Are you looking for the best stocks to invest in for the long term? If so, you’ve come to the right place! In this blog post, we will discuss five of the best stocks to hold forever. These stocks have a history of outperforming the market and provide stability and growth potential for investors. So, if you’re looking for a safe investment with high potential returns, these five stocks are a great place to start!
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So let’s get right into the stocks.
These are all large, well-established companies with a history of strong financial performance. They have proven themselves to be resilient in both good and bad economic conditions, and they offer investors a high degree of stability and growth potential. In addition, these stocks pay dividends, which can provide a nice source of income for investors.
In evaluating these stocks we used the common practices to research and value a stock.
Now let’s take a look at the five best stocks for long term investing:
Johnson & Johnson (JNJ)
J&J is a leader in the healthcare sector with a diversified portfolio of products and services. The company has a strong history of financial performance, paying dividends for over 50 years. In addition, JNJ is a defensive stock, which means it tends to perform well in times of economic uncertainty.
Johnson & Johnson (JNJ) Fundamentals
P/E Ratio
24.3 is currently pretty low. This is what investors will pay for each dollar of earnings.
Dividend Yield
The dividend yield is 2.55%
PEG:
The P/E to Growth Ratio of 3.47
PB:
6.23
EV/EBITDA:
16.38
Cash:
$30.4B
Debt:
$33.1B
Earnings Growth Performance:
Solid earnings per share at $7.93 in 2021
Procter & Gamble (PG)
The Procter & Gamble Company provides branded consumer packaged goods to consumers worldwide. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. All of these categories are needed in good times and during down times.
Procter & Gamble (PG) Fundamentals
P/E Ratio:
25.44
Dividend Yield:
2.58%
PEG: The P/E to Growth Ratio
4.21
PB:
7.62
EV/EBITDA:
17.32
Cash:
$8.5B
Debt:
$33.6B
Earnings Growth Performance:
5.72 Solid earnings growth
Coca-Cola (KO)
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.
Coca-Cola (KO) Fundamentals
P/E Ratio:
26.72
Dividend Yield:
2.89%
PEG: The P/E to Growth Ratio
3.38
PB:
10.64
EV/EBITDA:
18.64
Cash:
$10.4B
Debt:
$42.1B
Earnings Growth Performance:
2.26 Solid earnings growth
Apple (AAPL)
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. In addition, the company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; AirPods Max, an over-ear wireless headphone; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, and iPod touch. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers.
Apple (AAPL) Fundamentals
P/E Ratio:
22.75
Dividend Yield:
.64%
PEG: The P/E to Growth Ratio
2.49
PB:
32.98
EV/EBITDA:
17.23
Cash:
$51B
Debt:
$119B
Earnings Growth Performance:
6.14 Solid earnings growth
Costco (COST)
The Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses worldwide. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses.
Costco (COST) Fundamentals
P/E Ratio:
25.44
Dividend Yield:
2.58%
PEG: The P/E to Growth Ratio
4.21
PB:
7.62
EV/EBITDA:
17.32
Cash:
$8.5B
Debt:
$33.6B
Earnings Growth Performance:
5.72 Solid earnings growth
Conclusion
Now you may ask, why are we not looking at technical analysis, management, geopolitics, news and the conference call transcripts. Normally we would take all of those factors into account. However, we are not as concerned with those factors for these companies because they have all shown to be great at weathering storms and maintaining a long-term vision. Remember we are looking at companies to hold for the long term so those factors will change over time.
Investors looking for the best stocks for long term investing should consider Johnson & Johnson (JNJ), Procter & Gamble (PG), Coca-Cola (KO), Apple (AAPL) and Costco (COST). All of these companies have proven to be resilient over time, paying dividends and growing earnings. They are all large, global companies with diverse product portfolios that will continue to be in demand regardless of economic conditions. While there may be periods of volatility, these are the types of companies that will weather any storm and come out stronger on the other side.
Always do your research and consider your investment goals before you begin trading stock options. For more stock and financial information, please check out our other resources at Darrensteves.com and OptionsFinanceProfits.com.
Which one do you think is the best stock for long term investing? Let us know in the comments below!