Best Long-Term Stocks to Buy and Hold for the Next 10 Years
Whether you’re a value investor or someone with low risk tolerance, time is the one variable you can count on to hedge your investments. There’s no predicting the market, but what we do know is that, over time, it always goes up. The question is, what are the best long-term stocks to buy today so you can cash in a decade from now? Below, we’re looking at the top long-term stocks you’ll likely appreciate owning when 2030 rolls around.
Signals for Long-Term Success
What are the best stocks to invest in long-term? For starters, we’re excited about companies that have a track record of success. They have good cash flow and profit, solid balance sheets, good leadership and a competitive advantage in their market. Then, we’re looking ahead at their prospects over the next decade. For our money, long-term stocks to buy and hold are the ones that will meet consumer demand over the coming years. Finally, we’re looking for industry trends and who’s positioned to capitalize on them.
Best Long-Term Stocks to Buy
What are the best long-terms stocks in 2022? Here’s a look at where you’d be wise to put your money as we head into a decade that’s off to a tumultuous start:
- Disney (NYSE: DIS)
- FedEx (NYSE: FDX)
- Pfizer (NYSE: PFE)
- McDonalds (NYSE: MCD)
- Shopify (NYSE: SHOP)
- Square (NYSE: SQ)
- Walmart (NYSE: WMT)
- Waste Management (NYSE: WM)
- 3M (NYSE: MMM)
What makes these stocks a good bet? Here’s a quick synopsis of why each is among the best stocks for long-term investment.
Disney
Disney is an absolute behemoth of a company and one that’s shown reliable growth for decades. Coming off its decade-long Marvel campaign, Disney is keeping the momentum going into the 2020s. Its direct-to-customer Disney+ streaming service, which includes exclusive content, is leading the charge. And while parks and attractions did take a hit due to COVID-19, Disney has rebounded in a big way as the decade trudges on. It’s a well-run company with a long-term plan.
FedEx
eCommerce is coming into its heyday. With more people buying more products online, last-mile delivery companies like FedEx will continue a dramatic upward trend. FedEx is also investing heavily in its own logistics software and last-mile strategy, positioning itself as part of a monopoly in this space (against UPS and Amazon). With the United States Post Office’s future uncertain, FedEx stands to gain significant market share as one of the best long-term stocks.
Pfizer
All anyone talked about over the last few years was COVID-19 and the vaccine. On the forefront of vaccine development was Pfizer. The company that produces a two-shot COVID-19 vaccine and booster realized massive demand. And this led to a stock price that was ready to soar. Beyond this, Pfizer has been a blue-chip play for decades and stands to be a jewel in any investor’s portfolio thanks to its stability, dividend and relatively large moat.
For a list of income stocks, here are some of the top dividend stocks. Also, feel free to check out these monthly dividend stocks.
McDonalds
Whether you think the 2020s are going to be a prosperous decade or not, McDonalds remains a great long-term play. The company is one of the most consistent performers over the last 20 years and didn’t even blink during the 2008 economic meltdown. It’s considered a recession-proof stock and has a healthy dividend. Not to mention, it has a strong and growing franchise network. McDonalds also has global exposure that protects it from domestic economic factors. It’s a mammoth brand that’s only getting bigger.
Shopify
If you buy online from small retailers, there’s a good chance you’ve used a Shopify site. This company has absolutely exploded over the past few years and is widely regarded as the de-facto choice for ecommerce startups. Many have called it the “Netflix of ecommerce” because of its growth and future prospects. While it’s not yet recording profit, it’s likely to flip the switch in the coming decade and reward shareholders handsomely. Moreover, as 2022 further entrenches us in online buying habits, Shopify stands to win out as more digital retailers come online. Keep a close watch on Shopify as it has the potential to be one of the best long-term stocks to buy.
Square
Square faces a perfect storm of factors that’ll drive its success over the coming decade. First, it’s the number one payment solutions provider for small businesses. Second, as the move to cashless payments gains steam, Square stands as a premier facilitator of digital payments. Finally, its global exposure makes it a ubiquitous choice for small businesses. Square’s leadership in FinTech will also make it a threat for traditional payment providers and even credit companies. Broad integration partners have expanded Square’s reach and usership, and will continue to in the coming decade.
Walmart
As analysts cry the death of brick and mortar retail, Walmart is single-handedly proving them wrong. Walmart is not only a recession-proof stock with a great dividend, it’s also one of the largest logistics companies in the world and a low-price provider of goods and services. Walmart’s recent investments in ecommerce give it the edge online as well as in-store, and its emphasis on synergy gives customers an omnichannel experience like no other retailer can provide. No matter how you think the next decade will play out, Walmart belongs in every portfolio. Full stop.
Waste Management
Few companies have a moat like Waste Management. The barrier to entry into this industry is too high for most new players to succeed, which makes Waste Management a standalone provider in many areas or, at worst, part of a duopoly. Another recession-proof stock (people always have garbage) and one with a long history of positive performance, this pick is a great one for portfolio diversification—whether you’re a defensive investor, dividend picker or a value investor.
3M
For the last of the best long-term stocks to buy, 3M easily makes the cut. The company has an impressive supply chain around the world. It provides more than 60,000 different products. This helps it keep a steady stream of revenue coming in the door. Overall, 3M provides a great long-term stock to buy and hold. It’s also paid investors a dividend for over 100 years.
Check back as we update this list to include the best long-term stocks for the future! We’ll continue to provide companies poised to deliver significant return on investment over the next decade.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.