One of the primary challenges for most investors is sorting through the day-to-day noise of Wall Street and instead focusing on long-term success. After all, the news cycle tends to be dominated by stocks that are posting big single-day moves — not the slow-and-steady companies that lack flash but ultimately put up strong performances over many years.
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But high-quality blue-chip stocks shouldn’t be overlooked by anyone. Companies that have scale and long-term stability can be core holdings for all investors — including the ones who dabble in fashionable short-term trades. Stocks like these can be foundational pieces that nearly everyone can build on, providing the stability to take on other positions that may be higher risk or more likely to be volatile.
The following seven picks are all established blue-chip stocks with strong long-term outlooks that aren’t dependent on the ups and downs of the broader economy:
— Apple Inc. (ticker: AAPL)
— Enterprise Products Partners LP (EPD)
— Johnson & Johnson (JNJ)
— JPMorgan Chase & Co. (JPM)
— Prologis Inc. (PLD)
— Southern Co. (SO)
— Target Corp. (TGT)
Apple Inc. (AAPL)
— Market capitalization: $3.3 trillion
— Dividend yield: 0.5%
— Sector: Information technology
Apple is the largest stock listed on U.S. exchanges, several times larger than most other major brands that consumers know and love, and its scale alone makes it hard to bet against if you’re thinking in years and decades rather than weeks and months. Consider that its cash on hand at the start of the year topped $60 billion in cash and marketable securities — enough to make an outright purchase of stocks including Ford Motor Co. (F) or hotel giant Hilton Worldwide Holdings Inc. (HLT).
With its dominant iPhone and a brand that is synonymous with consumer technology, Apple is all but certain to be around for the foreseeable future. And considering its outperformance lately, rising more than 30% in the last three months, it’s clear that being large doesn’t mean you have to rest on your laurels when you’re a firm like Apple.
Enterprise Products Partners LP (EPD)
— Market cap: $65 billion
— Dividend yield: 7.1%
— Sector: Energy
When it comes to long-term investments, energy can be a bumpy road to ride because of the ups and downs in commodity prices. But while not the first energy company you’d think of in the sector, EPD is among the most reliable because of its generous yield as well as its unique structure. Specifically, Enterprise Product Partners is a “midstream” energy company focused on pipeline services that transport crude oil, petrochemicals and natural gas. As it’s a glorified toll-taker instead of a drilling company, it is relatively insulated from the ups and downs of oil prices or cyclical demand.
As a result, the stock has logged more than 20 years of consecutive dividend increases — a great sign that it can provide stability and income for the long haul.
Johnson & Johnson (JNJ)
— Market cap: $380 billion
— Dividend yield: 3.2%
— Sector: Health care
When it comes to bulletproof long-term stocks to buy, Johnson & Johnson is regularly at the top of the list for many investors. It boasts nearly 140 years of operations and a top credit rating of AAA that makes it one of two firms on the planet with that designation — making it more creditworthy than even the U.S. government, according to major ratings agencies. After recently divesting itself of its consumer health division that features Tylenol and Band-Aid products, JNJ is now wholly dedicated to best-in-class medical devices, prescription drugs and vaccines. Considering we all need for these products as we age, this business model is pretty much a sure thing — and as J&J does this business at scale, it’s a very reliable long-term bet.
JPMorgan Chase & Co. (JPM)
— Market cap: $590 billion
— Dividend yield: 2.2%
— Sector: Financials
The biggest of the U.S. megabanks, JPMorgan has deep roots that stretch back to 1799. Not only has it survived plenty of financial crises along the way, it actually came out of the 2008 downturn better than any other U.S. bank. Consider that in 2008 it was paying $1.52 annually, by the end of 2014 was paying $1.56 per share, and it now pays an annualized $4.60 per share in 2024 — while rivals Bank of America Corp. (BAC) and Citigroup Inc. (C) have both lower share prices and dividends than their pre-crisis highs.
JPM is shrewdly managed and knows how to make the most of market challenges, as evidenced more recently by its fire-sale purchase of First Republic after the bank failed in 2023. By making bold but profitable deals, JPM has been able to provide consistent performance, and constant dividends to its shareholders, over the years.
[15 Best Dividend Stocks to Buy for 2024]
Prologis Inc. (PLD)
— Market cap: $114 billion
— Dividend yield: 3.1%
— Sector: Real estate
Real estate is a sleepy sector generally, and it’s hard to see a durable path to growth for many firms in the sector thanks to the disruption to office properties and the remote work revolution. But Prologis is a property company of a very different flavor, owning or operating industrial parks with logistics and warehouse facilities. Top Prologis clients include e-commerce king Amazon.com Inc. (AMZN) and shipper FedEx Corp. (FDX), with a broader portfolio of roughly 6,600 customers renting 1.2 billion square feet of space. And as it’s structured as a real estate investment trust, or REIT, this stock must deliver 90% of its taxable income back to shareholders.
That creates a mandate for PLD to share the wealth with investors over the long-term, providing a reliable stream of dividends.
Southern Co. (SO)
— Market cap: $90 billion
— Dividend yield: 3.5%
— Sector: Utilities
Utilities are some of the most reliable stocks on Wall Street, as electricity is a necessity for homes and businesses in the 21st century. What’s more, thanks to the fact that the sector is highly regulated and capital-intensive, utility stocks tend to be regional monopolies that don’t truly face competitive forces. These general factors favor Southern Company, but what sets it apart from peers is its scale and track record of success.
SO is among the largest publicly traded utility stocks on Wall Street, with a massive electricity and natural gas businesses that collectively serves about 9 million total customers. It’s also one of the few companies investing heavily in nuclear energy right now, with its Vogtle 3 and 4 facilities in Georgia. That will add not just capacity, but diversification away from fossil fuels and a great knowledge base for future such projects in the years ahead.
Target Corp. (TGT)
— Market cap: $68 billion
— Dividend yield: 3.1%
— Sector: Consumer discretionary
It’s hard to pick a retail stock that you can believe in for the long-term, but Target has an enviable track record that shows it is not just a brand dependent on short-lived consumer tastes. The corporate parent’s history dates back more than 100 years, and the blue-chip big box store has been paying dividends to shareholders ever since its 1967 initial public offering. After a dividend bump to $1.12 per quarter in 2024, TGT has logged the 53rd consecutive year in which it has increased its annual dividend payout.
Considering that period spans both economic disruptions as well as the high-tech shift away from brick-and-mortar sales, investors have a lot of reason to believe that this retailer has what it takes to thrive in any market environment.
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7 of the Best Long-Term Stocks to Buy originally appeared on usnews.com
Update 07/25/24: This story was previously published at an earlier date and has been updated with new information.
