Want a $1 million retirement fund? 3 stocks to buy now and hold for decades

This is a long-standing challenge for investors. Everyone wants to retire as a millionaire, but an overly aggressive effort to build a million-dollar portfolio often reduces the likelihood of achieving that goal. trick? You can buy the right stocks and leave them alone, allowing your time to do most of the heavy lifting.

That’s easier said than done. A wide range of financial media encourages investors to chase hot stocks rather than buy and hold blue-chip stocks. Being passive is not always the right thing to do.

But as most truly successful long-term investors can attest, you probably aren’t looking to out-trade the market. You will get better results by simply riding the long-term bullish trend of the market.

To that end, here’s a closer look at three companies that can help you reach your $1 million retirement goal. and Stocks that you can safely hold for decades. Their products and services are always in demand.

1. Bank of America

There are no particular points that stand out. american bank (BAC -0.15%) Other than its huge size. But that’s kind of the point. Some banks that try to take on more creative opportunities end up regretting it. SVB Financialsilicon valley bank and signature bank remind. Bank of America tends to stay in traditional banking. That’s how they survived and even thrived over the decades.

That said, don’t confuse boring and predictable with being unfruitful for shareholders. Bank of America’s stock price is about twice what it was 10 years ago, and has risen nearly 1,000% over the past 40 years. And this does not include the amount of dividends paid.

By the way, its dividend has steadily increased over the past decade, from $0.03 per share per quarter in early 2014 to $0.24 per quarter now.

Veteran investors may recall that the aftermath of the 2008 subprime mortgage crisis hit banks hard, and BofA was no exception. This situation not only forced the bank to reduce its previously generous dividend to a nominal $0.01 per share for several years, but also caused Bank of America’s stock price to remain below pre-crisis levels. is below the highest value. There are reasonable arguments for never owning stock in this bank (or any other bank) ever again.

However, there is no need to jump to long-term conclusions about the industry based on temporary and unusual circumstances. Certainly, banks should have known better than to offer so many risky loans that facilitated the purchase of overpriced homes. But the world still needs more banks than it doesn’t need them, and as long as there’s money, you can make money in banking. Bank of America’s size puts it in a position to capture at least a fair share of the business.

2.Microsoft

To simply make a call microsoft (MSFT 1.55%) Software company is a bit of an understatement.That’s definitely of Software company. According to figures from GlobalStats, Microsoft’s various Windows operating systems are installed on 73% of the planet’s computers. Even if the company offered no other software, it would still be one of the most well-positioned gatekeepers to the Internet on the planet. Other software companies still code their software to work first and foremost on Windows.

Of course, Microsoft is about more than operating systems. Office productivity software such as Word, Excel and Outlook account for about half of this market, according to figures from technology market research firm Enlyft. It’s not just its overall PC dominance that makes Microsoft a name worth owning for the long haul. The software giant is also a major player in the cloud computing market. Synergy Research Group reports that Microsoft’s share of the global cloud infrastructure market increased from just 15% at the end of 2018 to 24% in the last quarter.This makes Microsoft not only the fastest growing cloud computing business in that period, but also within reach. Amazon’Market leading share of 31%. Additionally, there’s Microsoft’s Xbox video game brand, LinkedIn, search engine Bing, several artificial intelligence projects, and a host of other business services you might not realize Microsoft offers.

Indeed, the company’s greatest growth years are probably in the past. Its revenue model is also evolving. Much of the company’s software is now rented rather than purchased outright, resulting in more predictable revenue, but its growth rate is lower than the company’s heyday in the 1990s and early 2000s. is below.

However, take a step back and look at the big picture. All of its products and services will be just as needed decades from now as they are today. Microsoft ensures that we remain a market leader well into the future by providing access to our tools and technology through affordable monthly subscriptions.

3. Mastercard

Last but not least, add your credit card intermediary master Card (M.A. -0.08%) If you want to retire with $1 million, add it to your list of stocks to buy and hold.

You know the company. In fact, if you have any credit cards, you’re more likely to be a customer. Approximately 43% of US adults have their Mastercard card. It processes one in four credit card transactions worldwide. Last year, the company processed approximately 171 billion transactions and facilitated the purchase of more than $7.3 trillion worth of goods and services. This equates to Mastercard’s 2023 revenue of $25.1 billion and net income of $11.2 billion.

Yes, credit card networks can be incredibly profitable. They always have been, and too many investors seem to overlook this detail. But what does the future hold for Mastercard’s business?

That’s not an unreasonable question. After all, most of the company’s growth potential has already been tapped. Insider Intelligence reports that debit cards are now used as often as cash around the world, and credit cards aren’t far behind. Digital wallets are among them. Cash is used even less frequently in the United States. After all, with overall cash usage currently relatively modest, the amount of new business credit card companies can acquire going forward appears to be limited.

However, Mastercard has an advantage in terms of being positioned for continued growth. It’s the company’s appetite and ability to innovate, including innovations that don’t directly drive growth in card transactions that generate revenue.

As an example, did you know that Mastercard runs a consulting business that helps merchants adapt to the ongoing evolution of AI? The company is also in the music business . The company’s Artist Accelerator division helps artists create songs using artificial intelligence and other music production digital tools, including those developed by Mastercard itself. And just last month, the company announced a partnership with Indian healthcare technology company Remedinet to streamline cashless payments for insurance companies to hospitals.

None of these efforts will incentivize consumers to use their cards more than ever. But all these efforts ensure that Mastercard is well-positioned to take advantage of whatever the future holds for its payments business.