If someone asks you, “what three stocks would you hold to the day you die”, which companies would you pick? I have had a think about this recently and have settled on three stocks, baring any sudden changes, I will hold forever.
Apple – AAPL
First up on my list is Apple. If you don’t know what Apple is or what they do, then where the hell have you been for the last 30+ years. The company has grown to be the largest company in the world with a market capitalisation of $2 trillion. It offers everything from the iconic MacBook and iPhone, to music and TV streaming, to health and a huge app store.
Apple is generating so much money that it can’t spend it fast enough with $195.57 billion on hand. It’s safe to say they are not going to run out any time soon. With that said they only have a dividend yield of 0.67% or $0.82 per share. What they lack in dividend they more than make up for in growth. Over the last year Apple stock is up 61%, and over 5 years 363% up.
Do I expect the share price to continue to grow at this pace, no, but there is still a lot of growth in this company. It is constantly innovating and improving its products bringing out new or updated phones, MacBooks, and accessories every year. Additionally, the company has an extremely loyal customer base which when coupled with its App Store will continue to generate huge revenues for years to come.
Coca-Cola – KO
If there is one thing Warren Buffet and I have in common, it is that we both love Coca-Cola. I can say with very little hesitation that the only time I will ever sell out of KO is if there was a catastrophic disaster.
KO currently makes up 6.5% of my total stocks portfolio and is one that I intend to keep adding for the foreseeable future. With a respectable dividend yield of 3.28% paying out $1.68 per share it is a reliable income stock that will keep paying our for years to come.
Another thing to love about KO is that it is on just the classic Coca-Cola drink, they have so many brands including Fanta, Sprite, Schweppes and Innocent Smoothies. For those in the UK, they even own Costa Coffee – I love those seasonal hot chocolates! They have a total of 200 brands worldwide to suit a wide range of customers, I can not see them declining at any point.
Walt Disney – DIS
Disney is a great company that is quickly transforming from that of a dividend stock to that of a growth, almost tech-like, stock. This company has shown that it will continue to innovate in order to stay current. While they have been hit hard in terms of revenue by the pandemic, that is not stopping them and investors know this.
While the company’s traditional revenue sources have taken a battering, they have been forging ahead with their new streaming platform. That is not to say the parks, studios and holiday cruises won’t be relevant, they are just not hanging around. With already 100 million subscribers Disney+ will be a key player in the streaming world, potentially overtaking Netflix. The huge selling point for Disney+ is their willingness to throw huge amounts of money to make move-quality programs for hugely popular themes. The Mandalorian and Marvel’s Wanda-Vision have proven to not only draw in customers but keep them.
Disney did cut their dividend on the onset of the pandemic, in truth this was probably a good idea. However, once regulators allow parks to open it is probably that the dividend will be reinstated. Another thing to mention is that the company is not immune to the rise of online retail. They recently announced that they would be closing around 60 stores across North America and focus more on their already established online store. This is probably a good moved long term.
None of the content in this article should be considered financial advice, I am not a financial adviser and you should always do your own research prior to investing. These are my opinions only.