Most investors will not get rich overnight on the stock market. However, a long-term investment in companies with strong businesses that offer consistent portfolio growth through appreciation in stock prices and / or dividends can help you achieve financial freedom and even build true wealth. .
If you are looking for stocks that meet your expectations, you have come to the right place. We’ll take a look at two such companies in today’s article: one of the oldest and largest healthcare entities in the world, and an ever-growing e-commerce / tech / growth action. ‘explode to new heights of success.
Whether your retirement is a few years away or a few decades away, it’s never too early or too late to invest in quality companies that can generate strong portfolio returns over the long term. Let’s dive into it.
1. Johnson & Johnson
Founded in 1886, Johnson & johnson (NYSE: JNJ) has a long and remarkable history of manufacturing essential medicines, consumer goods and other products that people depend on and use in everyday life.
From well-known lines like Neutrogena, Listerine and Johnson’s, to brand name products like Tylenol, Motrin and Benadryl, successful immunologic drugs like Stelara, Simponi and Remicade, and top selling oncology drugs like Darzalex, Imbruvica and Zytiga, the Johnson & Johnson’s unparalleled status as a healthcare giant and a compelling brand authority make it a solid investment that you can buy and hold on to forever.
The company experienced an exceptional period of growth in its balance sheet in the last quarter following a strong recovery in impacted demand that it experienced for some of its products at the height of the coronavirus pandemic. In Johnson & Johnson’s second quarter report, management said sales jumped 27% year-over-year while net income rose more than 73%. Johnson & Johnson also announced diluted earnings per share (EPS) growth of just under 73% for the three-month period.
In addition to these exceptional figures, the company generated strong double-digit sales growth in each of its major business segments during the second quarter – 14% in the pharmaceutical industry, 10% in consumer healthcare and 59% in medical devices – compared to a year ago. Whereas Johnson & Johnson reported a healthy but much more modest year-over-year sales growth rate in the first quarter (8%) preceded by overall sales growth of around 1% across the board year 2020, these strong signs of recovery bode well for future quarterly reports.
Johnson & Johnson shares have been trading around 14% since the start of this year. The company has not historically been known for explosive jumps in its stock price. On the contrary, investors can achieve consistent and more meaningful portfolio growth in the form of the company’s rock-solid dividend, which is earning around 2.4% at the time of writing.
Johnson & Johnson has such an illustrious history of increasing its dividend (58+ years) that it is one of the few sacred stocks that has become the Dividend Kings club. This makes the company an ideal choice for a long-term investor’s portfolio and a significant addition to a basket of stocks that can help you build (and maintain) retirement wealth.
This stock does not need to be presented. Amazon‘s (NASDAQ: AMZN) The story of impressive stock price gains and balance sheet growth is pretty much what investors have come to know and expect from FAANG stock.
From the company’s status as an e-commerce giant (as of this year, it is expected to control a 50% share of all gross merchandise volume generated by the U.S. e-commerce market alone), to its astronomical rise as a market leader in the global cloud infrastructure industry with Amazon Web Services, to its indomitable success in industries ranging from entertainment to technology, Amazon is an unstoppable force that continues to aim for the stars and surpass the stars. consumer and Wall Street expectations.
With a single stock earning you over $ 3,200, it’s a beautiful thing that investing in split stocks is becoming an increasingly common option on major retail trading platforms. And Amazon stocks have appreciated over 320% in the past five years alone. For the context, the S&P 500 generated gains of just over 100% over the same period.
Amazon’s latest quarterly report was simply the continuation of many quarters of exceptional growth. During the three-month period, the company reported that its net sales climbed 27% year-on-year. In addition, it reported an even higher peak in its net profit of 50% compared to the period last year.
If you are an investor short on time and want to invest your money in a stock that can provide sustained, above-average portfolio returns for many years to come, Amazon is an obvious stock to buy, hold and to continue to buy more than.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.