25 Stock Picks You Should Jump On And Hold Onto For A Long Time
Investing in the stock market can be a frightening and intimidating adventure, but don’t let that stop you! All you have to do is read #3 on this list to see why. Anyone who has ever invested wisely in the market can give you a list of certain things to consider when starting or adding to your portfolio. The list varies as expected, from person to person, but there are some things that should remain a constant when you are selecting your stocks and it’s not really the rocket science that people think it is.
First, you must determine what kind of risk you are willing to take and then decide how long you are willing to take it for. Also, you should always try and avoid leverage, don’t borrow money (margin) to invest. The list below is a good example of diversifying your investments, meaning don’t put all your eggs in one basket.
Keep in mind that this is a list of stocks you SHOULD jump on. That doesn’t mean all of us can afford to do that. Some of them would fall under the category of nothing more than a pipe dream, but it’s good to know what’s out there and the associated information. Plus, who said it’s not ok to dream?
One final thing to keep in mind is you should make sure you execute your strategies unemotionally. Keep those emotions out of it and use your head!
*Please keep in mind this is not professional stock advice. This is merely for entertainment purposes and was written from personal experience and with the latest stock information available to the public. Anyone that is thinking about joining the stock market craze should always seek out the help of a knowledgeable professional before doing so.
25. Apple (APPL)
With innovative and cutting edge technology like the iPhone, iPad, iPod and iMac, Apple has proven itself to be a global giant. You can’t go anywhere today and not come across a person with their earbuds plugged into the Apple device of their choice.
Founded 40 years ago by Steve Jobs, Steve Wozniak and Ronald Wayne, today Apple is the largest information technology company by revenue in the world. With an IPO (initial public offering) of $22 per share on December 12, 1980, it instantly created more millionaires than any company in history. Not since the Ford Motor Company in 1956 has any company’s IPO generated more capital.
As of mid-January 2017, a share of Apple stock sells for $120. Apple’s stock has split four times since its IPO with a nice 7-1 split in 2014. Apple pays quarterly dividends of $.57 per share for a yield of 1.9% so it’s not too shabby.
24. Berkshire Hathaway (BRK-A)
For a mere $240,000 you could be the proud owner of one whole share of Berkshire Hathaway Inc. stock. I’ll take two please, right? This is the most expensive stock in the world, so just being able to boast about owning rights is a major financial accomplishment. Warren Buffett, one of the richest men in the world, is the Chairman, President and CEO for this company.
Berkshire Hathaway Inc. is a holding company, which means it’s a company created to buy and possess the shares of other companies, which it then controls. Berkshire owns a diverse group of businesses like Coca-Cola, IBM, Wells Fargo, Dairy Queen, and Kraft Heinz Company among many others.
No dividends are offered, but more than likely, anyone who owns this stock probably doesn’t really need them anyway.
23. Amazon (AMZN)
Amazon is one pretty amazing rags to riches story since it was started out of founder Jeff Bezos’ garage. Now Amazon is the largest internet based retailer in the world by total sales. This electronic commerce and cloud computing giant becomes more prevalent day by day.
With such offerings like same day deliveries and Amazon Prime (a membership program that gives customers access to music, streaming video, e-books, free shipping and deals), Amazon has become the Walmart of the internet. At over $800 a share it’s a bit pricey and it pays no dividends, but annual sales are expected to rise to over $166 billion by the end of 2017. That makes it a great stock to have in your portfolio, if you can afford it.
22. Alphabet Inc (GOOG, GOOGL)
Alphabet is another holding company. Created by Google’s CEO Larry Page to restructure Google for the purpose of making it “cleaner and more accountable,” Alphabet Inc. is now the 2nd most valuable corporation on the planet. It surpassed Apple for the number one spot for two days in Feb. 2016, but Apple surged back over Alphabet to retake the position.
Nearly all of Alphabet’s revenue comes from Google and since its IPO, Alphabet has grown 14-fold. YouTube falls under Google’s umbrella and seriously, who can live without YouTube? At over $800 a share you might feel the sting in the purse, but Alphabet stock will most likely keep marching toward $1,000. That makes it a very smart buy if you have the cash.
