For new investors, finding the best long-term stocks is challenging, to say the least.
While some companies are just as (or more) profitable than they were 10 or even 20 years ago, much can change.
Our long-term stock guide will break down our top picks and provide you with a background on each company.
Best Long-Term Stocks To Buy
Most newcomers start building their portfolios with long-term stocks that show a history of stability because newer portfolios have less risk tolerance.
Experts recommend this approach because a long-term investment is often safer than short-term investments, which usually involve high volatility shares that fluctuate in value.
So if you’re looking for some solid suggestions for the best stocks with long-term growth potential, keep reading.
More on Long-Term Investments in the Stock Market
It’s important to consider that past performance is not always an indicator of future success, but looking for companies that have demonstrated a proven track record can be a good place to start your search.
Keep reading for more information about each stock on our list.
Coca-Cola (NYSE: KO)
The first company on our list of best long-term stocks is Coca-Cola.
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.
Although John Pemberton died after only four years with the brand, he knew that people would love this drink.
In 2009, the company had more than 500 brands that consumers could choose from, including Diet Coke and Sprite.
Today, Coca-Cola is still going strong all over the globe thanks to its ability to adapt its ad performance to the world stage while staying true to its roots as a classic.
Amazon (NASDAQ: AMZN)
Another excellent long-term investment is AMZN stock.
Amazon was founded by Jeff Bezos in 1994 as an online bookseller.
The company started with just 30 employees, but now, it has more than 340,000 employees working across 200 countries worldwide.
As consumers engage more in online shopping, many businesses rely on Amazon to sell their products or offer services.
The best part about this growth is that new customers are still being added to its list every day, ensuring sales continue to grow into the future.
In 2017, they had more than $178 billion in revenue.
Today, Amazon has a market cap of almost half a trillion dollars and is one of the biggest companies on earth.
In 2010, Amazon was trading for just under $100, but it’s now worth over five times that amount, and it shows no sign of slowing down.
Facebook (NASDAQ: FB)
Facebook was founded by Mark Zuckerberg in 2004 while studying at Harvard University with his roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.
The company went public just five years after being created but since then has continued its growth into an online platform that connects people from all over the world.
When you buy Facebook stock today, you buy into a company with more than one billion users, and this number continues to grow year after year.
There are also opportunities for businesses looking to display personalized ads or basic ads on the platform, which means even more revenue potential in the future.
Many companies prefer advertising on Facebook because the company makes it easy to measure ad performance.
Facebook has also bought Instagram, another platform that buyers can use as an online shopping platform.
Both of these partners process data to display personalized ads and help pique legitimate interest with audiences and investors.
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Long-Term Dividend Stocks
This next line of stock picks was specifically selected to help investors in search of long-term dividend stocks.
Keep reading to learn more about each pick.
Annaly Capital Management Inc. (NYSE: NLY)
Annaly Capital Management Inc. is a company that provides mortgage-based financial services to real estate investors.
It was founded in 1996 by Michael A. J. Farrell and Wellington J. Denahan and other entrepreneurs.
The best part about this stock is its dividend yield, which averages around 12% per year for the last five years, making it one of the highest in the industry overall.
Long-term investing in this company may be worthwhile.
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This stock has had an impressive run since going public more than 30 years ago, with returns averaging more than 14% each year, even during times of crisis like 2008.
AGNC Investment Corp. (AGNC)
AGNC is another real estate investment trust (REIT) that offers mortgage-based financial services to investors.
The company was created in 2008 as part of American Capital Strategies Ltd., founded by Hamilton E. James, who currently serves as CEO.
AGNC has a market cap of more than $18 billion and trades an average of nearly 20 million shares each day, making it one of the most traded on the entire stock exchange overall.
Its expected 1-year total return is around 27.2%, while its payout ratio is 43.8%.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson is one of the best long-term dividend stocks currently available on the market today.
This healthcare conglomerate was created by Robert Wood Johnson when he opened his first hospital.
Johnson & Johnson has been in business for more than 125 years, with an impressive history to back up its current place among stock exchanges worldwide.
As of now, the company makes over 360 billion dollars in revenue each year and employs close to 126,000 people worldwide.
Johnson & Johnson has a payout ratio of around 52%.
Long-Term Growth Stocks
If you want long-term growth stocks, you’re in luck.
These next stop picks are geared toward long-term investment with strong potential for growth.
Freeport-McMoRan Inc. (NYSE: FCX)
FCX is a natural resources company that mines for gold and copper.
It was founded in 1834 by Eric Pierson Swenson, who started mining operations along the East Coast of America.
The best part about this stock is its dividend yield, which averages around 11% per year, making it one of the highest yields available today among long-term growth stocks.
This stock has had an impressive run since going public more than 30 years ago, with returns averaging more than 13% each year, even during times of crisis like 2008.
Its revenue growth is around 88.2%, while its payout ratio is 55.6%.
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 market today.
It was founded by Stuart Moldaw, who served as CEO until 2003 when he retired and handed over his position to other executives.
This stock has had an impressive run since going public more than 30 years ago, with returns averaging nearly 15% each year throughout time.
Ross stock also has a payout ratio of around 97.4%, based on its trailing 12 months of earnings, meaning its dividends will likely continue growing into future years.
Long-Term Penny Stocks
As an investor, keep in mind that penny stocks are volatile and have more risk than other types of stocks.
Hence, you must do your due diligence in market research before buying shares of any penny stock.
However, investing in a good, long-term penny stock can be very profitable if done correctly, with returns averaging more than 20% each year.
Below are some outstanding long-term penny stocks you could consider investing in.
ELYS Game Technology (NASDAQ: ELYS)
ELYS is a company that develops and manufactures video games for Android devices.
Also, ELYS and its platform actively scan device characteristics and process personal data to generate audience insights and capture their preferences.
Michele Ciavarella is the current CEO helping this stock continue its growth into one of the best penny stocks available on the market today.
This game developer has had an impressive run since going public four years ago, with returns averaging more than 20% each year throughout time.
Its net income and revenue growth are also solid, coming in at nearly 40%.
MedAvail Holdings (NASDAQ: MDVL)
MedAvail is a company that specializes in the development of medical devices to help people transport medications.
It was founded in 2012 and has Ed Kilroy as its current CEO, who has helped this stock continue its growth into one of the best penny stocks available on the market today.
This firm’s return average is more than 13% each year since going public nearly five years ago, with a revenue growth rate of 4.8% annually.
Hence, if you aim to avail this stock, now is the right time before it turns into one of the small-cap stocks.
MedAvail has a $9.5 price target, which is currently 182% higher than where MDVL stock trades are today.
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Should You Buy Long-Term Stocks?
This is a question that many investors ask themselves.
Long-term investing is expensive since most long-term stocks are costly, with their prices already having surged close to all-time highs within a year earlier or so.
However, if you want to build wealth by investing over years or even decades, these would be some of the best options available today on the market among growth companies.
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.
More on Long-Term Investments
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 investors.
But over time, your chances are better than most other types of stocks available on the market today.
Long-Term Stocks: Final Thoughts
While owning shares of a company doesn’t guarantee success, if you have money saved up and want to buy stocks for future returns over the years, these would 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.
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