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Investing in the stock market can seem intimidating, especially when choosing the right stocks for long-term investment. Given the plethora of choices, identifying which stocks will yield the best returns in the long run, can be daunting. Recently on a platform, several people have shared the best long-term stocks to invest in, considering factors such as company stability, financial performance, and growth potential.
Table of Contents
1. Vanguard 500 Index Fund ETF (VOO)
The first user’s investment advice is crystal clear: investing in VOO is the way to go for most people. A low-risk ETF that can be dollar-cost averaged over time is the perfect combination for many investors. However, the user warns against investing in individual companies without thoroughly understanding the ins and outs of their business and finances.
Related: Is VTSAX a good investment?
2. Honda Motor Company (HMC)
Investing in Honda Motor Company (HMC) might seem like a personal choice, but it’s a no-brainer for an individual. They own the stock because they have been driving Honda cars for years and have never had any issues with them. Although this investment strategy might not be the most sophisticated, the user notes that it worked well for them.
According to a seasoned investor, investing in Google could be a good long-term investment, but it may take some time to show significant returns. The comment suggests that investors should be patient and hold onto their investment for a few years before expecting substantial growth. This could be due to changes in the industry, shifts in consumer preferences, or the company’s development of new products or technologies.
4. Financial Select Sector SPDR Fund (XLF)
According to several thread contributors, investing in sector-based ETFs like XLF might be the way to go for those who want to focus on a particular sector. Rather than risking all your money on one or two individual stocks, investing in these funds can provide broad exposure and reduce the risk of losing money.
Related: Learn why diversifying your investments is so important
Many in the thread suggested increasing the investment in Tesla, which they consider a risky move but potentially profitable. The user expresses confidence in the company’s future and believes the investment will pay off significantly.
However, it’s worth noting that investing heavily in one company carries higher risk, as any negative developments in that company could significantly impact the value of the investment.
If you’re looking for an investment option with growth potential and regular income, Starbucks might be worth considering, according to an individual’s suggestion. The coffee giant has been expanding aggressively into the Chinese market, and they also offer a dividend, which can be an attractive option for investors seeking regular income.
An investor stated that it might be wise to purchase Nvidia, though only on any price drops. It’s unclear why they believe this is a good strategy, but it could be due to the company’s strong financials or growth potential. As with any investment, conducting thorough research and analysis before purchasing is important.
8. Armour Residential REIT Or Star Bulk Carriers
According one person, ARR and SBLK are good options for dividend return. These are stocks of companies that pay out a portion of their earnings to shareholders. ARR, or Armour Residential REIT, is a real estate investment trust primarily invests in residential mortgage-backed securities. SBLK, or Star Bulk Carriers, is a shipping company that provides seaborne transportation solutions in the dry bulk sector.
Related: Here is how to invest in dividend paying stocks
9. Industrial Select Sector SPDR Fund (XLI)
For a diversified investment opportunity in the industrial sector, another user suggests looking at XLI. This sector-based ETF provides exposure to the industrial sector, making it a compelling option to consider.
10. 3M Co (MMM)
A final user suggested 3M Co (MMM) as a stock to invest in for the dividends. MMM is a multinational conglomerate that operates in industry, safety and graphics, healthcare, and consumer goods. They have a long history of paying dividends and have consistently increased their dividend payout for over 60 years.
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