Long-term stocks are stocks that are expected to provide consistent returns over a long period of time. Long-term stock investing is not for everyone. But if you are a patient investor who is willing to hold on to their investments for at least ten years or more, then long-term investing can be very rewarding.
Dividend stocks pay out dividends to their shareholders every quarter, while value and growth stocks provide the highest possible returns over a long period.
In the past, investors mostly found long-term stocks in the industrial sector. Nowadays, as technology and information technologies have rapidly transformed our society, such stocks have become more popular among investors.
There is no clear-cut answer as to which type of stock is best for you. It all depends on your risk tolerance and personal preferences.
|AMD||Advanced Micro Devices||$83.79|
Applied Materials (AMAT)
Applied Materials (NASDAQ:AMAT) manufactures and sells materials for industrial and commercial applications.
They offer high-performance materials and software for the manufacture of semiconductor chips for various industries like aerospace, automotive, construction, and others. It’s one of the long-term stocks to buy because the semiconductor business is heating up.
However, Applied Materials is struggling at the moment as a result of a persistent chip shortage thanks to the Covid-19 pandemic. It counts Samsung Electronics (OTCMKTS:SSNLF), Taiwan Semiconductor (NYSE:TSM) and Intel Corp. (NASDAQ:INTC) among its customers. This is one of those long-term stocks that has a reliable customer base and steady income stream.
The muted third-quarter outlook might push the stock further down in the interim. In the long run, though, sales of semiconductors continue to increase, and so does revenue growth at Applied Materials.
Shopify (NYSE:SHOP) is an e-commerce platform that offers a wide range of services and tools to help businesses grow their online presence. It’s one of those long-term stocks that has a large addressable market.
It offers free and paid plans, with the free plan offering limited features. Shopify also has an extensive list of integrations with other platforms, such as Facebook, Instagram, Google Analytics, etc.
However, as the competition gets tougher and more consumers are using mobile devices to shop online, Shopify needs to evolve to stay ahead of its competitors.
The e-commerce company did very well during the pandemic. The Canadian firm provides an alternative to traditional brick + mortar stores during a shrinking economic environment. However, things are returning to normal, and Shopify is suffering.
For the first three months of 2022, gross merchandise volume and sales growth slowed substantially due to the abovementioned issues. On top of that, Shopify has agreed to purchase Deliverr, a San Francisco-based logistics start-up, to expand its shipping network to compete with Amazon. Investors have an issue with the $2.1 billion purchase price.
To address this decline, Shopify is executing a 10-for-1 share split to increase retail interest. The strategy is not new, but it has proved to be effective in recent months. However, the secular growth in e-commerce is the bigger reason you should invest in this one.
IBM (NYSE:IBM) has been at the forefront of AI innovations since the 1950s, so it has been one of the perennial long-term stocks to buy.
IBM’s Watson AI has made many headlines. The application uses natural language processing and machine learning to reveal meaningful insights from data sets.
As with many mature enterprises, you will not see many surprises with IBM. It is incredibly solid. And due to this performance, IBM has grown dividends for 26 consecutive years, and therefore, it is a Dividend Aristocrat.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) provides integrated circuits for computing, graphics, and communications platforms.
The company specializes in developing x86 microprocessors for the consumer, server, and professional markets, with its headquarters in Santa Clara, California.
AMD also produces motherboard chipsets, embedded processors, and graphics cards for desktop and notebook computers, game consoles, personal computers, embedded systems and semi-custom SoC products primarily for video game consoles and personal computers such as those based on its Radeon brand of GPU products.
AMD has seen tremendous growth due to its focus on innovation and technology. AMD’s main products include central processing units (CPUs), graphics processing units (GPUs), and digital signal processors (DSPs). It has a long-standing rivalry with Intel and has been grabbing an increasing market share from its rival.
Chevron’s (NYSE:CVX) core business is producing and marketing petroleum, natural gas and other liquid fuels.
The company also engages in the exploration of new sources of energy, manufacturing chemicals, fertilizers, and plastics, as well as providing engineering services.
The success of Chevron’s dividend in the past, and its potential for future success, are attributable to the company’s ability to find new ways of increasing revenue and decreasing costs.
Chevron has had 25+ years of consecutive dividend raises. It has kept its stock price stable over time despite changes in market conditions. Recently, Chevron hiked its dividend to $1.42 per share. Its increase of 8 cents is expected to positively impact Chevron’s stock price and the overall market performance of stocks with similar dividends.
Verizon Communications (VZ)
Verizon Communications (NYSE:VZ) is a leading provider of communications services, including landline and wireless telephony, broadband Internet access, and related entertainment content.
It is constantly striving to improve its services and products. By revenue, the company is the second-biggest U.S. telecommunication service provider.
Although Verizon’s revenue has improved with the company growing to over 130 million subscribers, many consumers don’t need new smartphones. The wireless market is saturated for them, and many others who upgrade are willing to wait for price drops.
For the quarter ending in March, Verizon’s quarterly earnings were $1.35 per share, with revenue of $33.6 billion versus $1.36 a share on revenue of $32.9 billion. Verizon recently sold off part of its media division and showed continued economic growth.
Investors hope the 5G wireless services will provide a new impetus to the company’s growth prospects. However, what will keep investors coming back for more is the dividend. Because of a large dividend, investors often consider Verizon a defensive play.
Tesla (NASDAQ:TSLA) is one of the most influential players in the automotive industry.
Tesla’s production and delivery in 2021 set records. With almost 1 million cars sold last year, Tesla is firmly above its competition.
However, there are several reasons why Tesla is not doing so well now. China has instituted strict Covid lockdown policies. Tesla has suffered because its factory also encountered stoppages.
In addition, Elon Musk’s decision to pursue a $44 billion deal to purchase Twitter has irked investors. If the deal goes ahead, Elon Musk will control Tesla, SpaceX, and Neuralink alongside Twitter. He might have less time for Tesla, which worries investors, especially considering the market response.
Nevertheless, these are short-term concerns if you are looking for a long-term investment. Tesla is the number one EV company, and it will take time for any company to close. Tesla has revolutionized the car industry. They offer a wide range of cars, from affordable to luxury models. Tesla has made a significant impact in the market because they have combined innovation and luxury all at once.
On the publication date, Faizan 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.