billion. Adjusted earnings per share rose 17% year-on-year to $1.97.

Novartis is also an excellent dividend stock. The company has increased its payouts for 27 years in a row, an impressive streak that speaks volumes about the company. Shares change hands for just under $112. For $200, you get one share and still have enough change left over for another quality share.

Should you invest $1,000 in DexCom now?

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Prosper Junior Bakiny does not own any of the stocks mentioned. The Motley Fool owns and recommends Abbott Laboratories. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.