16 Best Stocks for Long Term Investment
[Handpicked by Lyons Wealth]
While the stock market may be volatile, time has proven that the stock market is a solid investment. Bear markets are inevitable, but the market always recovers to make new highs, and the records show that there has never been much money lost over 20 years. Holding stocks for the long term has proven to help ride the lows and highs of the market. Moreover, you can enjoy tax rates, and this investment tends to be less expensive.
On the other hand, investing in individual stocks can be challenging. There are instances wherein stocks fall for extended periods. Even when the market as a whole rises, some stocks never recover. Hence, the stocks to buy should be carefully chosen.
If your goal is long-term growth, you should be vigilant in choosing which ones have proven excellent investments. In no particular order, here are some of the best stocks long-term investors should include on their radar for free cash flow:
Alphabet Inc. is an American multinational technology company whose headquarters is in Mountain View, California. This company was created through the restructuring of Google in October 2015 and became Google and its former subsidiary's parent company.
Alphabet Inc. provides different platforms and products in the US, Europe, the Middle East, the Asia Pacific, Africa, Canada, and South America. This company operates through Google Cloud, Google Services, and other segments.
Google Services offers products and services, including Android, Chrome, ads, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. This segment is also involved in selling apps, in-app purchases, and digital content in the Google Play store. The company also retails Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices.
Meanwhile, Google Cloud offers infrastructure, data, analytics, AI, cybersecurity, AI, machine learning, and other services. Alphabet Inc. is also involved in selling health technology and internet services. As one of the leading technology companies worldwide, the shareholder value stocks of Alphabet are stable.
Despite the Wall Street financial crisis and other events, Alphabet Inc. remains one of the best growth stocks in the industry. There's not too much risk involved when you're investing in a well-known blue-chip company like Alphabet. While you might lose money temporarily due to the stock market's volatility, in terms of long-term stocks, this is an excellent choice. This company has a market capitalization of $1.67T.
Apple (NASDAQ: AAPL)
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In April 1976, Apple was founded by Steven Paul Jobs, Ronald Gerald Wayne, and Stephen G. Wozniak. This company designs, manufactures, and sells various electronic devices, including personal computers, smartphones, tablets, wearables and accessories, and other related services. It is now a renowned American multinational company whose headquarters is located in Cupertino, California.
Apple operates in various parts of the globe, mainly the Americas, Europe, Greater China, Japan, and the rest of Asia Pacific. Its Americas segment includes North and South America, while Europe includes European countries, India, the Middle East, and Africa. Apple's Greater China segment comprises China, Hong Kong, and Taiwan, and the rest of Asia Pacific comprises Australia and Asian countries. Apple offers products and services, such as AirPods, Apple TV, Apple Watch, Beats products, digital content stores, iCloud, iPad, iPhone, Mac, streaming and licensing services.
Apple has an incredible market capitalization of $2.95T. While buying stocks of this company may be expensive, this is one of the best long-term investments as it provides consistent dividends to its investors. Given the company's very expensive nature, you can expect above-average returns in the long run with Apple.
Archer-Daniels Midland (NASDAQ: ADM)
Archer-Daniels Midland is an agricultural juggernaut that is in the business of providing ingredients for food, feed, energy, and industrial customers worldwide. While processing, trading, and shipping crops isn't considered glamorous, food is certain to see consistent demand, regardless of the highs and lows in the macroeconomic picture.
The unrivaled scale and specialization of ADM mean there is a high chance for it to be around and grow in the decades to come. Because of its reliable operation, people who invest in dividend stocks from ADM can expect an equally reliable income. Despite the ever-changing economic environment, investors are assured that the demand for food will not waiver in the next decades.
Its excellent track record of 367 consecutive quarterly dividend payments as of August 2023 proves this dependability. With a dividend yield of 2.5%, ADM has a market cap of $38.5B.
Cheniere Energy Partners (CQP)
Cheniere Energy Partners is a natural gas infrastructure company that serves energy producers and utilities. Its primary role is to help liquify, store, and transport natural gas across the global economy.
The company's export facility at the Sabine Pass Liquified Natural Gas (LNG) production terminal in Louisiana is a critical element in the global supply chain for LNG, with 17 billion cubic feet of storage capacity. This company also owns a 94-mile pipeline that connects to other distribution pipelines and networks.
While gas prices may be volatile, CQP has a very enviable position in the supply chain. Regardless of the margins for explorers or consumer prices, the company is expected to profit steadily on gas storage and transportation in the coming years. Thus, CQP is worth looking into if you're interested in long-term investing.
Moreover, the company has a history of generous, consistent dividends that are more extensive than you'll find elsewhere among large-cap stocks. Cheniere Energy Partners has a formidable market capitalization of $27.6B and above-average dividends of 7.3%.
