Long-term stocks to buy are cornerstones of a diversified investment portfolio. Though the thrill of memes and penny stock plays is addictive, the timeless appeal of long-term stocks remains an evergreen strategy for building lasting wealth. These stocks offer investors the potential for sustained growth and the opportunity to be involved in a company’s success over an extended period.
Furthermore, given stock market volatility, long-term investments are key to riding out the lows of market cycles while tapping into the growth of emerging industries and technologies. Moreover, there’s the added sweetener of a dividend, which can be reinvested to enhance compounding growth further.
With that said, let’s look at three long-term stocks offering spectacular upside potential and healthy shareholder rewards.
Visa (V)
Perhaps a word that perfectly sums up Visa (NYSE:V) is consistency. This is shown by its unbelievable quarterly results over the years, where it bested analyst estimates across both lines dating back to the fourth quarter (Q4) of 2020.
The credit and debit card giant continues to benefit from the shift from cash to digital payments, a trend that’s unlikely to stop anytime soon. In fact, McKinsey states that cash usage has dropped 20% as a percentage of total global payments in the past five years.
Visa recently released its first-quarter report, where its non-GAAP EPS of $2.41 beat analyst estimates of $2.34. Moreover, net sales during the quarter came at a whopping $8.63 billion, topping the $8.56 consensus. These strong results were backed by a healthy 16% increase in cross-border volumes and a 9% increase in processed transactions. As we advance, the company expects EPS to be in the high teens and net sales to increase by upper mid to high single digits.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is a super heavyweight in the consumer staples sector. Its portfolio of timeless brands assures sustained customer loyalty. Such enduring demand for its products grants the firm enviable pricing leverage, which has been evident in recent quarters. Moreover, it has been one of the most rewarding investments in its niche, recently announcing its 67th consecutive annual dividend hike.
In late January, the company reported strong financial results for the second quarter (Q2) of fiscal 2024, where its organic sales increased by 3% and 4%, respectively, over last year. Organic sales growth resulted from price hikes, offsetting marginal drops in volumes.
Moreover, despite the impact of inflation, EPS was up 16% due to price hikes, from $1.59 to $1.84, beating analyst estimates by 14 cents. Furthermore, the company reiterated its guidance for 4% to 5% organic sales growth in fiscal 2024 while improving guidance for EPS growth to 8% to 9%.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) is a stalwart in the beverage space, evolving into a cultural icon over the years. It boasts a portfolio of over 200 beverage choices catering to consumers of all age groups and has a longstanding tradition of rewarding its shareholders.
It has raised its dividend payouts for over 60 years on the back of robust growth in its bottom-line metrics. For instance, its 5-year average net income and free cash flow margins stand at 54% and 43%, respectively.
2023 was another stellar year for the company, with a 6% increase in sales on a year-over-year (YOY) basis and operating cash flows soaring to $11.6 billion. Moreover, the company anticipates organic sales of 6% to 7% and a 4% to 5% increase in comparable EPS for 2024, beating analyst expectations by 6% despite the negative foreign exchange impact.
On the date of publication, Muslim Farooque did not have (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
