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The 10 Best Stocks to Buy for the Next Decade

Last year, InvestorPlace contributor Dan Burrows highlighted the 10 best-performing S&P 500 stocks of the past decade. The most important lesson one finds studying these high-flying stocks is that patience wins out over all other attributes of a successful investor.

A classic example of how true this is involves the Fidelity Magellan Fund (MUTF:FMAGX), the large mutual fund made famous by portfolio manager Peter Lynch. Lynch ran the fund for 13 years from 1977 until 1990, growing it from $20 million to $14 billion before stepping aside.

Fidelity studied the returns of Fidelity Magellan unitholders over those 13 years to see how they did compared to the legendary portfolio manager. While Lynch managed to achieve a 29% annual return over this period, the average investor lost money.

Patience would have served those investors well, as the ups and downs of the stock market shook them out of their positions — and in doing so, deprived them of millions of dollars in profits. A $10,000 investment in 1977 held until 1990 was worth $273,947 by the end of that 13-year period.

I’m not Peter Lynch, but I can say with some confidence that the examples to follow are the 10 best stocks to buy for the next decade.

Let’s take a look.

Best Stocks to Buy for the Next Decade: Amazon (AMZN) Best Stocks to Buy for the Next Decade: Amazon (AMZN)investorplace.com/wp-content/uploads/2016/11/amznmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/11/amznmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/11/amznmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/11/amznmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/11/amznmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2016/11/amznmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2016/11/amznmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/11/amznmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/11/amznmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2016/11/amznmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Via Amazon

Not only is Amazon.com, Inc. (NASDAQ:AMZN) CEO and founder Jeff Bezos a great chief executive, but Amazon has its hands in so many pies — including a very profitable cloud business that generates almost $1 billion in annual operating income — that it’s hard to fathom just how big Amazon could be a decade from now.

While Amazon’s AWS cloud business is a big deal, Amazon Prime is the service that delivers the goods when it comes to building the foundation for AMZN stock. More than 100 million people subscribe to Amazon Prime at $99 per year.

It’s not the $9.9 billion in annual subscription revenue that matters, but the amount each of those subscribers spends on other Amazon products. Statistics show that 76% of Amazon Prime members spend more than they did before paying the annual $99 fee.

That’s what you call “pulling power,” and it’s a big reason why AMZN stock will be a winner for the long haul.

Best Stocks to Buy for the Next Decade: Blue Buffalo Pet Products (BUFF) Best Stocks to Buy for the Next Decade: Blue Buffalo Pet Products (BUFF)investorplace.com/wp-content/uploads/2017/07/buffmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/07/buffmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/07/buffmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/07/buffmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/07/buffmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/07/buffmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/07/buffmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/07/buffmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/07/buffmsn-78×43.jpg78w, investorplace.com/wp-content/uploads/2017/07/buffmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

If you bought Blue Buffalo Pet Products Inc (NASDAQ:BUFF) at its July 2015 IPO price of $20 and you’re still holding it, you’ve made money — barely.

The pet food maker has been on a wild ride since going public almost two years ago. It opened with a first-day return of 36%, but proceeded to fall from $28 to $16 in the span of a couple months, only to gain most of that back by its one-year anniversary.

However, BUFF is an explosive stock lying in wait.

Blue Buffalo is investing $150 million-$170 million in 2017 to expand its manufacturing capacity so that it can accommodate further growth beyond 6% of the $28 billion U.S. pet food market.

In 2016, its adjusted earnings-per-share increased 27.2% to 79 cents; it expects that number to increase by as much as 19% in 2017 to between 91 and 94 cents-per-share.

Over the past five years, Blue Buffalo has more than doubled its revenues, from $523.0 million in 2012 to $1.1 billion in 2016, while growing net income from $65.5 million to $130.2 million in the same period.

People will continue to spend more on healthy food in the coming decade, and that includes for their pets. Blue Buffalo is ready to capture more of those gains, and BUFF shareholders will benefit as a result.

