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10 Buy and Hold Stocks to Add to Your Portfolio in 2020

Posted on Thursday, March 12th, 2020 by MarketBeat Staff
10 Buy and Hold Stocks to Add to Your Portfolio“Set it and forget it” are words many investors don’t want to hear. Even the most venerable brokerage houses are encouraging their clients to actively trade so they can beat the market. Buy and hold is a relic, they say. It doesn’t reflect the reality of today.

In other words, “this time it’s different”.

As the ongoing volatility in the market shows you, it’s not different. It’s not even close to being different. The simple fact is that many active traders lose money by being too aggressive and too active for their own good.

And while it’s true that the market won’t always be this choppy, and certain stocks may be a great buy in months to come, right now investors are looking for safe harbors. One of the safest ways to invest is to find stocks that you can feel comfortable holding on to even in the worst of times. Frequently that can be because the stocks offer an attractive dividend. But sometimes, it’s also because they are in a market that is always in demand.

But that doesn’t mean you have to limit yourself to defensive stocks. You can find some quality buy-and-hold stocks that offer some attractive growth prospects.

#1 - AT&T (NYSE:T)

AT&T logo

AT&T (T) - If I were giving you a pure telecom play, I could probably find a different stock. But the reason to choose AT&T (NYSE:T) goes beyond the idea that the telecom space will always be in demand. It also extends past the breakthrough that’s happening in 5G. AT&T is about all that and more.

With the acquisition of Time Warner (NYSE:TWX) content, the company is emerging as a player in the streaming wars. And there is increasing evidence that viewers, instead of consolidating their streaming services continue to add to them. This puts AT&T in a sweet spot of being able to deliver a whole home experience that includes mobile, wireless, and potentially their entertainment as well.

The company does face a few headwinds in relation to its partnership with DirecTV. Specifically, whether DirecTV will lose its exclusive rights to the NFL Sunday Ticket, which is a primary driver of that service. But any impact from that is over a year away and in the meantime, you can be invested in a stock that has a dividend yield currently above 6% and approximately $50 billion in the bank.

About AT&T
AT&T Inc provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers. Read More 

Current Price: $27.38
Consensus Rating: Hold
Ratings Breakdown: 13 Buy Ratings, 10 Hold Ratings, 4 Sell Ratings.
Consensus Price Target: $33.60 (22.7% Upside)



#2 - Medtronic (NYSE:MDT)

Medtronic logo

Medtronic (NYSE:MDT) is both a health care company and a technology company. While that does make the company’s stock volatile, it also means that investors should expect stable, consistent demand for its products.

Medtronic’s goal is to be a leader in robotic surgery and surgery training solutions. To this end, the company bought Mazor Robotics a company out of Israel that provided robotic-assisted surgery (RAS) systems. Digital surgery will usher artificial intelligence (AI) into the surgery realm. But aside from this catalyst, there are other reasons to own MDT stock. They have a trailing free cash flow of over $6 billion, which means they have plenty of cash to deploy into research and development. Even with that said, the company has a deep pipeline of products and is expanding its reach beyond the United States. And the company is a dividend aristocrat, meaning that it has increased its dividend every year for at least 25 years.

About Medtronic
Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. Read More 

Current Price: $107.93
Consensus Rating: Buy
Ratings Breakdown: 23 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $117.86 (9.2% Upside)



#3 - 3M (NYSE:MMM)

3M logo

3M (MMM) At the J.P. Morgan (NYSE:JPM) Industrials conference on March 10, 3M (NYSE:MMM) CEO Mike Roman estimated that the company’s potential revenue for respiratory products related to the coronavirus outbreak could be around $250 million.

While that should provide a boost to the company’s top line numbers heading into a quarter that is going to be brutal for most companies. But that’s not the reason why I like 3M. The reason I find 3M appealing is that the company is sort of a contrarian. Where other companies are becoming hyper-niche focused, 3M maintains a broad reach into other sectors beyond health care.

One of those sectors is manufacturing. That sector’s recovery is being delayed due to the voluntary and (perhaps mandatory) quarantines that will keep down production. But, at this time, manufacturing is expected to have a strong push later this year and into 2021.

And like many stocks on this list, 3M is a dividend aristocrat. It has a very attractive dividend yield of just under 4% (3.99 as of this writing) and has increased its dividend every year for the past 42 years.

About 3M
3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment offers personal safety products, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules to industrial, electrical, and safety markets. Read More 

Current Price: $166.16
Consensus Rating: Hold
Ratings Breakdown: 2 Buy Ratings, 8 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $169.92 (2.3% Upside)



#4 - Walmart (NYSE:WMT)

Walmart logo

Seeing Walmart (NYSE:WMT) on this list may make you wonder what, no Amazon (NASDAQ:AMZN)? Amazon is certainly a company for you to consider for growth. But if you’re looking for a steady Eddie to guide you to, and through, your retirement years, Walmart may be a better, and cheaper, play.

