8 Best Long-Term Stocks To Own Now and Hold Forever

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On Wall Street, high risk can yield big rewards or catastrophic losses. While some investors don’t mind riding the market’s highs and lows, selling short to turn a profit, others prefer more stability in their portfolios. These investors typically seek long term stocks to invest in. Here are eight of the best long term stocks sure to bring future gains to any portfolio.

1. Abbott Laboratories 

Abbott has branched out in recent years, acquiring global medical device company St. Jude Medical for $25 billion and diagnostic test manufacturer Alere for $5.3 billion in 2017. This allowed the company to move away from its image as a pharmaceutical business and reposition itself as a medical equipment retailer. ABT has paid its shareholders a quarterly dividend since 1924, increasing the payout amount for five consecutive decades. With significant contributions to the medical diagnostic community on the horizon, Abbott could be a good long-term bet.

2. Berkshire Hathaway 

Warren Buffet’s Berkshire Hathaway operates across several business segments, holding several subsidiary companies, from private and commercial insurance — GEICO and Berkshire Hathaway Primary Group — and manufacturing — building, industrial and consumer products — to service and retailing — food distribution as well as a broad range of consumer products.

Many investors are also drawn to Berkshire Hathaway’s core business practices, strategies, and investments. In 2022, Buffet’s company has stakes in several large, successful enterprises, owning 19.9% of American Express, 12.8% of Bank of America Corp., and 5.6% of Apple among others. 

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With its massive influence on multiple industries and its value-boosting strategic investments, Berkshire Hathaway is among the best long term stocks to invest in.

3. Enbridge 

Enbridge is a Canadian pipeline company that’s among the largest distributors of gas and oil in North America, operating the third-largest natural gas utility by consumer count in the region. The company moves 30% of North America’s crude and 20% of the natural gas used in the U.S.

An early investor in renewable energy, Enbridge continues to expand its offshore wind portfolio and other infrastructure initiatives, like advancing the construction of existing natural gas pipelines. ENBA’s first quarter results for 2022 show solid cash flows and a dividend rate that stands at 6.31%, growing 3% since December 2021.

Enbridge’s crucial role in North America’s energy infrastructure and natural gas transport, its strong financials and its generous dividend yield make it among the best long term stocks to hold.

4. Alphabet

Founded in 2015, Google’s parent company Alphabet is a multinational technology conglomerate that operates brands such as Android and Chrome. Regarded as a high-margin business and top player in the search engine industry, Alphabet has long been considered among the best long term investments. 

It has one of the healthiest balance sheets of any company, reporting more than $359.2 billion in total assets to the U.S. Securities and Exchange Commission in 2021, with only $107.6 billion in total liabilities. Despite Alphabet’s ongoing litigation issues and growing competition, many experts say the popularity of its established products, such as the Google search engine, YouTube, and other growth opportunities, like its Cloud service, make it among the best long term stocks to buy.

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5. Microsoft

Microsoft is one of the largest providers of software, devices and technology services globally. The company operates through various business segments, including personal computing, cloud computing services and business processes.

A market capitalization that stands at more than $2.05 trillion in 2022, strong cash flows and a dividend yield of 0.9% make MSFT a good long term pick. It’s an excellent defensive growth stock backed by the company’s solid business model.

6. Apple

Global tech giant Apple constantly develops and manufactures smartphones and computers that are in high demand. That demand coupled with strong, reliable financials is what makes AAPL among the best long term stocks to invest in.

Anyone who invested $100 in AAPL shares in 2016 would have seen a handsome return by 2021, with the company’s stock value increasing by nearly 456% during that five-year period. Between 2020 and 2021 alone, the value of AAPL stock grew by nearly 32%.

Solid financials, stellar stock performance, new investments in the cloud and a stream of new products that draw huge customer demand are a few reasons why AAPL is an excellent long term investment.

7. Sherwin-Williams

Operating more than 4,800 stores in both the U.S. and Canada, paint and coating manufacturer Sherwin-Williams generated roughly $19.9 billion in revenues in 2021. With eight brands in its corporate portfolio and a global reach that spans more than 120 counties, the company reported a 7.4% — or roughly $5 billion — increase in consolidated net sales for the first quarter of 2022.

Even though its dividend payout rate is a mere $0.60 per share, excellent margins, strong growth opportunities and a positive outlook for the chemicals commodity sub-industry all place SHW among the best long term stocks to invest in, analysts say.

8. Home Depot 

One of the most successful American retail stores, Home Depot has more than 2,300 retail stores in the U.S., Canada and Mexico. The home improvement giant reported sales of $38.9 billion for the first quarter of 2022, increasing 3.8% — or roughly $1.4 billion — compared to the same quarter last year. 

Boasting $151.2 billion in sales for 2021, Home Depot credits its ongoing growth to its corporate culture, its convenient store locations, its brand and product selections, its agile supply chain and its success at creating an interconnected shopping experience, blending both digital and in-store methods.

Aiming to hit $200 billion in sales in the years ahead, Home Depot’s strong financials, ongoing growth strategies and a cash dividend of $1.90 per share make it among the best long term stocks to consider.

Final Take

Stocks are a good option for those looking for long term investments because they have performed better historically when compared to other assets such as bonds. Since the 1950s, stocks have outperformed alternative investments. Those looking to make a long term strategy should diversify their portfolios with stocks and other low-risk investments. Individuals should spread their portfolios across various assets to allow themselves to hedge their bets.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Allison Johnson has 5+ years of copywriting experience and has produced content for numerous public and private sector clients, including the U.S. Department of Homeland Security and the National Cancer Institute. She has a Master of Public and International Affairs from Virginia Tech and a Bachelor of Science in Journalism from the University of Utah. Her work has been featured in Utah Business Magazine, the Salt Lake Tribune, and the Deseret News.

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