Stocks to Buy for the Next 50 Years: General Electric (GE)
I’ll start with leading American industrial conglomerate General Electric Company (NYSE:GE). I figure that if General Electric has stood the test of time — it was, after all, one of the original Dow components 120 years ago — it will likely be going strong 50 years from now.
Eight years ago, I wouldn’t have included GE in this list of retirement stocks to buy. We were in the middle of the worst financial crisis in 100 years, and the company already had to go to Warren Buffett hat in hand to beg for money. GE Capital had gotten so large that the entire company looked more like a bank than an industrial concern.
Well, we’ve had some improvements on this front. Large swaths of GE’s financial empire have been either sold off or wound down. GE was just taken off the list of “systematically important financial institutions,” and the company is starting to look like a proper industrial giant again, being a leading producer of everything from aircraft engines to medical devices.
GE isn’t exceptionally cheap right now (few stocks are in this market), but if you’re looking at a 50-year time horizon, then buying at today’s prices is perfectly reasonable. GE stock pays a respectable 2.8% dividend. If you don’t need it today, I recommend you put it on automatic reinvestment and let the shares compound. You can accumulate a lot of shares in 50 years!
Source: Investor Place