Investors have seen it all in the past three years: a pandemic, lockdown, supply chain issues, inflation, war and high interest rates. The market has shown high volatility and put investors in a state where they are only looking to invest in stocks that have already proven themselves and can survive through market turmoil. The best way to do this is to find forever stocks that have strong fundamentals, proven track records and a solid history. This will ensure that they continue to grow, no matter how the market is performing.
There are some stocks you should buy and hold forever, these are companies that have a strong moat and enjoy consistent growth. Many of them also pay steady dividends, generating passive income for you. They have strong fundamentals and enjoy steady profits. Investing in such stocks will not only bring stability to your portfolio but also improve your finances. With that in mind, let’s take a look at the three stocks to buy and hold forever.
One of my favorite tech stocks, Microsoft (NASDAQ:MSFT) is a household name. It caters to individuals and businesses globally and is an integral part of the global software ecosystem. This is one stock to buy and never, ever sell.
MSFT stock is exchanging hands at $330 today, up 37% year to date. It has generated over 200% returns in the past five years and this is one stock that is slowly but steadily moving in the upward direction for the past year.
In the recent quarter, MSFT saw a 27% rise in its net income which was a result of a cut back on spending. Microsoft’s revenue stood at $56.5 billion, which is up 13% year over year and the EPS came in at $2.29. Interestingly, the revenue from Azure was up 29% and this is one segment that continues to contribute significantly to the revenue. With a global presence, a solid history, and an enviable product, Microsoft is one of the lifetime stocks to own.
The company expects 15% revenue growth in the coming quarter with revenue ranging from $60.4 billion to $61.4 billion. Its $13 billion investment in OpenAI has started showing results and the company expects to start making money from the AI features in 2024 when it has more products in the market.
Microsoft has always been considered as a long-term play and any dip in the stock is a chance to accumulate. Buy MSFT stock and never sell. You will not only enjoy capital gain but also passive income through the dividends. The company boasts of a dividend yield of 0.88% and has recently announced a quarterly dividend of $0.75.
E-commerce giant Amazon (NASDAQ:AMZN) has gone from an online bookstore to a global giant. However, it wasn’t built overnight. The leaders and management have taken risks and ventured into different areas including entertainment, health, and groceries. The company is currently enjoying the growth of Amazon Web Services (AWS).
Known for innovation and unmatched services, Amazon has become a household name and there is no stopping its growth momentum. The company has reported stellar earnings in the past and beat analyst estimates time and again. In the second quarter, it saw an 11% rise in net sales to hit $134.4 billion and the net income came in at $6.7 billion. Wall Street is highly optimistic about its upcoming results and expects the company to beat projections. We could see some more AI wins and higher AWS numbers.
The stock is trading at $119 right now and could move higher once the company announces results today. It is up 41% year to date and can keep moving upwards. Amazon has been using AI for several years now which has helped it offer customized purchase recommendations, helped with logistics and delivery, and also helped expand the business reach. It recently launched a powered image generation feature which is aimed at helping advertisers give a better experience to the customers.
The company enjoys revenue from its ad business and with the integration of AI, we could see better numbers shortly. Amazon will also report strong fourth-quarter results due to the sales and holiday season. You will not regret buying the stock.
Johnson & Johnson (JNJ)
If you want to invest in a stock and forget about it, consider Johnson & Johnson (NYSE:JNJ), a healthcare giant and a renowned name in the industry, the company is worth spot in your portfolio.
JNJN announced the third quarter results recently and shined all the way. It beat Wall Street estimates and its revenues surpassed expectations. The EPS came in at $2.66 and the revenue stood at $21.35 billion. The sales saw a 6% rise from the prior year period and it also revised the full-year guidance expecting sales between $83.6 billion and $84 billion with an EPS in the range of $10.07 to $10.13.
The stock has become attractive after the customer health segment was divested into Kenvue. This move will help ensure that the company is making the most of the revenue and growth from the medical devices and pharmaceutical sectors. Now is the right time to invest in the stock. It is down 14% year to date and trading much lower than the 52-week high of $181.
A dividend king, Johnson & Johnson believes in rewarding investors and has increased the dividends for the past 60 years. It enjoys a dividend yield of 3.14% and has announced a quarterly dividend of $1.19. For a stock trading at $151, an annual dividend of $4.76 per share isn’t bad at all. JNJ is a highly reliable company and it can survive any market turmoil. It has products that always remain in demand and even if consumer spending slows, pharmaceutical and healthcare is one segment where people will spend.
On the date of publication, Vandita Jadeja did not hold (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.