Finding the best stocks to buy and hold is important. Years may come and go, but one thing that needs to remain stable in your life is your finances. As an investor, you need to think long term and be aware that there might be market ups and downs, but the right investments will continue to pay off.
Choosing quality stocks to buy and hold that can anchor your portfolio for the next few years isn’t easy but if you look at some of the industry titans, you can identify stocks that can stand the test of time. Here are the seven stocks to buy and hold to anchor your portfolio for the coming decade and beyond.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is one of the most renowned companies in the world and for many, it is hard to live without using their products and services. One of their biggest products, Google Search has been around for long and it continues to dominate the market even today.
It generated $44 billion for the company in the recent quarter and despite growing competition; it is thriving. Alphabet has impressive margins that allow it to invest in research and development. It also rewards shareholders with stock buybacks and has enough cash on hand with a long-term debt of just $13.8 billion.
Google Cloud is the second most significant aspect of the business which generated $16 billion in sales in the recent quarter and as long as these two segments continue growing, Alphabet will show tremendous growth. Trading at $138 today, the stock is very close to the 52-week high of $141 and looks undervalued to me.
Microsoft (MSFT)
A tech dinosaur, Microsoft (NASDAQ:MSFT) is the one to own and hold forever. This company has never disappointed, and I do not think it ever will. Besides having some of the best products in the industry, it has a solid balance sheet, a steady clientele, and a leadership that excels.
Microsoft beat expectations in the recent quarter and reported a revenue of $56.5 billion, up 13% year over year while the net income came in at $22.3 billion, up 27% year over year.
Microsoft’s 365 CoPilot could be a game-changer for the business and it will help improve the revenue numbers starting in 2024. The company also expects to generate income from AI in the coming year.
It has made significant investments in AI which will pay off in the long-term. The company enjoys a dividend yield of 0.80% and is up 57% year to date, nearing the 52-week high of $379.
Apple (AAPL)
Apple (NASDAQ:AAPL) has achieved tremendous heights with its exceptional products and services. APPL stock is up 52% year to date and is trading at $191.
It did see a decline in product sales in the last quarter but the long-term picture continues to look attractive. The company is also positioning itself as a strong player in the AI space.
Despite market hurdles, consumers have maintained their loyalty towards Apple which led to a record iPhone revenue in the September quarter. In the quarter, Apple continued to retain its market share of smart phones at 55% and is still a leader in the industry.
One of the most valuable companies in the world, Apple has a booming business and its services segment has hit a new all-time high this quarter. As the tech market gradually recovers, we could see an improvement in product sales as well. This is one stock to buy with no hesitation and it will anchor your portfolio for the decade.
Visa (V)
Visa (NYSE:V) is one of the best fintech stocks to own right now. The company has global operations and has been handling more than 200 billion purchases each year. Visa’s biggest advantage is its business structure. The company has low operating expenses and it makes money whenever a user spends.
With a high payment volume, the fees rise and Visa makes more money. V stock has generated over 75% returns in the past five years and is trading at $253 today. It is up 22% year to date.
As one of the biggest players in the industry, Visa is making the most of the transition towards digitization. As more merchants accept card payments, there will be an increase in card usage and Visa will continue to gain. The company hasn’t disappointed investors and continues to beat expectations. Visa is one of the top stocks to buy and hold since it can thrive in any market situation.
McDonald’s (MCD)
One restaurant stock I always recommend buying is McDonald’s (NYSE:MCD). The company has impressed investors with its growth rate and revenue numbers. Even with tight consumer spending, McDonald’s was selling its burgers like hotcakes.
It is a dividend stock that has steadily rewarded investors. The company recently announced a 10% increase in the quarterly dividend payment for this year and into 2024. Hence, shareholders will now receive a dividend of $1.67 per share and it took the company’s dividend yield to 2.50%.
The company saw a 14% jump in revenue in the quarter and an 8.8% rise in global same-store sales. Its franchise business model is a success and one that helps maintain a solid margin. MCD stock is exchanging hands at $281 and is up 6% year to date but there is ample upside in the future. This is one stock to buy and hold for passive income.
Ferrari (RACE)
One of the top long-term stock picks, Ferrari (NASDAQ:RACE) is a growth stock that looks highly undervalued to me. Known for its supercars, Ferrari is a symbol of luxury and super-rich. The company saw a 9% year-over-year rise in shipments in the third quarter to reach 3,459.
Its net revenue increased 24% while the net profits soared by 46%. Ferrari is making a solid profit and has an impressive order backlog. The company has raised the full-year guidance to 5.8 billion euros from 5.7 billion euros.
Ferrari sets itself apart by catering to premium clientele, and it offers a niche product. It produces about 8,500 vehicles each year, and the price of each of its cars is more than $200,000. It has few competitors and is firing on all cylinders. RACE stock is up 69% year to date and is trading at $364 but this stock could double in the next decade.
PepsiCo (PEP)
There are several reasons to hold PepsiCo (NASDAQ:PEP) for a decade and more. It is a growth business that offers products that never go out of demand. The company has a diversified business and a global presence which ensures steady revenue growth. It is in a strong growth position with the profits rising steadily.
In the recent quarter, it generated an EPS of $2.24 and a revenue of $23.45 billion. It not only beat analyst expectations but also raised the annual outlook. It now expects the earnings to grow by 13% in 2023 which is impressive.
PEP stock has recently pulled back and is trading at $169, but this dip is a solid chance to buy the stock. Another reason to add it to your portfolio is the passive income. PepsiCo has a dividend yield of 2.99% and has been consistently rewarding investors for over 25 years. Holding this stock for 10 years will generate passive income and capital growth.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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