CRH PLC (CRH)
CRH is one of the most significant building material companies in North America. Technically speaking, this company counts as an international stock because its headquarters are in Dublin, Ireland.
A recent investor presentation shows that CRH has a top market position in asphalt, concrete, and aggregates used in building and road construction. This company also provides building and civil engineering services to raw materials.
If you're looking for long-term stocks, CRH is an excellent choice because it's safe to assume that infrastructure isn't going away anytime soon. Given the inferior marks in recent years from the American Society of Civil Engineers concerning the state of America's bridges and roads, it's safe to say that CRH will pay dividends in the foreseeable future.
In addition, the risk tolerance is low, given its necessary work. CRH has a dividend yield of 2.2% and a market capitalization of $40.6B.
Hartford Financial Services Group (HIG)
Hartford Financial Services Group (HIG) is a big player in the financial sector that provides financial services and insurance, ranging from homeowners and life insurance to investment management and branded mutual funds.
HIG's advisory services currently boast almost $130 billion in assets under management. Given the rising interest rates today, companies like Hartford offering financial services can use people's idle cash well. It is interesting to note that the company was founded in 1810. Since then, HIG has consistently grown in various market conditions, making it an ideal investment option for value stocks during troubling times.
Currently, the company pays 42.5 cents per quarter in dividends, four times the 10 cents it paid a decade ago (2013). This growth demonstrates long-term dedication to delivering consistent income to its shareholders. This company's dividend yield is 2.6%, while its market cap is $22.1B.
Home Depot (HD)
Home Depot Inc., or simply Home Depot, is a multinational home improvement retail corporation that retails appliances, construction products, tools, and services, including transportation rentals and fuel.
With approximately 2,300 retail locations all over the nation and more than 475,000 workers, Home Depot is the largest home improvement retailer in the country.
Considering how new home sales may be challenging right now in a high-interest rate environment, it is interesting to know that HD's stock is faring well. This is mainly because people who can't afford to move are sprucing up their current accommodations.
Despite the proliferation of other retailers, Home Depot remains dominant within its niche and maintains its status as one of the largest retailers in the country. Thanks to its integration into e-commerce and delivery, this specialty retail leader enjoys much success, and its value stocks make many long-term investors happy. Home Depot has a dividend yield of 2.8%, while its market cap is at $294.5B.
Lockheed Martin (LMT)
As a blue chip dividend stock considered increasingly relevant in this geopolitical unrest era, aerospace and defense giant Lockheed Martin (LMT) is an industrial stock with formidable stability. This is the corporation behind iconic battle machines like the F-16 Fighting Falcon, F-117 stealth fighter, and massive C-130 Hercules military transport plane.
Founded through the merger of Lockheed Corporation with Martin Marietta in March 1995, LMT's headquarters is located in Washington, D.C.
Interestingly, LMT offers a dividend yield of $3.00 per quarter, almost triple what it paid a decade ago. This is a stock with reliable staying power. Moreover, it has a strong commitment to sharing its wealth with long-term investors. With a dividend yield of 2.8%, this company has a market capitalization of $111.8B.
Mercadolibre, Inc. (MELI)
Established in 1999, Mercadolibre, Inc. (MELI) is headquartered in Buenos Aires, Argentina. Mercadolibre Inc. is South America's premier e-commerce technology company, which functions through its core platforms, MercadoLibre.com and MercadoPago.com.
Mercadolibre provides solutions for businesses and individuals engaged in online selling, buying, advertising, and payment transactions. For over two decades, this company has been utilizing technology to democratize e-commerce and financial services in Latin America, generating profound transformation for the company's millions of users. This company has a market capitalization of $81.93B.
Microsoft Corporation (MSFT)
Microsoft Corporation (MSFT) is an American multinational corporation headquartered in Redmond, Washington. The company's best-known software products are its Windows line of operating systems, the Edge web browser, and the Microsoft 365 suite of productivity applications.
Founded in 1975, MSFT specializes in the development and support of software, services, devices, and solutions worldwide. The company's Productivity and Business Processes segment provides products such as Microsoft Teams, office 365 Security and Compliance, and office consumer services.
Meanwhile, its Intelligent Cloud segment provides server products and cloud services. One of the most well-known technology companies in the world, MSFT has an impressive market capitalization of $2.795T.
Monday, Ltd., alongside its subsidiaries, develops software applications internationally. The company provides Work OS, a cloud-based visual work operating system comprising modular building blocks user and assembled for the creation of software applications and work management tools.
Formerly known as DaPulse Labs Ltd. and now named monday.com Ltd., this company was incorporated in 2012 and is currently headquartered in Tel Aviv, Israel. MNDY has a market capitalization of $8.682B.
