S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

7 Forever Stocks That Are Never Bad to Buy

Posted on Thursday, April 29th, 2021 by MarketBeat Staff
7 Forever Stocks That Are Never Bad to BuyInvestors thought 2021 would be a less volatile year. That narrative has run into some problems. Sure, all the major indexes are up for the year. And that’s despite the NASDAQ’s gut-wrenching 10% drop in March.

But many investors don’t feel much like celebrating. In fact, many are concerned about the liquidity that continues to be pumped into the stock market. In 2020, the pandemic flooded the economy with $6 trillion dollars of stimulus.

However, in the last few months, the Federal Reserve has introduced another $6 trillion into the economy. We would have stopped counting, but the math is pretty easy. It’s $12.3 trillion that has flooded into the economy.

Eventually, this is going to end badly. But timing the market is an imperfect science particularly when many investors are enjoying the game.

Fortunately, there’s a way to safeguard your portfolio without abandoning equities. That has to do with investing in forever stocks. Forever stocks aren’t magic beans. They don’t go up forever. But they are stocks that have stood the test of time. And investing in these stocks will keep your portfolio heading in the right direction.

With that in mind, we’ve put together this special presentation that showcases seven of these forever stocks. These are all stocks that are household names, but that’s kind of the point. You don’t need special knowledge. You just have to recognize that these are companies that consistently do right by their shareholders.

#1 - Amazon (NASDAQ:AMZN)

Amazon.com logo

I’m usually hesitant to put Amazon (NASDAQ:AMZN) on a list like this because it seems too obvious. And with a stock price of around $3,300 per share, many investors view Amazon as a stock that’s too expensive for their portfolio.

And there’s a reason for that. Amazon has a market capitalization of $1.67 trillion. And AMZN stock has grown over 400% in the last five years. And in the last 12 months, the stock has climbed 37%. The company is a cash-flow generating machine and has strong revenue from both its e-commerce and Amazon Web Services (AWS) businesses.

And yet for all of that, Amazon stock is up just 3% in the last six months. Many investors are looking to see if the grass is greener with one or more of these newly public companies. But it doesn’t get much greener than Amazon which, even without a dividend, merits a spot on this list.

About Amazon.com

Amazon.com, Inc engages in the provision of online retail shopping services. It operates through the following business segments: North America, International, and Amazon Web Services (AWS). The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca.Read More 
Current Price
$3,504.56
Consensus Rating
Buy
Ratings Breakdown
39 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$4,165.90 (18.9% Upside)




#2 - AT&T (NYSE:T)

AT&T logo

AT&T (NYSE:T) is the third-largest wireless provider in the United States. It has a massive customer base and is part of the ongoing 5G rollout. But it has been a difficult stock for some investors to love. In the last five years, the stock is down 19%. And the stock is only up 6% in the last year. That’s hardly the growth that some investors have become accustomed to receiving.

But this is a list of stocks you can own forever, and AT&T certainly fits that description. The company isn’t going away and neither will demand for access to wireless data. Plus, despite the numerous commercials that suggest otherwise, wireless customers are generally pretty sticky. And the company’s $2.08 annual dividend (paid quarterly) is well supported by the projected $3.12 of earnings per share in 2021. It’s fair to want growth, but you can’t minimize the important role a dividend plays in the total return on investment.

Many investors have been concerned that AT&T has been spreading itself too thin in an effort to become a more prominent media company. To that end, the company recently sold a stake in its traditional television business. That business accounted for about 17% of sales.

About AT&T

AT&T, Inc is a holding company, which engages in the provision of telecommunications media and technology service. It operates through the following segments: Communications, WarnerMedia, and Latin America. The Communications segment provides services to businesses and consumers located in the U.S., or in U.S.Read More 
Current Price
$24.22
Consensus Rating
Hold
Ratings Breakdown
7 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$31.01 (28.0% Upside)




#3 - Disney (NYSE:DIS)

Walt Disney logo

On multiple occasions last year, I was pounding the table for the Walt Disney Company (NYSE:DIS). Of course the company was going to have a difficult year. The company was dealing with a loss of revenue from its theme parks, resorts, and cruise ships. It likely won’t be until 2022 until the company is firing on all cylinders with any of those businesses.

