By the age of 30, you should already have nearly a decade’s worth of retirement savings under your belt. If you don’t, you’re not alone — a recent GoBankingRates survey showed that nearly half of the millennials questioned had no retirement savings at all. If you fall into that camp, keep in mind the old saying “better late than never,” because it absolutely applies if you’re only just starting to build a nest egg. If you just hit the big 3-0 and you’ve already been saving and investing for years, bravo, however 30 is a great milestone to look over your investments and rebalance your portfolio with some of the best long-term stocks out there.
Unlike in your 20’s, risk is a much larger consideration a decade later. The market is bound to go up and down, and you have to assess whether or not you could handle a market-wide pullback. Moreover, you want to keep some powder dry to buy on a dip. Income stocks that payout dividends become an important addition at this stage, but choosing some riskier players shouldn’t be completely off the table.
Of course, investors in their 30’s should be holding some of their money in an index fund that will provide conservative growth — but here’s a look at 10 of the best long-term stocks that you should consider buying if you’re in your 30’s.
Stocks to Buy for 30-Year-Olds: Disney (DIS)
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I recommended Disney (NYSE:DIS) stock back in May when the company’s share price dipped below $100 following a racist tweet from Roseanne Barr, the star of one of the company’s most successful sitcoms. Disney responded by immediately canceling the show and distancing itself from Barr’s hateful outburst, but investors worried that the loss of advertising from the canceled show would hurt advertising income.
Since then, the market has come to its senses and DIS stock is back to trading above $105 per share — but don’t worry if you missed the dip, because Disney is stuck in a larger rut that has kept the share price from making it back to 2015 highs of $120 per share.
There are a few reasons to buy Disney stock if you’re building a portfolio in your 30’s. The first is that the company is ripe for a major comeback. All of the drama surrounding DIS stock as its Twenty-First Century Fox (NYSE:FOX) merger is scrutinized is overdone. Yes, acquiring FOX would be a boon for DIS, but it’s not the end of the world if the company has to go it alone. Disney has a bright future in the streaming space with or without FOX content.
Not only that, but Disney is a solid company with a great deal of cash behind it. That means that even in the worst-case scenario, the firm has the money to spend on building out a streaming service from scratch and weather any storms that loom over the media space in the future. The firm also pays a respectable 1.6% dividend yield that will help balance out concerns about growth due to the firm’s size.
Stocks to Buy for 30-Year-Olds: Netflix (NFLX)
Another player in the streaming space worth considering is Netflix (NASDAQ:NFLX).
If you missed the boat on NFLX back in 2015 when shares were trading below $50, it might be a hard pill to swallow, but NFLX is still an excellent long-term bet despite the fact that its share price is over $400 today.
The reason being that Netflix still has a long growth runway before investors should start to worry about the company becoming too large to produce the kind of growth they’ve become accustomed to. A company like, say, Apple Inc. (NASDAQ:AAPL) has a market cap upwards of $900 billion, making it unlikely that the firm can continue to grow at the same clip over the next decade. Netflix’s market cap of $176 billion leaves plenty of space for the firm to catch up to its fellow FAANG peers over the next decade.
NFLX has the growth potential to do so as well. The company has proven that it has a good grasp on the population’s ever-changing tastes, and although it has been expensive, Netflix’s original content has been a huge draw for subscribers. While the U.S. market has been saturated, NFLX has only just begun its international expansion, leaving a long growth runway for the next few years.
Over the past two years, Netflix has been preparing for a major push overseas, and those efforts are due to pay off over the next decade. GHB Insights’ head of technology research Daniel Ives said he sees Netflix international expansion opening a potential market of 700 million subscribers in the next 2 years.
So, although the streaming space is certainly getting more crowded, NFLX appears to have created a winning formula that makes it one of the best long-term stocks to buy and hold on to.
Stocks to Buy for 30-Year-Olds: Procter & Gamble (PG)
As I mentioned above, risk assessment is a huge part of building your portfolio in your 30’s, and although you still have plenty of time to let risky bets play out, you should be thinking about adding some low-risk, solid stocks to your portfolio that will keep ticking along as the years go by. Procter & Gamble (NYSE:PG) is one such stock that, although boring, is a buy-and-hold-until-you-retire kind of stock. The company’s management has a long history of maintaining a healthy cashflow and delivering shareholder returns and its 3.76% dividend yield will provide a reliable income.
