For investors seeking financial stability and wealth creation, the best long term stocks offer a reliable foundation for building a resilient portfolio. Unlike short-term trading, long-term investing focuses on owning high-quality companies with strong fundamentals, consistent cash flow, and the ability to grow over time. In this guide, we’ll break down what makes a stock a smart long-term investment, highlight top-performing companies for 2025, and explain how to buy these stocks from Europe, the US, and Canada.
What Makes a Stock One of the Best Long Term Stocks?
Identifying the best long term stocks requires looking beyond short-term market movements. Key characteristics include:
- Strong fundamentals: Steady revenue growth, healthy profit margins, and manageable debt levels.
- Industry leadership: Dominant companies tend to outperform during economic downturns.
- Dividend reliability: A history of consistent and growing dividend payments signals financial strength.
- Innovation and adaptability: Companies that embrace new technologies and evolve with market trends often deliver superior long-term returns.
These traits help investors distinguish between sustainable investments and speculative bets.
Best Long Term Stocks for Beginners in 2025
These companies combine growth potential with financial stability and are suitable for beginner investors building a long-term portfolio. The below ratios are valid as of 31.08.2025.
Apple Inc. (AAPL)
- Sector: Technology
- Market Cap: $3.45 trillion
- P/E Ratio: ~35x
- Dividend Yield: 0.45%
- Why It’s a Top Pick: Apple’s ecosystem of devices and services drives consistent revenue. Its brand loyalty, global reach, and innovation in wearables and AI make it one of the best long term stocks for beginners.
Microsoft Corp. (MSFT)
- Sector: Technology
- Market Cap: $3.77 trillion
- P/E Ratio: ~37.14x
- Dividend Yield: 0.66%
- Why It’s a Top Pick: Microsoft’s dominance in enterprise software and its fast-growing Azure cloud platform position it for sustained growth. Its AI integration across products enhances its long-term outlook.
Alphabet Inc. (GOOGL)
- Sector: Technology
- Market Cap: $2.58 trillion
- P/E Ratio: ~22.68x
- Dividend Yield: 0.39%
- Why It’s a Top Pick: Alphabet’s leadership in search, advertising, and YouTube, combined with aggressive AI investments and cloud expansion, ensures continued relevance and profitability.
Amazon.com Inc. (AMZN)
- Sector: E-commerce / Cloud
- Market Cap: $2.44 trillion
- P/E Ratio: ~34.95x
- Dividend Yield: None
- Why It’s a Top Pick: Amazon’s diversified revenue—from AWS to Prime and healthcare—positions it for long-term growth. Its logistics network and innovation in automation make it a durable investment.
Tesla Inc. (TSLA)
- Sector: Automotive / Clean Energy
- Market Cap: $1.08 trillion
- P/E Ratio: ~193.35x
- Dividend Yield: None
- Why It’s a Top Pick: Tesla leads in electric vehicles and clean energy. Its vertical integration, battery technology, and autonomous driving initiatives offer long-term upside for growth-focused investors.
NVIDIA Corp. (NVDA)
- Sector: Semiconductors / AI
- Market Cap: $4.23 trillion
- P/E Ratio: ~49.57x
- Dividend Yield: 0.02%
- Why It’s a Top Pick: NVIDIA powers AI infrastructure globally. Its chips support everything from data centers to autonomous vehicles, making it a cornerstone of future tech and one of the most valuable companies in the world.
ASML Holding N.V. (ASML)
- Sector: Semiconductors
- Market Cap: $288 billion
- P/E Ratio: ~28.45x
- Dividend Yield: 0.82%
- Why It’s a Top Pick: ASML manufactures the world’s most advanced lithography machines, essential for chip production. Its technological moat and limited competition make it a strategic long-term investment.
Toyota Motor Corp. (TM)
- Sector: Automotive
- Market Cap: $255 billion
- P/E Ratio: ~8,97x
- Dividend Yield: 2.77%
- Why It’s a Top Pick: Toyota’s hybrid technology and global scale position it well for the evolving mobility landscape. Its conservative financial management and innovation in hydrogen and EVs offer long-term resilience.
Top Dividend Stocks for Long-Term Growth
Dividend-paying companies offer both income and stability, making them ideal for long-term portfolios.
Johnson & Johnson (JNJ)
- Sector: Healthcare
- Market Cap: $426 billion
- P/E Ratio: ~18.95x
- Dividend Yield: 2.94%
- Why It’s a Top Pick: J&J’s diversified healthcare business provides stability during economic uncertainty. Its strong dividend history and pharmaceutical pipeline make it a defensive choice among the best long term stocks.
