Three stocks to hold for the next 20 years

The best stocks are often not the companies that just popped up. Instead, it’s a sustainable business that keeps the competition at bay. decades of steady growth. Being a long-term investor is advantageous because you can partner with these great companies and benefit as a shareholder.

However, with thousands of stocks to choose from, identifying the right stock for your investment strategy is essential. Whether you’re looking for growth, big dividends, or something in between, here are three stocks worth considering.

Stocks for growth investors

Airbnbs (ABNB 1.49%) It has become a huge name in the hospitality industry. The company holds nearly 20% share of the total vacation rental market, primarily through its easy-to-use platform for people to list or book homes, condos, and other properties.

The company went public during the pandemic, and travel restrictions took a toll on Airbnb’s business. Earnings have soared to over $8 billion for him over the past year. In the third quarter, we approached 100 million nights and experience bookings and generated record revenue.

Airbnb’s technology platform remains highly profitable, and the company converts 40% of its revenue into free cash flow. This equates to more than $3.2 billion in cash gains over the past year.

ABNB Earnings (TTM) Data by YCharts

The short-term rental market is booming. Grandview Research estimates that the industry could grow 11% annually through his 2030. Airbnb has an opportunity to grab market share from hotels and other traditional lodging options, and the industry’s tailwinds should provide enough fuel for long-term growth. The stock is down nearly 50% throughout the bear market, offering investors a great opportunity to buy shares in this thriving company long-term.

High Yield Dividend Ideas

Anyone with a cell phone in America knows Verizon Communications (VZ 1.27%)the company is not only America’s second largest wireless network, but it also shoots ads all over TV to fight for your business against the select few that dominate the telecom industry.

Verizon has spent billions of dollars over decades building cell towers and other infrastructure to deliver 5G connectivity. Businesses generate billions of dollars in cash flow from wireless bills. The stock has a high dividend yield of 6.4%, and with Verizon investing just over half of its earnings, investors can be confident that the dividend won’t be impacted by any near-term cuts.

VZ Dividend Yield Data by YCharts

The US telecommunications market is fairly saturated. I mean, who doesn’t have a mobile phone? Investors should therefore not expect anything exciting when it comes to growth. Analysts believe Verizon’s earnings per share (EPS) are likely to grow by an average of 4% annually over the next three to five years. However, this stock’s high dividend yield could make it attractive to income-oriented investors.

stocks everyone loves

Some investors are looking for stocks that have the potential to generate more than just income.sports apparel giant Nike (NKE 0.76%) It could be a stock that checks both of these boxes. Known for its famous Swoosh logo, Nike is one of the most recognizable brands in the world.

Nike sponsors many of the world’s most famous athletes, including LeBron James, Michael Jordan and Cristiano Ronaldo. The company has been steadily growing its earnings on the back of its strong brand. Nike has also become an established dividend stock. Management has raised the dividend for his 21st consecutive year.

NKE Earnings (TTM) Data by YCharts

Sports are arguably more popular than ever. Look at the multi-billion dollar contracts networks are paying for broadcast rights. This probably bodes well for Nike as well. Analysts believe Nike’s EPS will grow by a compound annual rate of 9.5% over the next three to five years. This growth, combined with a dividend tip at 1% yield, makes the stock a candidate for double-digit total returns going forward.