And yet, over the last 12 months, DIS stock is up 80%. That’s because the company has more than one way to generate revenue. In late 2019, Disney introduced its own streaming service, Disney+. The company’s theme parks were not built for a global pandemic. But Disney+ was a port in the storm for many consumers who were looking for a distraction while staying at home.

Income investors may be ready to chime in about the company suspending its dividend. And it seems likely that it won’t be reinstating the dividend anytime soon. But then again, investors who stuck with DIS stock got an 80% appreciation. Investors are just starting to see what this business looks like when all the revenue streams are flowing. I think they’ll like what they see.

About Walt Disney

The Walt Disney Co is a diversified international family entertainment and media enterprise. It operates through the following segments: Media Networks, Parks, Experiences and Products, Studio Entertainment and Direct-to-Consumer and International (DTCI). The Media Networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, radio networks and stations.Read More 
Current Price
$148.11
Consensus Rating
Buy
Ratings Breakdown
20 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$200.56 (35.4% Upside)




#4 - Intel (NASDAQ:INTC)

Intel logo

Intel (NASDAQ:INTC) may not be the first name to come to mind in the semiconductor sector. But if you’re looking for a forever stock, you need to give Intel a close look. This isn’t about how many chips the company can crank out. It’s about the fact that Intel has a significant cache of intellectual property that includes a slew of best-in-class patents that are in demand.

Investors are taking notice, INTC stock is up 30% in the last six months. With the global chip shortage, there’s no reason to believe that growth is slowing down anytime soon.

And when you are checking boxes on Intel as a buy-and-hold addition to your portfolio, you have to consider its dividend. The rule of 72 suggests that you if a dividend grows at an average rate of 7.2% it will effectively double in 10 years. Intel’s dividend has gone from 18 cents in 2011 to its current level of 35 cents and in the last three years has grown at a rate of 22.5%

About Intel

Intel Corp. engages in the design, manufacture, and sale of computer products and technologies. It delivers computer, networking, data storage, and communications platforms. The firm operates through the following segments: Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Programmable Solutions (PSG), and All Other.Read More 
Current Price
$48.78
Consensus Rating
Hold
Ratings Breakdown
7 Buy Ratings, 15 Hold Ratings, 11 Sell Ratings.
Consensus Price Target
$56.35 (15.5% Upside)




#5 - JPMorgan Chase (NYSE:JPM)

JPMorgan Chase & Co. logo

The demise of the “big banks” has been proven wrong more times than investors can count. It’s not to say they haven’t had their problems. Even JPMorgan Chase (NYSE:JPM) got caught up in a controversy of its own making with its backing of a European Super League that created a strong backlash from the international soccer community. And this came on the heels of JPMorgan CEO Jamie Dimon’s recent comments that support corporate activism in the body politic.

However, those investors who have been long in JPM stock over the last five years have been rewarded with a gain of over 130%. And if you go back to 2007 (before the financial crisis), JPM stock has outperformed the S&P 500 Index.

That’s the definition of a forever stock. And over that time, the bank’s dividend has been steadily increasing. Today the quarterly dividend sits at 90 cents per share and has increased at a rate of 76% in the last three years.

About JPMorgan Chase & Co.

JPMorgan Chase & Co is a financial holding company. It provides financial and investment banking services. The firm offers a range of investment banking products and services in all capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market making in cash securities and derivative instruments, and brokerage and research.Read More 
Current Price
$161.93
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$168.18 (3.9% Upside)




#6 - AbbVie (NYSE:ABBV)

AbbVie logo

It was a little understandable that investors cooled on AbbVie (NYSE:ABBV) in 2020. Investor dollars in the biotech sector were flooding into companies racing for a Covid-19 vaccine or therapeutic. Some investors were also a little unsure about revenue as the company’s flagship drug, Humira, had lost its European patent protections.