Coca-Cola Co. (KO)
- Sector: Consumer Staples
- Market Cap: $296 billion
- P/E Ratio: ~24.44x
- Dividend Yield: 2.96%
- Why It’s a Top Pick: Coca-Cola’s global brand and diversified beverage portfolio make it a reliable income generator. Its pricing power and emerging market growth support long-term performance.
Procter & Gamble Co. (PG)
- Sector: Consumer Staples
- Market Cap: $367 billion
- P/E Ratio: ~24.14x
- Dividend Yield: 2.69%
- Why It’s a Top Pick: P&G’s household products are recession-resistant, and its consistent cash flow supports long-term dividend growth. Its innovation in sustainability and brand strength add to its appeal.
PepsiCo Inc. (PEP)
- Sector: Consumer Staples
- Market Cap: $203 billion
- P/E Ratio: ~27.10x
- Dividend Yield: 3,83%
- Why It’s a Top Pick: PepsiCo’s combination of snack foods and beverages offers diversification and global reach. Its steady dividend and brand portfolio make it a reliable long-term holding.
Nestlé S.A. (NESN)
- Sector: Consumer Staples
- Market Cap: $238 billion
- P/E Ratio: ~18.82x
- Dividend Yield: 4.05%
- Why It’s a Top Pick: Nestlé’s global footprint and product diversity—from nutrition to beverages—make it a reliable performer, especially in uncertain markets. Its focus on health and wellness trends supports future growth.
Novo Nordisk A/S (NOVO-B)
- Sector: Healthcare / Biotech
- Market Cap: $248 billion
- P/E Ratio: ~14.40x
- Dividend Yield: 3.25%
- Why It’s a Top Pick: A global leader in diabetes care and obesity treatment, Novo Nordisk has strong growth prospects and consistent earnings. Its innovation pipeline and global demand make it a standout in healthcare.
Eli Lilly and Co. (LLY)
- Sector: Pharmaceuticals
- Market Cap: $693 billion
- P/E Ratio: ~48.58x
- Dividend Yield: 0.82%
- Why It’s a Top Pick: With FDA-approved treatments for obesity and Alzheimer’s, Eli Lilly is transforming healthcare. Its drug pipeline and global demand make it a compelling long-term bet.
NextEra Energy Inc. (NEE)
- Sector: Utilities / Renewable Energy
- Market Cap: $148 billion
- P/E Ratio: ~25.11x
- Dividend Yield: 3.15%
- Why It’s a Top Pick: As the largest electric utility holding company by market cap, NextEra is a leader in clean energy infrastructure. Its long-term contracts and renewable portfolio offer stability and growth.
Berkshire Hathaway Inc. (BRK.B)
- Sector: Conglomerate
- Market Cap: $1.09 trillion
- P/E Ratio: ~17.24x
- Dividend Yield: None
- Why It’s a Top Pick: Warren Buffett’s holding company offers exposure to a diversified portfolio of businesses, from insurance to railroads. Its conservative management and long-term value investing approach make it a cornerstone holding.
Where to Buy the Best Long Term Stocks (Europe, US, Canada)
United States
- Brokerages: Fidelity, Charles Schwab, E*TRADE, Robinhood
- Accounts: Standard brokerage accounts, Roth IRA, 401(k)
Canada
- Brokerages: Questrade, Wealthsimple, TD Direct Investing
- Accounts: RRSP (tax-deferred), TFSA (tax-free), non-registered accounts
- Tip: Holding US stocks in an RRSP avoids the 15% US dividend withholding tax
Europe
- Brokerages: Interactive Brokers, DEGIRO, Trade Republic, eToro
- Accounts: Vary by country; standard investment accounts are common
- Currency Consideration: Be mindful of exchange rates when converting EUR to USD
Risks and Common Concerns About Long-Term Investing
Even the best long term stocks are not immune to risk. Common concerns include:
- Market downturns: Even blue-chip stocks can decline during recessions.
- Inflation: Can erode purchasing power if earnings growth doesn’t keep pace.
- Overconcentration: Investing too heavily in one sector or stock increases risk.
Diversification across industries and geographies is essential for managing long-term risk.
Conclusion
The best long term stocks share strong financials, industry leadership, and resilience in the face of economic uncertainty. Whether you’re investing in tech giants, healthcare leaders, or dividend aristocrats, the key is consistency and patience. By understanding key metrics and choosing the right platforms, investors from Europe, the US, and Canada can confidently build wealth over time.
Our advice is to stay diversified when choosing individual stocks. Choose stocks from different sectors but also try to not pick too many stocks (we think 30 is the maximum amount for a regular investor) because it is difficult to follow the market news for a huge amount of assets. When investing in individual stocks even if you have a long term horizon it is a good idea to read the news from time to time so you are not surprised if a stock from your portfolio struggles or has issues.
If you are not a fan of individual stocks you can check our article about the best ETFs for emerging markets here.