Investing for the short term can be risky, especially when markets could be due a correction, so we’ve looked for some stocks that you can buy now and hold for the next decade.
Where Can I Buy the Best Stocks in June 2021 to Hold for 10 Years?
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Which Stocks to Buy Now and Hold for 10 Years?
Here is our list of the top 7 stocks that you can buy this month and hold for 10 years to smooth out any short-term fluctuations.
1. AT&T (NYSE: T)
Multinational telecommunications conglomerate AT&T is down 3% over the year. The company recently forayed into the media business by acquiring Time Warner for $85 billion but the venture wasn’t successful and the company had to merge Time Warner with Discovery Communications in a $43 billion deal that gave AT&T 71% of the merged company: Warner Bros Discovery.
Analysts believe the deal will reduce AT&T’s debt by $43 billion because the debt will now be transferred to the new entity. Analysts predict that the new company will also provide a free cash flow of around $8 billion and a revenue of $52 billion by the end of 2023.
AT&T posted encouraging first-quarter earnings and expects to maintain its consolidated revenue growth for the rest of 2021. The company has acquired a 40 MHz C-band spectrum to capitalize on the 5G opportunity. On the back of the company’s stable fundamentals, expansions, and possible investments in new businesses, AT&T is one of several stocks you can hold for 10 years or more to collect regular dividends and realize capital appreciation.
2. JPMorgan Chase & Co. (NYSE: JPM)
American investment bank and financial services company JPMorgan Chase is up 27% this year. The bank reported a $14.3 billion net profit and $4.5 earnings per share in the first quarter. The net profit for the quarter was up $11.4 billion due to credit reserve releases of $5.2 billion versus the credit reserve builds of $6.8 billion in the previous year. Total revenue for the quarter stood at $33.12 billion, beating analysts’ estimates.
The bank has been paying stable dividends for the past 10 years and its stock is at an all-time high. This stock should provide long-term investors with capital appreciation and stable dividends.
3. Mastercard (NYSE: MA)
Financial services company Mastercard gained around 25% over the past 12 months. The company posted a net income of $1.8 billion in the first quarter versus $1.7 billion reported last year. The gross dollar volume (GDV) for the quarter increased by 8% while cross-border volume decreased by 17% on the back of reduced international travel. The company is expecting a revenue growth rate of more than 20% for the second quarter.
Mastercard’s five-year average EPS and sales growth rate are 13.70% and 9.60% respectively, which shows that the company is achieving sustainable growth for the long term.
4. Coca-Cola Co. (NYSE: KO)
American beverage company Coca-Cola is a dividend aristocrat that has raised its dividends every year for 59 years. The stock is up 22% over the past year on the back of encouraging first-quarter earnings. Net sales increased to $9.02 billion, up 5% year over year, and the company expects non-GAAP revenues to grow by 8 to 9% in FY2021.
Coca-Cola is a well-diversified company with many subsidiaries and products. Long-term investors looking for a stock with strong fundamentals that provides dividends, capital appreciation can consider investing in Coca-Cola stock.
5. Johnson & Johnson (NYSE: JNJ)
American pharmaceutical and biotechnology company Johnson & Johnson develops medical equipment, medicines, and consumer healthcare products. Its shares are up 17% over the past 52 weeks.
JNJ’s first-quarter sales increased by 7.9% year over year to $22.32 billion while earnings per share in the quarter jumped to 2.32, up 6.9% year over year. During the quarter, the company’s single-shot Covid-19 vaccine was granted emergency use authorization by the World Health Organization and US FDA. Drugs such as Ponvory and Spravato were also approved by the FDA for the treatment of various diseases.
Johnson & Johnson’s current annualized dividend stands at $4.24, which is 6.5% higher than last year. The five-year average annual dividend increase is 5.83% while the current payout ratio is 49%. Johnson & Johnson is a perfect high-growth dividend stock worthy of holding for the long term to achieve gains.
6. Walmart (NYSE: WMT)
Walmart is America’s largest retailing corporation. The stock gained 17% over the past 12 months, and in the first quarter of this year, the company posted a net income of $2.73 billion compared to $3.99 billion in the year-ago quarter. Revenue increased to $138.31 billion from $134.62; an increase of 3% from last year.
Walmart has a global presence and a strong supply chain network. Due to the sheer number of Walmart stores, the company is one of the largest companies in terms of revenue. It turned its focus towards online sales during the pandemic as the shutdowns prompted shoppers to order consumer products online.
The solid business model that benefited from the pandemic seems resilient, which makes Walmart stock a decent option for long-term investment.
7- Alphabet (NASDAQ: GOOGL)
Google’s parent company Alphabet is up 40% so far this year while its 52-week price appreciation stands at 73%. The company posted revenue of $55.31 in the first quarter of this year, up 34% from the same quarter last year. Earnings from YouTube ads stood at $6.01 billion and annual ad revenue grew by 32.3% year over year to $45 billion in Q1 2021.
Alphabet’s stellar results show that the company has strong growth potential and is a decent buy-and-hold stock for long-term investment.
Why Buy the Stocks Now to Hold for 10 Years?
Buying stocks for the short term could be risky right now because global stock markets are near highs and could be due a correction. To smooth out any short-term volatility, you need to search for stocks that are suitable for long-term buy-and-hold investment. Investing for the long term provides you not only with upside price potential but also dividend returns that you can choose to reinvest.
The Bottom Line
Particularly when the markets are at all-time highs, adopting the buy-and-hold approach can provide you with an opportunity to reap long-term returns and earn dividend income. However, stock selection and diversification are pivotal to successful long-term investment.