Investors looking to identify the best long-term stocks to buy should focus on companies with consistent earnings growth and strong financial health, not necessarily the latest futuristic headlines.
Sure, it’s easy to understand the appeal of crypto and artificial intelligence, but it’s much harder to predict which company will wind up on top.
For long-term investors, then, it may pay off to focus on businesses with wide economic moats instead of headline-grabbing technology. These dominant brands often feature loyal customers and consistent revenue, providing peace of mind if and when the market takes a tumble – and let’s face it, the stock market can’t defy gravity forever.
The following seven stocks all offer solid balance sheets and market values of more than $60 billion. They may not deliver tenfold returns overnight, but long-term investors with patience are likely to be rewarded:
Stock
Apple Inc. （ticker: AAPL）
Digital Realty Trust Inc. （DLR）
Enbridge Inc. （ENB）
Johnson & Johnson （JNJ）
JPMorgan Chase & Co. （JPM）
Meta Platforms Inc. （META）
Walmart Inc. （WMT）
Apple Inc. （AAPL）
Sector: Technology
Market capitalization: $3.6 trillion
Apple remains one of the most dominant companies in the world, with a market capitalization that proves it. The company became the first trillion-dollar stock back in 2018, but has still managed to more than triple since then despite its already massive scale. Its iconic hardware products, including the iPhone, still serve as the backbone of revenue, but long-term investors continue to be drawn to the company’s fast-growing services segment that leverages this installed user base. This division includes the App Store, Apple Pay, iCloud and Apple TV+, and now generates roughly $100 billion annually – with high margins and reliable revenue. For long-term investors, Apple offers a rare combination of growth and durability that is hard for other companies to match.
Digital Realty Trust Inc. （DLR）
Sector: Real estate
Market cap: $62 billion
Digital Realty Trust is a real estate company that could be a good long-term play on AI because it doesn’t have a proprietary system in the fight. Instead, the company specializes in data centers and colocation services, making it a critical player in the modern digital economy. With more than 300 sites across over 25 countries and major clients that include Microsoft Corp. （MSFT）， Meta Platforms Inc. （META） and Amazon Web Services, DLR has a value proposition that should be obvious to those who are following the AI megatrend. What’s more, the firm is structured as a real estate investment trust （REIT） and is required to distribute at least 90% of its taxable income to shareholders as a result. That leads to a consistent and attractive dividend that has grown around fivefold over the last 20 years, from $1 in 2005 to an annual rate of $4.88 last year. That’s long-term dividend growth worth watching.
Enbridge Inc. （ENB）
Sector: Energy
Market cap: $118 billion
It’s hard to predict which energy stocks will be good long-term investments right now thanks to oil market volatility brought on by geopolitical unrest and the long-term pressures of climate change. However, one of the largest and most stable stocks in the space is midstream energy company Enbridge. This infrastructure company isn’t an explorer drilling for crude, but rather operates pipelines, terminals and storage facilities. This business model makes the company less volatile than energy exploration and production firms, or other energy stocks that are sensitive to market prices for petroleum products. In recent years, ENB has tightened its grip through acquisitions of firms such as Spectra Energy, and has only widened its moat to provide greater long-term stability for shares. With a dividend of more than 5% and a business that isn’t reliant on commodity market prices, ENB offers long-term stability as well as income potential.
Johnson & Johnson （JNJ）
Sector: Health care
Market cap: $569 billion
Johnson & Johnson is one of the most established and reliable companies in the health care sector, with roots dating back to 1886. Its longevity is matched by its financial strength, as it remains one of only two U.S. companies with a coveted AAA credit rating. This reflects exceptional balance sheet health and consistent operational performance. Johnson & Johnson operates across pharmaceuticals, medical devices and health care technologies, providing a diversified revenue base that is largely insulated from economic cycles. Demand for health care products tends to remain steady regardless of broader market conditions, giving Johnson & Johnson a defensive edge. One of its most notable achievements is its track record of more than 60 consecutive years of dividend growth, underscoring a long-term commitment to returning capital to shareholders.
JPMorgan Chase & Co. （JPM）
Sector: Financials
Market cap: $774 billion
JPMorgan stands as the largest and most influential bank in the U.S., with a history that dates back more than two centuries. Its scale, diversified operations and strong leadership have helped it navigate multiple economic cycles, including the 2008 financial crisis that gutted other major institutions on Wall Street. It’s hard to name a bank that benefits from long-term growth more than JPMorgan, as it is the largest bank in the world by most measures when you exclude state-run enterprises in China. This is a great stock to buy if you believe in the success of the global economy in the years to come.
Meta Platforms Inc. （META）
Sector: Communication services
Market cap: $1.5 trillion
When Facebook parent Meta Platforms had its 2012 initial public offering, shares hit the market at a price of $38. Since then, shares have surged by a factor of about 16 to deliver stunning gains to those early investors. Its properties also include Instagram and WhatsApp, and they span billions of users globally. The real investment potential of Meta, however, is its ability to monetize user engagement at scale, with an advertising business of around $250 billion annually. What’s more, it’s still growing, with projected revenue expansion of 25% this fiscal year and almost 20% next year. For long-term investors, Meta offers a compelling mix of scale, profitability and growth potential.
Walmart Inc. （WMT）
Sector: Consumer staples
Market cap: $955 billion
Walmart is the largest retailer in the world, with more than 10,000 stores globally. Its scale is unmatched when it comes to brick-and-mortar sales, but it also is an online sales leader, coming in at the No. 2 spot in U.S. e-commerce behind Amazon.com Inc. （AMZN）。 Walmart has a history of using its massive operations to control costs, keeping prices low for its customers while still protecting profit margins. Furthermore, a key strength of Walmart’s business is its focus on essential goods, particularly pantry staples. It is the leading grocery retailer in the U.S., giving the company a strong baseline of sales that aren’t dependent on consumer confidence or the macroeconomic environment. This combination of size and stability makes Walmart one of the best long-term stocks to buy.