But Humira is still protected in the United States through 2022. In the meantime, the company has a strong pipeline with drugs like Skyrizi and Rinvoq. Plus the company acquired Allergan in 2020 which only adds to the company’s potential growth.

And AbbVie is a great example of a company that delivers both a large dividend and a great yield. The current quarterly dividend is $1.30 per share and has increased 84% in the last three years. And the company’s current dividend yield is 4.70%.

ABBV shares are only up 5% since the start of the year which is presenting investors with a terrific opportunity to enter or expand their position in this forever stock.

About AbbVie

AbbVie, Inc is a research-based biopharmaceutical company, which engages in the development and sale of pharmaceutical products. It focuses on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease; metabolic diseases, comprising thyroid disease and complications associated with cystic fibrosis; pain associated with endometriosis; and other serious health conditions.Read More 
Current Price
$116.51
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$131.00 (12.4% Upside)




#7 - McDonald’s (NYSE:MCD)

McDonald

I have occasion to pass my local McDonald’s (NYSE:MCD) nearly every day. This particular location in small-town America is still not open to dine-in customers. But I keep thinking, why would they ever reopen their doors again? The drive-thru is always busy. The new normal seems to be working just fine for the Golden Arches.

What this tells you is that McDonald’s has made a successful pivot to a digital model. In fact the company is saying that digital is not only its present, but also its future.

But I understand that anecdotes don’t make your portfolio grow. So let’s go with this. In the ten-year period ending April 2, 2020, MCD stock had delivered a total return for investors of over 180% without reinvested dividends. If an investor had reinvested dividends the return would be over 250%.

And speaking of that dividend, the company currently pays a quarterly dividend

About McDonald's

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S.; International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations in the United States. The International Operated Markets segment comprises operations and franchising of restaurant in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the U.K.Read More 
Current Price
$250.01
Consensus Rating
Buy
Ratings Breakdown
25 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$267.55 (7.0% Upside)



 

In times of market volatility, it’s wise to remember that this is but a moment in time. Investors of a certain age can point to previous times when experts were proclaiming the sky was falling. And many of these investors can point to times when they wish they had zigged instead of zagged. But they can probably also point to some great outcomes that occurred by just holding onto some quality stocks.

True long-term investing is measured in years, not months. And as our list shows you, it doesn’t have to be limited to dividend stocks. You can, and should, look for stocks that can give you some growth. But while speculating on the next multi-bagger can be fun, having a solid base for your portfolio is a much better way to sleep soundly no matter what madness is captivating the market.

If that’s an investment style that suits you, consider one of these seven forever stocks. Each one offers a business model that will provide stability and growth to help your portfolio stand the test of time.

10 Great Cheap Stocks to Buy Now for Under $10

As the P/E ratios of most S&P 500 companies look very expensive and the stock market continues to hit new all-time highs regularly, it's challenging for investors to find cheap stocks to buy now.

This goes for both share price since most stocks are trading higher on a per-share basis and valuation relative to earnings. Right now, the typical S&P 500 company is trading at about 25 times forward-looking earnings. Historically, S&P 500 companies have traded at about 15 times earnings in more normal markets.

While the S&P 500 as a whole is expensive, there are still a handful of undervalued stocks trading at less than $10.00 per share. Value investing opportunities for value exist if you know where to look. Putting together a list of cheap stocks to buy now requires looking into some smaller, riskier, unloved, or undiscovered parts of the market. These low-priced stocks might not look especially attractive today, but long-term investors stand to profit if they are willing to be patient and hold onto shares of these companies through multiple market cycles.

Some of these companies are great investing ideas because they're too small and too risky to attract most mutual funds and Wall Street money managers. Others have been beaten up by the market after a period of slowing earnings and profits but are now trying to turn around and bounce back.

You might find marijuana stocks, dividend-paying stocks, large-cap stocks, growth stocks, small-cap stocks, and even some bitcoin stocks in this list. While these low-priced stocks have many differences, these 10 stock picks all share a common characteristic, a super-low share price of $10.00 or less.

View the "10 Great Cheap Stocks to Buy Now for Under $10" Here.





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