The current bear market is one of the most challenging periods for investors. Many are scared to invest in the stock market and are looking for alternative options. While the current climate may be risky for some, it is the perfect time to jump in if you are an adventurous investor. We’re going to look at three long-term stocks that you should buy for June 2022.
The market has been on a rollercoaster ride for quite some time now, and it is not yet clear what will happen in the future. However, if you are looking for a long-term investment, these are the stocks that you should be looking at.
| MCD | McDonald’s | $249.04 |
| COST | Costco Wholesale | $485 |
| O | Realty Income | $68.18 |
McDonald’s (MCD)
McDonald’s (NYSE:MCD) is an American fast-food restaurant chain that was founded in 1940. It serves various burgers, sandwiches, chicken products, breakfast items and soft drinks.
McDonald’s has a variety of products on its menu, including signature items like the Big Mac and fries. However, in the last few years, McDonald’s menu has been changing to include more healthy options. Hence, it is looking to address its biggest concern.
McDonald’s has a strong competitive position, and people eat its food even in the worst economic conditions. McDonald’s continues to deliver excellent revenue, operating margins and free cash flow. In the future, the company could innovate with increased adoption of automation and new technology. Its success is built on a globally diversified menu that has attracted fans in every world region.
McDonald’s had a good first quarter with earnings per share (EPS) at $2.28 on revenue of $5.67 billion. Their numbers were slightly above what Wall Street was expecting for the period, which means they are continuing to perform well even during tough times. The financial results for the company for the quarter show $127 million in costs relating to suspending operations in Ukraine and Russia. Hence, the performance is even more impressive.
One reason McDonald’s is one of the best long-term stocks is its dividend. The company has had a strong history of increases for the last 45 years. What pays dividends are its strong profitability and cash flows which make it a very safe investment.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) is a membership warehouse club that offers a wide range of products, from food to clothes.
The company was founded in 1983 in Seattle, Washington, as an American membership-only warehouse club selling specific branded lines of general merchandise.
Costco offers unbeatable prices and a wide variety of products. It has a very strong moat, because it has excellent customer service and low prices. It is a difficult company to compete with. The company is in a fantastic position during this period of high inflation.
The combination of low prices and high quality has made Costco a very profitable company, with $51.9 billion in revenue and EPS growth of 36% this last quarter.
Realty Income (O)
Realty Income (NYSE:O) is a real estate investment trust (REIT) that invests in and operates income-producing commercial properties in the United States.
It has been successful with investing in properties that produce high levels of recurring income, such as office buildings, shopping centers and medical facilities.
A REIT is a company that invests in real estate and earns income by collecting rent from the tenants who lease the property. This can be a good way to generate passive income, because the company takes care of all the work involved with owning and managing property.
The company has never missed a monthly dividend payment since its start, and its dividends have been increased 115 times. That includes 98 consecutive quarterly dividend increases. Realty Income has the financial capacity to continue capitalizing on this opportunity. It has one of the best balance sheets in the REIT sector and a conservative dividend payout ratio.
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.
