The 10 Best Long-Term Stocks of December 2023 (2024)

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Archer-Daniels Midland is an agricultural giant that provides ingredients for food, feed, energy and industrial customers worldwide. Sure, the processing, trading and shipping of crops isn’t particularly glamorous. However, unlike fashionable consumer items or high-tech gadgets, food is a product that is certain to see consistent demand regardless of the ups and downs in the macroeconomic picture.

The unrivaled scale of ADM coupled with this specialization means it’s very likely to be around—and thriving—for many decades to come. And thanks to that reliable operation, this stock can provide equally reliable income. The evidence for that comes from its amazing track record of 367 consecutive quarterly dividend payments as of August 2023.

Natural gas infrastructure company Cheniere Energy Partners serves energy producers and utilities by helping to liquify, store and transport natural gas across the global economy. Its export facility at the Sabine Pass LNG production terminal in Louisiana is a key element of the global supply chain for LNG, with 17 billion cubic feet of storage capacity. CQP also owns a 94-mile pipeline that connects to other distribution networks and pipelines.

While the prices of gas can go up and down, CQP has an enviable position at the very center of the supply chain. So, no matter the margins for explorers or the price for consumers, it will be making a steady profit on the storage and transportation of gas in the years ahead. The company also has a history of generous dividend yields that are consistently many times larger than what you’ll find elsewhere among large cap stocks.

Technically an international stock because of its Irish headquarters, CRH is one of the largest building materials companies in North America. According to a recent investor presentation, it has a No. 1 market position in asphalt, concrete and aggregates used in building and road construction. It also provides building and civil engineering services in addition to raw materials.

It’s safe to say that infrastructure isn’t going away anytime soon. And if anything—given the very poor marks in recent years from the American Society of Civil Engineers regarding the state of America’s roads and bridges—it seems a safe bet that CRH will continue to cash in for the foreseeable future on this very necessary work.

After a recent transition to U.S. primary listing of its stock on the NYSE, you can easily buy and sell this pick like any domestic blue chip.

Hartford provides insurance and financial services ranging from homeowners and life insurance to investment management and branded mutual funds.

HIG’s advisory services currently boast nearly $130 billion in assets under management. And in a rising interest rate environment like we have today, financial services such as Hartford can make good use of their idle cash. But the company was founded back in 1810. It has consistently thrived in various market conditions, making it an ideal investment candidate for troubling times.

The company currently pays 42.5 cents per quarter in dividends—more than four times the 10 cents it paid back in 2013—demonstrating long-term dedication to delivering consistent income to its shareholders.

As the largest home improvement retailer in the U.S., Home Depot operates about 2,300 retail locations nationwide and employs over 475,000 workers.

While new home sales may be difficult right now in a high interest rate environment, interestingly enough HD stock is doing pretty well thanks to how folks who can’t afford to move are sprucing up their current accommodations.

There is certainly a cyclical element to Home Depot, as with all consumer stocks, but its dominance within its niche and massive scale across the U.S. make it very difficult to push it from its perch as one of the largest retailers. And thanks to a big push into e-commerce and delivery, not even Amazon.com can compete with this specialty retail leader.

A blue chip dividend stock that has been increasingly important in an era of geopolitical unrest, aerospace and defense giant Lockheed Martin is an industrial stock with staying power.

LMT is the corporation behind iconic war machines such as the F-117 stealth fighter, the F-16 Fighting Falcon and massive C-130 Hercules military transport plane. And amid the recent government shutdown shenanigans, it’s worth noting that the Department of Defense is not included in so-called “discretionary” spending. So there’s little risk of LMT seeing its revenue dry up even as Congress bickers over whether or not to fund other parts of the government.

With a current dividend of $3.00 per quarter, nearly triple what it paid a decade ago, this is a stock with staying power, but it also has a strong commitment to sharing the wealth with stockholders over the long term.

While there’s a lot of hype around the future of electric vehicles and new companies ramping up to meet demand, it’s important to remember that legacy automakers are just as much a part of this evolution. And with small Chinese startups facing limited production capacity and tough competition in the space, it may be a wiser bet to depend on a conglomerate like Stellantis.

STLA makes Dodge and Ram trucks, Jeep SUVs, Maserati sportscars and European compacts like Alfa Romeo and Fiat—among many other nameplates. Currently EVs only make up a sliver of the company’s business with production just under 300,000 of these vehicles in 2022, but it’s ramping up capacity fast with a target of 5 million electric vehicles by 2030.

With big brands under its belt and existing capacity it simply needs to retool, STLA could be considered by some to be a reliable long-term bet on the future of transportation.

One of the largest foodservice companies in the U.S., Sysco proved its long-term staying power during the pandemic by snapping back much more quickly than other stocks that were harder hit by Covid-19 restrictions.

In fact, by spring 2021 SYY stock had raced back to its prior highs thanks to the company’s massive and efficient distribution network. Delivering everything from meat and products to kitchen appliances and utensils, this company is embedded in the restaurant industry. That has helped fuel a very impressive track record of more than 50 years of consecutive dividend growth.

Given that Americans spend 30% more on dining out compared to home-cooked meals and groceries, SYY’s size and reliability make it an excellent long-term stock choice.

Tractor Supply has a tremendous track record of consistent growth, and a powerful brand that has made it one of the go-to retail stocks of the last decade

As the name implies, Tractor Supply is a retailer focused in part on farming products, though many of its customers are not full-time farmers and rather rural consumers looking for pet food or gardening products. The company made some shrewd moves recently to expand through the sale and lease-back of stores as well as acquisitions, with a current store count of 2,180 but a long-term target of up to 3,000 locations.

With a loyal customer base in underserved retail areas and the kinds of products that aren’t as easily or cheaply shipped via e-commerce, TSCO has staying power.

Valero is primarily an oil refinery, meaning its main source of cash is not drilling for fossil fuels but taking crude oil and turning it into other usable petrochemical products including gasoline for cars.

Based on the day-to-day market environment, its margins can fluctuate due to the gap between the crude oil it purchases from production firms and the refined products it takes to market. But long term, Valero offers a consistent business at a scale that is difficult for other businesses to match.

And given the very expensive nature of spinning up a refinery network from scratch, VLO has a wide moat that all but ensures it will continue to be around operating for many years to come.