Investing is a bit like predicting the weather. With so much information and technology these days, there’s a high likelihood that consensus predictions for the next few hours will provide the correct conditions. But after a few days, forecasting gets harder — and once you skip ahead a few years, it is very difficult to have any confidence in whether it will rain or shine.
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Long-term investing is a leap of faith. That said, there are companies that have what it takes to withstand all but the stormiest conditions on Wall Street. These typically are businesses with significant scale rather than the small and unprofitable startups; they tend to boast a clear value proposition that smooths out the general ups and downs of the economy.
The following seven stocks fit this description and are among the best long-term stocks to buy now:
— Apple Inc. (ticker: AAPL)
— BHP Group Ltd. (BHP)
— Celsius Holdings Inc. (CELH)
— Enbridge Inc. (ENB)
— JPMorgan Chase & Co. (JPM)
— United Parcel Service Inc. (UPS)
— Verizon Communications Inc. (VZ)
Apple Inc. (AAPL)
Market capitalization: $3.4 trillion Dividend yield: 0.4% Sector: Information technology
It’s hard not to believe in the long-term prospects of tech giant Apple. Not only is it the largest stock listed on U.S. exchanges, its cash on hand as of its latest earnings report topped $61 billion in cash and marketable securities — enough to purchase some of the largest other stocks on Wall Street outright. What’s more, its iconic iPhone is hardly the only thing the company has going for it. Consider that its services segment, which includes advertising, cloud services, content and other add-ons, now accounts for about a quarter of all sales — and in 2023, grew at the fastest rate of any segment. This ability to leverage its massive installed user base is what makes Apple a great long-term bet as much as its dominant electronics.
BHP Group Ltd. (BHP)
Market capitalization: $138 billion Dividend yield: 2.7% Sector: Materials
BHP is one of the largest materials and mining companies on the planet — a multinational company that operates on every continent and extracts everything from copper to iron ore to gold and coal. With an unrivaled scale and operations that are increasingly taking into account the modern sustainability concerns of the global economy, it’s hard to imagine a world where BHP is not supplying raw materials to companies worldwide. And while BHP’s dividends can be a bit more irregular and volatile than U.S. stocks, as they are typically paid twice a year instead of at a fixed quarterly cadence, a big-time yield based on the last 12 months of payouts makes it worth a closer look for income potential as well as its dominance in the materials space.
Celsius Holdings Inc. (CELH)
Market capitalization: $9.4 billion Dividend yield: None Sector: Consumer staples
Picking any kind of consumer stock as a long-term bet is always a risky endeavor, but Celsius is no longer just an up-and-coming beverage company. Rather, it has become a force to be reckoned with, and has a market value that rivals some entrenched consumer product firms like Molson Coors Beverage Co. (TAP). What’s more, revenue has exploded in the last five years, from just $75 million to about $1.3 billion last year. Equally impressive, shares have soared about 2,800% in that time. Though it’s the only stock on this list without a dividend, it’s hard to argue with performance like that. And while there may be short-term volatility in any growing enterprise like this, there also seems to be significant long-term potential.
Enbridge Inc. (ENB)
Market capitalization: $84 billion Dividend yield: 9.2% Sector: Energy
In an age of climate change, identifying energy stocks with staying power can be a tall order. However, one of the largest and most stable stocks in the space is “midstream” energy company Enbridge. This infrastructure company isn’t an explorer drilling for crude; it operates pipelines, terminals and storage facilities. This business model makes the company less volatile than energy exploration-and-production firms, or the various other energy stocks that are sensitive to market prices for petroleum products — hence the tremendous dividend. In recent years, ENB has tightened its grip through acquisitions of firms such as Spectra Energy and has only widened its moat to provide greater long-term stability for shares.
JPMorgan Chase & Co. (JPM)
Market capitalization: $615 billion Dividend yield: 2.1% Sector: Financials
With roots tracing back to 1799, JPMorgan has long been a leader in the banking industry and has a lot of history weathering anything the economy throws its way. For instance, it withstood 2008 much better than its rivals and was the first major financial organization in the U.S. to eclipse its precrisis dividend levels. More recently, it proved much stronger than its peers and won approval to acquire troubled regional bank First Republic after the bank failed in early 2023 — adding to its scale and acquiring the business at fire-sale prices. Though the yield isn’t as high as some other stocks in the sector, JPM’s quarterly distributions have leapt from 5 cents in 2011 to $1.15 today. And with total earnings per share expected to top $18 a share this year, there’s more than ample headroom for future increases in the years to come.
United Parcel Service Inc. (UPS)
Market capitalization: $108 billion Dividend yield: 5.1% Sector: Industrials
Industrial stocks can be another tricky area to invest in for the long-term given most firms in the space are tied to the fundamental ups and downs of the global economy. UPS is similar in that its package volume ebbs and flows on broader activity. But there’s a long-term trend lifting this stock thanks to the rise of e-commerce and giants like Amazon.com Inc. (AMZN). In fact, UPS is just as important to many consumers and businesses as the web-based merchants they order from regularly. This is UPS’ 15th year of consecutive dividend increases, with a $1.63 per-share payout announced. Compare that to the 67-cent payout 10 years ago.
Verizon Communications Inc. (VZ)
Market capitalization: $171 billion Dividend yield: 6.5% Sector: Communication services
Verizon has a lot going for it in terms of stability as the largest U.S. wireless carrier by market share, with over 37% of wireless subscriptions. It also boasts a tremendous dividend yield that is more than four times the S&P 500 right now. The downside for Verizon is that it’s in a fairly saturated market and one that is very capital intensive given the costs of new fiber cable installation and wireless towers. That said, the prospect of lower long-term interest rates, along with a debt position that is a bit more favorable than other large telecoms like AT&T Inc. (T), make this a communications stock to look at for the long haul.
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7 of the Best Long-Term Stocks to Buy originally appeared on usnews.com
Update 08/22/24: This story was previously published at an earlier date and has been updated with new information.
