Investing is all about the long term but many investors only focus on short term results. In fact, that’s the mistake #4 on this article by Robert Stammers, Director of Investor Education at the CFA Institute. 

“One of the biggest advantages you have as an individual investor is that you’re not beholden to other investors’ need for short term results.”

At Optimize Your Retirement, we don’t care what the market does from day to day or even month to month. Our view is long term.

Now for those entering retirement, I would argue that it’s just as, if not more, important to have money in good quality stocks in one form or another.

Over the long term, stocks yield outsized returns in comparison to bonds and cash. It’s all about your return on investment.

Did you know that if you increase return on investment by an extra 4% per year over 20 years, you can make an extra $700,000 on an initial $100,000 portfolio?


Sign up here to blast through your investing and retirement goals.


Example:

$100,000 initial portfolio at 10% per year for 20 years = approximately $700,000

$100,000 initial portfolio at 14% per year for 20 years = approximately $1,400,000

That’s the power of compounding in action. An extra 4% yield doesn’t sound like a lot but in investing, it is!

You should do what you can to increase your return on investment right now. You can’t afford not to.

I hope that the information on this site will empower you to take control of your investment decisions.

10 Stocks For The Next 10 Years

#1: Target Corp (TGT)

Share Price: $76

Market Cap: $43 B

Dividend Yield: 3.2%

Price-earnings Ratio: 14

Pitch: Target just blew out the numbers on its Q3 2016 earnings. Sales through Target’s digital channel were up 26% year over year. This is amazing considering that many analysts argue that Amazon is crushing Target online. This is obviously not the case. Yes, there is a ton of competition in the space like Amazon and Wal-mart. Target is not only holding it’s own but earnings are improving and although sales are flat, appear to be no long declining. Couple this with management’s shareholder friendly policies of share buybacks and raising dividends makes this stock a must for the next decade. Sure you’re not going to get huge gains, but they’ll be reliable high single digit ROI going forward.

#2 Panera Bread (PNRA)

Share Price: $210

Market Cap: $5B

Dividend Yield: none

Price-earnings Ratio: 35

Pitch: Panera’s stock has been lackluster over the last 5 years but that’s all about to change. With over 2,000 locations in 45 states, Panera has a pretty big footprint. It still can expand in the southern and western U.S. But that’s not what will drive growth. It’s Panera’s push for mobile ordering – called Panera 2.0 – that will really get growth going. Their biggest issue has always been the lunchtime bottleneck. They lose customers to long lines just like any other fast casual restaurant. With mobile ordering and pick up and go rolling out to almost all locations soon, Panera will be able to grow much more over the next 10 years.

#3 Hain Celestial Group (HAIN)

Share Price: $39

Market Cap: $4B

Dividend Yield: none

Price-earnings Ratio: 19

Pitch: When you invest in Hain Celestial, you’re investing in the trend in healthier food options. Hain makes all kinds of better-for-you food and most of it actually tastes good too. They just recently got over some revenue recognition problems related to sales of products to certain distributors. That crushed the stock in April of 2016 from over $55 a share down to $35 a share. The stock is still on sale even though there are no longer major accounting issues. At only $4B in market cap, this stock has a lot of room to run or alternatively is a buyout candidate for a larger food player.

#4 Hershey Co (HSY)

Share Price: $99

Market Cap: $20B

Dividend Yield: 2.5%

Price-earnings Ratio: 30

Pitch: Although the P/E ratio looks a bit high at 30, this is due to a one-time expense: Hershey’s forward P/E is more a more reasonable 22. The story is dividend growth rate. Over the last 5 years, Hershey has managed to double its dividend to shareholders. So while a 2.5% dividend yield is not stellar, 5% in five years doesn’t sound so bad. It’s a steady riser and you’ll be able to sleep at night knowing you’re invested in chocolate.

#5 Intuit Inc (INTU)

Share Price: $115

Market Cap: $30B

Dividend Yield: 1.2%

Price-earnings Ratio: 37

Pitch: The company behind TurboTax and many other software products makes almost 25% in net margin on its sales of $4.7 billion and growing. Sure, it’s pricey and it would be wise to wait for a pullback but don’t look for it to drop too much. There’s a reason why stocks trade at high multiples: investors’ expectations are high. Not only does this company make a ton of profit, they also have a rising dividend yield and buyback their shares making the shares you own worth more.

#6 People’s United Financial (PBCT)

Share Price: $18

Market Cap: $5.6B

Dividend Yield: 3.7%

Price-earnings Ratio: 20

Pitch: People’s United stands to benefit from the mass exodus at Wells’ Fargo after the fraudulent account issues. People’s has over 300 branch locations in the northeast U.S. It sports a high yield although the dividend growth rate is low. You can expect this to be a steady performer of the next 10 years as its management has a disciplined book of loans.

#7 NextEra Energy (NEE)

Share Price: $115

Market Cap: $53B

Dividend Yield: 3.1%

Price-earnings Ratio: 21

Pitch: This utility took a big hit to its stock price lately due to the rise in interest rates. That’s what happens with utilities: they trade like bonds. As interest rates rise, prices on bonds and bond-like stocks drop. Sometimes they go too low. The market overreacts and punishes the stock too much. That’s when we step in and buy up utilities. So as this one drops over rising rising interest rates, you’re safe to buy in. Buy when the P/E drops below 20 and add to the position when/if when the P/E drops below 17.

#8 Dow Chemical (DOW)

Share Price: $53

Market Cap: $60B

Dividend Yield: 3.5%

Price-earnings Ratio: 8.5

Pitch: Dow doubled its dividend over the last 5 years. It’s committed to raising dividends and delivering cash to shareholders. Their business is doing well generating $7.5 billion in operating cash flow annually. The stock is up only 4% over the last year and is due for a push higher.

#9 Johnson & Johnson (JNJ)

Share Price: $115

Market Cap: $313B

Dividend Yield: 2.8%

Price-earnings Ratio: 20

Pitch: You can’t get safer than JNJ. In fact, if someone said to me that I was only allowed to own one stock for the rest of my life, JNJ would be on the short list. With all the businesses that JNJ is involved in, it’s almost like holding a mutual fund without the management fee. They’re in pharma, medical devices, consumer and each segment includes dozens of brands. I like JNJ at a P/E less than 20 or when the yield goes above 3%. You can’t lose if you’re holding this long term.

#10 General Mills, Inc (GIS)

Share Price: $61

Market Cap: $36B

Dividend Yield: 3.1%

Price-earnings Ratio: 22

Pitch: Why do I love food companies? Because they’re so reliable. They sell product that people love to buy every single week. You have General Mills products in your house. Yoplait yogurt, Cheerios, Wheaties, Chex Mix, and they bought the Annie’s group of products to get into the better-for-you organic food market. Annie’s has great growth potential coupled with the legacy brands that continue to sell make this stock a great buy for the next 10 years.