Not only that but PG’s widely diversified business offers investors some security in times of economic trouble. Plus, PG sells a wide variety of necessities like toothpaste and soap — which are unlikely to take much of a hit even in the case of a recession. The firm is working to build out a consumer healthcare business with the acquisition of Merck KGaA, a move that will help the firm capitalize on the aging population.
Right now is a great time to pick up shares of PG as well, because the firm’s share price is stuck in the mid $70’s due to worries about e-commerce gobbling up some of its marketshare. Increased competition is definitely something to keep in mind when considering PG, but the firm’s strong financial position means it has the leeway to refocus its strategy and continue thriving in difficult conditions.
Stocks to Buy for 30-Year-Olds: Exxon Mobil (XOM)
If you haven’t started wading back into oil and gas stocks yet, now’s your chance. Now that oil prices are starting to recover, it’s worth revisiting the industry. The crash in crude oil prices helped weed out weaker firms and those that survived are coming back stronger than ever with more efficient operations and better future prospects. However, worries about oversupply are still in the forefront of investors mind, which has kept the sector from becoming too expensive.
Exxon Mobil (NYSE:XOM) is a great pick in the industry for a few reasons. First, the company’s share price is still well below its 2015 highs, giving it plenty of room for a turnaround in the coming years. XOM stock is also working on an aggressive new strategy that includes a $2 billion pipeline in the Permian Basin. The firm also sees potential opportunities in Guyana and Brazil which are expected to help XOM ramp up production significantly over the next few years.
Of course, oil prices will play a major role in whether or not XOM’s plans are successful, but what’s nice about owning Exxon shares is the fact that the company’s integrated structure means it’s not a direct oil play. So, although that means XOM won’t see the same kinds of gains some of its peers do if oil prices spike, that also means it won’t suffer the same losses should the opposite occur.
XOM also pays out a 4.1% dividend that has been raised every year for the past 36, taking the edge off some of the risk.
Stocks to Buy for 30-Year-Olds: Walmart (WMT)
Discount superstore Walmart (NYSE:WMT) is often overlooked by investors because Amazon.com (NASDAQ:AMZN) tends to be their first choice. While I don’t disagree that Amazon is still a great long-term pick, worries about WMT’s future are largely overdone. Since being scathed by the e-commerce takeover a few years ago, WMT stock has made an impressive recovery and although the firm is still facing some headwinds, it’s a solid pick.
What’s great about WMT stock right now as well is the fact that the company’s share price is beaten down, making right now a great entry point. Walmart stock has been languishing in the low $80’s for the past few months as investors worry about the firm’s major spending spree, but if you see WMT’s Flikart acquisition and aggressive spending on its grocery business as an investment in the company’s future, then its worth buckling in now for a few bumpy years.
WMT stock is unlikely to break above $100 per share this year because the firm is facing too much uncertainty and investor concerns over whether its spending will payoff are unlikely to fade until there are some tangible results. However, judging by the company’s improving e-commerce sales, it looks like Walmart is on the right track to competing against the likes of Amazon.
Stocks to Buy for 30-Year-Olds: Amazon (AMZN)
You’d have to be living under a rock to not have heard all the buzz surrounding Amazon over the past few years — but if you haven’t jumped on the bandwagon yet, there might still be time. Of course, you’d be much better off if you’d bought Amazon stock in 2012 when it was trading at just $200 per share, but the company still looks like a growth engine today.
It might seem counterintuitive to consider AMZN when you look at the firm’s massive $837 billion market cap and the fact that the company pays absolutely no dividends. Not to mention, the stock has proven to be extremely volatile. However in your 30’s you’ve still got time, and that means there’s space in your portfolio for a little bit of wiggle room if you’re comfortable with it.
Aside from its dominance in e-commerce, Amazon is also a top dog in cloud computing — and industry destined to grow exponentially over the next few years. On top of that, AMZN is spreading its wings in a wide variety of industries including grocery and logistics and there are even rumors that the firm is working to make its way into the healthcare space as well.
