Best Long-Term Investment Stocks to Buy

Apple

• Market value: $3.16 trillion
• Dividend yield: 0.5%

Apple (AAPL) is the $3.1 trillion maker of iPhone smartphones, Mac computers, iPads and numerous other products and services.

iPhones still represent more than half of the company's sales, but recently, services, which include the App Store, have started to increase as well.

For example, in its latest fiscal year ending September 28, Apple's services revenue came in at $96 billion, or 25% of its $124.3 billion in sales. That's up from 22% the year prior.

So, this massive tech products company is slowly shedding its overreliance on the iPhone, whose models are high-priced. While this will take time, the market so far approves of this plan.

And why not? The company is generating massive amounts of free cash flow (FCF), which is the money left over after expenses to run, maintain and expand the business are covered.

In its most recently completed fiscal year, Apple generated strong operating cash flow of $118.3 billion, while returning over $110 billion to shareholders.

Apple pays a small dividend of 0.5%, which costs the company just $15 billion each year, or 13% of its annual operating flow.

The rest of the $95 billion "returned" to shareholders was through stock buybacks. In May 2025, Apple said its board authorized a new $100 billion share repurchase program, which represents more than 3.0% of its total market value.

That approach benefits long-term shareholders of Apple stock. 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. And shares traded in the market will be absorbed, effectively acting as a buying source that will push the blue chip stock higher.

Keep in mind that AAPL stock is not overly cheap at the moment at 29.4 times forward earnings — above its five-year average of 27, according to Morningstar.

Nevertheless, Apple remains one of the best long-term investment stocks due to its consistent and powerful cash flow, dividends and buybacks.

Chevron

• Market value: $246.4 billion
• Dividend yield: 4.8%

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. Moreover, CVX stock is not expensive, and the company is actively buying back shares, helping to push its price higher.

For example, analysts expect Chevron to make $9.46 per share in fiscal 2026, which has the energy stock trading at 15 times forward earnings. This is just below the five-year average of 13.6 times.

Moreover, 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.

For example, in fiscal 2024, Chevron generated $30.3 billion in operating cash flow before working capital changes and $15 billion in free cash flow. The company spent $11.8 billion on dividends and $15.2 billion on share buybacks, for $27 billion in total shareholder returns.

These figures show how Chevron manages a fair balance between investing in the future and rewarding shareholders with its cash flow. And it underscores why CVX is the kind of stock that long-term investors should have in their portfolio.

Microsoft

• Market value: $3.37 trillion
• Dividend yield: 0.8%

Microsoft (MSFT) operates in every key software arena: operating systems, cloud, gaming, application software, and, even more notably these days, 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.

Just like Apple, however, MSFT stock is not necessarily cheap on a relative or even historical basis. For example, Microsoft is trading at 30.2 times forward earnings, which is above its five-year average of 29.9.

Still, long-term investors are likely to do quite well with MSFT. The reasons are quite simple: The company's massive cash flow, its products' ubiquity and acceptance and its shareholder rewards all work in the stock's favor.

More importantly, the company has plenty of room to increase its shareholder-friendly initiatives over time. That's 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.

So, in the long run, Microsoft shareholders can expect the company to typically grow profits and cash flow, while consistently hiking its dividends and buybacks.

In fact, Microsoft has had 20 consecutive years of raising its dividend. That alone, not counting its buybacks and earnings power, makes the Dow Jones stock worthy of being a long-term investment.

Charles Schwab

• Market value: $160.1 billion
• Dividend yield: 1.2%

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. For example, it is conservatively financed and pays a consistent dividend.

As for that dividend, Schwab has had 35 years of consistently paying its dividend each year. That is well over the 10-year average of the median in its sector.

Moreover, Schwab's most recent return on equity was 18% in the fourth quarter ending December 31, 2024, up six percentage points from a year ago, indicating steadiness in its earnings power.

