3 stocks you can buy and hold forever

It is not wrong to have strict criteria in place when selecting companies to invest in for the long term. After all, if you intend to park your money for years and still get a good night’s sleep, these companies should have certain key attributes that make them attractive for long-term investments. Few companies are making the cut, but for those that do, it’s worth looking at them again.

Some aspects that I’m looking for are companies that have a strong competitive divide and are market leaders in their respective industries. Ideally, they should have a long history of growing their income, bottom line, and cash flow while having a good track for future growth. Finally, they should be resistant to crises such as the current COVID-19 pandemic.

After you’ve filtered out a whole bunch of companies, here are three stocks you can buy with confidence and hold forever.

Pay Pal

Pay Pal (NASDAQ: PYPL) is a major player in the online payments and money transfer industry. The pandemic has accelerated the shift to online communications and to work and home study, and has also pushed more people to use e-commerce and online payments as lockdowns continue. The company is a major beneficiary of this change, as it saw the strongest growth in total payment volume and revenue in its history for the third quarter.

Total payments volume grew 36% year-over-year to $ 247 billion, bringing net revenue 25% year-over-year to $ 5.5 billion . The number of new net asset accounts increased for the quarter, up 55% year-over-year to 15.2 million. Prior to this stellar performance, PayPal had already shown steady and steady growth over the years. Net income increased from $ 9.2 billion in 2015 to $ 17.8 billion in 2019, while net income doubled from $ 1.2 billion to $ 2.5 billion over the course of the same period.

The company is no exception, but continues to move forward on strategic initiatives to broaden its reach. It has extended its ‘buy now, pay later’ service to the US and UK, helping merchants capture more transactions with no additional risk while allowing customers to make purchases with interest-free installments. . PayPal also introduced its Venmo credit card in partnership with Visa (NYSE: V) and announced a new check-cashing feature for its digital wallet customers, making the service more convenient and hassle-free for them.

Nike

One of the world’s largest sportswear and footwear companies, Nike (NYSE: DE)has been remarkably resilient during this pandemic. The company is renowned for its innovative footwear such as the Vaporfly and Alphafly Next% which improve athlete performance during a competition. For its first half of fiscal 2021 results, the company reported a surprising 4% year-over-year increase in revenue to $ 21.8 billion, while net profit increased by 12% year over year to reach $ 2.8 billion. Noteworthy is Nike’s digital sales momentum, where digital sales have jumped 84% year-over-year with triple-digit year-over-year increases recorded in North America. Nike’s digital strategy is bearing fruit and promises a long track of continued growth for the company.

The company is not slowing down the launch of its products even with the pandemic raging. John Donahoe, CEO of Nike, spoke about the new launches of LeBron XVIII and Kyrie 7 during the quarter that have received an enthusiastic response. And Nike’s latest release, the Mercurial Vapor 14 shoe, promises to allow athletes to make tight turns without losing their balance.

Nike recently increased its quarterly dividend by 12% year-over-year to $ 0.275 per share, making it the company’s 19th consecutive year of dividend increases. This move brings him closer and closer to becoming a dividend aristocrat.

Tractor supply company

Tractor supply company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States with a total of 1,904 stores in 49 states, continued to show strong growth despite the recession. Net sales for the third quarter of 2020 were up 31.4% year over year, while same store sales jumped 26.8% year over year. Net income jumped 56% year-over-year as the pandemic prompted more customers to focus on caring for their homes, land and animals, leading to increased demand for the company’s products.

Even before the crisis, Tractor Supply Company was already growing steadily. From 2015 to 2019, sales grew every year without fail, from $ 6.2 billion to $ 8.4 billion, while net profit increased from $ 410.4 million to $ 562.3 million. dollars. Dividends declared have also increased in line with net income, from $ 0.76 in 2015 to $ 1.36 in 2019. The company has a strong track record of increasing the number of stores, at a compound annual growth rate. by about 10% over the past 20 years.

The company’s “Life Out Here” strategy focuses on five pillars: Customers, Digitization, Execution, Team Members and Total Return for Shareholders. This strategy promises to continue to stimulate the growth of the company as it asserts itself as the essential place for rural and agricultural equipment. Operating in a highly fragmented market, Tractor Supply Company sees a total exploitable market opportunity of $ 110 billion, of which it only holds a 10% market share, leaving significant leeway for further capture of market shares. In addition, the company also identified new store growth opportunities to bring the number of stores to 2,500 eventually.