It is not wrong to have strict criteria when choosing companies in which to invest in the long run. After all, if you intend to park your money for years and still enjoy a good night’s sleep, these companies must have certain key attributes that make them attractive for long-term investment. Not many companies make redundancies, but for those who do, it’s worth looking at them a second time.
Some aspects I am looking for are companies that have a strong competitor and are market leaders in their respective industries. Ideally, they should have long experience in growing their revenue, net profit and cash flow, while having a good track record for future growth. Finally, they must show that they are resilient to crises such as the current COVID-1
Once you’ve filtered a bunch of companies, here are three stocks that you can confidently buy and keep forever.
PayPal 09.30 NASDAQ: PYPL is a major player in the online payments and money transfer industry. The pandemic has accelerated the transition to online communications and work and learning from home, and has also prompted more people to use e-commerce and online payments as blockages continue. The company is a major beneficiary of this change, as in the third quarter it achieved the strongest growth in total payments and revenues in its history.
Total payments increased 36% year-over-year to $ 247 billion, with net revenue up 25% year-over-year to $ 5.5 billion. For the quarter there was an increase in net new active accounts, an increase of 55% compared to the previous year to 15.2 million. Prior to this stellar performance, PayPal had already shown steady and steady growth over the years. Net income rose from $ 9.2 billion in 2015 to $ 17.8 billion in 2019, while net revenue doubled from $ 1.2 billion to $ 2.5 billion over the same period.
The company does not stand still, but continues to advance on strategic initiatives to increase its reach. It has expanded its Buy Now, Pay Later service in the United States and the United Kingdom, helping merchants capture more transactions without additional risk, while enabling customers to make interest-free purchases. PayPal also introduced its Venmo credit card in partnership with Visa (NYSE: V) and announced a new customer check-in feature for its digital wallet, making the service more convenient and hassle-free for them.
One of the largest companies for sports shoes and clothing in the world, Nike 04.30 NYSE: OF, proved extremely resilient during this pandemic. The company is known for its innovative shoes such as Vaporfly and Alphafly Next%, which improve the performance of athletes during competition. For its first-half profit in fiscal 2021, the company reported surprising revenue growth of 4% year-on-year to $ 21.8 billion, while net income increased 12% year-on-year to $ 2.8 billion. Remarkable is Nike’s momentum for digital sales, where digital sales jumped 84% year-over-year with a three-digit increase over the year recorded in North America. Nike’s digital strategy is bearing fruit and promises a long track to continue growing the business.
The company is not slowing down the launch of its products even with the growing pandemic. John Donahoe, CEO of Nike, talks about the new launches of the LeBron XVIII and Kyrie 7 during the quarter, which met with an enthusiastic response. And Nike’s latest release, Mercurial Vapor 14, promises to allow athletes to make sharp turns without losing balance.
Nike recently increased its quarterly dividend by 12% on an annual basis to $ 0.275 per share, making the company’s 19th consecutive year of dividend increases. This move brought him closer and closer to becoming a dividend aristocrat.
Tractor supply company
Tractor supply company (NASDAQ: TSCO), the largest rural retailer in the United States with a total of 1,904 stores in 49 countries, continues to grow strongly despite the decline. Net sales for the third quarter of 2020 increased by 31.4% on an annual basis, while comparable store sales jumped by 26.8% on an annual basis. Net income rose 56% year-on-year as the pandemic prompted more customers to focus on caring for their homes, land and animals, boosting demand for the company’s products.
Even before the crisis, the tractor supply company was already growing steadily. From 2015 to 2019, sales grew unsuccessfully each year, rising from $ 6.2 billion to $ 8.4 billion, while net profit rose from $ 410.4 million to $ 562.3 million. Dollars. Declared dividends also rose in tandem with net profit, rising from $ 0.76 in 2015 to $ 1.36 in 2019. The company has strong experience in growing the number of its stores, with about 10% compound annual growth rate over the last 20 years.
Life Out Here’s strategy focuses on five pillars: customers, digitalization, performance, team members and total shareholder returns. This strategy promises to continue to stimulate the company’s growth as it establishes itself as a place for agricultural and agricultural equipment. Operating in a highly fragmented market, Tractor Supply Company sees a total addressable market opportunity of $ 110 billion, of which only 10% has market share, suggesting a significant opportunity to further capture market share. The company has also identified growth opportunities for new stores so that the number of stores can reach 2,500 eventually.