The value investing strategy tells us to only buy blue-chip stocks that are undervalued. And we should buy and hold them forever to profit from growth in capital and long-term dividends.
We share 5 lesser-known blue-chip stocks that you should buy and hold forever.
Contents
Why Buy and Hold a Stock Forever?
Buy and hold is a long-term passive investing strategy where we find a competitive company that will maintain good financial health and grow for a long time. Then we can purchase shares in the blue-chip company.
If the company happens to pay dividends consistently, then the buy-and-hold strategy can help us accumulate passive income.
A good way to pick undervalued blue-chip stocks is by fundamental analysis. Then the buy-and-hold strategy can reduce our emotional stress from constantly following the market movements. The less frequent trading activity means we incur fewer fees, increasing our chances of beating active investors who trade very often.
How to Pick Stocks to Buy and Hold Forever?
We need to pick stocks to buy and hold forever by two key points: upside potential and stable dividends.
- The fundamental analysis can help us find the potential upside of an undervalued stock, that has enough margin of safety to limit our risks.
- A stock that pays dividends regularly can help us grow passive income while holding it indefinitely.
Our scanner finds the best Bullish Value stocks from thousands of companies using both fundamental and technical analyses. We filter stocks with at least 0% Upside and more than 25 consecutive dividend-increasing years. So we can find undervalued dividend aristocrats with a good margin of safety to buy and hold forever.
Best Stocks to Buy and Hold Forever
The filtered list shows the best stocks to buy and hold forever are:
| Stocks | Description | Last | Fair value | Upside | Dividend yield | Years of dividend growth |
|---|---|---|---|---|---|---|
| UGI | UGI Corp | $24.60 | $27.50 | 11.79% | 6.84% | 36 |
| XOM | Exxon Mobil Corp | $105.85 | $119.87 | 13.25% | 3.66% | 41 |
| JNJ | Johnson & Johnson | $162.30 | $162.59 | 0.18% | 3.12% | 62 |
| ABM | ABM Industries Inc | $40.56 | $45.79 | 12.89% | 2.13% | 56 |
| BANF | BancFirst Corp | $87.15 | $100.19 | 14.97% | 2.00% | 30 |
UGI
UGI Corporation is an energy company that specialises in natural gas and energy trading. It owns the largest gas distributor in the US, AmeriGas, and also owns AvantiGas, Antargaz and Flaga in Europe. Its natural gas distribution network covers more than 13 countries in Europe.
UGI has increased dividends for more than 36 years in a row over its 140-year history. UGI has an 11% Upside potential right now, and can provide 6% dividend yields to a shareholder.
XOM
Exxon Mobil Corporation is the surviving company of oil company founded by John D. Rockefeller 140 years ago. It is the largest multinational oil company in the US. It specialises in extracting oil upstream, creating petrochemical products downstream, and also developing carbon capture technologies.
XOM has increased dividends for more than 41 years in a row. It has a 13% Upside potential right now, and can provide 3% dividend yields when held long-term.
JNJ
Johnson & Johnson is one of the largest pharmaceutical companies in the world. The company specialises in developing and marketing health and medical-related products. Their products are distributed through pharmaceutical chains around the world. It has become one of the top 40 enterprises in America since its founding 130 years ago.
JNJ has increased dividends for more than 61 years consecutively, making it a dividend king. It can provide 3% dividend yields for an investor.
ABM
ABM Industries provides integrated services, from electricity, lighting, energy to air conditioning, mechanical, and transportation services. It continued to increase dividends every year for the last 57 years out of its 100-year history.
By buying and holding a dividend king like ABM, you have an Upside potential of 12%, and also 2% dividend yields.
BANF
BancFirst Corporation is a financial service provider based in Oklahoma, US. It has more than 100 banking locations throughout the state, and has served local customers for more than 50 years.
It increased dividends every year for the last 30 years, and a BANF shareholder has a 14% potential Upside with more than 2% dividend yield.
Now you know how to find consistently profitable dividend stocks, you can use the Bullish Value Stocks list to find investments to buy and hold forever.
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