It is a cloud-based platform that permits users to create their own applications and project management software. The company also provides product solutions for sales CRM, work management, and software development verticals. It caters to organizations, educational or government institutions.
Stellantis N.V. (STLA)
Nowadays, there's an increasing hype around electric cars, and many new companies are stepping up to meet the demand. However, it should be noted that legal automakers are also part of this electric car revolution.
Headquartered in Amsterdam, Netherlands, Stellantis, N.V. is a multinational automotive manufacturing corporation. This company was formed through the merger of the Italian–American conglomerate Fiat Chrysler Automobiles and the French PSA Group.
STLA is in the business of making Dodge and Ram trucks, Jeep SUVs, Maserati sportscars, and European compact vehicles. As of now, electric vehicles make up a small portion of the company's business. However, STLA is gearing up to increase its production to 5 million vehicles by 2030. STLA has a dividend yield of 7.7% and a market capitalization of $59.1B.
Sysco Corp. (SYY)
One of the biggest food service companies in the US, Sysco Corp. (SYY), has proven that it has a formidable staying power amid the challenges of the pandemic. In fact, SYY quickly bounced back to pre-pandemic value stocks thanks to the company’s massive and efficient distribution network.
The company has a market capitalization of $34B and a dividend yield of 3%. Strongly embedded in the restaurant industry, SYY is in the business of delivering everything from products to meat, kitchen appliances to utensils. These products have helped fuel the company's very impressive track record of more than 50 years of consecutive dividend growth.
Considering that Americans spend more dining out compared to groceries and homecooked meals, SYY's reliability and size make it an exceptional long-term stock choice.
Headquartered in Austin, Texas, Tesla Inc. is a multinational company that is primarily engaged in clean energy and automotive. This company's specialization is the design and manufacturing of electric vehicles, stationary battery energy storage solutions, and related products and services.
The company's Energy Generation and Storage segment is involved in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products. Meanwhile, its Automotive segment offers electric vehicles, automotive regulatory credits; and non-warranty after-sales vehicles, used vehicles, retail merchandise, and vehicle insurance services.
Formerly known as Tesla Motors, the company was changed into Tesla Inc. in February 2017. Given that it is one of the most covered electric vehicles worldwide and its rising popularity, it remains one of the best long-term investments money can buy. This company has a market capitalization of $763.19B.
Tractor Supply (TSCO)
Tractor Supply has an incredible track record of consistent increase and a powerful brand that has turned it into one of the go-to retail stocks in the last ten years. As one might infer from its name, Tractor Supplier is a retail company that specializes in farming products.
However, many of the company's customers are not full-time farmers, but are rather rural consumers searching for gardening products or pet food.
TSCO has made excellent business moves recently through the expansion of its sale and lease-back of stores. It is also aggressive with its acquisitions. To date, it has a dividend yield of 2.1% and a market capitalization of $21.6B.
Its target is to set up 3,000 locations. With a loyal client based in underserved retail areas and offering products that are neither cheap nor easily shipped, TSCO has a formidable staying power worth investing in.
Valero Energy (VLO)
Valero Energy (VLO) is primarily an oil refinery. This means that its main source of income is not drilling for fossil fuels but taking crude oil and transforming it into other usable petrochemical products. According to the day-to-day market environment, this company's margins can fluctuate because of the game between the crude oil it buys from production firms and the refined products it brings to the market.
Looking at the bigger picture, Valero provides consistent growth at a scale that can be challenging for other businesses to match. Given how expensive it is to develop a refinery network from the ground up, VLO has a wide reach that ensures that it will be operational in the years ahead. VLO has a market capitalization of $41.7B and a dividend yield of 3.3%.
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Expert Help for Long-Term Investors
If you're interested in investing in long-term stocks, you need partners with extensive capital markets experience. If you need expert help in managing your portfolio and maximizing your returns, get in touch with us at Lyons Wealth.
Lyons Wealth is more than just a team of wealth management advisors. We are your partners in comprehensive financial planning if you want to preserve your wealth and create a succession plan. Contact our team today to invest in these best sticks for long-term investments and more.
Are stocks a good long-term investment?
In the long run, stocks have proven to be a solid investment. While the stock market may be volatile, investors can expect good returns in the future.
Which share is best for long-term investment?
Most financial experts recommend diversifying one's portfolio. Some of the best long-term investments include growth stocks, stock funds, and dividend stocks.
What are the safest stocks to buy?
Blue-chip companies like Walmart, Costco and the Proctor and Gamble (P&G) company are among the safest choices. However, investing in these companies can be very expensive.
What are the top 3 stocks to buy?
Generally speaking, the best stocks to buy are blue-chip stocks that have a proven track record of growth. You should invest in companies like Amazon, Apple, and Microsoft if you want sure returns.