Best Stocks to Buy for the Next Decade: Apple (AAPL) Best Stocks to Buy for the Next Decade: Apple (AAPL)investorplace.com/wp-content/uploads/2017/12/aaplmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/aaplmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/12/aaplmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

You can say what you want about the iPhone maker’s best days being behind it, but I have a feeling Apple Inc. (NASDAQ:AAPL) will continue to create products people want to buy for years to come.

What they are, I couldn’t tell you.

What I do know is that Apple will continue to generate a huge amount of free cash flow — $52.5 billion in the trailing 12 months through Dec. 31, 2016 — to reward shareholders for their patience and loyalty.

AAPL currently converts 71.7% of its EBITDA into free cash flow, which is pretty darn close to the 77.7% conversion rate of Amazon — a company known for doing a good job converting cash.

The most recent rumor on Wall Street has Apple and Walt Disney Co (NYSE:DIS) hooking up to form a media and tech conglomerate. While speculative in nature, the combination would provide Apple with a few more avenues to generate ideas for new products.

At this point, while I like Disney, I’d say it needs Apple more than Apple needs it.

Best Stocks to Buy for the Next Decade: Berkshire Hathaway (BRK.B) Best Stocks to Buy for the Next Decade: Berkshire Hathaway (BRK.B)investorplace.com/wp-content/uploads/2017/05/brkmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/brkmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/brkmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/brkmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/brkmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/brkmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/brkmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/brkmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/brkmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/brkmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Warren Buffett is 87 years old. Eventually, he’s going to step out of the game. The argument is that his departure will create a panic that will send Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) stock spiraling downward.

Personally, I don’t subscribe to that theory.

Businesses — whether it be a huge holding company like Buffett’s or something much less grandiose — are valued by calculating the present value of its future cash flows. Berkshire Hathaway’s are significant.

Another way is to value a business is to look at the sum of all its parts.

Berkshire Hathaway owns hundreds of businesses; each of these firms, if sold at auction, would be worth more than the current stock price would seem to reflect. If Buffett moved on and the company was broken up in a prudent manner over an extended period, Berkshire Hathaway investors would benefit greatly from such a process.

The best part of Berkshire Hathaway? You get a quasi-mutual fund with a diversified group of holdings and no management fees.

That’s the best kind of buy-and-hold investment.

Best Stocks to Buy for the Next Decade: Ulta Beauty (ULTA)

 

Best Stocks to Buy for the Next Decade: Ulta Beauty (ULTA)investorplace.com/wp-content/uploads/2017/12/ultamsn-300×150.jpg 300w, investorplace.com/wp-content/uploads/2017/12/ultamsn-768×384.jpg 768w, investorplace.com/wp-content/uploads/2017/12/ultamsn-60×30.jpg 60w, investorplace.com/wp-content/uploads/2017/12/ultamsn-200×100.jpg 200w, investorplace.com/wp-content/uploads/2017/12/ultamsn-400×200.jpg 400w, investorplace.com/wp-content/uploads/2017/12/ultamsn-116×58.jpg 116w, investorplace.com/wp-content/uploads/2017/12/ultamsn-100×50.jpg 100w, investorplace.com/wp-content/uploads/2017/12/ultamsn-78×39.jpg 78w, investorplace.com/wp-content/uploads/2017/12/ultamsn-800×400.jpg 800w,https://investorplace.com/wp-content/uploads/2017/12/ultamsn-170×85.jpg 170w” sizes=”(max-width: 950px) 100vw, 950px” />Source: Shutterstock

The retail industry is in a free fall at the moment, yet Illinois-based Ulta Beauty Inc (NASDAQ:ULTA) is busy growing its network of stores — which currently number 974 — by 100 per year. It expects to build out its brick-and-mortar footprint to 1,700 stores over the next decade.

Ulta’s business model provides a shopping experience that is unique in a beauty market where no one firm controls a big chunk of market share, not even Sephora. In fact, Ulta controls just 4% of the $127 billion U.S. beauty market despite having almost $5 billion in annual revenue.

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With consumer confidence growing, Ulta stands a good chance over the next decade of bumping this number significantly higher. ULTA shares might be expensive at 30 times earnings, but that’s the price you pay to own the best.

