3 stocks that should pay you for the next 50 years

Looking for stocks to buy and hold for the next five decades? These companies could be a great place to start.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Investing is all about saving for the future, putting money away today so that you can retire comfortably when the time comes. 

However, saving for retirement isn’t easy. A lot can change in 50 years, and finding the companies today, that will still be around decades from now is difficult.

Still, a long-term buy-and-hold strategy is worth pursuing because it can pay off in a big way if you get it right. Here are three companies that I believe will still be around in 2068.

Consumer goods

Dairy Crest Group (LSE: DCG) tops my list because this business has already been operating for nearly 40 years, although in one way or another, the company, which was the marketing arm of the UK’s Milk Marketing Board, has been around since 1933.

I believe this is just the start of the Dairy Crest story. The firm’s Cathedral City brand is one of the most popular consumer brands in the UK, and sales are growing. Meanwhile, the company’s cooking spray and infant formula business provides an excellent hedge against volatile milk prices. 

Dairy Crest has a stable of products that are change-resistant. As long as people keep eating cheese, cooking food and feeding babies, Dairy Crest should continue to prosper. The shares yield 4.9% and change hands at 12.8 times forward earnings.

Death and taxes

They say there are only two certainties in life: death and taxes. So if you’re looking for a long-term buy, investing in one of these trends certainly makes a lot of sense.

Dignity (LSE: DTY) is an excellent play on the former. The largest, and only publicly listed, funeral provider in the UK, Dignity offers size and scale that no other company can match.

The firm is currently trying to cope with a wave of bad publicity regarding its pricing policies but management has acted to stem the issues. It introduced a low-cost alternative and is planning to invest £50m over the next three years to deliver £8m of annualised additional underlying operating profit by 2021. Despite having already rolled out the lower price options to customers, Dignity’s revenues rose during the first half. 

As long as the company does not overstretch itself, Dignity should continue to produce returns for investors for decades to come. Trading on a forward P/E of 14 and yielding 2.4%, the stock does not look too pricey either.

Self-storage

My final buy for the next five decades is self-storage company Big Yellow Group (LSE: BYG).

Big Yellow has built a robust business model. Properties are located in highly attractive positions, specifically in urban areas with excellent transport connections. They’re also large billboards for the business, which cuts down on marketing costs.

What I like about this business is its property estate. The company has 57 Big Yellow self-storage centres, on which it owns the freehold across London, the South East and large metropolitan cities. This works out at around 78% of its property portfolio.

These properties are an insurance policy for the group. If the self-storage business does not work out, Big Yellow can always sell or let its properties to developers or other companies. With most of the portfolio located in built-up areas, demand will be high. I’m confident the firm will be around, in one form or another 50 years from now. It currently yields 3.7%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

FTSE shares: the perfect ‘get rich slow’ idea?

As a long-term investor, Christopher Ruane reckons the FTSE 100 could offer him the foundations to create stock market wealth.…

Read more »

Investing Articles

Here’s how an investor in their 30s could aim to turn a £10k ISA into £132,676 by retirement

Christopher Ruane explains how someone with a 30-year investing timeframe could aim to increase an ISA stuffed with blue-chip shares…

Read more »

Investing Articles

£10,000 invested in Rolls-Royce shares 5 years ago is now worth…

Rolls-Royce shares have made a lot of investors very rich as they push to new heights. Dr James Fox explores…

Read more »

Investing Articles

£20k split between these 2 FTSE value stocks 1 month ago is now worth…

Harvey Jones has had his eye on two value stocks from the FTSE 100. Suddenly they've both taken off at…

Read more »

Investing Articles

Gold’s hit record highs – and these former penny shares have soared over 115%!

After gold recently hit record highs, it may be no surprise that two former penny shares focused on the yellow…

Read more »

Investing Articles

£20k in a Stocks and Shares ISA? Here’s how to target passive income of £633 a month

Christopher Ruane explains how an investor could turn a Stocks and Shares ISA into a passive income goldmine with a…

Read more »

Passive and Active: text from letters of the wooden alphabet on a green chalk board
Investing Articles

How much passive income could I earn from dividends by investing £5,000 a year in the UK stock market?

When starting out it's often the first thing investors ask: how much passive income can I earn? Mark Hartley attempts…

Read more »

Young woman holding up three fingers
Investing Articles

3 steps to start investing with under £300

Christopher Ruane walks through a trio of steps that someone who wants to start investing with just a few hundred…

Read more »