When it comes to investing in the stock market, there are two main strategies that investors can follow: short-term trading and long-term investing. Short-term trading involves buying and selling stocks quickly in order to take advantage of short-term fluctuations in the market. Long-term investing, on the other hand, involves buying and holding stocks for an extended period of time, with the goal of achieving long-term growth and earning dividends.
In this article, we will focus on long-term investing and discuss some of the best stocks to buy and hold forever. These stocks have strong fundamentals, a track record of growth, and a history of paying dividends.
Apple (AAPL)
This is one of the most valuable companies in the world, with a market capitalization of over $2 trillion. It has a strong brand, a loyal customer base, and a track record of innovation. Apple’s iPhone and iPad products are some of the most popular consumer electronics products on the market, and the company’s services business, which includes the App Store and Apple Music, is growing rapidly.
This company has also been returning capital to shareholders through share buybacks and dividend payments. In 2020, the company paid out $14.1 billion in dividends and repurchased $72.4 billion worth of its own shares. With a dividend yield of around 0.7%, Apple may not be the highest-yielding stock on the market, but it has a history of increasing its dividend payments over time.
Microsoft (MSFT)
This is another tech giant that has been around for decades and has a market capitalization of over $1.8 trillion. The company is known for its Windows operating system and Office productivity software, but it has also been making strides in the cloud computing market with its Azure platform.
Like Apple, Microsoft has been returning capital to shareholders through share buybacks and dividend payments. In 2020, the company paid out $16.4 billion in dividends and repurchased $24.1 billion worth of its own shares. With a dividend yield of around 0.8%, Microsoft is also not the highest-yielding stock on the market, but it has a history of increasing its dividend payments over time.
Amazon (AMZN)
This is the largest e-commerce company in the world, with a market capitalization of over $1.6 trillion. The company has disrupted the retail industry with its online marketplace and has expanded into other areas, such as cloud computing with its Amazon Web Services platform.
Amazon has not paid a dividend since going public in 1997, but the company’s growth potential and dominant position in the e-commerce market make it an attractive long-term investment. Amazon’s revenue has grown at a compound annual growth rate of over 30% over the past five years, and the company is expected to continue growing at a rapid pace in the coming years.
Johnson & Johnson (JNJ)
This is a healthcare company that has a market capitalization of over $400 billion. The company is known for its consumer health products, such as Band-Aids and Tylenol, as well as its pharmaceutical and medical device businesses.
JNJ has a history of paying dividends, with a dividend yield of around 2.6% as of February 2023. The company has also been increasing its dividend payments over time, with a compound annual growth rate of over 6% over the past five years. Johnson & Johnson’s diversified business model and strong brand make it a solid long-term investment.
Procter & Gamble (PG)
This is a consumer goods company that has a market capitalization of over $350 billion. The company is known for its household brands, such as Tide, Crest, and Pampers.
It also has a history of paying dividends, with a dividend yield of around 2.6% as of February 2023. The company has also been increasing its dividend payments over time, with a compound annual growth rate of over 4% over the past five years. Procter & Gamble’s strong brand recognition and dominance in the consumer goods industry make it a solid long-term investment.
Visa (V)
This is a payments technology company that has a market capitalization of over $600 billion. The company operates the world’s largest electronic payments network and facilitates electronic funds transfers throughout the world.
It has a history of growing revenue and earnings at a rapid pace, with a compound annual growth rate of over 15% over the past five years. The company has also been returning capital to shareholders through share buybacks and dividend payments, with a dividend yield of around 0.6% as of February 2023.
Berkshire Hathaway (BRK.A/BRK.B)
This is a conglomerate holding company led by legendary investor Warren Buffett. The company has a diverse portfolio of businesses, including insurance, energy, and consumer goods companies.
Berkshire Hathaway has a history of delivering long-term returns for its shareholders, with a compound annual growth rate of over 20% over the past five years. The company has not paid a dividend since 1967, but its stock price has grown at a rapid pace due to the success of its underlying businesses.
Coca-Cola (KO)
This is a beverage company that has a market capitalization of over $230 billion. The company is known for its iconic Coca-Cola brand, as well as other popular beverages such as Sprite and Fanta.
Coca-Cola has a history of paying dividends, with a dividend yield of around 3% as of February 2023. The company has also been increasing its dividend payments over time, with a compound annual growth rate of over 6% over the past five years. Coca-Cola’s strong brand recognition and dominance in the beverage industry make it a solid long-term investment.
Alphabet (GOOGL/GOOG)
This is a technology company that operates the world’s largest search engine, Google. The company has a market capitalization of over $1.7 trillion and also operates other businesses, such as YouTube and Google Cloud.
Alphabet has a history of growing revenue and earnings at a rapid pace, with a compound annual growth rate of over 20% over the past five years. The company has also been returning capital to shareholders through share buybacks and dividend payments, with a dividend yield of around 0.6% as of February 2023.
JPMorgan Chase (JPM)
This is a financial services company that has a market capitalization of over $450 billion. The company operates in various segments, including consumer banking, investment banking, and asset management.
JPMorgan Chase has a history of returning capital to shareholders through share buybacks and dividend payments, with a dividend yield of around 2.7% as of February 2023. The company also has a strong balance sheet and is well-positioned to benefit from a growing economy.
Investing in the stock market can be a great way to build wealth over the long term. When choosing stocks to buy and hold forever, it is important to focus on companies with strong fundamentals, a history of growth, and a track record of returning capital to shareholders through share buybacks and dividend payments.
The stocks listed above are some of the best options for long-term investors seeking stable and consistent growth. However, it is important to conduct your own research and consult with a financial advisor before making any investment decisions.
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