Despite the current market volatility, there are still some great stocks that investors should buy-and-hold for the long-term. These are stocks of established, profitable companies that have a consistent track record of strong financial results.
They also consistently return value to shareholders in the form of dividends and share repurchases. If anything, the current market pullback has made these stocks more affordable and their valuations more attractive.
Investors who have long-term financial goals should ignore the current noise and load-up on equities while they are cheap. In time, investors who own quality stocks will be rewarded. Here are the three best long-term stocks to buy for October 2023.
Coca-Cola (KO)
Soft drink maker Coca-Cola (NYSE:KO) has done it again. The Atlanta-based company just issued Q3 financial results that beat Wall Street forecasts across the board. Coke reported EPS (earnings per share) of 71 cents versus 69 cents that had been expected among analysts who track the company’s progress.
Revenue in the July through September quarter totaled $11.91 billion compared to $11.44 billion that had been anticipated among analysts. Coca-Cola’s Q3 sales rose 8% from a year earlier.
Coke’s Q3 report came as a bit of a relief. Leading into earnings, investors and analysts worried about the company’s ability to raise prices without pushing consumers to seek cheaper product alternatives. The new class of weight loss drugs and their potential impact on soft drink sales also caused concern.
In the end, none of those issues mattered to Coca-Cola or its financial results. Looking ahead, the company raised its forward guidance for the remainder of this year. It now says it expects EPS growth of 7-8%, up from a previous range of 5-6%.
The company also raised its revenue outlook, forecasting an increase of 10-11%, up from 8-9% previously. KO stock is down 11% year to date, presenting a nice long-term buying opportunity. KO stock also pays a quarterly dividend of 46 cents per share, giving it a yield of 3.3%.
BlackRock (BLK)
U.S. investment firm BlackRock (NYSE:BLK) is the world’s largest money manager, handling nearly $10 trillion of assets. The company has a great long-term growth trajectory and currently looks affordable with the stock trading at 18 times future earnings, and with a quarterly dividend of $5 per share for a yield of 3.29%.
BlackRock has also applied to launch a Bitcoin (BTC-USD) spot ETF and could be a big beneficiary should regulators greenlight crypto ETFs.
BlackRock recently issued its Q3 financial results, which showed the company’s profit rose 14% from a year earlier. EPS came in at $10.91 per share, ahead of the $8.34 that was expected among Wall Street analysts. The company also recorded $3 billion of net investment dollar inflows during Q3.
However, net outflows in Q3 totaled $49 billion, sending the stock lower. The company blamed the big outflows on nervous retail investors, and a single $19 billion loss from an international client.
BLK stock has declined 14.74% year-to-date. This too should be seen as a buy-the-dip opportunity, as long-term BlackRock should be a profitable investment.
Dell Technologies (DELL)
There’s a lot to like about Dell Technologies (NYSE:DELL) right now. The maker of personal computers and laptops is putting its shareholders front-and-center. A recent announcement revealed its plans to increase its dividend payment by 10% a year by 2028. Additionally, Dell announced that it is increasing its stock buyback program by $5 billion effective immediately.
The company repeated a previous forecast that it would grow revenue in a range of 3% to 4% this year. It also raised its forecast for long-term profit growth to 8%, up from 6% previously. Dell currently pays a quarterly dividend of 37 cents per share, giving it a yield of 2.22%.
DELL stock has gained 70% over the last 12 months and is up 152% over five years, making it an ideal option in long-term stocks to buy.
— John Baglole
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Source: Investor Place