Best Long-Term Investment Stocks to Buy
The best long-term investment stocks are characterized by solid financial standing, consistent dividend growth and steady buybacks of their own shares.
Folks looking for the best long-term investment stocks to buy have a few ways to approach the task. One is to follow the advice of Benjamin Graham, the father of value investing, in his classic book The Intelligent Investor.
In what is one of the best books on investing, Graham suggests that a defensive investor should buy stocks of large, conservatively financed companies with good earnings power.
The companies should also have some of the best dividend stocks, with low valuations and consistent histories of payouts.
However, in today's world, many tech stocks don't pay dividends. Instead, they often return capital to shareholders through large share repurchases.
Why are stock buybacks important? "First, all the share buyback activity provides a natural buyer in the market that keeps the price elevated," as I explain in my article, "What Is a Stock Buyback?"
Second, "with fewer shares outstanding, the earnings divided by the average share count each go up."
How we chose the best long-term investment stocks
Applying Graham's criteria today, the idea is to find the best stocks to buy that return large amounts of capital to shareholders either through dividends and/or stock buybacks.
Doing so allows a company to increase its earnings and dividends per share. Moreover, a shareholder's stake rises over time. Both of these factors can push the stock price higher.
We also stick with stocks that have market caps of $100 billion or higher. They must also have low debt ratios and enough cash flow to reduce their debt, as well as pay dividends and/or buybacks.
With this in mind, here are nine of the best long-term investment stocks to buy now.
Data is as of March 25. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.
Apple
- Market value: $3.71 trillion
- Dividend yield: 0.4%
Apple (AAPL) is the $3.71 trillion iPhone maker that's steadily emerging from overreliance on that and other devices such as Mac computers and iPads in favor of services.
The iPhone still represents more than half the company's sales. But revenue from sources such as the App Store continue to increase as a share of the total. It's taken some time, but the market is showing its approval of management's vision.
Why not? The company is generating massive amounts of free cash flow (FCF), which is the money left after expenses to run, maintain and expand the business are covered.
Apple pays a small dividend that costs the company about 7% of its fiscal 2026 first-quarter operating cash flow. AAPL stock yields 0.4%
In May 2025, Apple's board authorized a $100 billion share-repurchase program that will benefit long-term shareholders. First, it will raise AAPL's earnings per share over time, because there will be a lower number of outstanding shares for the income produced.
In addition, the dividend per share can rise faster than it would otherwise, since the dividend payments will be spread over fewer number of shares outstanding.
Shares traded in the market will be absorbed, effectively acting as a buying source that will push the blue chip stock higher.
Apple is trading at its five-year forward price-to-earnings average of 29.9 now. AAPL remains one of the best long-term investment stocks due to its consistent and powerful cash flow, dividends and buybacks.
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Chevron
- Market value: $406.5 billion
- Dividend yield: 3.5%
Chevron (CVX) is an integrated energy and chemicals company with both upstream and downstream operations in the U.S. and around the world.
CVX meets the criteria for a good long-term investment, as it is conservatively financed, produces good profits and pays an attractive dividend that it can afford.
Energy stocks are rising as the price of oil spikes amid a war in the Middle East between the U.S., Israel and Iran. CVX stock is now trading at nearly 24 times forward earnings, well above its five-year average of 18.4 times.
Management continues to prioritize dividend and capital investment over share buybacks. Chevron has 38 years of annual dividend hikes under its belt because, despite volatility in the prices of oil and gas and chemical industry cycles, the company has consistently produced large amounts of free cash flow.
Chevron generated about $34 billion in operating cash flow before working capital changes and about $5.5 billion in free cash flow in 2025. The company returned more than $27 billion of cash to shareholders, including share repurchases of more than $14 billion and dividends of nearly $13 billion.
These figures show how Chevron manages a fair balance between investing in the future and rewarding shareholders with its cash flow. It underscores why CVX is the kind of stock that long-term investors should have in their portfolio.
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Microsoft
- Market value: $2.76 trillion
- Dividend yield: 1.0%
Microsoft (MSFT) operates in every key software arena: operating systems; cloud; gaming; application software; and, now, artificial intelligence (AI).
MSFT meets all the necessary qualities for being one of the best long-term investment stocks, as it has consistent earnings, is conservatively financed and generates large amounts of free cash flow. Moreover, it pays a dividend and spends most of its FCF on share buybacks.
Like many software socks, MSFT has been hit hard in 2026 amid questions about how AI would impact Microsoft's core business. The stock is trading at just 22 times forward earnings, well below a five-year average of 31.
Long-term investors are likely to do well with MSFT, and the reasons are simple. The company's massive cash flow, its products' ubiquity and acceptance and its shareholder rewards all work in the stock's favor.
More important, the company has plenty of room to increase its shareholder-friendly initiatives over time, because it spends just about half its free cash flow on dividends and buybacks. It plows the rest back into the company, reducing debt and making investments and acquisitions.
In the long run, Microsoft shareholders can expect the company to typically grow profits and cash flow, while consistently raising its dividends and buybacks.
Microsoft has raised its dividend for 21 consecutive years. That alone, not counting its buybacks and earnings power, makes the Dow Jones stock worthy of being a long-term investment.
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Charles Schwab
- Market value: $166.4 billion
- Dividend yield: 1.4%
Charles Schwab (SCHW) is a well-known discount brokerage firm and investment banking company with which many folks are familiar.