Best Stocks to Buy for the Next Decade: Sherwin-Williams (SHW) Best Stocks to Buy for the Next Decade: Sherwin-Williams (SHW)investorplace.com/wp-content/uploads/2017/03/shwmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/03/shwmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/03/shwmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/03/shwmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/03/shwmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/03/shwmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/03/shwmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/03/shwmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/03/shwmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/03/shwmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Ulta Beauty helps women with their beauty needs; Sherwin-Williams Co (NYSE:SHW) does the same for houses and businesses around the world.

What’s the one thing real estate professionals suggest you should do when selling your home? Give it a fresh coat of paint. It’s the most cost-effective improvement you can make to bring in better offers.

Sherwin-Williams originally tried to buy Mexican paint company Comex in 2014, but it was beaten out by PPG Industries, Inc. (NYSE:PPG). More than two years later, it’s in the homestretch of closing its $11.3 billion acquisition of The Valspar Corp (NYSE:VAL), which will significantly improve its position in the coatings business outside North America.

Over the past decade, SHW has achieved a return of more than 600%, significantly greater than the S&P 500’s 82% climb in that same period.

If any stock can repeat this kind of performance over the next decade, Sherwin-Williams has to be at the top of the list.

Best Stocks to Buy for the Next Decade: Kraft Heinz (KHC) Best Stocks to Buy for the Next Decade: Kraft Heinz (KHC)investorplace.com/wp-content/uploads/2016/10/khcmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/10/khcmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/10/khcmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/10/khcmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/10/khcmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/10/khcmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/10/khcmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/10/khcmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/10/khcmsn-170×93.jpg 170w” sizes=”(max-width:728px) 100vw, 728px” />Source: Mike Mozart via Flickr

Earlier this year, the management of Kraft Heinz Co (NASDAQ:KHC) put quite the scare into the 169,000 Unilever plc (ADR) (NYSE:UL) employees with a potential $143 billion offer to buy the company. Fortunately (for employees), Unilever’s management told the Brazilians — 3G Capital and Berkshire Hathaway control KHC — to take a hike.

Kraft Heinz is going to make another acquisition, most likely this year. And when it does, the first thing the Brazilians are going to do is trim the fat. (Read this article about Tim Hortons to understand their cost-cutting ruthlessness.) That’s going to mean the loss of a lot of jobs.

While that’s terrible for the people on the receiving end of the pink slips, it’s been proven by 3G Capital time and again to significantly increase the bottom line. Shareholders definitely will win as Kraft Heinz guts PepsiCo, Inc. (NYSE:PEP) or some other vulnerable target.

I’m of two minds when it comes to 3G Capital’s blitzkrieg management style: On the one hand, people suffer greatly from these job cuts. On the other, I wonder whether those jobs should have been created in the first place.

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If you can live with this kind of management ruthlessness, KHC is a great business to own, because people will always have to eat.

Best Stocks to Buy for the Next Decade: Five Below (FIVE) Best Stocks to Buy for the Next Decade: Five Below (FIVE)investorplace.com/wp-content/uploads/2016/04/fivemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/fivemsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/fivemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/fivemsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/fivemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/fivemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/fivemsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/fivemsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/fivemsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/fivemsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/fivemsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/fivemsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr (Modified)

Teen discount clothing chain Five Below Inc (NASDAQ:FIVE) saw same-store sales increase by 2% in fiscal 2016. That might not seem like a lot, but when you have retailers going out of business left and right, Jim Cramer is right to rave about this stock.

In today’s retail, you either want to be in the discount or luxury businesses … but not in the deadly middle.

Five Below has a plan to grow revenues and earnings by 20% every year until 2020 and beyond. In 2016, revenues and earnings grew 20.2% and 24.5%, respectively, to $1 billion and $71.8 million respectively.

In 2017, FIVE expects to open 100 new stores, bringing the total across the country to more than 600. Five Below sees 2,000 stores open in the U.S. at some point in the future. While it seems like an ambitious goal given how many stores are closing these days, Five Below has a very talented management team led by CEO Joel Anderson, whose previous job was CEO of Walmart.com.

