For new investors, finding the best long-term stocks is challenging. Which stocks should you pick for a portfolio that will last for years? If you need some ideas to kick-start your research, check out our shortlist for some of the best long-term stocks.
Best Long-Term Stocks To Buy
Coca-Cola (NYSE: KO)
Coca-Cola has been around since the late 1800s and remains one of the world’s most popular drinks today. The company was founded by John Pemberton in 1886, who sold a portion of his business for $50 to finance an additional three years’ worth of marketing efforts.
Today, Coca-Cola offers over 200 brands, from water to sports drinks, teas, coffees, juices, and soft drinks. These products are sold in over 200 countries around the world. Share prices have danced along with an upward trend since $0.72 at IPO back in 1982.
Thanks to its diverse portfolio, a worldwide market, and excellent marketing, the company still holds forth despite inflation.
In the first quarter, total sales increased by 16% to $10.5 billion, while adjusted profits increased by 16% to $0.64 per share. The operating margin increased to 32.5% from 30.2% the previous quarter, thanks to strong top-line growth.
At over $60 currently, shares have climbed 9,000% higher since the beginning of 2022. After all these years, Coca-Cola is still going strong all over the globe with a market cap of nearly $250 billion.
This is thanks to its ability to adapt its ad performance to the world stage while staying true to its roots as a classic. All of this makes Coca Cola on of the best value stocks to buy right now.
General Motors Company (NYSE: GM)
General Motors has over 100 years of history as an automotive manufacturer. In addition to Chevrolet, Buick, GMC, and Cadillac, GM owns parts manufacturer ACDelco and a suite of technology brands.
These brands make General Motors the largest automobile manufacturer in the United States and one of the largest in the world. GM has a considerable presence in the United States but is also expanding its line of vehicles into other countries.
GM delivered nearly 3 million vehicles to China in January alone for sale. With so much movement toward technology and sustainability, GM is one of the companies embracing these tools for use in their automobiles.
General Motors released its first-quarter profits in late April. Revenue increased to about $36.0 billion from $32.5 billion the previous year. The adjusted profits per share (EPS) were $2.09, down from $2.25 the year before.
Cadillac’s first fully electric car, the LYRIQ, a mid-size SUV, was recently shown by GM. Pre-orders for the 2023 model, which retails for $62,990, sold out in under four hours.
Customers who purchase the car are eligible for a special charging program that includes either a free home installation of a charger or free charging at public stations for two years. In the next months, Wall Street will be watching closely to see how EV sales affect the bottom line.
Share prices have seen a slow but relatively steady upward trend since its initial public offering back in just 2010. The decision to innovate with current trends could help keep GM moving in the right direction.
Apple Inc. (NASDAQ: AAPL)
Apple first opened its doors in 1976, jumping onto the public stock scene in 1982. It took 20 years for Apple stock to go anywhere, but the successful launch of the iPod forever pushed the company into the spotlight.
Today, the tech giant has products on the computer, smartphone, watch, gadget space, and so much more. The company also has its own streaming service, Apple TV+.
Since breaking out of the penny stock range, shares have been almost entirely up, with a 214,000% all-time gain. Apple continues to dominate the market with breakthrough tech that keeps people coming back for more.
However, Apple is experiencing difficulties because of the current economic situation. For example, the corporation stated that global supply chain issues would cost it between $4B and $8B in sales. This might be one of the reasons for Apple’s dismal stock performance this year.
Nonetheless, the company’s financial performance has not disappointed. Apple’s sales for the second quarter of the fiscal year 2022, which concluded on March 26, were $97.3 billion. This is up 9% from the previous quarter and a new high for any of the company’s second quarters.
Even though customers are affected by economic issues such as inflation, Apple continues to sell its popular iPhones. iPhone sales grew 5.9% year over year to $50.6 billion in the company’s second quarter.
Apple’s services division also did well, with revenue rising 17.3% YoY to an all-time high of $19.8 billion.
Overall, the business has established a strong competitive advantage. Apple has a well-known brand name and low switching costs, thus often ranked as one of the world’s most valuable brands.
Long-Term Dividend Stocks
Annaly Capital Management Inc. (NYSE: NLY)
Annaly Capital Management Inc. is a real estate investment trust (REIT). The company offers both residential credit and middle-market lending options to those in need.
Loans are guaranteed by Fannie Mae, Ginnie Mae, or Freddie Mac for extra stability. Annaly is ready to meet needs with a pocket of $14 billion in permanent capital. The best part about this stock is its high dividend yield, currently at 12.05%.
During the pandemic-induced market crisis in early 2020, stocks fell by more than half. Annaly has made a full recovery since then.
While the stock isn’t nearly back to where it was prior to COVID, its consistent dividends make it a good option for long term investors.
