Stocks had a terrible 2022 and have turned things around with a tremendous 2023. While the rally is appreciated, it has left some investors feeling seasick from all the turbulence. One way to deal with this heightened volatility is to own secure long-term stocks.
There’s no one agreed-upon definition of the ideal top long-term investment. That said, a good indicator is that a company can consistently grow its earnings and dividends through all sorts of economic conditions. In particular, Dividend Aristocrats are firms that have grown their dividend for at least 25 consecutive years. Keep in mind that period included the September 11th attacks, the 2008 financial crisis and the outbreak of COVID-19.
These best long-term stocks have prospered through all those prior economic shocks. And these three long-term stocks should be set to overcome inflation, surging interest rates and other matters that are the current storm clouds on the horizon.
Roper Technologies (ROP)
Roper Technologies (NYSE:ROP) is a conglomerate. It got its roots as a roll-up of various industrial businesses. Over the years, Roper’s management realized it was more profitable to produce software rather than hardware for managing operations.
Nowadays, Roper is a massively diversified tech organization. It provides software for managing power plants, K-12 schools, graphic design, insurance underwriting and a whole host of other verticals. The firm continues to aggressively redeploy its capital into acquiring more software operations to expand its reach and profitability.
In addition to the tremendous returns from the rise of ROP stock, the firm has also grown its dividend for 30 years in a row. With its constantly-growing array of software holdings, Roper is well-positioned to thrive regardless of the precise twists and turns we see in the tech industry. That makes Roper a safer long-term stock pick than a tech company whose fate relies on one technology or product line.
Hormel Foods (HRL)
Hormel Foods (NYSE:HRL) is a packaged foods company in business since 1891. The company introduced its SPAM canned pork product early in the 1900s. Hormel enjoyed tremendous success selling SPAM to the U.S. Army during World War II, and SPAM remains highly popular in places such as Hawaii and the Philippines to this day.
Investors might shun Hormel due to its association with seemingly old-fashioned meat products. However, the Hormel of nowadays has evolved considerably. Today, the company is a leader in selling ready-to-eat guacamole, peanut butter, organic meats, barbequed meats and Mexican salsas, among other more millennial-friendly product lines.
Hormel’s management has long focused on growing earnings by at least 10% per year compounded. Its aggressive mergers and acquisitions should help make that vision a reality for many years to come. HRL stock has underperformed in recent years amid supply chain and inflationary constraints. As these lift, Hormel’s profitability should rebound, leading shares to new all-time highs.
Albemarle (ALB)
Albemarle (NYSE:ALB) is a specialty chemical company that produces bromine and lithium, among other goods.
Despite being in a cyclical industry, ALB stock has been exceptionally successful; its share price has risen approximately 3,000% over the past 29 years. The company achieved these outstanding results due to its expertise in niche fields such as lithium which are just now becoming more mainstream.
In fact, given the need to electrify the transportation sector, it seems probable that the world will need far more lithium production. With its diversified lithium reserves throughout the United States, Chile and Australia, Albermarle is set to prosper. Long story short, if electric vehicle stocks rise, ALB stock should surge with them. And Albemarle has already proven with a decades-long track record that it can profit in all sorts of economic conditions.
— Ian Bezek
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Source: Investor Place