Preferably, 2021 will have a better start to the year than 2020, what with the numerous dystopian events. But as we move forward into this new year it might be time to look at your portfolio and add some investments that will last a lifetime. We have chosen the following three stocks because each one has a proven track record and they still have room to grow over the next decade
Broadcom (NASDAQ: AVGO) is known predominantly as a semiconductor company, however, it is also heavily involved with 5G, and in particular, the connected cars market which has some new and exciting innovation paths. For example, Broadcom recently announced the availability of its new multigigabit Ethernet PHY transceiver family and multilayer Ethernet switch family for the connected car market. These two device families have been produced with both high-speed data transmission as well as data security in mind, addressing each as a priority for the development of autonomous driving.
Indeed, 5G and automotive car development seem to go hand in hand, with Broadcom acting as an essential arbitrator to link the two. But, this stock also pays out a dividend to its investors. At 3.3%, this is a high dividend payout for any stock, let alone a company that belongs to the high growth world of tech stocks, where dividends tend to be a rarity. In addition, Broadcom had average quarterly earnings per share (EPS) of around 4.31 in the last four quarters.
This is a stock that has high growth potential in multiple areas that are likely to explode over the next 10 years. In addition, it has a strong tradition of dividend payouts — this is the perfect pairing for stock to buy and then hold forever.
Apple has long been a well-renowned investor favorite. However, since hitting the $2 trillion market cap mark earlier this year, there has been some resistance to this company as a good buying opportunity. In order to double an investment, Apple would need to hit the $4 trillion mark, which is much harder than if an investor was to choose a smaller capped, growth stock.
But don’t dismiss this stock just yet. Apple might not be in explosive growth mode, but throughout 2020 its total return has been over 66%. In addition, it has a free cash flow of $73.5 billion, bringing in $64.7 billion in its most recent quarter, breaking its record for sales in Macs and Services. Indeed, the company seems to go from strength to strength, with sales in Brazil, India, and Germany surging to record highs; whilst in Japan, its mobile market share went from 13% in 2019 to 27% in 2020.
Apple is a stock for life, it has been a driver of huge cultural change and it will continue to grow for the foreseeable, bringing great returns on any investment.
3. Sea Limited
Sea Limited is a big name in Southeast Asia, and becoming well-known among the Wall Street elite, finishing 2020 with a high after its stock soared four-fold throughout the year. This company is a gaming platform, particularly known for its subsidiary ‘Garena’ who published the hugely popular game ‘Free Fire’. Yet, Sea Limited is growing beyond that, into a multifaceted business that is taking over Southeast Asia and its more than half-a-billion population.
Sea Limited operates a number of online platforms, including the region’s popular e-commerce site ‘Shopee’ and its financial services company ‘Sea Money’. Shopee is a high growth area of the business, tapping into a geographic market that is currently opening up, particularly during the pandemic with last quarter showing 173% growth in revenue, bringing in $618.7 million.
Looking forward, it is Sea Limited’s financial services sector that is the most exciting. In the most recent quarter, it posted 17.8 million quarterly paying users and the mobile wallet function processed $2.1 billion. Additionally, Sea Limited was awarded one of the four coveted Singaporean Digital Bank Licences to be handed out in 2020. Going forward, Sea limited can bring more and more people into its digital ecosystem of which it already has attracted a large proportion of young Singaporean consumers.
This stock is definitely going places and any investor in this company will see it grow into a behemoth over the next decade or so.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Financial Writer at MyWallSt
Poppy’s favorite stock is Nvidia as she loves innovation and this stock has bags of it. Nvidia invented the GPU in 1999 and even today its immersive graphics give life to the gaming world. Poppy is also inspired by Nvidia’s ability to imagine and create positive change for the world, with its AI technology fuelling new developments in the automotive industry, the medical industry, as well as powering data centers around the world.