Around our research office, we just call them our “Forever” stocks. We’ve talked about them so much over the past few years, the nickname is just easier. Everyone here knows exactly what we’re talking about.
Put simply, this is the set of stocks you could buy today and hold for the long haul. With these stocks in your portfolio, you will worry less about things like inflation or deflation… bear markets or recessions… flash-crashes or rising interest rates.
[ad#Google Adsense 336×280-IA]For example…
“Forever” Stock #8 owns the world’s most valuable brand for the fifth consecutive year, according to the latest rankings published by Forbes.
In fact, this brand is so iconic, it is worth more than twice as much as the runner-up — Microsoft (Nasdaq: MSFT) — according to Forbes.
“Forever” Stock #3 is nearly two times more profitable than some of the most respected firms on earth, including Apple and Alphabet/Google (Nasdaq: GOOGL).
In fact, these “Forever” stocks have all at least doubled the return of the market over the past decade. Just take a look:
Although there are no guarantees, I’m confident these stocks have the potential to deliver steady, market-beating gains for years to come.
This sort of “worry free” performance is exactly the reason many of the world’s richest investors, politicians, and businessmen have owned shares of these stocks for years, using them to stay ahead of the market.
I’m talking about investors like Warren Buffett, Carlos Slim, and Goldman Sachs, along with dozens of other Congressmen.
But it’s not just the elite making money off these types of ideas.
People just like you have been making money from these types of stocks for decades…
Now, keep in mind that you can’t just buy any stock, hold it forever, and expect to come out ahead. The market is littered with Enrons and Worldcoms and other companies that left investors with nothing in the end.
That’s why my Top Stock Advisor research team and I have put so much time, effort and money into compiling our report on the “7 Best Stocks To Hold Forever.” While we can never guarantee future results, the 7 “Forever” ideas in this report represent what we think is your best chance at profiting from some of the safest names around over the long term.
And while I can’t reveal all seven names to you in today’s essay (that wouldn’t be fair to my premium subscribers), I’ll share one name with you today…
Forever Stock #3 Revealed…
Hershey (NYSE: HSY) is a name you’ve no doubt familiar with. In fact, it’s biggest asset and competitive advantage is its sterling brand name — generations of consumers have continued to reach for Hershey’s bars and Hershey’s kisses over cheaper generic alternatives.
But Hershey isn’t just a feel-good investment. The company’s strategy is twofold: to achieve sustainable and predictable profitability in the North American market and to generate significant growth by rapidly expanding its international business.
In the United States, Hershey is already the largest chocolate maker, with a roughly 43% market share. The company is also among the top manufacturers in the larger candy, mint and gum market, where management estimates it has a 31% share.
Over the last few years, the company has revitalized its core brands and picked up market share through a combination of aggressive advertising and a larger direct sales force. The firm has also innovative new products to address new consumer trends.
While the domestic market is solidly profitable, the company’s big growth opportunities lie in international markets. Currently, more than 85% of the firm’s total business is derived from the United States. Hershey, however, sells chocolates in 70 countries and has manufacturing facilities in 14. Through an ongoing expansion abroad, the company plans to boost its international share of sales to 25% over the next five years.
While that target is ambitious, it’s achievable. Candies, mints and gums are a luxury food in many countries around the world, but as disposable incomes rise, Hershey’s products should become more affordable to an ever-increasing number of consumers in emerging markets.
Currently, the company’s most important product in China is the iconic Hershey’s Kiss; in fact, the Kiss is Hershey’s top seller across all international markets. As of 2012, some 40% of all Kisses were sold outside the United States.
But management is now introducing the company’s other brands to the Chinese consumer through stepped-up advertising and wider distribution beyond the nation’s largest cities. Hershey’s also spent $500 million in 2014 to acquire an 80% stake in Shanghai Golden Monkey, a leading regional purveyor of sweets. As a result of these efforts, the firm expects net sales in China to jump between 600% and 700% over the next five years.
Hershey: King Of Chocolate And Buybacks
Milton Hershey was famous for treating his employees well. But the company also has a long history of treating its shareholders well by returning capital through dividends and share buybacks.
Hershey has paid a dividend for more than 341 consecutive quarters, nearly 86 years. That means the company paid a dividend every quarter straight through the Great Depression — it’s hard to imagine more compelling proof that Hershey is a true Forever stock that has stood the test of time.
Dividends have increased steadily over the past 40 years, rising at an annualized rate of roughly 8% over the past decade. Management has vowed to maintain at least a 50% dividend payout ratio over the long term, a number that’s not excessive given the firm’s recession-resistant business.
Meanwhile, Hershey has implemented a number of share buybacks in recent years — the share count is down by roughly 20% since the year 2000.
Now to be fair, the relative strength of the U.S. dollar is currently a headwind for Hershey’s global expansion plans. But foreign exchange could just as easily become a tailwind if the relative value of the U.S. dollar normalizes. And over the long run, given the company’s demonstrated history of expansion and rewarding of shareholders, this is a stock investors should truly feel comfortable owning for the long-run.
— Jimmy Butts
Sponsored Link: As I mentioned earlier, Hershey is just one of seven stocks my research team and I have identified as the 7 Best Stocks To Hold “Forever.” These are the kinds of stocks you can feel confident owning through recessions, wars, flash crashes… and more. To get your hands on the full list of stocks, I encourage you to visit this link.
Source: Street Authority