At prices $5 or below, Five Below delivers a concept that’s unique to teen and pre-teen customers. And it should deliver plenty of returns over the next 10 years.

Best Stocks to Buy for the Next Decade: Cracker Barrel (CBRL) Best Stocks to Buy for the Next Decade: Cracker Barrel (CBRL)investorplace.com/wp-content/uploads/2017/04/cbrlmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/04/cbrlmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/04/cbrlmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Over the past decade, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) has doubled the performance of the S&P 500 by delivering consistent results. Its return on invested capital in 2006 was 8%; today, it’s 14%, well above the restaurant industry average of 9%.

CBRL’s unique restaurant/retail concept generates approximately 80% of its revenue from its restaurants, with its retail shop the remaining 20%. The average store throws off revenue of $4.6 million. The retail business generates sales per square foot of $440 and 50% gross margins.

On April 17, Cracker Barrel opened its first store on the West Coast in Tualatin, Oregon, a suburb of Portland. It plans to open three more locations in the Portland area. Expect continued growth out west in coming years.

Cracker Barrel features a strong female presence in upper management, representing what a modern progressive American company is supposed to look like at the top. Good on them … and good for you, because that kind of diversity will pay off in spades.

Best Stocks to Buy for the Next Decade: ResMed (RMD) Best Stocks to Buy for the Next Decade: ResMed (RMD)investorplace.com/wp-content/uploads/2017/04/rmdmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/04/rmdmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/04/rmdmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Who knew that sleep apnea paid so well?

ResMed Inc. (NYSE:RMD) manufactures medical devices and provides cloud-based software applications for medical professionals to treat and manage sleep apnea and chronic obstructive pulmonary disease (COPD). Treating 2 million patients daily, ResMed has become good at reducing healthcare costs by minimizing the effects of chronic disease.

Good businesses make and save people and companies money. ResMed does both.

Over the past decade, ResMed has delivered an annual return to shareholders of 11.9%, 478 basis points greater than the S&P 500. Year-to-date, RMD is up 40% and on its way to its fourth year of gains in the past five.

According to a recent study, 26% of adults have sleep apnea — a disorder that can wreak havoc on a person’s heart, not to mention a marriage due to both partners’ lack of sleep. My dad died as a result of COPD, a disease that effects more than 200 million people worldwide and costs the healthcare system more than $50 billion per year in the U.S. alone.

ResMed has growth opportunities in Latin America, Eastern Europe and China and India — all huge markets that will keep it busy for the next decade and beyond.

Of all the stocks to buy for the next decade, ResMed is my pick for most reliable given the markets it serves.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.

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9 Must-Own Stocks That Have Paid Over a Century of Dividends

Dividend stock investing is inherently a long-term enterprise. After all, companies only pay their investors dividends once a quarter and dividend yields are calculated on an annualized basis. If you own a stock for only a few months, you’re not experiencing the full dividend potential. And if you only own a few weeks, there’s a chance you don’t get paid a dividend at all.

The real power of dividend stocks comes from the power to deliver consistent returns and growing payouts over the very long term — not several years, but more like several decades. If you pick the right stocks that can maintain and growth their distributions over that kind of time horizon, you will be richly rewarded.

However, there are only a precious few companies that can pull off that kind of long-term performance and still keep their dividend payments coming.

Here are nine companies, including big names you may know and a few you don’t, that have managed to pay dividends for a century or longer.

Must-Own Stocks: General Mills (GIS) Must-Own Stocks: General Mills (GIS)investorplace.com/wp-content/uploads/2016/04/gismsn2-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/gismsn2-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/gismsn2-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/gismsn2-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/gismsn2-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/gismsn2-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/gismsn2-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/gismsn2-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/gismsn2-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/gismsn2-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/gismsn2-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/gismsn2-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr (Modified)

Dividends paid since: 1898
Current yield: 3.7%

General Mills, Inc. (NYSE:GIS) is a perfect example of an established and reliable company that has made more than 100 years of dividend payments possible. GIS is a packaged foods company behind a list of megabrands that includes Cheerios, Betty Crocker, Green Giant and other kitchen pantry mainstays.

