Best Long-Term Stocks to Buy

Best Long-Term Stocks to Buy

The Best Long-Term Investment Stocks to Buy Now

Stocks

When it comes to seeking out the best long-term investment stocks to buy, investors have a variety of approaches. One tried and tested method is to follow the wisdom of Benjamin Graham, known as the father of value investing, as outlined in his classic book, “The Intelligent Investor.”

Graham’s advice for defensive investors is to seek out large, conservatively financed companies with good earnings power. These companies should also have a consistent history of dividends and low valuations. However, in today’s world, many tech stocks don’t pay dividends but instead return capital to shareholders through stock buybacks.

To adapt Graham’s criteria to today’s landscape, the goal is to find stocks that return large amounts of capital to shareholders through dividends and/or stock buybacks. This not only increases a company’s earnings and dividends on a per-share basis but also boosts the remaining shareholders’ stakes over time, potentially driving the stock price higher.

Additionally, Graham advises looking for stocks with low valuations. Considering that the S&P 500 has a relatively high price-to-earnings (P/E) ratio of 31.4 times over the last 10 years, this article will focus on stocks with P/E ratios lower than the broad market.

Lastly, we will be focusing on stocks with market caps of $100 billion or higher. These companies should also have low debt ratios and enough cash flow to reduce their debt, as well as pay dividends and/or engage in stock buybacks.

With these criteria in mind, let’s delve into the nine best long-term investment stocks to buy now:

1. Company A (Ticker: AAA)

Company A

Company A is a market leader in the tech industry with a strong financial position. It consistently returns capital to shareholders through stock buybacks, allowing for increased earnings and dividends per share. With a low P/E ratio and a market cap exceeding $100 billion, it presents an attractive investment opportunity.

2. Company B (Ticker: BBB)

Company B

Company B is a well-established player in the consumer goods sector. It boasts a solid track record of dividend payouts and has recently implemented a substantial stock buyback program. With its low valuation and large market cap, Company B offers the potential for long-term growth and income.

3. Company C (Ticker: CCC)

Company C

As a leading player in the healthcare industry, Company C demonstrates strong financials and consistent dividend payments. It allocates a significant portion of its cash flow to reduce debt, enabling it to finance both stock buybacks and dividend yields. With its robust financial position, Company C is a compelling long-term investment choice.

4. Company D (Ticker: DDD)

Company D

Company D operates in the energy sector and has successfully navigated through challenging market conditions. It maintains a low debt ratio and generates ample cash flow, which is utilized for debt reduction, dividends, and stock buybacks. With its compelling valuation and market dominance, Company D is poised for long-term success.

5. Company E (Ticker: EEE)

Company E

Company E is a powerhouse in the technology sector, specializing in innovative software solutions. Although it does not offer dividends, Company E regularly undertakes significant stock buybacks. Its strong financials, low valuation, and market cap make it an attractive option for long-term investors seeking exposure to the technology industry.

6. Company F (Ticker: FFF)

Company F

Company F, an established player in the financial services sector, consistently delivers value to its shareholders through a combination of dividends and stock buybacks. It boasts a low valuation, strong financials, and a large market cap. Investors looking for stability and growth should consider Company F in their long-term investment portfolio.

7. Company G (Ticker: GGG)

Company G

Operating in the consumer discretionary sector, Company G has a history of solid performance and a commitment to returning capital to shareholders. Its low valuation, along with a market cap exceeding $100 billion, positions it as an appealing choice for long-term investors seeking exposure to the consumer market.

8. Company H (Ticker: HHH)

Company H

Company H is a leading player in the industrial sector, offering a diverse range of products and services. It maintains a healthy balance sheet, with low debt and ample cash flow. This financial stability enables the company to engage in stock buybacks and provide consistent dividend payments to its shareholders. With its attractive valuation and market cap, Company H presents a compelling investment opportunity.

9. Company I (Ticker: III)

Company I

Company I, a dominant force in the telecommunications industry, showcases strong financials and consistent dividend payments. It effectively manages its debt, utilizing its cash flow to finance both dividends and stock buybacks. With its low valuation and substantial market cap, Company I is well-positioned for long-term growth and income.

Please note that the information presented here is as of Aug. 1 and is subject to change. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. It is always advisable to conduct thorough research and consult with a financial advisor before making investment decisions.

In conclusion, when seeking out the best long-term investment stocks, it is crucial to consider factors such as capital return to shareholders, valuations, market caps, and financial stability. The nine companies mentioned above exemplify these characteristics, making them attractive options for investors looking to build a successful long-term investment portfolio.