Buy these stocks and never look back

 

Every seasoned investors knows that you should never invest your money and not track its progress. However, there are plenty of stocks out there you can consider purchasing with the peace of mind that the security will continue to thrive for the foreseeable future.

To find the best “buy and forget” stocks in the market, you first want to make sure to find stocks whose underlying businesses have proven through the years an ability to navigate even the toughest market conditions. Another good characteristic to look for are those companies that have emerged as leaders in their sector. Every sector will eventually run into problems, but the leaders within the sectors tend to hold up better due to their strong market share. This is especially true in sector that have large barriers of entry.

Dividends are another thing to look for. Building income to a portfolio is vital to long-term investing success. Whether markets are strong or weak, investors will always seek out income, and this is especially true during times of market weakness, making them a strong defensive lay for long-term investors.

We want to take a look at five stocks that are perfect candidates for investors looking for stocks to buy without the hassle of having to keep daily watch on their investments. Never forget the importance of monitoring any investment you make, but these five stocks are solid buy candidates that you can get into and hold for a lifetime.

Johnson & Johnson

Johnson & Johnson (JNJ) is best known for its consumer goods products, but the company is far more than just a consumer goods company. Johnson & Johnson is also a major player in medical devices and the pharmaceutical sector. The company’s diversity, and strong presence in each sector provides a solid defense against potential weakness in any one of its business segments. JNJ has been operating since 1885, proving the company’s ability to adapt and thrive in any market condition. Over the last five years the company has managed to grow earnings by 6.18% per annum despite negative impacts of the strong dollar, and analysts forecast average annual earnings growth of 6.35% for the next five years. JNJ is a dividend aristocrat, with a 54-year streak of increases, and a 2.53% yield. JNJ trades at $132.00, and analysts have an average price target of $133.20 on the stock.

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Chart courtesy of www.stockcharts.com

Cintas Corp.

Cintas Corp. (CTAS) provides corporate identity uniforms. Overall improvements to the economy has helped boost the company’s business, and moving forward should continue to work in the company’s favor. Over the last five years, the company has grown earnings by an impressive 16.85% per annum, and analysts expect growth to continue at an impressive pace moving forward. Looking ahead, Cintas is forecast to grow earnings by 12.0% on average for the next five years, and that level of earnings growth should be strong enough to keep the stock trending higher. Cintas is the clear leader in the sector, and with over 8,000 local delivery routes, it has a clear advantage over competitors. The sector has large barriers of entry, and newcomers to the sector would struggle to capture market share from Cintas. The company is a dividend aristocrat, with a 34-year streak of dividend increases, and currently offers a 0.97% yield. CTAS trades at $137.63, and analysts have an average price target of $131.71 on the stock.

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Chart courtesy of www.stockcharts.com

Colgate-Palmolive

Consumer goods maker Colgate-Palmolive (CL) is a clear leader in its sector, with some of the strongest brand names in the personal care consumer goods sector. Among its stable of brands are Softsoap, Speed Stick, Irish Spring, Ajax, and of course its namesake Colgate and Palmolive products. The company has been in existence dating back to 1806, and has proven through the years the ability to navigate even the harshest market environments. The company has many successful segments, but its toothpaste business is perhaps the most impressive, with a whopping 45% global market share in toothpaste. Its strong brand names give it a sharp advantage over competitors, and the sector as a whole has huge barriers of entry. The company has grown earnings by 1.0% over the last five years, which is on the low side, but that can be attributed to the negative impact of the strong dollar in recent years. As the dollar starts to weaken, earnings will grow, and analysts forecast average annual earnings growth of 7.57% over the next five years. The company offers a 2.23% dividend yield, and the company has boosted its dividend for 53 consecutive years. CL trades at $71.78, and analysts have an average price target of $75.00 on the stock.

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Chart courtesy of www.stockcharts.com

Stanley Black & Decker

Tool maker Stanley Black & Decker (SWK) operates in a competitive environment, but it has built a strong reputation for the high quality of its products, and its ability for innovation, introducing around 1,000 new products each year to consumers. The company is the leader in power tools in terms of market share, and its strong reputation is a natural deterrent to new competitors in the sector. The current housing boom has benefitted the company, and while there is some risk in a housing downturn impacting the company’s underlying business, as the market leader in tools it is in a great position to weather any overall weakness in housing. The company has grown earnings by 6.24% per annum over the last five years, and is forecast to grow earnings annually by 10.4% over the next five years. The stock has a 1.77% yield, and the company has increased earnings for 49 years. SWK trades at $142.13, and analysts have an average price target of $151.67 on the stock.

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Chart courtesy of www.stockcharts.com

SPDR S&P 500 ETF

Exchange-traded funds have become increasingly popular with investors in recent years for many reasons. Life gets busy, and ETFs make it easy for investors to purchase a diversified basket of stocks they can hold on to without having to worry about constantly keeping track of any one particular stock. SPDR S&P 500 ETF (SPY) is a fantastic option for investors looking for something to buy and hold forever, because it is designed to track the overall performance of the S&P 500. Make no mistake about it, SPY is a conservative approach to investing, as the results will not be able to outpace the overall market, but at the same time investors do not need to worry about their investment falling more than the overall market during a market downturn. With the overall markets hitting record highs, SPY has also moved to record highs. If you are bullish on the overall market, and want to make sure that you take place in the market’s future gains, SPY is a perfect security to buy and hold forever. SPY is currently yielding 1.9%.

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Chart courtesy of www.stockcharts.com

Symbols: CL CTAS JNJ SPY SWK
Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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