Best Long-Term Stocks

It’s hard to think of a better example than AT&T when it comes to large-cap, long-term stocks. After all, the company traces its roots all the way back to 1885 and has managed to evolve into a 5G digital communications powerhouse more than 130 years later.

At the end of last year, the firm boasted the largest wireless network in North America, with more than 210 million customers. It is clearly poised to remain dominant in the years ahead with scale like that.

The company isn’t standing still, however. In 2022, it spun off its interest in WarnerMedia to ensure it is focused on telecom going forward.

CVS Health is known for its leading position in the pharmacy space, filling prescriptions for some 90 million patients a year. However, the company is rapidly expanding into more than just drugs.

It currently has more than 1,000 Minute Clinics providing urgent care services, and its Signify Health arm boasts more than 11,000 licensed clinicians delivering 2.7 million annual in-home evaluations.

Healthcare is a reliable industry, since folks get sick and need care in any economic environment. CVS has the reach to capitalize on this trend in the long term.

What’s more, its generous dividend is already more than twice that of the S&P 500 at present. That dividend also remains less than a third of its current earnings per share, hinting that this payday has room to grow in the future.

While the automotive industry is certainly going through some big changes, there are two important factors that make Ford one of the best long-term stocks in the space.

First, let’s not forget that it was the most financially sound of the “Big Three” U.S. automakers during the 2008 financial crisis. Unlike Chrysler and GM, Ford managed to avoid the black eye of bankruptcy.

Second, keep in mind that electric vehicles, or EVs, just topped 1 million total vehicles sold in the United States last year—out of about 15.5 million cars overall. That means—for better or for worse—legacy automakers are not going anywhere.

Ford’s F-series pickup remains the best-selling pickup for 47 years running, and many of those vehicles are sold at high price points with great margins. Throw in one of the highest yields on this list and an enticing dividend yield, and you have a solid list of reasons to buy and hold Ford stock.

The last decade has seen a big transformation for consumer giant Kraft Heinz.

In 2013, news broke that Heinz would be acquired by investors led by Warren Buffett’s Berkshire Hathaway and private equity giant 3G Capital. The $28 billion deal was the largest-ever transaction in the food space. In 2015, when peer Kraft bought and merged with Heinz, it created the third-largest food and beverage firm in all of North America.

Unfortunately, that deal came with a lot of debt, and the newly formed company struggled as it re-entered public markets. But the intervening years have seen progress and restructuring, and long-term debt has been reduced.

Consumer staples companies are generally more stable than those in other more cyclical sectors. With powerhouse brands including Jell-O, Heinz ketchup, Kraft Macaroni & Cheese and more, it’s hard to imagine a future without KHC products in our cupboards.

Insurance giant Allstate Corporation provides a host of insurance products from homeowners’ and auto policies to life and disability policies. The firm has been steadily growing both through new insurance customers as well as increases to its premiums.

It should finish its fiscal 2024 with a 13.0% growth rate in revenue. Additionally, analysts predict another 10.5% growth in 2024.

On top of this growth outlook, ALL stock also has a firm foundation thanks to the reliable and long-term nature of insurance policies. That has fueled 13 years of consecutive dividend increases.

Speaking of consumer staples, grocery store chains like Kroger are another surefire way to cash in on the regular expenses that most American households won’t cut back on even when times get tough.

And as the only dedicated grocery chain in the S&P 500, and with the No. 2 chain behind Kroger valued at nearly $30 billion less in market capitalization, Kroger remains the go-to way to invest in the retail side of consumer food, beverages and cosmetics.

Founded back in 1883 and with 2,750 locations nationwide, this is a long-term stock with scale and a staples focus that should help it withstand the test of time.

Consumers should be familiar with Discover as a leading credit card brand. However, it’s important to remember that the firm does much more than just earn interest on credit card balances.

Discover boasts $10 billion in student loans and $84 billion in consumer deposits through its digital banking division on top of that legacy business.

A diversified financial footprint helps provide a strong engine for earnings and dividend growth over time. Proof of that comes via the company’s current quarterly payout of 70 cents per share, which is up dramatically from just 2 cents per share as recently as the end of 2010.

The Hartford Financial Services is a diversified financial stock with more than 200 years of operation and more than $50 billion in invested assets. The company provides insurance products as well as money management and retirement services to individual and business customers worldwide.

This wide array of products, from auto insurance to variable annuities to its branded Hartford Funds family of mutual funds, provides a strong foundation for long-term success. And in an environment with higher rates, where the cash on Hartford’s books can be put to work more effectively, the company is sharing its success with its shareholders.

Case in point: A November bump in its dividend to 47 cents brings the company’s track record of annual increases to 12 years running.

Electric utility FirstEnergy is in one of the most secure long-term sectors on Wall Street. There’s a high barrier to entry for competitors due to regulation and the capital-intensive nature of the business. At the same time, customers need electricity.

FE is one of the larger public utilities, with 24,000 miles of overhead and underground transmission lines that serve about 6 million customers from Ohio to New York.

FirstEnergy has admittedly had an interesting run over the past few years thanks to the rabble-rousing of activist investor Carl Icahn, but Icahn Group just vacated its board position at the end of 2023. Therefore, it should be back to the boring, reliable business of operating a large electric utility.