Wall Street can sometimes turn on a dime, making yesterday’s darlings into tomorrow’s dogs. Remember the short-lived hype around 3D printing? How about the “Internet of Things?” And where are all of the promised self-driving cars?
[Sign up for stock news with our Invested newsletter.]
These disruptive technologies are still around or in the works, to be sure. But it’s also true that a lot of fashionable startups that once rode the wave of hype a few years ago disappeared once the real economics of these innovations proved to be more difficult than the pie-in-the-sky narrative would make them seem.
The following long-term stocks may not knock your socks off, but they all have staying power thanks to proven business models that don’t rely on fads. They also all offer dividends north of 2%, and market values of at least $25 billion.
Sure, a utility stock or energy pipeline firm isn’t going to grab headlines. But if you’re looking to buy and hold, these seven stocks might be worth a look:
| Stock | Sector | Market Capitalization | Forward Dividend yield |
| AbbVie Inc. (ABBV) | Health care | $261 billion | 4% |
| Broadcom Inc. (AVGO) | Technology | $372 billion | 2% |
| Cheniere Energy Partners LP (CQP) | Energy | $27 billion | 7.8% |
| Home Depot Inc. (HD) | Consumer discretionary | $293 billion | 2.9% |
| JPMorgan Chase & Co. (JPM) | Financials | $435 billion | 2.9% |
| Lockheed Martin Corp. (LMT) | Industrial | $110 billion | 2.9% |
| Southern Co. (SO) | Utilities | $74 billion | 4.2% |
AbbVie Inc. (ABBV)
AbbVie was spun out of Abbott Laboratories (ABT) in 2013 to allow its branded biopharmaceutical business to thrive. Its list of blockbusters include anti-inflammatory drug Humira, cancer treatment Imbruvica and hepatitis drug Viekira — drugs you surely have heard of from pharmaceutical ads, or that you may even take yourself. Health care is one of the surest bets in the long term considering that we all need medical assistance as we age, and demographic shifts are creating an even bigger swell in demand over the coming years. ABBV has a strong product pipeline to ensure it stays relevant, and a dividend yield that is head and shoulders above its peers in the sector.
Sector: Health care Market capitalization: $261 billion Dividend yield: 4%
Broadcom Inc. (AVGO)
Though not quite as huge as trillion-dollar Silicon Valley leader Apple Inc. (AAPL), Broadcom is a force in the global technology industry and one of the largest semiconductor design firms. It is a leader in so-called “fabless” production, meaning it owns the patents and the research behind the chips but outsources the actual production to third-party foundries. The company is behind the guts of set-top cable box systems, ethernet switches, GPS navigation systems, motion control systems and too many other electronics to count. The result of a 2015 mega-merger between Broadcom and Avgo — the firm from which the ticker AVGO remains — this chip leader has consistent and large-scale operations that are diversified across product categories. That will help it withstand the tests of time, regardless of changing tastes in personal electronics.
Sector: Technology Market capitalization: $372 billion Dividend yield: 2%
Cheniere Energy Partners LP (CQP)
Natural gas infrastructure company Cheniere stores and transports natural gas, including operating the very important Sabine Pass LNG terminal located in Louisiana. This hub is a key element of the global supply chain for natural gas, with 17 billion cubic feet of storage capacity. Thanks to its prominent place at the center of this industry, it is almost indispensable to LNG users. And thanks to operating as a “middle man” between the producers and end users, it is not as reliant on managing energy price volatility to drive profits. Throw in the fact that it’s structured as a partnership with a mandate for huge dividends, and it’s hard to pass up on this rock solid energy stock.
Sector: Energy Market capitalization: $27 billion Dividend yield: 7.8%
[See: 7 Best Dividend ETFs to Buy Now.]
Home Depot Inc. (HD)
It’s hard to pick a retail stock that will survive the ups and downs of consumer tastes in the long term, but Home Depot definitely offers an exception to the typical consumer discretionary stock. First, it has massive scale, with about 2,300 retail locations nationwide. It also specializes in a category that isn’t at risk of e-commerce competition as even Amazon doesn’t stock lumber or sacks of concrete. Furthermore, the pandemic fueled an “omni-channel” approach at HD, where you can order online and have your gear delivered or pick up in the store. You can also browse with a best-in-class smartphone app that gives you the specific aisle and bin number to locate that otherwise hard-to-find item. Throw in a dividend that has exploded from 29 cents to $2.09 per quarter in just 10 years, and there are a lot of reasons to buy and hold HD.
Sector: Consumer discretionary Market capitalization: $293 billion Dividend yield: 2.9%
JPMorgan Chase & Co. (JPM)
JPMorgan has deep roots that go all the way back to 1799, but it remains one of the most dominant and recognizable names on Wall Street. It has a history of shrewd deals, even when other financial stocks are struggling, from its crisis-era purchase of Bear Stearns at fire sale prices to a well-timed bid for embattled regional bank First Republic earlier in 2023. That latter deal led to a stunning 67% surge in profits in short order, proving that JPM doesn’t just know how to weather volatility, but also how to profit from it. That’s a bank you can rely on for many years to come, regardless of the broader economic outlook or interest rate environment.
Sector: Financials Market capitalization: $435 billion Dividend yield: 2.9%
Lockheed Martin Corp. (LMT)
As the recent flare-up in the Middle East proves, aerospace and defense giant Lockheed Martin is an industrial stock with staying power in this era of geopolitical uncertainty. Its famous “skunk works” has developed military technologies including the F-117 stealth fighter and, before that, the F-16 Fighting Falcon. It also offers mission controls, missile systems and drone technologies that take pilots out of harm’s way. LMT stock pays $3 per quarter in dividends — three times the sum from a decade ago — and is a stock that shares the wealth over time as it dominates the defense industry.
Sector: Industrial Market capitalization: $110 billion Dividend yield: 2.9%
The Southern Co. (SO)
Southern Co. is one of the largest publicly traded utility stocks on Wall Street, with massive electricity and natural gas businesses that collectively serve about 9 million customers. Utilities don’t offer a ton of growth, but they enjoy a wide moat thanks to a ton of government regulation and the high expenses that any potential competitor would have to dole out to build a new power plant or distribution network. Electricity is a necessity in the 21st century, so investors can be sure of strong baseline demand for many years to come. Additionally, SO is about to flip the switch next year on new nuclear plants that mark the first U.S.-built facilities in decades. That will add not just capacity, but diversification away from fossil fuels in its power generation business.
Sector: Utilities Market capitalization: $74 billion Dividend yield: 4.2%
More from U.S. News
7 Best Electric Vehicle ETFs to Buy
10 Best Low-Cost Index Funds to Buy
7 of the Best Growth Funds to Buy and Hold
7 of the Best Long-Term Stocks to Buy originally appeared on usnews.com
Update 10/13/23: This story was previously published at an earlier date and has been updated with new information.