A group of loyal customers who keep buying these high-quality products means a reliable cash flow to sustain General Mills and its dividends over the long term. Sure, growth is challenged in 2017 and recent challenges have caused the stock to roll back fairly steadily. However, after a dividend increase in March, General Mills pays roughly twice the per-share dividend that it did 10 years ago, so it’s clearly committed to the idea of returning capital to shareholders.

Don’t sweat the short-term volatility in GIS. Look to the long-term track record of dividends.

Must-Own Stocks: Consolidated Edison (ED) Must-Own Stocks: Consolidated Edison (ED)investorplace.com/wp-content/uploads/2016/04/edmsn1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/edmsn1-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/edmsn1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/edmsn1-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/edmsn1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/edmsn1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/edmsn1-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/edmsn1-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/edmsn1-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/edmsn1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/edmsn1-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/edmsn1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Wikimedia

Dividends paid since: 1885
Current yield: 3.1%

One of the oldest electric utilities in America, Consolidated Edison, Inc. (NYSE:ED) is also one of the oldest dividend payers on Wall Street.

All utility stocks are attractive because they are very entrenched companies with reliable businesses. Steady cash flows come from a virtual monopoly on their customers in a highly regulated industry with steep barriers to new entrants.

ED stock has outperformed this year with 20% returns in 2017 thus far, compared with about 16% gains for the S&P 500.

Must-Own Stocks: Johnson Controls (JCI) Must-Own Stocks: Johnson Controls (JCI)investorplace.com/wp-content/uploads/2016/08/jcimsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/08/jcimsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/08/jcimsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/08/jcimsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/08/jcimsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/08/jcimsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/08/jcimsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/08/jcimsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/08/jcimsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Herzi Pinki via Wikimedia (Modified)

Dividends paid since: 1887
Current yield: 2.4 percent

Johnson Controls Inc (NYSE:JCI) is a lesser-known dividend stock that has deep American roots. Starting as a company that provided “building controls” and HVAC products, Johnson has evolved much over the years to now encompass everything from energy efficiency to refrigeration technology to high-tech components for automobiles.

A waning U.S. auto market after record sales in 2015 and 2016 has weighed on JCI stock, but the dividends have been flowing for more than a century so there’s no reason to think this company is in serious long-term trouble. Shares of Johnson Controls stock are flat on the year so far.

Must-Own Stocks: Exxon Mobil (XOM) Must-Own Stocks: Exxon Mobil (XOM)investorplace.com/wp-content/uploads/2016/04/xommsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/xommsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/xommsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/xommsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/xommsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/xommsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/xommsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/xommsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/xommsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/xommsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/xommsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/xommsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr (Modified)

Dividends paid since: 1882
Current yield: 3.7%

One of the largest and most established companies on the planet, Exxon Mobil Corporation (NYSE:XOM) is a go-to dividend stock. Investors who know their history should remember that the energy giant finds its roots in the original Standard Oil behemoth build by John D. Rockefeller, and has paid distributions to its shareholders over more than a century despite a plethora of changes in how we drill for oil and how energy is used in the global economy.

Lately, XOM stock has been under pressure thanks to weak oil prices. In calendar 2017, Exxon is actually sitting on a modest loss vs. big gains for other stocks.

However, shares have rebounded nicely since their August lows and it appears that the worst may be over for this dividend darling.

Must-Own Stocks: Eli Lilly (LLY) Must-Own Stocks: Eli Lilly (LLY)investorplace.com/wp-content/uploads/2016/10/llymsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/10/llymsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/10/llymsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/10/llymsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/10/llymsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/10/llymsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/10/llymsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/10/llymsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/10/llymsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Paul Sableman via Flickr (Modified)

Dividends paid since: 1885
Current yield: 2.5%

Eli Lilly and Co (NYSE:LLY) is one of the most respected names in pharmaceuticals, known for big-time drugs over the years that include Prozac and Cialis. But the company refuses to rest on its laurels, researching a current crop of cures for diabetes, cancer and other medical conditions to refill its product pipeline. And the drugs that it can’t create in-house it can easily acquire, as evidenced by buyouts such as the recent $6.5 billion deal to buy ImClone Systems Inc.

