7 Best Long-Term Stocks to Buy Now

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Historically, stocks provide superior returns compared to more conservative investments such as bonds or bank savings accounts. But to get the most out of your equity investments you have to give them time to grow. All stocks experience short-term price fluctuations.

Downturns can last weeks, months, or, in the case of a sustained bear market, even a few years. Over decades, however, the stock market has demonstrated consistent growth, and individual equity investments – if they are chosen wisely with an eye towards quality and financial strength – can contribute significantly to wealth creation over time.

Why Hold Stocks for the Long Run?

When you buy a stock you are buying a piece of a company; you now own a slice of its equity. That’s why stocks are often referred to as equities. Stockholders enjoy all the incredible benefits of ownership. If the company you’ve bought does well, that is if its market share, sales and profits grow, the value of your shares will go up. Consequently, stock ownership is one of the best ways to participate in the expansion of the world economy and benefit from all the growth, expansion and innovation that accompanies that expansion.

As an additional benefit, many stocks pay regular dividends. Dividends are a share of the earnings that a company chooses to distribute back to shareholders, usually in cash. Dividends can be saved in bank or money market accounts, used to offset current household or business expenses or they can be reinvested back into the financial markets. However an investor chooses to use their income, dividends serve to enhance their total return over the long run.

What Are the Best Long-Term Stocks to Buy Right Now?

When buying long-term stocks, it’s best to pick well-established, financially sound companies with long track records of success. Choose companies that have demonstrated their ability to weather all kinds of market conditions, economies and interest rate environments.

It’s also important to diversify your holdings. Don’t invest in just one or two industrial sectors. Remember, there’s a risk to stock market investing. Spread out that risk by buying stocks that cover several different sectors.

This article was originally published on this site