3 stocks you can hold forever

Every portfolio should include some “forever” stocks – companies that are good enough to be worth holding for a very long time.

They are like keepsakes and are often passed down from parent to child. They can be the foundation of true generational wealth. So, what types of stocks fit this condition? Now, let’s take a look at three stocks that I consider to be eternal stocks.

Image source: Getty Images.

Amazon

tech giant Amazon (AMZN 1.20%) is a mainstay in my investment portfolio and will continue to be a mainstay for many years to come. He has three reasons for this.

1. A radical focus on the customer: This is a mantra of founder and former CEO Jeff Bezos that still permeates the company today. Look no further than the company’s mission statement: “Amazon’s mission is to be the most customer-centric company on Earth.”
2. Innovation: Amazon has developed numerous innovations, from its vast fulfillment network to its vast number of data centers, making it the world leader in cloud computing services.
3. Delivering shareholder value: We continually re-evaluate our finances and our people, with a focus on balancing shareholder returns with reinvestment in our business. Over the past 10 years, Amazon stock has returned 659%. This means that if he invested $10,000 in early 2014, it would be worth almost $76,000 as of this writing.

AMZN Total Return Level data by YCharts.

In short, Amazon is a great company. Additionally, analysts expect sales to increase 11% this year due to long-term investments in regional distribution and a rebound in enterprise cloud spending.

coca cola

next coca cola (KO -0.55%)the legendary maker of iconic beverage brands such as Coke, Sprite, Powerade, Fanta, Schweppes, and Minute Maid.

The reason I plan to hold Coca-Cola stock forever is because of the company’s consistent revenue growth. Over the past five years, Coca-Cola’s net profit has increased from $6.7 billion to $10.8 billion. Quarterly earnings per share (EPS) grew at an average rate of 19%. Additionally, free cash flow, the lifeblood of mature dividend-paying companies, increased from $6 billion to more than $10.2 billion.

As a result, Coca-Cola has been able to consistently increase its dividend. In fact, the company has increased its dividend every year for 62 years, making him one of the longest dividend increase streaks on Wall Street.

And what a dividend that is! The company pays $1.84 per share, which equates to a dividend yield of 3.1% at the current share price. This is more than double the average yield of 1.4%. S&P500 index.

To see how important these dividend payments are over the long term, consider this graph showing the growth of a $10,000 investment in Coca-Cola over the past 30 years.

KO data by YCharts.

The company’s steady increase in dividends made a big difference, increasing the total return on the investment from $56,000 to more than $116,000 (including dividend reinvestment).

In short, Coca-Cola is a solid stock that investors can rely on for a very long time, and remains a near-perfect forever stock.

Nvidia

lastly, Nvidia (NVDA 4.17%). The reason to own Nvidia forever is simple. Technology is the future.

This has never been more evident than now. Whether it’s artificial intelligence (AI), autonomous driving, advanced robotics, or gene editing, the next wave of technological innovations all have one thing in common: They require massive amounts of computing power. is clear.

This means that the demand for cutting-edge semiconductors used in current and future supercomputers and server farms will continue to increase significantly in the coming years.

Believed by many experts to make the best and fastest chips for high-performance computing, Nvidia stands to benefit greatly from the rise of AI and other cutting-edge innovations.

That’s why Wall Street analysts are raising their future revenue estimates for the company at a ferocious pace. The consensus among analysts is that NVIDIA will report revenue in excess of $92 billion in its 2025 fiscal year. Over the past 12 months, the company reported revenue of $45 billion.

Nevertheless, NVIDIA isn’t the perfect forever stock for everyone. Income-seeking investors, as well as value-oriented investors and investors not interested in volatile stocks, may be better off looking elsewhere.

But for long-term investors prepared to hold on through the inevitable volatility, NVIDIA is a perennial stock with a high ceiling and worth serious consideration.