21. Dollar Tree (DLTR)
When you talk about low risk investing in the stock market, this stock should come to mind. It is an American chain of discount variety stores that sells items for $1 or less. What this means is Dollar Tree should not suffer any economic slowdowns because lower and middle class consumers who are very price conscious have a tendency to seek out these types of discount stores to save as much money as possible.
Dollar Tree is a very stable company, making money at a decent rate with amazingly consistent growth. This company pays no dividends but at just over $70 per share it is still a bargain. This one would be a good starter for a new portfolio.
20. Microsoft (MSFT)
Founded back in 1975 by Bill Gates and Paul Allen, “Microsoft” is a linguistic blend of the words “microcomputer” and “software” and it is the world’s largest software maker by revenue. Almost everyone has heard of or used Microsoft’s Windows operating system. Plus, what kid (or adult for that matter) do you know that hasn’t heard of an XBOX video game console? Microsoft also owns Skype and LinkedIn and has become much more diversified over time.
Paying out quarterly dividends of almost $0.40 per share with a Dividend Yield over 2%, and a share price just north of $60 this stock should be a must have in your portfolio.
19. Edwards Lifesciences Corp. (EW)
Specializing in medical equipment, this American company makes artificial heart valves for people with heart disease. Interestingly enough, the founder, Miles Edwards, holds 63 patents in all different kinds of other industries as well. Edwards’ Lifescience has also created technology in critical care monitoring systems which are allowing people, especially the baby boomers, to live longer. Now who doesn’t want that?
If you are ok with accepting some short-term volatility, you can get a decent deal on shares at around $94. Even Donald Trump’s infrastructure plan includes this company as one of 11 stocks predicted to profit from the first 100 days of Trump’s presidency. Let’s wait and see but you can’t ignore stock info from one of the richest men in the world!
18. Alexion Pharmaceuticals Inc. (ALXN)
This company develops drugs, like Soliris, to combat rare diseases. Larger pharmaceutical companies have ignored this market because they target larger user bases. With minimal competition from those companies, they have created a very profitable niche for themselves. Soliris is the world’s most expensive drug and the cost for a dose of it is eye-popping. As of 2015 the cost per year for this drug was a whopping $500,000. Sounds like a successful business plan to me.
Even though Alexion Pharmaceuticals has fallen on some difficult times as of late, at $129.87 per share, it is still a reasonable stock to add to your portfolio.
17. AT&T (T)
AT&T is the largest telecommunications company in the world. Started way back in 1885 by Alexander Graham Bell, yes inventor of the telephone, AT&T started as Bell Telephone Company. Today it is the largest provider of fixed telephone service and 2nd largest provider of mobile phone service. Can you hear me now?
Paying out quarterly dividends around $0.49 per share it has a nice dividend yield of 4.9% at current prices. It has increased its dividends over the last 32 consecutive years and with interest rates at historically low levels, this is extremely enticing to investors. Selling around $41 per share it is affordable and a great addition to a diversified portfolio, or another great starter stock.
16. Exxon Mobil (XOM)
As far as big oil companies go, this company is the world’s largest producer, with daily production of nearly 4 million BOE (barrels of oil equivalent). Very impressively it’s the world’s 8th largest company in terms of revenue. The company stems from John Rockefeller’s Standard Oil Company that he established in 1870.
Paying a quarterly dividend of around $0.75 a share it has a nice 3% plus dividend yield and is still affordable at around $85 per share. Unless oil demand takes a nose dive, 2017 should be a great year for oil stocks, especially due to falling supplies. Supply and demand is and always has been the name of the game.
15. Johnson & Johnson (JNJ)
This company is best known for making mild and gentle products for babies and adults for over 125 years. With brands like Johnson’s Baby Powder, Baby Shampoo, Band-Aid, and Neutrogena, how could this company be anything but successful? It is an established company that made its first products way back in 1886. Every one of us at one point in time has most certainly used some Johnson & Johnson product.
JNJ offers decent quarterly dividends of $0.75 and comes with a Dividend Yield of 2.86% with a payout ratio of 47.7%. That makes it a good stock to have in your portfolio. At just over $110 per share it is still affordable and it is not too risky so take the chance on this dividend king.