Simply put, Amazon has a market cap about 2.5 times what Walmart has. However its stock price is more than 10 times that of Walmart and the latter offers a dividend. Walmart has been no slouch when it comes to growth either. The stock is up nearly 40% in the last five years.

The company is an example of how traditional brick-and-mortar retailers can compete against Amazon. Rather than concede the digital space to Amazon, Walmart made investments in their online space. And with the emergence of order online, pickup at store or even have it delivered to you, they are winning customers.

And for investors looking for shining stars in what looks to be an impending bear market, you can look at Walmart. The company’s stock was among the least affected during the country’s last recession which occurred in 2008-2009. The company is also a dividend aristocrat that has increased its dividend for the last 45 consecutive years.

About Walmart
Walmart Inc engages in the retail and wholesale operations in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, asda.com, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications. Read More 

Current Price: $142.16
Consensus Rating: Buy
Ratings Breakdown: 26 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $141.35 (0.6% Downside)



#5 - Alphabet (NASDAQ:GOOGL)

Alphabet logo

Alphabet (NASDAQ:GOOGL) is not a dividend darling. But the company continues to build shareholders equity. In the summer of 2019, Alphabet announced plans to buy back $25 million of stock. For some analysts, this was a step in the right direction for a company they have been critical of for focusing too much on stock-based compensation for its employees and not enough on its shareholders.

But maybe this is a preview of things to come. Alphabet for sure is looking towards the future. Many analysts are concerned about the possibility of the company coming under regulatory fire. This, in turn, is causing speculation that the company could start seeing declining ad revenue from internet search.

That, however, is a battle for another day. What makes Alphabet compelling is that they are pivoting into areas such as artificial intelligence and cloud computing. In fact, the company is forecasting much of its future growth to come from three AI initiatives: mobile assistants, health care, and driverless cars.

About Alphabet
Alphabet Inc provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It offers performance and brand advertising services. The company operates through Google and Other Bets segments. The Google segment offers products, such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure. Read More 

Current Price: $1,584.29
Consensus Rating: Buy
Ratings Breakdown: 43 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1,687.57 (6.5% Upside)



#6 - Apple (NASDAQ:AAPL)

Apple logo

Apple is another company that does not issue a dividend, but is very worthy of being on this list. I’ve been bullish on Apple (NASDAQ:AAPL) for some time. To put it mildly, I love the company’s products. But that’s not the reason to buy the stock. It’s the fact that other people millions of others also like Apple products. The company’s Air Pods alone were one of the hottest gifts this past holiday season.

The company is expecting to see robust demand for 5G iPhones which are due out later this year. And this comes after Apple had stronger than expected demand for its Series 11 iPhones. Plus, the company continues to see growth in its Services business. This is giving the company a more diverse revenue stream.

To be sure, the company is one that has its supply chain affected by the Covid-19 virus. Despite assurances by CEO Tim Cook that the company will have product available, that remains to be seen. But this is about the long term. And Apple has been confounding its critics for years.  This is a company with a proven track record, solid sales in the present, and a future that continues to look bright.

About Apple
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. Read More 

Current Price: $115.05
Consensus Rating: Buy
Ratings Breakdown: 28 Buy Ratings, 15 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $110.65 (3.8% Downside)



#7 - Southern (NYSE:SO)

Southern logo

Southern (SO) Maybe you’re a more traditional buy-and-hold investor. If so Southern (NYSE:SO) is an ideal stock for your portfolio. Southern has increased its dividend for the last 18 consecutive years and has increased its dividend an average of 2.54% over the last three years. But the company has been growing something else for the last three years, profit. SO has averaged an 18% gain in the stock over the last three years.

Utilities aren’t the most glamorous of stocks, but they have the advantage of having regional monopolies. This means while they have razor thin margins, they have pricing power.

Southern Company operates primarily in the south, but does have a reach in other regions. Even though analysts are somewhat sour on the company’s 12-month outlook, they have a price target that, with the recent correction suggests a near 10% upside. But with utility stocks, any growth you get is the cherry on top of the sundae. Southern has a solid dividend that’s backed up by a predictable revenue stream.

About Southern
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates in four segments: Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. The company also constructs, acquires, owns, and manages power generation assets, including renewable energy facilities and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations. Read More 

Current Price: $60.61
Consensus Rating: Hold
Ratings Breakdown: 5 Buy Ratings, 7 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $62.39 (2.9% Upside)



#8 - Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson logo

To get excited about Johnson & Johnson (NYSE:JNJ) stock you have to look away from the short term news. Over the last two years, two major lawsuits have made the company’s stock more volatile than usual. However, the company has been resilient. First, the company recently posted a solid earnings report that calmed investors. And second, the company is one of several companies on the forefront of the ongoing race to develop a vaccine for the Covid-19 virus (aka: coronavirus).

