Call me boring but I love to pick stocks that have a strong history and solid balance sheet that keep rewarding investors. Who doesn’t enjoy passive income? If you are a risk-averse investor and looking to invest for the long term, there are a few qualities you need to look for in the stocks you pick. Strong fundamentals, promising growth potential, and the ability to beat the market can take a stock far. There are a few boring stocks to buy and hold for a lifetime.
Long-term buy-and-hold decisions tend to pay off over the years. Whether you are building a retirement portfolio or want to leave a legacy, let’s take a look at the three boring stocks to buy and hold.
Microsoft (NASDAQ:MSFT) has been around for as long as I can remember. This is one company that has a strong presence globally and has become an integral part of several businesses. It is hard to imagine life without Microsoft’s products and services. If you are looking for one stock to buy and hold for your lifetime, my first pick would be MSFT.
The company has steadily shown its strength in the financials and is growing at a rapid pace. It reported the first quarter results yesterday for Fiscal Year 2024 and beat analyst estimates. The company saw a whopping 27% jump in its net income as it cut back on spending.
The revenue came in at $56.5 billion, up 13% year over year billion and the EPS stood at $2.99. Its net income hit $22.3 billion and the revenue from Azure saw a 29% rise while the Intelligent Cloud Segment saw a 19% rise.
For the second quarter, the company expects revenue ranging between $60.4 billion to $61.4 billion, a 15% growth. If you simply look at the numbers, Microsoft proves to be a worthwhile investment. It has a solid history and a strong balance sheet, and its market dominance is hard to ignore.
The results are a sign that its investment in Artificial Intelligence has started to pay off but the company has clarified that AI will start showing results in 2024 when more products are available in the market. Currently, it has 18,000 organizations using Azure AI and this number will keep growing in the years to come.
It is time to look at MSFT stock as a long-term play and invest in it while you can. The stock is exchanging hands for $330 and is up 37% year to date. Buy it before it hits a new all-time high.
When looking for stocks to buy and hold for a lifetime, you need to identify the products and services that will always remain in demand. Such companies never go out of business and have the ability to thrive even in uncertain market conditions.
One such company is Coca-Cola (NYSE:KO). A household name today, the company has steadily grown despite inflation and lower consumer spending. It recently reported results and beat analyst estimates. The company’s revenue came in at $12.0 billion and the EPS stood at 74 cents. Its net income attributable to shareholders came in at $3.1 billion.
Similar to other companies, Coca-Cola hiked product prices and in this quarter, the prices were up 9% as compared to the previous year. The entire drink division saw volume growth in the quarter. The company has a diverse product portfolio which includes soft drinks, plant-based beverages, and juices in addition to coffee and tea.
For the full year, the management expects the earnings per share growth in the range of 7% to 8%, up from the previous range of 5% to 6%. It also increased the organic revenue growth outlook to 10% and 11% from the previous range of 8% to 9%.
KO stock will bring stability to your portfolio and while the stock may not show a massive upside anytime soon, it will steadily keep moving upwards. KO stock is trading at $56 today and has only grown 22% in the past years. However, the company has consistently paid dividends and generated passive income for shareholders.
With a dividend yield of 3.30%, the stock is considered a dividend aristocrat. This is undoubtedly an excellent stock to buy and hold for your lifetime and it will keep rewarding you for years to come. KO is one of the boring stocks to buy and hold.
Coca-Cola’s biggest rival, PepsiCo (NASDAQ:PEP) is a strong company with a global presence. The company has been showing strength even during market turbulence and is one of the top stocks to own today.
Despite price hikes, Pepsi has been able to report impressive finances and has hiked the projections for the year. One of the top reasons to invest in Pepsi is its diversified product portfolio. It does not restrict itself to beverages and owns several snack brands which generate steady revenue.
In the recent quarterly results, Pepsi beat estimates with a revenue of $23.45 billion and EPS of $2.25. An important number is the organic revenue which grew 8.8% in the quarter and the net sales saw a 6.7% rise.
It now expects an EPS growth of 13%, up from the previous forecast of 12%. Notably, this is also its third consecutive quarter of hiking the full-year forecast. It expects revenue growth in the range of 4% to 6%.
PEP stock is exchanging hands at $163 today and is down 9% year to date. This is your chance to grab the stock. It is trading much lower than the 52-week high of $196 and has dropped 14% in the past six months. Look at the bigger picture and the potential of the company to keep growing.
This is one stock you should buy on every dip. It is also a dividend aristocrat with a yield of 3.10% and it can beat the market. When you invest for the long-term, you need stocks that can thrive in any market situation and PepsiCo is one such stock.
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.