It’s hard to imagine AMZN’s market cap getting much larger, but 30-somethings would be remiss not to consider Amazon stock to juice up their gains over the next five or 10 years.
Stocks to Buy for 30-Year-Olds: Berkshire Hathaway (BRK.A)
It would be impossible to talk about buy-and-hold stocks without including Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B), run by legendary investor Warren Buffett. Of course, if you’re 30 and just picking up Berkshire Hathaway stock now, then you’re about to miss the boat in terms of benefiting from Buffett’s infamous investing sense.
However, that doesn’t make BRK.A a bad long-term pick. The company has new fund managers at the helm who’ve already started taking over some of the firm’s investment decisions and you can’t argue with the value the firm already possesses. Berkshire has a roundup of defensive stocks that will help the firm ride out troubled markets, but the firm will also keep up with upward market trends.
If nothing else, Berkshire stock is a great stabilizer that will round out your portfolio and mitigate against major market events making it a good buy and hold stock for the 30-something crowd.
Stocks to Buy for 30-Year-Olds: Unilever (UN)
Another consumer products stock to add to your list is Unilever NV ADR (NYSE:UN). The company has become massively efficient after undergoing major cost-cutting initiatives over the past few years in order to better compete as the industry became more and more competitive. That bodes well for the future because it means the company will be well prepared in the event of a recession, not to mention that the company sells a wide variety of basic necessities, which tend to continue selling even when purse strings are tight.
Another reason UN makes for a good pick is the firm’s presence in emerging markets. In 2017, more than half of the company’s reported sales came from emerging markets. The company’s huge footprint within emerging markets sets it apart from its peers because it creates a great long-term growth runway that others don’t have access to.
The stock made its way above $60 back in 2017, but since then the firm’s share price has taken a step back. Recently, the firm announced that it would change its headquarters to Rotterdam in the Neatherlands, meaning it would no longer be included in the FTSE 100. That could cause institutional investors to sell off because their funds are benchmarked to the FTSE, which has the potential to weigh on UN stock over the next few months.
That would make a great entry point for investors looking to add UN to their portfolios, though, because the departure from the FTSE 100 should have no effect on the firm’s overall operations.
Stocks to Buy for 30-Year-Olds: Microsoft (MSFT)
Another steady-Eddie to add to your portfolio in your 30’s is Microsoft (NASDAQ:MSFT). Like a few others on this list, MSFT stock isn’t exactly the most exciting stock, but it will do its job and make you some money. Unlike others in the IT industry, MSTF is mature which, in this case, translates to stability rather than falling out of touch with what consumers want.
Right now MSFT is working to pivot away from its traditional software business and focusing on growth in its cloud business, which includes subscriptions like Office 365 as well as Azure — Microsoft’s answer to Amazon Web Services. Growth in that arm of MSFT’s business has been strong with the firm’s most recent quarterly report showing that cloud revenue was up 58% from a year earlier.
With a P/E of 26 and a dividend yield of just 1.7%, there’s no doubting that MSFT is an expensive stock, but you’re paying a premium for a well run, solid business that has and will continue to withstand the test of time.
Stocks to Buy for 30-Year-Olds: Waste Management (WM)
It’s all well and good to invest in the next hot tech trend or retail story, but if you really want to make a play on future trends then look no further than Waste Management (NYSE:WM), the company that handles everyone’s garbage. One thing is for certain, over the next few decades people are going to generate waste, and WM will be there to dispose of it.
Not only does WM have a wide moat because of the regulatory permits it holds and its huge network of landfills, but the firm has also diversified its business to offer more than just waste collection and landfill maintenance. Waste Management also handles recycling and has been developing a way to turn landfill gas into energy. That means that as greener living continues to gain traction, WM will benefit as well.
However, perhaps the most alluring reason to add WM stock to your portfolio is the firm’s 2.3% dividend yield. The company has been raising its dividend annually for the past 15 years and there’s no reason to expect that to stop anytime soon — WM’s payout ratio is just 29%.
As of this writing, Laura Hoy was long AMZN, AAPL, UN and NFLX.