14. Procter & Gamble (PG)
Ok, so here we go again with another company making products we all know and love. How about Crest toothpaste, Dawn dishwashing liquid, Charmin bathroom tissue, Pampers diapers and Bounty paper towels – need I say more? Founded on Halloween in 1837 (179 years ago) Procter & Gamble has been around for a very long time and is a well-established company. There are no “tricks” with PG.
With its efficient operating structure and popular brand portfolio, this company protects itself and fights the stock market’s volatility. It also offers affordable share prices at just around $87 and a good Dividend Yield at 3% which makes it a good non-risk stock investment.
13. Kimberly Clark (KMB)
Kimberly Clark is another major provider for the world. We know a lot of their products like Huggies, Kotex, Kleenex, Scott and Cottonelle. We use these products every day but don’t realize they all come from the same company. That’s what makes their stock such a good thing to have. This company has been around for 145 years, since 1872, so it is most certainly tried-and-true. It has long term growth potential as the world’s population keeps growing.
Kimberly-Clark is a strong cash generator with an affordable price per share of around $120. The stock has consistent dividend growth and international growth, making now a good time to buy as the market continues to surpass all time high territory. Paying out roughly $0.92 quarterly on dividends with a yield of around 3%, you should call your broker today and purchase some today.
12. Monster Beverage Corp (MNST)
Energy drinks like Full Throttle and Ubermonster, and fruit drinks like Hansen’s natural soda are this company’s pride and joy. Today’s youngsters all slop down the energy elixir for that extra get up and go jolt, letting them study or party into the wee hours of the night. Did you know that in 2012 35% of the US energy drink market was owned by one single company? That’s right, it was Monster. In addition, NASCAR made Monster a multi-year deal as a sponsor in December of 2016. That’s not going to hurt anything as far as stocks go. It will only help with the added exposure.
Selling today for around $42 per share and knowing Trump’s policy promises about being tough on foreign trade, American Monster should profit nicely in the future.
11. Emerson Electric (EMR)
Formerly known as Emerson Electric Manufacturing Company, this old timer has produced electrical equipment since the 1890’s. People who live in warm weather states love this company because they were the first to sell electric fans in the United States. Those people give a daily thank you to them for that reason alone! They also make sewing machines, electric dental drills and power tools.
With the company going through a major restructuring under CEO David Farr by divesting, dividend growth may be moderate at best, but this company still has a lot of appeal for dividend investors. Based on today’s stock price of around $57, Emerson Electric’s yield in about five years could be around 3.5%.
10. Nike Inc. (NKE)
This behemoth sportswear and apparel company is the world’s largest supplier of athletic shoes and clothes. Everyone has probably owned a pair of Nike athletic shoes sometime in their life. The company’s logo is recognized worldwide and Nike ranks high among climate friendly companies. In this day and age, people will seek out this sort of company to do business with to protect the environment.
Coming in at $54 per share, Nike stock is very affordable and it also offers small quarterly dividends too. With every sponsorship deal they do with pro athletes like Michael Jordan, LeBron James and others, the company is always a top choice for teens when they buy their sneakers. For that reason alone it’s a good bet to jump on.
9. Southwest Airlines, Inc. (LUV)
Southwest Airlines is the world’s largest low-cost carrier. Of all the US airlines, as of 2014, Southwest carried more domestic passengers than any other US airline – so take that United and American. Its business strategy is copied around the world by other companies and it has excellent customer satisfaction ratings. Southwest offers a unique boarding procedure and with low cost ticket prices and in-flight snacks, it is a pleasure to fly them. What other airline can say that?
Reasons for buying or keeping this stock are simple; it’s affordable at just around $49 per share. Its net worth has gone up, it has a good cash flow and their profit margins are growing by the day.
8. Boeing (BA)
With the continued and constant expansion of the federal government, Boeing the Aerospace giant is a sure shot for a long term bet. Boeing now holds the contract to build a brand new 747 Air Force One for future presidents, but they may have to do it for a reduced price, if Trump has anything to say about it.
2016 fourth-quarter adjusted earnings were up over 50% from a year ago, probably due to well executed services and production programs. With shares hovering around $168 it offers stockholders a nice dividend yield with quarterly payouts. This stock is a good addition to anyone’s diversified portfolio.
