As an investor, I like to do as little work as possible when building a portfolio. Yes, I love investing, but I also love my family and my hobbies as well. As a result, I don’t like to spend the majority of my time researching and picking stocks for short-term gains. I like long-term plays.
The stocks below are great additions to a portfolio and don’t require constant attention. You can buy them with confidence that in the years to come, they will provide you with income through dividends and price appreciation.
Granted, when you purchase buy-and-forget stocks, you can’t forget them forever. You still need to check in every so often to make sure things are running smoothly, but the check-ins aren’t that frequent.
3 Great Buy-And-Forget Stocks
- #1. Facebook (NASDAQ:FB)
When Facebook IPO'd, it did so to much fanfare, but with little in the way income. As a result, the stock price sank.
Boy have times changed. Not only does Facebook make an income, it now dominate social media. As proof of this, just look at Snap (NYSE:SNAP). Many investors thought it was the next hot stock, but it has floundered as Facebook beats it at its own game.
Currently, Facebook has over 1 billion users and in its latest report saw an 18% increase in user growth.
Looking at the numbers, they tell a great story as well. Earnings per share came in at $1.04, which beat estimates by $0.18. Revenue was at $8 billion, which beat estimates by $200 million. Even more telling, however, is that revenue was up 49% compared to last year.
As Facebook continues to improve its algorithm for advertising, you can expect its revenue numbers to keep rising.
- #2. McCormick & Company (NYSE:MKC)
McCormick is about as boring as it gets. The spice maker isn’t a sexy company and investors won’t be seeing huge spikes in the stock price. But that's why it is one of the great buy-and-forget stocks.
It is a stable company with consistent earnings. In fact, over the past 3- and 10-year periods, the stock has outperformed the S&P 500. But most investors wouldn’t know this as again, it isn’t a sexy stock.
Earnings per share recently came in at $0.82, beating estimates by $0.06. Revenues hit $1.11 billion, which also beat estimates, this time by $10 million. Revenues were up 5% compared to last year.
As I said, nothing sexy here, just a solid company that keeps churning out results year after year.
And while the stock is pricey, you know you are getting solid growth over the long term while taking advantage of a 2% dividend.
- #3. Lowe’s Companies (NYSE:LOW)
Lowe's stock took a pause earlier this year when news hit that new-home starts were beginning to slow and the Federal Reserve was planning to start hiking interest rates. But the pullback the stock experienced is not a long-term issue as it has many things going for it.
First, even with new-home sales slowing, homeowners are still looking to update and improve their existing homes. And that's where Lowe's really shines. In fact, Lowe's is expected to see earnings growth of 15% annually for the next 5 years.
Add as Sears (NASDAQ:SHLD) continues to decline, more consumers will flock to both Lowe's and Home Depot (NYSE:HD).
When the company recently reported earnings, EPS came in at $1.03, which missed estimates by $0.03. Revenues also missed estimates by $100 million, but revenue was up compared to last year by 11%.
While these recent numbers might give some investors pause, I think Lowe's will report excellent earnings numbers in the next quarter.
Add to this the small but solid dividend that Lowe's pays and this is a perfect example of the buy-and-forget stock.
Final Thoughts
There you have 3 great buy-and-forget stocks to add to your portfolio. Like I said, I love to invest but don’t want it to consume my life. Therefore I like to pick stocks that I can hold for a long time without having to worry over them and constantly getting updates on them.
These 3 stocks are great for investors who like me, enjoy investing but don’t want to spend all of their time researching and trading stocks.