For the first quarter, profits available for distribution were 28 cents per share, covering the dividend 1.25 times.
As such, it has one of the highest dividends in the industry overall. There aren’t huge waves being made in the share price department, but the solid cash flow that the company generates for dividends could make Annaly a viable long-term investment.
3M Co. (NYSE: MMM)
3M is perhaps best known for sticky notes but encompasses many more products across its 30+ brands. Some of these products include lubricants, medical supplies, building materials, and automotive parts.
You likely use 3M products regularly without even realizing it. The company also has an extensive research and development team to be at the forefront of invention and innovation.
With most of its manufacturing facilities in the United States, it’s also a great way to invest in a domestic company. Overall, 3M has seen favorable share price growth but has dealt with some declines of late.
As large and diverse as 3M is, the company should have no trouble rebounding. It could be best to buy now while share prices are a little lower than average. Alongside long-term growth potential, 3M also offers a 3.84% dividend.
3M has a strong innovation culture, which gives us even more reason to invest in its future. This is how a business that manufactures Post-it notes and Scotch tape can also produce N95 face masks and auto repair kits.
While the future is never clear, 3M has a fair chance of adapting and thriving in it because of its innovations.
Many investors find stocks that pay dividends to be a strong play during a bear market. So now could be a good time to invest in a company like 3M Co.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson is one of the best long-term dividend stocks currently available on the stock market today. This healthcare conglomerate was created by Robert Wood Johnson when he opened his first hospital.
The company has been in business for more than 125 years, with an impressive history to back up its current place among stock exchanges worldwide. Today, Johnson & Johnson’s consumer health products, medical devices, and pharmaceutical products span the globe.
It even had one of the first Covid-19 vaccines available for use. Share price charts reveal a relatively steady growth for the company ever since it was first listed in 1982.
The healthcare behemoth with a $350+ billion market capitalization has continually paid and increased dividends, displaying its commitment to expanding its operations. Its outstanding first-quarter performance demonstrates this.
The business increased its quarterly dividend by 6.6% to $1.13 per share. This is the company’s 60th straight year of dividend growth. Johnson & Johnson’s revenue increased 5% to $23.4 billion, while profits per share increased 3% to $2.67 from the previous year.
Despite the macroeconomic challenges that J&J encountered in the quarter, management considers the results to be good. The pharmaceutical division, which has a strong medication portfolio, accounted for the majority of overall sales.
Long-Term Growth Stocks
Freeport-McMoRan Inc. (NYSE: FCX)
Freeport-McMoRan is best known for gold, copper, and molybdenum mining operations. The company was founded in 1834 by Eric Pierson Swenson, who started mining operations along the East Coast of America.
Today, operations have spread as far as South America and Indonesia. With a primary focus on copper, Freeport can sell its supply to the communications, infrastructure, technology, and even medical sectors.
Copper also plays a large part in electric vehicles and clean energy sources. As expected, Freeport sees substantial financial numbers each month and continues to have strong growth.
Share prices have been trending upward since March 2020, and the expectation is that they will continue to do so.
Freeport-McMoRan already has highly productive mining assets in relatively stable nations like the United States and Indonesia, so it is in a good position to scale up output. At the same time, competitors are grappling with the concerns highlighted above.
Freeport-McMoRan is a strong company to own for the long term, given the optimistic forecast for the global economy and copper demand.
Ross Stores Inc. (NASDAQ: ROST)
Ross operates discount clothing stores across the country, making it one of the top retail stocks currently available on the stock market today. The company launched its first location in 1982 and cuts down on costs by removing frills from its stores.
This passes savings to consumers, making Ross the largest off-price retail chain in the country. To date, Ross has over 1,500 stores in nearly 40 states and Guam.
Ross continues to show substantial financial numbers, bringing in higher than expected revenue and earnings per share numbers for all of 2021.
Apart from the onset of the pandemic, Ross has seen an upward trajectory in share prices for the last five years. Stock prices have dropped slightly of late, giving long-term investors a chance to buy on the dip. To support shareholders, Ross also pays out a 1.20% dividend yield.
Ross now trades at a price-to-earnings ratio of 18. This appears to be a reasonable price for a stock that has returned more than 14,000% since its IPO in 1985.
While 2022 seems to be a challenging year, the off-price strategy has shown to be very effective in the past and positions the firm to succeed during a downturn.
Long-Term Penny Stocks
DiDi Global Inc. (NYSE: DIDI)
DiDi Global is known for mobility technology, providing rideshare opportunities throughout China. The company has been able to expand its reach to Brazil, Australia, Mexico, and 13 other countries.
It hopes to compete with the likes of Uber in Great Britain and Europe as time presses on. DiDi saw over 493 million active users in 2021 alone, also providing employment positions for a multitude of drivers.