Over the last five years, the company’s stock is up over 35%. And remember, this is a presentation about stocks you can buy and hold for a long time, so you’re looking for proven performance over time. You’re also looking for value. Brand Finance ranked Johnson & Johnson as the most valuable pharma company for 2020. The company is currently worth $10.9 billion.

And if the company provides a nice dividend as a bonus, that’s even better. Johnson & Johnson is a Dividend King, which means they have a 50 year history of increasing its dividend. Prior to 2020, the company had increased its dividend for 57 years and counting. 

About Johnson & Johnson
Johnson & Johnson researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment offers baby care products under the JOHNSON'S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DR. Read More 

Current Price: $143.97
Consensus Rating: Buy
Ratings Breakdown: 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $166.08 (15.4% Upside)



#9 - Colgate-Palmolive (NYSE:CL)

Colgate-Palmolive logo

There’s a reason why consumer staples stocks belong in every buy-and-hold portfolio. Companies such as Colgate-Palmolive (NYSE:CL) make products that consumers come back to again and again, regardless of the market. And with brand names like Colgate and Palmolive, CL has the advantage of brand loyalty. That’s nothing to brush aside too quickly in this market.

The last few years have been uneven in terms of growth. In fact, with the recent market volatility, the company is slightly negative for the last three years as of this writing. One explanation for this is the company got a little sloppy in how it spent its cash. Analysts and investors were not too pleased with the company’s margins. But that appears to be changing.

If you’re not invested in Colgate-Palmolive, now may be the time. According to reports hedge funds have never been so bullish on the stock and many have opened up long positions on the stock. That means institutional investors like the company’s future prospects. 

About Colgate-Palmolive
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. It offers oral care products, including toothpastes, toothbrushes, and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; and personal care products, such as liquid hand soaps, bar soaps, shower gels, deodorants and antiperspirants, skin care products, and shampoos and conditioners. Read More 

Current Price: $78.69
Consensus Rating: Hold
Ratings Breakdown: 6 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $76.64 (2.6% Downside)



#10 - Republic Services (NYSE:RSG)

Republic Services logo

The two biggest names in waste management are Republic Services (NYSE:RSG) and Waste Management (NYSE:WM). Arguably, Waste Management may be the better-known name. However, over the last few years Republic has outperformed Waste Management, and the stock has done slightly better as well. Honestly, picking one over the other is more like saying you prefer chocolate ice cream more than vanilla. They’re both good, it can be just a preference.

Although Republic Services is not a utility, they provide a service that is always needed. This means there will always be a high demand for its services. And while they have to compete for business in many markets, often with Waste Management, there’s little doubt that the buy is big enough for both companies.

Republic does have a juicy dividend in its favor. Although the company only has a yield of 1.80%, it is increasing its dividend at an average pace of 6.80% over the last three years. 

About Republic Services
Republic Services, Inc, together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico. The company's collection services include curbside collection of waste for transport to transfer stations, landfills, or recycling processing centers; supply of waste containers; and renting of compactors. Read More 

Current Price: $90.86
Consensus Rating: Buy
Ratings Breakdown: 7 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $94.23 (3.7% Upside)

 

We may look back on the coronavirus as an event that brought the word “security” back into investors’ minds. Stocks are certainly taking a beating, and if you’re hesitant to jump back in, that’s OK. However, the market will come back and when it does, the companies listed in this presentation will still be among the highest quality stocks you can own.

The thing about high-quality buy-and-hold stocks is that they provide a certain amount of peace of mind. In volatile market conditions, you’ll still have more ups and downs than you may like, and when the market is racing higher some, but not all, of these stocks, may not deliver market-beating growth. But remember, you’re buying these stocks for the long haul, not the short run.

The definition of buy-and-hold stocks may be changing, but remember the proof is in the performance. Over time, buy-and-hold stocks should not be leaving you anxiously monitoring every dip in the market. They should be the stock that you look at every five years and remember exactly why they fit your plan.

8 Consumer Staples Stocks That Offer Good Value

Chances are you’ve been spending more time at home than usual. You may also be spending more of your budget on some creature comforts that might normally make it on your shopping list. These are the consumer staples that you rely on every day.

And that’s what makes the consumer staples one of the most interesting sectors for investors.

For starters, consumer staples are defensive stocks. They are stocks that tend to perform well when the economy is doing well or when it is performing poorly. That’s because they are essentials like toilet paper, packaged foods and beverages, even alcohol and tobacco.

Now the opposite side of this coin is that the price you pay for these items is somewhat fixed. And that means these stocks don’t fit the definition of growth stocks. But the Covid-19 pandemic has changed that equation a little bit. It’s not that people are necessarily paying more for these items. But they are buying more of these items.

And this means that consumer staples are having their moment in the sun. However, it also means that right now there are several consumer staples that are looking a little pricey. But if you know anything about these stocks, you know that many of these companies are mature companies that pay a respectable, and safe, dividend.

Fortunately, there are still several stocks that appear to have room to grow and offer a nice dividend for investors.

View the "8 Consumer Staples Stocks That Offer Good Value" Here.






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