If you are an investor like me, you’d agree that investing is a long-term game. Identifying solid companies and holding on to those stocks for the long term can not only generate capital gains, but some stocks also help earn more money through dividend income. Whether you are investing for retirement, want to leave a legacy, or hope to build a portfolio that grows without much intervention, here are three stocks to buy and hold for your life.
These are some of the biggest companies in the world with the potential to keep growing. They are safe stocks with little risk and a potential for steady rewards. The stocks may be at a 52-week high, but there is a lot more room to grow, and if you wait for a dip, you could end up waiting forever. With that in mind, let’s look at the three stocks to buy and hold for the long term.
Stocks to Buy And Hold: Microsoft (MSFT)
The most valuable company in the world, Microsoft (NASDAQ:MSFT), will never disappoint. Up 20% year to date and 36% in the past 12 months, MSFT stock is on a rally and exchanging hands for $447. As one of the best tech stocks, the company is leading the industry and is a stock to buy and hold forever. Wall Street is confident about the company’s upcoming quarterly results, and a dip in the stock is always short-lived.
Microsoft’s timely investment in OpenAI has already started to pay off, as Microsoft has successfully integrated AI into its products and services. In the third-quarter results, it reported revenue of $61.86 billion and an EPS of $2.94. The company has seen a revenue surge driven by the soaring AI demand, and I believe the stock will continue the upward rally in the second half of the year as well.
With Microsoft, there is little risk of losing your money. While it is impossible to time the market, holding MSFT stock for the long term will mean gains. It also has a dividend yield of 0.67% and will continue to generate passive income for you. Long-term investors understand the rewards of adding Microsoft stock to their portfolio.
Amazon (AMZN)
One of the largest e-commerce companies, Amazon (NASDAQ:AMZN), has come a long way from its modest beginning as a bookseller. It sells everything you can think of and has also diversified into a range of other services, including advertising and streaming. The company has seen steady revenue growth and holds a 31% market share in cloud computing through its Amazon Web Services (AWS) platform. The company saw a 17% YOY jump in AWS sales in the first quarter.
Up 23% YTD, AMZN stock is exchanging hands for $185, and it could hit $200 very soon. This stock has enjoyed a solid upward ride since the beginning of the year, and there is no stopping its rally. The second fastest-growing segment is advertising, and I believe it will keep expanding due to the number of users who visit Amazon every day. Marketers will be happy to put money into Amazon advertising due to the millions of daily visitors.
Despite hitting new highs, the company has room to run. It is already a leader in the e-commerce and AWS segment, which will help it report above-average growth. Its quick delivery options and higher Prime benefits continue to attract users.
Meta Platforms (META)
Social media giant Meta Platforms (NASDAQ:META) has bounced back from the lows of $99 in 2022 to hit $498 today. Up 79% YTD, META stock has been on a strong momentum since January. The stock is a long-term buy and hold as the company has the potential to become a huge social media powerhouse in the coming years.
Meta generates significant ad revenue from social media apps and has seen a 7% YOY jump in daily active users. It currently has 3.24 billion daily active users on all of its apps. Meta has become a significant part of our lives, and the many apps that it owns will continue to remain popular for at least the next ten years. This means the company will be generating maximum revenue from ads.
Meta is also investing heavily in AI, which will pay off with time. It is integrating AI into social media apps to improve user experience and drive higher engagement. If the company can control the metaverse project costs, it could report stellar numbers. However, CEO Mark Zuckerberg is all about innovation and is not someone who gives up on his ambitions.
META is a smart investment to buy and hold for life.
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.
