It’s nearly impossible to find certainty in your investments. Even the most stable assets like cash or CDs aren’t completely bulletproof when you consider the erosion of purchasing power over time thanks to inflation.
But while stocks are never a 100% sure thing, the market does generally trend higher in the long-term. And investors who do their research can provide a bit of certainty to their portfolio by focusing on stocks with a high likelihood of staying relevant for a few decades, instead of just a few months or years. These generally are companies that pay dividends, since these stocks are reliably profitable and have enough cash to share those profits with investors. They are also large companies with billions of dollars in market value, with staying power to weather market-wide disruptions if they arise.
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Here are six different options that fit this mold of stable, long-term stocks that have a good chance of success in the years ahead:
| Stock | Sector | Market valuation | Dividend yield (TTM) |
| Johnson & Johnson (ticker: JNJ) | Health care | $416 billion | 2.8% |
| Apple Inc. (AAPL) | Technology | $2.7 trillion | 0.5% |
| AT&T Inc. (T) | Telecom | $121 billion | 6.5% |
| The Coca-Cola Co. (KO) | Consumer staples | $276 billion | 2.8% |
| Dominion Energy Inc. (D) | Utilities | $47 billion | 4.8% |
| United Parcel Service Inc. (UPS) | Industrials | $147 billion | 3.7% |
Best Long-Term Value Stock: Johnson & Johnson (JNJ)
— Sector: Health care
— Market value: $416 billion
— Dividend yield: 2.8%
For many years, Johnson & Johnson was referred to as a “widow and orphan” stock — that is, the kind of rock-solid company you can have confidence buying and holding for decades, almost as an insurance policy to protect your family when you’re gone. It was founded back in 1886, after all, and is now among the 10 largest stocks on Wall Street and even more relevant now than it has been in the past. The company has a massive brand with a dominant consumer health business that includes Tylenol and Band-Aid products, as well as high-margin drugs and medical devices such as COVID-19 vaccines.
This stock is deeply embedded in the health care system and a top dividend stock that income investors can rely on through any market environment. The health care giant has raised its payouts for 60 years running — one of the longest track records on Wall Street — but still has a payout ratio of less than 50%, hinting there’s ample headroom for future increases, too.
Value stocks often don’t have remarkable growth stories, but they do have a compelling underlying value proposition that means they will survive any short-term whims on Wall Street. JNJ is the perfect example of a long-term stock in this area.
Best Long-Term Growth Stock: Apple Inc. (AAPL)
— Sector: Technology
— Market capitalization: $2.7 trillion
— Dividend yield: 0.5%
If you’re looking at stocks with long-term potential, then Apple should definitely be near the top of your list. It’s one of just a handful of trillion-dollar companies on the planet, and while it’s hard to imagine Apple getting even bigger, keep in mind that the tech giant has more than doubled in market value since 2018.
A big reason is that the first phase of Apple’s growth in a mobile age was the launch of its iconic iPhone and iPad devices. But now, that installed base allows for significant inroads into new areas — from Apple TV to recurring fees for iCloud storage. Consider that in fiscal 2018, the “services” segment that includes items like these generated $39.7 billion out of $265.6 billion in total revenue — just under 15% of the total. In fiscal 2022, which ended in September, services reeled in $78.1 billion, for roughly 20% of total sales.
That impressive headline growth and the expansion of Apple’s product mix have fueled this stock, on top of its very successful past launches. It’s also proof of how the company will continue to grow and is worth holding for the long-term, beyond the latest news or product launch.
[READ: 7 of the Best ETFs to Fight Inflation.]
Other Long-Term Stocks to Consider
The two standouts mentioned above are representative examples of the long-term growth or value investments you may want to consider in your portfolio. However, there’s a wide variety of companies that generally fit these molds — and depending on your personal investing goals, the following other four stocks may be a better fit in your long-term strategy.
AT&T Inc. (T)
— Sector: Telecom
— Market capitalization: $121 billion
— Dividend yield: 6.5%
One of the biggest telecommunications companies in the world, AT&T is a great example of a company that you can depend on for a few decades instead of just a few months. AT&T is the No. 1 carrier in the U.S. as measured by wireless subscriptions, with about 45% share. And looking forward, AT&T is committed to staying lean and competitive, as evidenced by the 2022 divestiture of its interest in Warner Bros. Discovery Inc. (WBD) to pay down debt and focus on its core telecom business. With a yield nearly three times that of the S&P 500 and a 35-year history of dividend growth, the company is also a long-term income stock that has proven its stripes to dividend investors.
The Coca-Cola Co. (KO)
— Sector: Consumer staples
— Market capitalization: $276 billion
— Dividend yield: 2.8%
One of the most recognizable brands on the planet, with more than 120 years of operating history, Coca-Cola is a great example of a company with staying power. But did you know that Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) is its largest shareholder, with a stake of more than 9% of the entire company? That, along with a more than 60-year history of raising its dividend at least once per year provides a compelling reason to bet Coke will see continued success in the long-run.
Dominion Energy Inc. (D)
— Sector: Utilities
— Market value: $47 billion
— Dividend yield: 4.8%
If you’re thinking long-term, then it’s hard to overlook the utility sector, as these stocks have very little competition and see consistent demand for electricity in any market environment. One of the largest utility stocks out there is Dominion Energy, which has roughly 30 gigawatts of electric generating capacity, mostly in Virginia and North Carolina. With massive scale along with a highly regulated marketplace, there are big barriers to entry from any potential competitors. That means Dominion may not have an easy path to growth, but it has a compelling argument for why it will remain stable for many years to come.
United Parcel Service Inc. (UPS)
— Sector: Industrials
— Market capitalization: $147 billion
— Dividend yield: 3.7%
In the age of Amazon.com Inc. (AMZN) and e-commerce, United Parcel Service is an incredibly valuable part of the global supply chain. It’s also three times the size of competitor FedEx Corp. (FDX), meaning it has the scale that’s necessary to be a truly global player in this area. While package demand can in some ways be cyclical, the long-term structural forces driving demand for UPS won’t be going away anytime soon.
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6 of the Best Long-Term Stocks to Buy originally appeared on usnews.com
Update 05/15/23: This story was previously published at an earlier date and has been updated with new information.
