Top Long-Term Investment Stocks for Steady Growth

Investing in stocks with a long-term perspective is a time-tested strategy for wealth building. The key question is: how long should your investment horizon be? Think of yourself as a partner to the business—holding shares until you need funds. While imagining a lifetime is unrealistic, a period of around 15 years is manageable. For example, investing $20,000 in 2017 with an average annual return of 12% could grow to approximately $109,000. Holding strong stocks is a wise move for investors seeking stability and growth.

However, not every stock is suitable for long-term holding. Ideally, the best stocks to invest in have six key traits: they offer sustainable products or services, are not fad-driven, have adaptable leadership, possess strong financials, operate in a benign competitive environment, and follow a strategic, long-term vision while innovating cautiously. Finding a single company with all qualities is rare, but these guidelines can help you identify solid investments.

Boeing

Manufacturing aircraft is a complex, enduring business. Boeing (ticker BA) took seven years to deliver its first 787 Dreamliner, which can fly up to 8,300 nautical miles and reduces fuel use by 20%. Since 1965, over 10,000 units have been sold, with 500 being shipped annually. Despite past manufacturing issues, Boeing has prioritized resolving problems and innovating in measured steps. Its steady demand and stable P/E ratio of 15 make Boeing a prime candidate for long-term investors. Airbus remains its main rival.

Washington Real Estate Investment Trust

Established in 1960, Washington REIT (ticker WRE) is a reputable real estate firm managing apartments, medical facilities, office spaces, and 54 shopping centers in the Washington D.C. area. As a REIT, it pays no corporate tax if 95% of profits are distributed as dividends. During the 2008 financial crisis, WRE's stock fell only 4.4%, compared to the market’s 37% drop, demonstrating its resilience. With a 15-year annualized return of 7.5% and a current dividend yield of 4.4%, it remains a robust choice in turbulent times.

Netflix

Since its 2003 IPO, Netflix (ticker NFLX) has surged 40-fold, driven by original hits like “Stranger Things” and “House of Cards.” Currently boasting 48 million paying subscribers, a 35% increase in just one year, Netflix continues to expand globally. With significant growth ahead, it stands out as a promising long-term stock.

Walt Disney Company

With beloved assets like Cinderella and Mickey Mouse, Disney (ticker DIS) also boasts a powerful distribution network—A&E, ESPN, ABC stations, cruise lines, music, gaming, studios, and theme parks. Despite its large market cap of $150 billion, Disney maintains a solid balance sheet with an A++ rating, marking it as a financially healthy choice for the long haul.

Whole Foods Market

Known for its strong customer bonds, Whole Foods Market (ticker WFM) has delivered an average annual return of 14.7% over 15 years. Revenues increased from $8 billion in 2009 to $16 billion in 2015. Despite a more than 40% decline since 2013, long-term investors should see this as a buying opportunity.

FedEx

As e-commerce continues to grow, FedEx (ticker FDX) is poised for expansion. Leveraging internet technology for tracking and shipping efficiency, FedEx has pioneered innovations that give it a competitive edge. With ongoing growth in online shopping, FedEx remains one of the best stocks for the future.