Most investors love a good story — or should I say, a sexy story. In looking for stocks to buy, they like the stories of the companies that are transforming an entire industry or are exploiting a niche that no one even knew existed 20 minutes ago. It’s the rags-to-riches tale, the ground-floor-stock temptation.
But generally speaking, for real, long-term investors, you want a lot more than wings — you want roots. Stocks that are proven. Stocks that have history. Stocks that have been around for decades, even though few people even know that they’re publicly traded.
Even hot-shot tech companies have to grind out their quarterly numbers after all the hype leaves them. Giant growth can be a fickle asset as a company matures, since double- and triple-digit growth is never sustainable in the long run.
These 10 boring stocks growing like weeds will not only endure, but they will thrive. They may not impress your friends on the golf course, but they’ll certainly keep your portfolio heading in the right direction.
Boring Stocks to Buy: SVB Financial Group (SIVB)
SVB Financial Group (NASDAQ:SIVB) is a bank, but it’s a unique kind of bank — the SVB stands for Silicon Valley Bank. It has become kind of a boutique investment bank for some of its customers.
Say you launched a start-up and got bought out for a few million dollars. A customer like you is in a very special place to launch new firms similar to the one that you have already successfully launched. And SIVB can provide that capital to seed those new firms.
And now SIVB is expanding across the U.S. In a tech driven world, this bank has big potential, which is why it’s up 86% in the past year.
Boring Stocks to Buy: IAC (IAC)
IAC/InterActiveCorp (NASDAQ:IAC) is certainly not a name that rolls off the tongue. But behind this imposing name lies some of the most familiar apps that the romantically inclined use regularly.
IAC runs the The Match Group (NASDAQ:MTCH), as in the dating sites Match.com, Tinder, PlentyOfFish and OkCupid. Another division runs home services sites Homeadvisor and Angie’s List. And yet another division runs Vimeo. And it has a publishing segment that run The Daily Beast, Ask.com, Dictionary.com and others.
The fact is, IAC is an online subscription and advertising-based behemoth. It’s no surprise that IAC stock is up 90% in the past year. The cross-pollination of all these divisions means it is creating a self-sustaining information and entertainment empire for digital natives.
Boring Stocks to Buy: Paycom (PAYC)
Paycom Software (NYSE:PAYC) is a cloud-based SaaS (software as a service) company that specializes in human capital management software. Basically, that means it outsources most human resources needs from recruitment to retirement.
As small businesses continue to expand, one of the biggest challenges is building out a human resources department. Most business owners know their trade but understand little about the laws and procedures governing HR. And this can impact the scalability of a business. That’s where PAYC comes in. Business owners can contract out this piece of the business and concentrate on what they do best.
PAYC stock is up a whopping 103% year to date, and the momentum is continuing to grow.
Boring Stocks to Buy: Texas Pacific Land Trust (TPL)
Texas Pacific Land Trust (NYSE:TPL) has been around since 1888, when it was created as a holding company when the Texas and Pacific Railway Company was reorganized. It took over 3.5 million acres of land. Now, it manages 888,333 acres of that land.
That’s land that has oil and gas on it. Land that has housing, commercial and government development on it. And all those royalties and rents are managed by TPL.
As the shale boom continues, especially in Texas, TPL is at the epicenter of its boom times.
TPL is up 86% so far this year and as Texas continues to boom, the stock will grow.
Boring Stocks to Buy: DexCom (DXCM)
DexCom (NASDAQ:DXCM) was the No. 2 company last year in Forbes’ list of Most Innovative Growth Companies last year. The year before it was No. 4.
The point is, DXCM isn’t just sitting on its laurels, it’s continuing to dominate a growing niche that is dying for better tech.
DXCM makes continuous glucose monitoring solutions (CGM) for diabetics. Sadly, this is a growth business. But up until now, the old monitoring solutions — pricking your finger and putting your blood on a test strip that measures glucose levels on a device — was the only game in town.
There were some CGMs out there, but they have been a bit clunky — and clunky for a child makes it a tough option. DXCM in a game-changer in this sector and now has devices that can be read off an app on your phone or smart watch.
It’s up 148% year to date and has plenty of headroom left.
Boring Stocks to Buy: Callaway Golf (ELY)
Callaway Golf (NYSE:ELY) is one of the most well-known brands in golf. From its revolutionary oversized drivers that have now become the standard on the pro tour and the public links to its line of clothes and bags, ELY is a niche brand that has a devoted and diverse following.
While every year, there is hand-wringing about the demise of the sport with younger generations, the numbers show just the opposite. Golfers’ numbers continue to grow. Youth participation is up. And ELY continues to adapt to the new generation of golfers that come along. This is not a stodgy, “clubby” brand. It has always been known for innovation, and that continues to this day.
The fact that the stock is up 64% in the past year is proof enough that ELY is still finding opportunity on and off the course.
Boring Stocks to Buy: Chart Industries (GTLS)
Chart Industries (NASDAQ:GTLS) has a classic tag line for a “boring” stock: “You may never use the products we make, but everyone uses the products we make possible.” And that is certainly accurate, if not heart pounding. GTLS makes cryogenic equipment that are used to separate gasses and other compounds out of liquified natural gas (LNG).
This is a crucial phase of “refining” for LNG. And it means that as the economy grows and energy (and materials production) demands grow, so will GTLS.
GTLS stock is up over 110% in the past year and the economy is just getting started, which means so is this stock.
Boring Stocks to Buy: Synalloy (SYN)
Synalloy Corporation (NASDAQ:SYNL) has been around since 1945, yet it’s likely you’ve never heard of it.
Based in Richmond, Virginia, it makes stainless steel and nickel alloy pipe, liquid storage systems and heavy wall seamless pipes and tubing. Think storage tanks and equipment for oil and gas exploration and production.
SYNL also has a chemicals division that supports the metals, mining, carpet, automotive and other industries.
The fact is, while it has a core business that has kept it chugging along since the ’40s, it thrives when the economy is expanding — like now. SYNL stock is up over 100% in the past year.
Boring Stocks to Buy: Kimbell Royalty Partners (KRP)
Kimbell Royalty Partners LP (NYSE:KRP) is a relative newcomer to the oil and gas exploration and production (E&P) game in Texas, having organized just a few short years ago.
But if there’s a time to be in the E&P game, this is it. Domestic energy production is booming and the current political climate is getting rid of regulation, so it’s more profitable than ever to be a part of the U.S. energy business.
While KRP has been operating as a private company for nearly two decades, it has truly come into its own recently. As of July, it now holds 11.1 million gross acres in 28 states. It has 84,000 wells on its properties, with 34,000 wells in the Permian Basin alone.
Up 40% year to date, this limited partnership has a bright future. And its 7.5% dividend is a nice addition to the growth.
Boring Stocks to Buy: Ladder Capital (LADR)
Ladder Capital (NASDAQ:LADR) is an interesting real estate investment trust (REIT).
Usually REITs own properties and then distribute their after tax profits to shareholders in the form of dividends. While LADR does have a generous 7.6% dividend, it doesn’t derive most of its revenue from leases. It specializes in commercial real estate financing solutions. It is a lender to companies looking to lease properties.
Granted, it has a few properties, but the bulk of its operations are funded by its financing arm. And with a recovering economy, this is a very good spot to be in.
LADR stock is up 26% year to date, and that doesn’t include the dividend. This isn’t hot tech-stock growth, but for a REIT in a unique niche, this is a very tempting total return play for the long term.
Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.