In today’s media-dominated market, investors struggle to find more than 50 days in the future, let alone 50 years. But this may be a timing option that most of us should consider-constantly swapping stocks to find the next hot name can cause nickel to depreciate and depreciate the portfolio to death.
For this reason, investors who have sufficient discipline (and time) to be stable in the next 50 years may wish to consider intervention Microsoft (Nasdaq stock code: MSFT), American Water Company (New York Stock Exchange: AWK)with Verizon Communications (New York Stock Exchange: VZ) Sooner than later. Everyone provides something that can stand the test of time in their own way.
Why it is durable: Microsoft is deeply rooted in the technology we rely on every day
Ten years ago, the software giant Microsoft looked mature. It was not a participant in the emerging smartphone market at the time. Free office productivity software posed a threat to its important business. The personal computer market is reaching its peak, and most countries in the world are still struggling to find out the term “cloud computing” accurately. Even means.
When Satya Nadella was appointed as CEO in 2014, he met all these challenges.
To be clear, he did not directly solve all problems. After a disastrous attempt on the stage, Microsoft is basically not in the smart phone business. Moreover, although the long-term shrinking of the personal computer market finally seems to be leveling off, the company does not seem to regard the Windows operating system itself as a growth engine. On the contrary, it is an ingenious means to achieve an end. The Windows operating system can easily support the use of Microsoft’s cloud-based office software Office 365, which is sold as a subscription rather than a one-time purchase. In the most recent quarterly report, this online version of Office was used by 42.7 million consumers and countless businesses, accounting for the largest share of the $11.8 billion in recurring revenue collected by the company’s productivity and business process departments.
Then there is Microsoft you didn’t see. If you are an ordinary user of any cloud service, you will most likely use Microsoft’s Azure to help you digitally connect to your company’s servers. Microsoft’s Smart Cloud division achieved 17% revenue growth in the three months ended June. A large part of this is also recurring income. According to Canalys data, the company’s cloud management software Azure was the only mainstream software that increased its market share in the second quarter.
There is obviously competition, and the market changes over time. Unless individuals and businesses stop using technology, especially mobile technology, Microsoft will always have a market to sell products to.
Why it is durable: water company is actually a legal monopoly
According to the U.S. Geological Survey, ordinary people living in the United States consume 80 to 100 gallons of water every day, and most of us don’t think about it. However, if we only turn off the water for a few hours, most of us might go crazy due to inconvenience! Consumers may postpone car purchases or skip holidays, but they will not live without water.
This reality puts the name of a water company like the US Waterworks in an enviable position, and the company has obtained numbers that are sufficient to prove the power of this demand dynamic. In the past ten years, only two-quarters of American water plants have experienced a year-on-year decline in revenue. Same as the total profit, or the money left after purifying and transporting the water through the pipeline network.
Sustained success is closely related to how the water company operates. Most municipalities monitor local service providers and approve any interest rate hikes. They rarely refuse to raise prices. Circle of Blue, a researcher in the water market, pointed out that since 2010, the average water bill for American households has been rising every year. In theory, competitors can step in and reduce the incumbent’s rate. However, transferring control of localized infrastructure may be more complicated than its value.
There are several viable water company stocks to choose from, but the American water plant is notable because it is the largest and works.
Why it is durable: New technologies will always provide Verizon with better products
Finally, add telecommunications giant Verizon to the list of stocks you can use for 50 years or more.
Frankly speaking, accepting on the surface is a difficult idea. Telecommunications is essentially a commodity, usually priced at this price. In other words, Verizon and its competitors sell the same basic products at approximately the same price.
On the surface, telecommunications is by no means a simple commodity. Not only is the amount of spectrum available (the radio frequency needed to connect wireless devices to the network) limited, but new technologies will forever change the way telecommunications services work.
For example: 5G. Yes, 5G services are now provided to wireless consumers, but this is not the company’s 5G highlight. Verizon is considering more powerful uses for this technology. For example, earlier this month, the company announced the successful trial of 5G solutions optimized for facilities such as hospitals, factories and schools. With this ultra-high-speed wireless connection, the Internet of Things era can finally usher in expectations. Complex and geographically dispersed organizations can manage all employees and equipment and optimize them remotely. This even means that wireless home broadband is now a viable option.
The problem is that 5G did not even appear ten years ago. There will always be something new to keep Verizon at the forefront of communications.
One might argue American Telephone and Telegraph Company Have the same functions, but there is a clear difference between Verizon and AT&T. In other words, AT&T is still heavily in debt and is in trouble by the DirecTV business, which is reportedly trying to get out of trouble. It is also working to make full use of its 2018 acquisition of WarnerMedia and launched the streaming platform HBO Max in May of this year. However, this is a big and distracting bet. Verizon’s best to focus on doing one thing well, not to fall into the cruel video entertainment war.
The 4.2% dividend yield is also good, especially considering that the company has been increasing it every year for the past 13 years.