Jefferies analyst Dan Fannon has a Buy rating on the financial stock. "We remain optimistic about the growth trajectory over the next 12 to 18 months, as various structural drivers are expected to help bridge the growth gap between legacy TD clients and SCHW clients," Fannon wrote in an early May note.

He adds that "share repurchases are likely to be a more consistent contributor to EPS growth in the coming quarters."

Medtronic

• Market value: $110.4 billion
• Dividend yield: 3.3%

Medtronic (MDT) is a more than $110 billion medical device and therapies company that originally invented the pacemaker. Moreover, the company is extremely profitable, which allows it to pay generous dividends and do large share buybacks.

Right now, MDT stock has a 3.3% dividend yield that will likely continue to rise, given the company has reliably raised its dividend for 48 straight years, including a 1.4% hike in May 2024.

Moreover, in the six months ending on January 24, 2025,, Medtronic bought back $2.96 billion of its own shares. That works out to be a small portion of its market value, but every little bit helps towards allowing the company to keep raising its dividend.

In addition, at just 14.7 times forward earnings, the stock is inexpensive. This is well below MDT's five-year average of 17.5 times, according to Morningstar.

Meanwhile, Medtronic has about $25 billion in net debt on its balance sheet, which is less than its $49.4 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.

And given its powerful cash flow and shareholder returns, MDT is one of the best long-term investment stocks.

McDonald's

• Market value: $224.9 billion
• Dividend yield: 2.3%

McDonald's (MCD) is a company that just about every investor knows well. But few realize that it's actually one of the best long-term investment stocks to buy because it generates large amounts of free cash flow. For example, in the last 12 months (LTM) ending March 31, MCD produced $6.7 billion in FCF. That represents 3% of its $225 billion market capitalization.

MCD uses its free cash flow to pay a very ample dividend, which now yields 2.3%, and buy back its stock. In all of 2024, the company paid out $7.7 billion across these shareholder-friendly initiatives.

While some folks might not like MCD's quick-service restaurant food, plenty of others do. They love its menu, buy McDonald's fries and hamburgers and generally can't get enough of its food.

Moreover, it is conservatively financed as its $38 billion in long-term debt, $32 billion after cash, is well-managed by the company's ongoing FCF generation. In addition, shareholders have benefited from its history of annually raising its dividend over the past 48 years.

MCD stock is not necessarily cheap. It currently trades at 25.6 times forward earnings, a tad above its five-year average of 25.0.

Nevertheless, everyone is "lovin" MCD stock for the long term.

Procter & Gamble

• Market value: $380.8 billion
• Dividend yield: 2.4%

Procter & Gamble (PG) is an approximately $380 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, in the three months ending March 31, PG generated $3.7 billion in operating cash and, after $859 million in capex spending, $2.8 billion in free cash flow.

The FCF represents a notable 14.1% of P&G's $19.8 billion in quarterly sales, which is a very high free cash flow margin for a consumer products company. In fact, some software companies don't even make those kinds of margins.

Moreover, this FCF also funds massive dividends and buybacks for shareholders. The company has raised its dividend annually for the past 69 years. Moreover, management said it expects to buy back $6 billion to $7 billion in stock this fiscal year. That represents about 1.7% of its current market capitalization.

Nevertheless, PG isn't cheap at the moment relative to its historical valuation. It trades for 23.2 times earnings, which is just slightly below its five-year average of 24.0.

Still, 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.

Coca-Cola

• Market value: $308.2 billion
• Dividend yield: 2.8%

Coca-Cola (KO) is an iconic beverage company that generates large amounts of cash flow for its shareholders with 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 63 years straight. Most recently, Coca-Cola hiked its dividend by more than 5% in February 2025.

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. For example, in 2024, it spent $1.1 billion on share repurchases. That represents 0.4% of its current market value.

KO's dividends and share buybacks are more than covered by the $4.7 billion in free cash flow the company generated in 2024.

So, 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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