When it comes to Wall Street, there’s no such thing as a sure thing. Just look at the economic disruptions of COVID-19 as proof that the unexpected can and will happen.
That said, there’s also mountains of research showing the real risks of trading too much or overreacting to day-to-day volatility. Just as it may be dangerously naïve to bury your head in the sand, investors who constantly buy and sell on impulse often make even more costly mistakes — in addition to racking up expensive fees and taxes.
[Sign up for stock news with our Invested newsletter.]
There’s a simple but effective way to invest responsibly that lies in between, however. By relying on large and established companies with rock-solid operations, you can avoid short-term disruptions — and have the strength to weather any longer term trouble that comes their way.
The following seven companies are among the best long-term stocks to buy, thanks to big scale and consistent dividends. All of them share the staying power, dividend potential and strong operations most investors desire in long-term holdings.
| Stock | Market cap | Forward dividend yield | Year-to-date performance (as of Sept. 11) |
| 3M Co. (ticker: MMM) | $59 billion | 5.6% | -6.1% |
| Altria Group Inc. (MO) | $79 billion | 8.8% | 1.4% |
| Apple Inc. (AAPL) | $2.8 trillion | 0.5% | 38.6% |
| Johnson & Johnson (JNJ) | $392 billion | 2.9% | -5.9% |
| JPMorgan Chase & Co. (JPM) | $423 billion | 2.8% | 10.1% |
| Lennar Corp. (LEN) | $33 billion | 1.3% | 33.7% |
| NextEra Energy Inc. (NEE) | $137 billion | 2.8% | -17.6% |
3M Co. (MMM)
Chemicals giant 3M isn’t one of the most dynamic companies on Wall Street, as it specializes in behind-the-scenes coatings and workaday consumer products without a lot of flash. But its scale is what makes 3M stand out as one of the best long-term stocks to buy, with a product portfolio of more than 60,000 different items. These include Command hangers, Post-it notes, Scotchgard stain blockers, and industrial sealants and adhesives. 3M is a massive company with staying power, and has paid dividends to its shareholders without interruption for more than 100 years. That includes more than 60 consecutive years of dividend increases, to give it one of the best payouts among blue-chip stocks. The global economy may wax and wane in the short term, but a diversified chemicals and materials play like 3M will always capitalize in the long term.
— Sector: Industrial
— Market capitalization: $59 billion
— Dividend yield: 5.6%
— YTD return: -6.1%
Altria Group Inc. (MO)
Tobacco giant Altria has underperformed in 2023, with only a slight gain year to date in what has otherwise been a “risk on” year that has fueled growth-oriented names. However, the total return of this company — that is, stock performance plus dividends — is among the very best on Wall Street. Consider that dating back to 2007, MO stock has an average total return of more than 10% per year. That consistency simply can’t be matched by other companies. And with more than 50 consecutive years of dividend increases, the current payout may only get more attractive over time and help fuel these total returns over the long run.
— Sector: Consumer staples
— Market capitalization: $79 billion
— Dividend yield: 8.8%
— YTD return: 1.4%
Apple Inc. (AAPL)
Apple isn’t exactly the most generous of companies if you’re just looking at dividends. But when it comes to overall performance and long-term potential, it’s hard to argue that there’s any better company on the planet. Over the past 20 years, AAPL stock has averaged an annual return of more than 30% — a phenomenal feat that has made it the largest company by market value on the entire planet. What’s more, the company is committed to returning capital to its shareholders, even if the dividends are nominally low based on current share price. It was paying just 11.75 cents per quarter back in 2014 (adjusted for splits) and now delivers more than twice that figure. Unless you think the iPhone is somehow going to disappear in the coming years, that combination of share appreciation and dividend growth makes Apple one of the best long-term stocks to buy and hold.
— Sector: Technology
— Market capitalization: $2.8 trillion
— Dividend yield: 0.5%
— YTD return: 38.6%
Johnson & Johnson (JNJ)
Johnson & Johnson is a health care titan with staying power. It’s one of the largest U.S. stocks by market capitalization and is one of just two Wall Street firms with a AAA credit rating. J&J has a diversified operation within the sector, too, including a consumer health division that includes Tylenol and Band-Aid products as well as medical devices, prescription drugs and vaccines. It also has a reputation as a reliable dividend stock with a consistent commitment to its shareholders, as proven by its dividend increase in April that marked 61 consecutive years of dividend growth. With demographic tailwinds in the U.S. and abroad pushing up demand for health care, JNJ is all but certain to be successful in the years ahead.
— Sector: Health care
— Market capitalization: $392 billion
— Dividend yield: 2.9%
— YTD return: -5.9%
[10 Best Health Care Stocks to Buy for 2023]
JPMorgan Chase & Co. (JPM)
If you look decades or even centuries into the future of Wall Street, it’s hard to imagine a world where entrenched mega-bank JPMorgan is no longer around. This powerhouse has roots dating back to 1799, and is currently the largest U.S. bank by assets. It also has one of the best-respected CEOs in the sector, if not in the entire global economy, with Jamie Dimon leading his company through the financial crisis and COVID-related volatility without a scratch. Consider that back in 2008, JPM stock paid $1.52 annually in dividends before the downturn. By the end of 2014 it paid $1.56 per share, and it currently pays a whopping $4 annually. That’s a more than 160% jump in payouts, and JPM shares have surged by roughly 220% since 2014. If you want the best long-term stock in the financial sector, JPM is at the top of the heap.
— Sector: Financial
— Market capitalization: $423 billion
— Dividend yield: 2.8%
— YTD return: 10.1%
Lennar Corp. (LEN)
Lennar Corp. was founded in 1954 and has proved itself to be one of the preeminent homebuilders in the U.S. While there certainly have been big changes in the market over the past few decades, from the housing crash of 2008 to the recent roller coaster ride for interest rates, LEN has been able to deliver consistent results for its shareholders. Furthermore, anyone who has read about the U.S real estate market knows that the fundamental challenge for home buyers is inventory — meaning a strong environment for responsible builders like Lennar to capitalize on this demand. With a rich history and experience navigating even the most challenging real estate markets, LEN has staying power and is among one of the best long-term bets in the consumer discretionary sector.
— Sector: Consumer discretionary
— Market capitalization: $33 billion
— Dividend yield: 1.3%
— YTD return: 33.7%
NextEra Energy Inc. (NEE)
When it comes to long-term investments, there’s perhaps no sector that provides more stability than the utility industry. These highly regulated companies are often geographic monopolies, and they provide essential electricity service that businesses and consumers can’t go without. NextEra is the largest public utility stock on Wall Street, with wind, solar, nuclear, coal and natural gas facilities that serve about 12 million people. It also has a rich history, as NextEra traces its roots back about 100 years. While the dividend yield isn’t as big as some other stocks on this list or even in the sector, it offers unrivaled scale and stability that will give investors plenty of peace of mind.
— Sector: Utilities
— Market capitalization: $137 billion
— Dividend yield: 2.8%
— YTD return: -17.6%
More from U.S. News
7 Best Long-Term ETFs to Buy and Hold
7 High-Yield Dividend Stocks to Buy
10 Long-Term Investing Strategies That Work
7 of the Best Long-Term Stocks to Buy originally appeared on usnews.com
Update 09/12/23: This story was previously published at an earlier date and has been updated with new information.