SCHW meets all the best criteria for a long-term investment value strategy. It's conservatively financed, and it pays a consistent dividend.
As for that dividend, Schwab has consistently paid a dividend for 35 years, well above the 10-year average in its sector. Moreover, Schwab's most recent return on equity was 19.9%, well above its historical median of 13.4% and a sign of strong earnings power.
Jefferies analyst Dan Fannon has a Buy rating on the financial stock. "SCHW has an industry-leading platform that drives midsingle-digit organic growth at scale," Fannon writes.
The analyst pointed to additional potential synergies for both expenses and revenues following the integration of TD Ameritrade, and also cites positive balance sheet trends as well as continued franchise momentum.
"SCHW expects its capital management framework to remain opportunistic," Fannon adds. "The firm continues to prioritize capital levels that support (long-term) business growth and will look for ways for opportunistically returning capital to stockholders." The analyst forecast $6.2 billion in buybacks in 2026.
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Medtronic
- Market value: $112.8 billion
- Dividend yield: 3.2%
Medtronic (MDT) is a $113 billion medical device and therapies company that was co-founded by one of the inventors of the pacemaker. The company is extremely profitable, which allows it to pay generous dividends and buy back big blocks of its own shares.
Medtronic pays a $2.84 annual dividend that will likely continue to rise. Management has raised the dividend for 48 straight years.
Share buyback activity has slowed from fiscal 2025, when Medtronic bought back $2.7 billion of its own shares. But every little bit helps towards allowing the company to keep raising its dividend.
In addition, at just 15.6 times forward earnings, the stock is inexpensive.
Meanwhile, Medtronic has about $27.8 billion in net debt on its balance sheet, which is less than its $49.0 billion in shareholders' equity. The company's cash flow should continue to recover from supply chain issues we've seen in recent years, allowing Medtronic to reduce its debt reliance over time.
Given its powerful cash flow and shareholder returns, MDT is one of the best long-term investment stocks.
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McDonald's
- Market value: $222.0 billion
- Dividend yield: 2.4%
McDonald's (MCD) is known to just about every investor as well as every American. But few realize it's actually one of the best long-term investment stocks because it generates large amounts of free cash flow.
In 2025, McDonald's produced $7.2 billion in FCF. That represents 3.2% of its $222.0 billion market capitalization.
Management uses that free cash flow to fund a generous dividend and stock buyback program. Last year, McDonald's paid $7.1 billion across these shareholder-friendly initiatives.
While some folks might not like MCD's quick-service restaurant fare, plenty of others do. They love its menu, buy McDonald's fries and hamburgers and generally can't get enough of its food.
Moreover, the company is conservatively financed, as its $40 billion in long-term debt is well-matched by the company's ongoing FCF generation. In addition, shareholders have benefited from its history of annually raising its dividend in the past 49 years.
MCD stock looks cheap right now on a historical basis. It currently trades at 23.5 times forward earnings, below its five-year average of 24.5.
Nevertheless, everyone is "lovin" MCD stock for the long term.
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Procter & Gamble
- Market value: $334.5 billion
- Dividend yield: 2.9%
Procter & Gamble (PG) is a $335 billion consumer products giant with many iconic brand names — including Downy detergent, Mr. Clean cleaning supplies and Head & Shoulders shampoo — that produce large amounts of cash flow for the company.
Most everyone knows Procter & Gamble's brands and is familiar with their solid reputations. But few realize how incredibly profitable the company actually is and why PG is one of the best long-term investment stocks to buy.
For example, for its fiscal 2026 second quarter (ended December 31), PG generated $5.0 billion in operating cash flow and $3.8 billion in free cash flow.
The FCF represents a notable 17.1% of P&G's $22.2 billion in quarterly sales, which is a high free cash flow margin for a consumer products company. Some software companies don't make those kinds of margins.
This FCF also funds massive dividends and buybacks for shareholders.
The company has raised its dividend annually for the past 69 years. Management said it expects to buy back $5 billion in stock this fiscal year. That represents about 1.5% of its current market capitalization.
Meanwhile, PG is cheap at the moment relative to its historical valuation. It trades for 20.5 times earnings, which is below its five-year average of 23.6.
Procter & Gamble generates large amounts of cash flow from its brands and is working diligently to return value to shareholders. That makes it one of the best long-term investments value buyers can make.
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Coca-Cola
- Market value: $323.9 billion
- Dividend yield: 2.8%
Coca-Cola (KO) is an iconic beverage company that generates large amounts of cash flow for its shareholders from its well-known brands such as Coke, Diet Coke, Fanta, Powerade and Minute Maid.
That makes it one of the best long-term investments a value buyer can make — just ask Warren Buffett, whose Berkshire Hathaway (BRK.B) holding company is KO's top shareholder.
What makes KO so attractive is that it's one of the best dividend stocks on Wall Street, having increased its payouts consistently for the last 64 years straight. Most recently, Coca-Cola hiked its dividend by 4% in February 2026.
Today, KO stock yields an attractive 2.8%, and investors can expect the dividend payout to keep increasing.
On top of that, Coca-Cola has a strong stock buyback program, including approximately $400 million in net purchases during 2025 on a current repurchase authorization of $5.2 billion.
KO's dividends and share buybacks are made possible by the $5.2 billion in free cash flow the company generated in 2025.
For the long-term investor, this consumer staples stock looks like a good investment, given its strong cash flows and shareholder-friendly initiatives.
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