7 Investments To Buy And Hold For Next 10 Years

Portfolio Overview - The portfolio consists of 6 stocks and 1 ETF, designed for a 10-year buy-and-hold strategy with a focus on income and dividend growth [1][2] - The portfolio aims to provide an average income of 4%, dividend growth of 6%, and a total return of 10% or better [2] - The portfolio is defensive in nature, with only 14% allocation to technology compared to 35% in the S&P500 [4] Individual Stock Analysis Enterprise Products Partners LP (EPD) - EPD is a midstream energy company with a 7.2% yield and a 25-year history of dividend increases [6][8] - The company has a solid balance sheet, A- credit rating, and $4 billion in liquidity [10] - EPD generated $1.9 billion in distributable cash flow in Q1 2024, covering dividends by 1.7x [9] Main Street Capital (MAIN) - MAIN is a BDC with a 5.75% forward yield and a history of special distributions, bringing total yield to 7.5%-8% [11][12] - The company has $7 billion in investment capital and a diversified portfolio of 190 investments [11] - MAIN's distributable net investment income exceeded dividends by 54% in Q1 2024 [12] Microsoft (MSFT) - MSFT is a leader in AI, with a 21% growth in its Azure platform and Intelligent Cloud in Q3 2023 [15] - The company has a 0.66% yield and is trading near its 52-week high [3][15] Mid-America Apartments Communities (MAA) - MAA is a REIT with a 4.3% yield and a strong balance sheet with an A- credit rating [16] - The company owns 100,000+ residential apartments in the sun-belt region of the US [16] PepsiCo (PEP) - PEP is a Dividend King with a 50+ year history of dividend increases and a 3.3% yield [19][20] - The company reported a 0.8% increase in revenue to $22.5 billion in Q2 2024 [21] Canadian National Railways (CNI) - CNI has a 2.01% yield and a 27-year history of dividend increases [3][24] - The company moved 300 million tons of cargo in 2023 and has access to seven major ports [22] Schwab U.S. Dividend Equity ETF (SCHD) - SCHD is a diversified ETF with a 3.85% forward yield and a 0.06% expense ratio [25] - The fund has a 10.8% annualized return from July 2014 to June 2024 [26]