Going public in just July 2021, DiDi does have little data at present to back up a growth opportunity. Its global presence is a blessing, and the desire to move into other mainstream markets bodes well for the stock’s future.
From a long-term perspective, DiDi has the potential to be an outstanding stock to hold on to if it continues to carve out space in this niche.
Eloxx Pharmaceuticals (NASDAQ: ELOX)
Eloxx Pharmaceuticals is a biotech firm specializing in combatting kidney and colon disease. While rare, there are no medications currently on the market to fight against these conditions.
The company has five drugs in various phases of clinical testing, with medications for cystic fibrosis and cystinosis nearing the end of phase 2. Eloxx is one of many biotech firms trying to pave the way for itself without any drugs currently on the shelves.
At present, it is spending money to complete clinical trials before it could generate any revenue. Share prices tend to benefit whenever new funding comes in, but if just one of these medications obtains FDA approval, Eloxx stock could really take off.
The firm made considerable success in the first quarter, highlighted by a $15.9 million grant from the CF Foundation. Also, as it begins to fully realize the potential of ELX-02 as a new readthrough agent, it is expanding its development program for ELX-02 in Alport syndrome.
The company would have the only drug on the market to treat these renal conditions and could lead to an abundance of business.
Should You Buy Long-Term Stocks?
If you want to build wealth by investing over years or even decades, these could be some of the best options available today on the stock market among growth companies.
With the current high interest rate environment, it could be a good time to look toward the future because this can hurt the stock market in the short- to mid-term.
This also means you might want to look into companies that could be big players in emerging tech, like renewable energy or EVs.
You should know, though, that owning shares doesn’t guarantee success when trying to make more than just short-term investments. It takes hard work and dedication from anyone who wants consistent results over time.
Even Wall Street analysts and experts in the financial sector miss the mark at times.
To succeed, you need to hold to your long-term investment strategies until you’re ready to sell off any potential gains made along the way. There is no guarantee that you’ll make money, even if you buy shares of these companies at their current prices, which are near all-time highs today.
Long-term growth stock investing doesn’t always work in favor of many investors. But over time, your chances are better than most other types of stocks available on the stock market today.
You might also consider an ETF or mutual fund that carries some of these stocks to diversify your portfolio and lower your risk.
Where to Buy Long-Term Stocks
Long-term stocks need to be free of the high volatility that comes with trading on over-the-counter markets. It’s also important to be able to receive trustworthy business reports to ensure a company has been seeing growth for a period of time.
As a result, markets like NASDAQ and the NYSE are best for locating options for long-term gains. The best platforms for searching the major exchanges are Robinhood and Webull.
Robinhood provides users with a simple interface and no-nonsense tools, making for quick entry into trading.
Webull provides traders with more complex tools for investment management that scrub the top markets for hidden gems.
Best of all, both these tools avoid commission fees that you can find with other platforms.
Long-Term Stocks: Final Thoughts
While stock investing doesn’t guarantee success, if you have money saved up and want to buy stocks for future returns over the years, these could be some of your best options available today.
However, buying any stock is not guaranteed to bring in more than short-term gains. So always apply market research before purchasing shares from any potential company that interests you.
If you find that these long-term stocks are expensive, try finding some penny stocks with a high yield potential of around 100% or more.
Keep in mind that it should provide good risk/reward opportunities depending on how much money one has invested currently in total across all their investments.
Long-Term Stocks FAQ
What Are the Best Stocks for Long-Term Investment?
Apple could be considered one of the best stocks for long-term investment, seeing over 200,000% gains since its IPO. Similarly, Coca-Cola has existed for over 100 years and has a presence in almost every country in the world.
What Are the Safest Stocks for Long-Term?
The safest stocks for long-term investing depend on a number of factors, including the company’s financial stability and its industry sector. However, some stocks are considered safer than others for long-term investments, and some industries are considered more stable than others.
What Stocks Will Go Up in the Future?
While no stock is guaranteed to go up, long-term stocks are generally selected because they appear to have the necessary ingredients for continued growth. These tickers typically have a track record of gains that you can almost set a metronome to. Predictability could be a good tool to protect your portfolio amid rising interest rates.
Is Apple a Safe Stock?
Apple is one of those stocks considered safe. It continually produces products that wow users and has established itself as a firm leader in many tech niches. Keep in mind, though, that safe stock is a general term and that no investment is 100% safe.
Is It Better To Hold a Stock Long-Term?
There is no definitive answer to this question. It ultimately depends on the individual investor’s goals and investment strategy. Some people may be comfortable holding a stock for years, while others may prefer to sell their stocks more frequently in order to maximize their profits.
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