Are you looking for stocks that you can put in your portfolio and just buy and forget about? With the volatility in the stock market these days, it's not always easy to find safe and stable investments to hang on to and not worry about. But as long as you invest in businesses with strong fundamentals and solid prospects for the future, you can find some great long-term options out there.
Three stocks that look unstoppable in the long run and which can be ideal investments in any portfolio are Costco Wholesale (NASDAQ: COST), Toronto-Dominion Bank (NYSE: TD), and Nvidia (NASDAQ: NVDA). Below, I'll examine why you shouldn't worry about holding onto these stocks for the long run.
Costco Wholesale
Big-box retailer Costco has proven itself to be one of the largest and most versatile retail stocks that you can own. Regardless of economic conditions, there always seems to be plenty of traffic at the company's warehouses. Not only has it generated strong and consistent growth over the years, but Costco still has plenty of room to expand internationally; more than 80% of its warehouses are located in Canada and the U.S.
The company recently wrapped up its 2024 fiscal year (which ended on Sept. 1), and comparable sales grew by 5.3% year over year. A big growth opportunity remains in e-commerce, where the comparable growth rate was even higher at 16.1%. Costco's business remains strong even with consumers struggling due to inflation.
While the stock may seem expensive, trading at more than 50 times earnings, with many opportunities for continued growth and the business flourishing under various circumstances, this is an excellent stock to buy and hold for decades.
Toronto-Dominion Bank
Toronto-Dominion Bank is a top Canadian-based bank that also has a solid presence in the U.S. It is one of the most stable stocks you can put in your portfolio as it generates strong and consistent earnings over the years. While there may be some fluctuations due to interest rates and economic conditions, it can make for an ideal long-term investment, especially as it continues to grow its operations.
One of the best reasons to own Toronto-Dominion is its dividend, which today yields 4.7%. It looks strong compared to the average S&P 500 yield of 1.3%. Toronto-Dominion Bank has been making dividend payments going back all the way to 1857. That's a period covering wars, the Great Depression, inflation, and other economic turbulence. The bank has a solid track record for paying dividends, and that's why it can be an excellent stock to hold on to.
Trading at just 10 times its estimated future profits, Toronto-Dominion is an attractively valued stock with solid fundamentals to which you can hang on for the long haul.
Nvidia
Artificial intelligence (AI) has lifted Nvidia to a monstrous $3 trillion valuation this year, but there's little reason to expect that the stock has peaked, especially when you're looking at the long run. AI is still in its early innings, meaning demand for Nvidia's chips is going to rise; according to research company Gartner, the AI chip market could be worth $119.4 billion by 2027 -- up from $67.1 billion this year. With so much growth still on the horizon for Nvidia, it's arguably still not too late to invest in it.
The tech stock has been slowing down in recent weeks (it's down 3% in three months) but if you're patient and willing to hang on, Nvidia still has the potential to generate excellent returns for you over the years. It has a price-to-earnings-growth multiple of right around 1, which indicates that it's a good value buy for investors willing to hold the stock for at least five years. And if you're prepared to stay invested even longer, Nvidia may be an even better investment.
In the past four quarters, Nvidia has generated a staggering $46.8 billion in free cash flow. With so much cash at its disposal, it will have plenty of ways to continue to find ways to reinvest and grow its business in the long run.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