7. Netflix (NFLX)
When it comes to Netflix Originals, all we need to say is House Of Cards, Arrested Development and Orange Is the New Black. Because who doesn’t love those shows that are exclusive to Netflix? The company’s growth by tapping into the overseas market gave them a 41% increase from the previous year, with their global revenue growing to $2.4 billion in the fourth quarter of 2016. Does that grab your attention yet?
Even though Netflix does not pay any dividends, at a reasonable price of around $138 per share it is a good value stock. Impressively enough Netflix had a wonderful seven-for-one stock split in July of 2015 and don’t you wish you owned it then?
6. General Mills (GIS)
What could possibly be more American than Cheerios, Cocoa Puffs, Lucky Charms, Pillsbury and Betty Crocker? General Mills is more than 100 years old and it is the 3rd largest organic food manufacturer in the country. To diversify and add to its American flavor, in 1965 General Mills bought Rainbow Crafts which makes Play-Doh and several other products. General Mills is as much a piece of Americana as apple pie.
The company has increased their dividends for 12 consecutive years but more impressively they have paid dividends without interruption for 117 years – wow! For only $60 a share this stock can be yours with quarterly dividend payouts of $0.48 at a 3.1% yield. This is another great starter stock that you’ll want to hold on to for a very long time.
5. Coca-Cola (KO)
Introduced over 130 years ago, Coca-Cola is one of the most famous carbonated beverages of all time. Surprisingly Coke was originally made to be a patent medicine, made and marketed under a patent and available without a prescription. Coke’s name is derived from two of its original ingredients, kola nuts and coca leaves, and to this day its formula is still a trade secret.
Coca-Cola is a dividend king company, which means it has over 50 years of consecutive dividend increases and what investor doesn’t like that? Additionally, it is Warren Buffett’s largest dividend stock and who can dispute his financial success? At $42 per share with quarterly dividends of $0.35 you can pad your portfolio with lots of Coca-Cola stock.
4. Cisco (CSCO)
Cisco Systems, Inc. is the largest networking company in the world. They develop, manufacture and sell routers and network systems that connect people to the internet. It’s a certain bet that our internet connectivity needs will not be diminishing much anytime in the near future.
Just added to the Dow Jones in 2009, Cisco is a relative newcomer in the market. Double digit growth continues for Cisco in the security business. With today’s demand for cybersecurity, Cisco’s acquisitions of these types of security companies put Cisco in a good position to benefit. Coming in at $30 per share with a dividend yield of over 3%, it’s not going to break the bank to invest in this company.
3. Walmart (WMT)
Walmart is not a dividend king like Coca-Cola yet but it is on its way. It is what’s called a dividend aristocrat – with more than 25 consecutive years of dividend increases. This company has hundreds of thousands of different consumer products and has unrivaled bargaining power with its suppliers.
If you had purchased 100 shares of Walmart stock when it went public back in 1970, today it would be worth $14.7 million. That is with the 11 splits it has had in its history with an initial investment of $1,650. Wow, why didn’t more people jump on this then? That’s just an incredible number.
2. Mastercard Inc. (MA)
As the world continues to go digital, Mastercard stock should only soar. It is believed that most transactions around the world are still made in cash, but things like digital wallets and online payments are making it much easier for plastic users. Adding to this, surprisingly cheap gas prices for much of 2016 have an effect on the plastic usage. When gas prices start to rise again you will see more people paying with their credit cards at the pump and that is a good thing for Mastercard.
Selling at around $110 per share it is not too expensive a stock to include in your portfolio.
1. Genuine Parts (GPC)
Founded in 1928, Genuine Parts, like Coca-Cola, is another dividend king. With over 60 consecutive years of dividend increases and a whopping 6.8% per year dividend growth rate for more than a decade, this should be a no-brainer stock purchase.
It is the largest auto parts network in the country with 24/7 product delivery, which is very good because nobody likes to wait for a part right? NAPA Auto Parts is Genuine Parts largest growth driver and is the leading distributor of auto replacement parts in North America. Just north of $95 per share, this sound stock choice is one of our favorites. It should be one of your as well.
Sources: appleinsider.com, marketwatch.com, thestreet.com, money.usnews.com, usatoday.com