1. MSFT
Highlights:
- Good dividend history dating back 20 years (current yield 0.91%)
- Analysts have rated it a “STRONG BUY” with an average 1-year forecast of +32%
- Low valuation relative to competition (25 PE)
- Diversified revenue streams with a concentration in server and cloud services
- Impressive revenue and EPS growth
Microsoft is the best buy and hold forever stock because of its simple, reliable, and diversified product mix and it’s little talked about yet impressive dividend history. Like Google, I think we will start to see Microsoft really lean into this as they continue to mature – and it’s certainly possible given their reliable cloud-based revenue streams. Microsoft has held onto it’s dominant market position for a long time now and I think we will continue to see it long term; particularly if they can keep up their impressive historical revenue and earnings growth.
2. GOOG
Highlights:
- Google Search has a 90% market share
- Analysts have rated it a “STRONG BUY”
- Starting to build a dividend history
- Insiders have been loading up on shares
- Diversified revenue streams
- Lots of regulatory headwinds
- High valuation (28 PE) relative to the rest of Mag 7 (26 PE)
- Heavy spend on AI, ROI uncertain
- Beat their last 3 earnings calls
As Alphabet continues to mature it looks like it’s been somewhat consistently providing a small dividend yield (0.27%). And while this dividend history has been short and not consistent, the company is really starting to look like a prime candidate as a future dividend heavyweight given it’s size, maturity, consistency of revenue, and diversified product mix – and I think we will really start to see them lean into this in the near future, making this an attractive buy and hold forever stock. In addition to this potential dividend play, Google’s search engine dominance alone should give any investor a feeling of confidence even outside of it’s outstanding diversification of income streams between it’s advertising revenue, subscriptions, platforms and devices, Google Search, and YouTube ad revenue.
3. Ford (F)
Highlights:
- Vehicle sales numbers coming back up to pre-2020 levels
- ~4% dividend yield with a long, reliable dividend history
- Valuation is lower than competitors
- Exceptional EPS growth forecasts
- Impressive revenue growth
- Average analyst rating is a “HOLD” right now
- Insiders are mostly dumping shares
Despite the average analyst rating being a hold, Fords ability to consistently improve vehicle deliveries and top line revenue should offer potential investors some peace of mind. Additionally, their massive EPS growth forecasts out to December 2027 are incredibly inspiring given Ford’s valuation relative to competitors like GM. That said, the main reason we put Ford on the list of The Top Stocks To Buy And Hold Forever is mostly down to their impressive dividend history, boasting an average yield of around 4% TTM. And while this isn’t going to be next Nvidia, Ford is a solid blue chip dividend player that is highly likely to keep producing in the long term, which is why it finds itself on spot #3 on this list.
