Three Long Term Stocks to Own for Years

Throughout history, the S&P 500 has grown on average 8% A year. That 8% takes into consideration the multiple bear markets the United States has experienced. The S&P 500- also known by it's full name the Standard and Poors 500 tracks the 500 largest market cap. stocks that are publicly traded.

A "blue chip" stock is considered one of the safest places to park your cash, they generally grow along side the markets 8% average and are stable companies with A strong brand name. Although peoples definition of what A safe stock may differ.. the definition of a blue chip does not.

For me personally- I consider A blue chip stock any company that has been a publicly traded company for 10+ years, A company that has an easily recognizable brand along side A steady stream of revenue. Companies that tend to fall into that category for me are companies such as Coca Cola, Proctor and Gamble, Apple, Exxon Mobile etc.

But some blue chips still fail.. The issue with being on top is that one day you will fall.. Some blue chips I won't buy are G/E and Ford

(You can find out why here)

http://www.modernizedinvesting.com/2018/10/six-fortune-500-companies-i-wont-buy.html

But those few companies I wont buy don't deter me from buying some other companies..


1. Proctor And Gamble (PG)
Go to look in your kitchen or bathroom. I guarantee that you will find one of P&G products. Even if you don't know it.. you (And every other American) probably has one of their product. They specialize in branded packed consumer goods. They are responsible for Dawn, Tide, Bounce, Mr clean, Swiffer, Bounty, Vicks, Pepto, Duracell, Charmin, Tampax and even have partnerships with Lacoste and Huge Boss.

But what you may not know is that Proctor and Gamble is the one that benefits from sales of these items. So much in fact that assets have risen 107% since 2014, net income is up over 200%, and the total revenue is up over 108% in the same time frame. Along side that I really like that they have not stopped researching new products.. As research and development is also up 80%.

Proctor and Gamble has consistently paid A juicy dividend.. for 60 straight years they have risen the dividend that is currently yielding 3.45%. Which beats out both the industry average of 2.21% and the S&P average of 1.79%.

Their earnings have been great as of late- they have beaten earnings per share in the last four quarters and Zacks consensus estimate for 2018 if $4.42 per share. A 4.74% increase year over year.



2. Apple (AAPL)

No need to get fancy here.. Apple has been one of the best investments of all time. At this point their name sells their products. With a slew of premium consumer electronics they have been able to amass a massive loyal fan base.

Despite not selling as many phones as androids- It doesn't concern me. Apple average cost per phone trumps the amount average cost of an android.

They have consistently been able to raise the selling price of their products while keeping the manufacturing cost down. This combination has allowed Apple to have over 20 billion dollars in cash and cash equivalents. More than Wal-Mart, Mcdonalds and Exxon combined.

Recently becoming the first company to hit a trillion dollar market cap this is as safe of a stock as it comes. They have proven they are not scared to take risks- they have a great management team and are the picture of financial health.

3. Visa (V)

At every dip I have been buying more and more shares of Visa. For those that don't know.. Visa serves as the middle man between a merchant and the merchants bank. They process the payments for the merchant and takes A small fee for the service.

Visa has been on A tear this last year, up over 40% they have really picked up some steam. Since 2014 their cash and cash equivalents are up over 400%, revenue is up 45% and net income is up 23%. In their last four quarters they have beaten earnings per share expectation by $.34.

In an industry that has only 4 real competitors (Visa, Mastercard, American Express and Discover) Visa has dominated market share. Processing over 1.2 trillion dollars in payments.. the other three companies combined for just 1.4. Despite these staggering numbers, 85% of foreign transactions are still done with cash. Making the foreign potential massive.

A few other things I like about Visa
1. Able to grow their dividend.
2. 93% of Visa's float is held institutions and mutual funds.
3. $5 Billion dollar share buy back program.

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