It has been a choppy year for Lilly, but the stock is more or less tracking the full-year returns of the S&P 500, up about 14% compared with 16% for the broader index.

Must-Own Stocks: Stanley Black & Decker (SWK) Must-Own Stocks: Stanley Black & Decker (SWK)investorplace.com/wp-content/uploads/2016/04/swkmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/swkmsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/swkmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/swkmsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/swkmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/swkmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/swkmsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/swkmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/swkmsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/swkmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/swkmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/swkmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mark Hunter via Flickr (Modified)

Dividends paid since: 1877
Current yield: 1.5%

Power tool giant Stanley Black & Decker, Inc. (NYSE:SWK) has grown and evolved over the years, but its dividends have been in place since before Edison perfected his electric light bulb and well before tools even had the potential for electric power.

After Stanley acquired Black & Decker in 2010 and most recently the Craftsman tool brand at the beginning of this year, the company has achieved pretty much a strangle hold on the power tool market. Beyond this legacy tool business, SWK has branched out into sophisticated technologies including electronic security systems and retail loss prevention devices — ensuring plenty of forward-looking revenue streams to fuel future dividends.

SWK stock has done quite well in 2017, too, with roughly 42% gains since Jan. 1.

Must-Own Stocks: Procter & Gamble (PG) Must-Own Stocks: Procter & Gamble (PG)investorplace.com/wp-content/uploads/2016/04/pgmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/pgmsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/pgmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/pgmsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/pgmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/pgmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/pgmsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/pgmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/pgmsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/pgmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/pgmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/pgmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr (Modified)

Dividends paid since: 1891
Current yield: 3.1%

An unmatched portfolio of household brands that include Duracell batteries, Gillette shaving products and Papers diapers should put Procter & Gamble Co. (NYSE:PG) near the top of any low-risk investor’s list of bulletproof stocks. And with over 100 years of dividend payouts, P&G is also a stock to consider for reliable income.

Most attractive to dividend stock investors should be the firm’s roughly 60-year streak of annual dividend increases, that shows P&G is committed to bigger payouts over time, too, and not just holding dividends steady.

Shares have underperformed in 2017, but have still delivered a small profit with 5% returns since Jan. 1.

Must-Own Stocks: Colgate-Palmolive (CL) Must-Own Stocks: Colgate-Palmolive (CL)investorplace.com/wp-content/uploads/2016/04/clmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/clmsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/clmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/clmsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/clmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/clmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/clmsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/clmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/clmsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/clmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/clmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/clmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mark Tighe via Flickr (Modified)

Dividends paid since: 1895
Current yield: 2.2%

Colgate-Palmolive Company (NYSE:CL) is another mainstay of dividend stock investors. It has an equally popular line of products from Colgate toothpaste to Palmolive detergents and Speed Stick deodorant.

And thanks to the power of this company’s brands, it will be insulated from any year-to-year volatility in the U.S. economy. After all, nobody stops cleaning the dishes or brushing their teeth even if there happens to be a modest uptick in unemployment. Reliable revenue means CL stock offers a reliable dividend as a result.

Shares are up about 11% in 2017, slightly under the 16% return for the S&P 500.

Must-Own Stocks: PPG Industries (PPG) Must-Own Stocks: PPG Industries (PPG)investorplace.com/wp-content/uploads/2016/04/ppgmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/ppgmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/ppgmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: David Brossard(Modified)

Dividends paid since: 1899
Current yield: 1.6%

Originally named Pittsburgh Plate Glass, PPG Industries, Inc. (NYSE:PPG) has branched out from windows over the last century and into a host of industrial materials including auto paint, aerospace coatings and fiberglass. A diverse array of applications for its products ensure that the business has a stable stream of sales to fuel consistent dividend payments to shareholders.

Admittedly, a yield of less than 2% at present isn’t particularly appealing. But PPG stock is up nicely with 20% gains this year, so the total return of this dividend stock makes it worth a look.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforemen