Supply chain troubles and inflationary pressures have weighed down corporate bottom lines this year, resulting in widespread stock market sell-offs. The volatility is having a dizzying effect on investors with plenty of uncertainty in the market. Hence, one of the best ways to take advantage of the downturn is to invest in high-quality bets for the long haul.
There is an array of top-quality companies out there with robust financials and encouraging outlooks that are trading at beaten-down prices at this time. Investors should be a little proactive in their approaches towards long-term stocks that could pay plenty of dividends down the road. That said, let’s look at seven long-term stocks that you could easily hold for the next decade.
| PYPL | PayPal | $77.98 |
| CVX | Chevron Corporation | $145.12 |
| COIN | Coinbase Global | $61.27 |
| TXN | Texas Instruments | $154.98 |
| PINS | $20.99 | |
| NVDA | Nvidia | $168.66 |
| MSFT | Microsoft | $263.54 |
Stocks to Own Until 2032: PayPal Holdings (PYPL)
Digital payments company PayPal Holdings (NASDAQ:PYPL) is down over 50% from its all-time highs. Investors are concerned over a slowdown in e-commerce transactions in the post-pandemic world, the loss of business from Russia, and eBay’s (NASDAQ:EBAY) move to its payment system. Nevertheless, its strong moat should allow it to navigate the current crisis with confidence effectively.
A lot has to with its sheer scale, shown by its $1.25 trillion payment volume last year. It expects payment volumes to exceed $1.4 trillion this year, which should help navigate headwinds. Moreover, despite the challenges at this time, it expects to generate $5 billion in free cash flows in 2022.
Moreover, its digital wallet, Venmo, has had plenty of traction of late. It allows users to pay through their credit cards and QR codes and go for crypto purchases. Additionally, with its partnership with Amazon (NASDAQ:AMZN), users can use Venmo as a payment option, another long-term growth driver. During the first quarter, payment volumes for Venmo increased by 12% to $58 billion.
Chevron Corporation (CVX)
Chevron Corporation’s (NYSE:CVX) stock has been on a tear of late, up almost 38% in the past year.
The primary catalyst behind its movement is the perfect storm of positives for the oil and gas sector. With rising oil and gas prices, Chevron’s revenue growth has soared over 84% year-to-date, with close to a 220% increase in its EBITDA. Consequently, the Oracle of Omaha Warren Buffet’s Berkshire Hathaway’s (NYSE:BRK.A, BRK.B) stake in the business increased by over 475% at the end of March.
With its cash war-chest, it plans to accelerate its plans to become a major player in the renewable energy business. It recently announced $2.5 billion worth of investments in hydrogen and acquired Renewable Energy Group to fuel the production feedstock, supporting future renewables production.
Stocks to Own Until 2032: Coinbase Global (COIN)
Next on the list is the leading crypto exchange platform Coinbase Global (NASDAQ:COIN). You are probably wondering why a crypto-related stock is on the list, considering how the market has tanked of late. Crypto follows a boom-and-bust cycle, so investors must follow a long-term mindset. The industry will likely thrive in the future of the metaverse, Web3 and whatnot.
Based on trading volumes, the company made roughly 87% of its revenues in the first quarter from its transaction fees. Though it generates the bulk of its sales from transaction volumes, it is looking to diversify its revenues towards recurring income streams.
Some areas it is looking to target include crypto staking, an NFT marketplace and a cloud computing solution. If it can successfully diversify into only a handful of these services, it could be looking at an incredible long-term growth runway ahead.
Texas Instruments (TXN)
Texas Instruments (NASDAQ:TXN) is a mainstay in the semiconductor market, generating consistent top and bottom-line growth for the past several years. It also offers an attractive dividend payout that’s been growing for over 16 years with a 3% yield.
TXN has exposed itself to a wide variety of industrial segments and has pounced on high-growth markets. Most of its revenues are from analog chips, while the rest accrue to embedded processing. Sales from analog chips are growing at double-digits over the past several years, adding significantly to its long-term case.
Estimates suggest that Analog Integrated Circuits (ICs) market could grow at a healthy 5.5% from 2021 to 2026. Moreover, the industrial and automotive devices markets will likely grow at a staggering pace and present the most upside for TXN.
Stocks to Own Until 2032: Pinterest (PINS)
Pinterest (NYSE:PINS) is a popular image-based social media app that thrived at the pandemic’s onset. Monthly active users (MAU) reached a record high of 478 million in the first quarter of last year, but since then, it’s downhill in that department. However, it has snapped the negative streak in its first quarter this year, adding 2 million new active users. Moreover, analysts expect a 10.4% bump in sales on a year-over-year basis during the second quarter and recover remarkably in 2023.
Management is looking to drive more engagement to the platform. It recently launched a publishing platform that enables users to post short videos to drive “deeper and more frequent engagement.” Moreover, it plans to improve its AI engine to offer a personalized experience for its users. It is testing a checkout solution whereby users could avoid leaving the platform to purchase.
Nvidia (NVDA)
Tech giant Nvidia (NASDAQ:NVDA) has been a monster performer over the years, but its stock has succumbed to the challenges presented by the market. Nevertheless, the graphics specialists continue to push forward, posting double-digit growth due to its data center and video gaming businesses.
It continues to push the envelope in the data center segment with the launch of its latest chips, including its latest H100 data center GPU based on the new cutting-edge Hopper architecture.
Moreover, it controls close to 80% of the GPU market, and the launch of its much-talked-about RTX 40 cards will help sustain the stellar growth in its gaming segment. The segment was the second-largest for the business in the last quarter, generating $3.62 billion in sales.
In addition to its solid hardware stack, its software stack continues to grow at a breathtaking pace, with services such as the Omniverse and GeForce Now adding billions to its total addressable market.
Stocks to Own Until 2032: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has become one of the giants in the cloud and software industry. It has established its dominance in the software-as-a-service (SaaS) business bolstered by Azure, Office 365, Teams, gaming and ambitions in the metaverse. The icing on the cake is its cyber security business, contributing a massive $15 billion in revenues.
Under the vibrant leadership of CEO Satya Nadella, Azure has established itself as a top challenger to Amazon Web Services. It offers over 200 services, a strategy that has allowed it to cross the $2 trillion market capitalization. Azure’s platform saw a 46% increase in sales on a year-over-year basis during the first quarter.
Its productivity and business processes segment, including Office 365, has grown over 17% from the prior-year period to $15.8 billion. Additionally, Microsoft has established itself as one of the robust cash flow generators, making over $63 billion in free cash flows on a trailing twelve-month basis, a 13.4% increase from last year.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.