Imagine it was 2040 instead of 2020. After the year we had, that would probably be a pleasant mental shift.
Now imagine stocks you bought 20 years ago and never sold. Which stock do you own in the year 2040 that became a big winner?
This is a great exercise for investors to do as it helps you think about what stocks you should invest in right now. However, don’t worry if you have difficulty finding specific stocks. Here are three great things to buy and keep for decades.
1. Abbott Laboratory
Abbott Laboratory (NYSE: ABT) Not the kind of stock you can buy and hold for decades – you can hold it for centuries. The company was founded in 1888. Today, Abbott is ranked as one of the largest healthcare companies in the world and holds market leadership positions in all of its core business areas. me.
You can count on enjoying attractive dividend payments if you buy and hold Abbott for the long term. The Company has paid dividends annually since 1924. It has increased its dividend payout for 48 consecutive years, making it a member of the elite group of shares known as the Noble Dividends.
However, Abbott is far from just a boring dividend stock. The company’s growth outlook looks good with successful products including the FreeStyle Libre continuous blood glucose monitoring system and the MitraClip heart valve device.
More importantly, Abbott doesn’t rest on her laurels. No surprise when Fast company named this 132-year-old company “The world-changing company of 2020.” Abbott should continue to innovate over the next few decades as it always has – and continue to reward investors along the way.
2. Visual surgery
Talking about innovation, you won’t find many companies with more impressive records Visual surgery (NASDAQ: ISRG). A few decades ago, robotic surgery existed only in science fiction. Thanks to Visual, it’s now popular.
To date, more than 7.2 million surgeries have been performed using Intuitive Surgery’s da Vinci robotic surgery system. There are currently nearly 5,900 da Vinci systems installed around the world.
To be sure, the COVID-19 epidemic is now hurting Intuitive revenue and earnings, with a delay in non-emergency surgical procedures. However, this is only a temporary problem for the company. Intuitive long-term outlook remains bright.
Over the next few decades, there will be more older people in the US and other countries, due to demographic trends. This will drive the need for the types of procedures that are already well-suited to supporting robots. But Intuitive innovation will almost certainly expand the kinds of processes its robot technology can also be used for. Find a company that will continue to make science fiction a reality for a long time to come.
3. PayPal Holdings
Let’s go back to imagine you’re in the year 2040. You will probably use a lot less cash than you are now. The transition from cash to digital payments is one of the main unstoppable trends and will only accelerate over the next few decades. Some companies will benefit from this trend, but none more PayPal Holdings (NASDAQ: PYPL).
PayPal has been known for many years for providing a convenient way to pay for online purchases. This is still an important and growing part of the company. It seems that the COVID-19 pandemic will fuel the flames of e-commerce adoption.
However, PayPal’s peer-to-peer payment app Venmo is the fastest growing driver today. Seek Venmo to become an increasingly key business for the company over the coming years. It’s not yet profitable, but PayPal CEO Dan Schulman said during the company’s third-quarter conference call that Venmo will be profitable by 2022.
The company is also expanding into the traditional retail market. It currently supports contactless payments through the PayPal and Venmo apps, where users can simply scan a QR code. Over the next decade or so, PayPal will be a much larger player in both online and offline financial transactions. And it will also be a big win for investors to buy and hold this hot fintech stock.