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Yahoo
04-05-2025
- Business
- Yahoo
3 stocks Fools bought over 10 years ago and still hold
The shorter your investing time horizon, the more we think that you're gambling with your investment money. A longer time horizon for building wealth allows more time for companies to work on your behalf as a shareholder. Here are a number of stocks that our free-site writers have bought and held for at least the past decade! What it does: Amazon is a global leader in online retail and marketplace for third party sellers. Its cloud computing platform Amazon Web Services provides data storage and AI services. By Harshil Patel. I first bought Amazon (NASDAQ:AMZN) shares 12 years ago in 2013. And it's one of my longest-serving holdings. Since then, it has risen by around 1200%. I was inspired by Peter Lynch's book One up on Wall Street. I used the concept of investing in what you know. I was a subscriber to its Prime service and had learned that many more features were on the way. Its subscription service looked promising, and I was even prepared to pay a higher price. Amazon was innovating and sales were growing. It was impossible to know how much of a success it would end up being. But it looked promising. Today, it's a more mature business. That said, it continues to grow sales and offer innovative solutions. But do I think it's likely to rise by another 1200% over the coming 12 years? I doubt it. With a market capitalisation of $1.8bn, it could struggle. That's why I'm focussing on smaller companies today. Harshil Patel owns shares in Amazon. What it does: Diageo manufactures some of the world's most popular drinks brands like Smirnoff vodka and Captain Morgan rum. By Royston Wild. Being a Diageo (LSE:DGE) shareholder has proved 'a game of two halves' for me, to use a well-worn football cliché. A steadily growing dividend and rising share price gave me a solid return before 2020's Covid emergency. Since then, Diageo shares have been up and down, and they've been locked in a sustained downturn since mid-2022. As a consequence, the drinks giant's provided a sub-par average annual return of 4% over the past decade. This is below the 6.5% that the broader FTSE 100 has delivered over that time. Yet I haven't been tempted to cut and run, at least yet. I'm confident that Diageo's share price will rebound strongly when consumer spending power recovers, driven by its packed portfolio of leading brands. The rise of 'teetotalism' in the West poses a threat to long-term revenues. Yet Diageo's huge emerging market exposure provides exceptional profits opportunities that may help to offset this. I'm also encouraged by Diageo's successful foray into the non-alcoholic market. European sales of its Guinness 0.0 variant doubled in the six months to December. I'm sure it has more tricks up its sleeve to capitalise on this fast-growing segment. Royston Wild owns shares in Diageo. What it does: Lloyds Banking Group is a UK retail bank and one of the country's biggest mortgage lenders By Alan Oscroft. I've held Lloyds Banking Group (LSE: LLOY) shares for more than a decade. I've learned a lesson from that: it's important to know when not to sell. One of those times is after bad news has hit the share price, because it's too late by then. Panic selling is almost never a winning strategy. I certainty wouldn't sell just because Lloyds has fallen as a result of President Trump's tariff war. The biggest threat I see is the car loan mis-selling case, currently with the Supreme Court. Lloyds has set aside £1,150m to cover potential costs, bit it's not clear if that will be enough. The fear isn't enough to make me want to sell, but I don't want to buy more right now. On the bright side, I see forecasts that could drop the Lloyds price-to-earnings (P/E) ratio to only seven by 2027. Will I hold Lloyds for another 10 years? Probably. Alan Oscroft has positions in Lloyds Banking Group Plc. The post 3 stocks Fools bought over 10 years ago and still hold appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
04-04-2025
- Business
- Yahoo
4 REITs Fools own for passive income
Real estate investment trusts (REITs) offer a combination of high dividend yields, potential for growth, and diversification benefits, making them an attractive option to consider for investors seeking passive income. Here are a handful owned across the contract writing team! What it does: Primary Health Properties specialises in purchasing and renting primary healthcare facilities within the United Kingdom and Ireland. By Mark Hartley. Primary Health Properties (LSE: PHP) is a real estate investment trust (REIT) that benefits from stable revenue through long-term leases backed by the NHS and Irish government. This makes it a good candidate for passive income, as it's low-risk and provides consistent dividend payouts It has a long track record of dividend growth and has seen moderate price appreciation during strong economic periods. Dividends have increased consistently for over 20 years at a compound annual growth rate of 3.24%. However, the price has suffered during periods of high interest rates, ramping up borrowing costs and impacting profitability. Recent concerns about the wider property sector and potential government healthcare policy change risk hurting the share price. Despite a slight decline in performance over the past three years, revenue and earnings have typically been within 1% of expectations. This makes it attractive to income investors looking for stable and reliable performance. Mark Hartley owns shares in Primary Health Properties. What it does: Primary Health Properties owns and lets out medical facilities like GP surgeries in the UK and Ireland. By Royston Wild. Primary Health Properties offers investors the dream blend of long-term dividend growth and market-beating dividend yields. Cash rewards here have grown every year since the mid-1990s. And City analysts expect this trend to continue until at least 2026, representing 30th consecutive years of rises. As a result, the yields on Primary Health Properties for this year and next stand at 7.6% and 7.7% respectively. To put that into perspective, the current forward average for FTSE 250 stocks sits way below these levels, at 3.4%. This REIT's dividend durability reflects its focus on the ultra-defensive healthcare market, providing profits stability across the economic cycle. It's also because the lion's share of rental income is directly or indirectly guaranteed by a government body. Looking ahead, future dividends could be hurt by NHS policy changes that impact earnings. But with successive governments working to strengthen the role of primary care in Britain, the outlook here for the short-to-medium term at least looks pretty solid. Royston Wild owns shares in Primary Health Properties. What it does: Supermarket Income owns a £1.8bn portfolio of 74 stores, with the majority leased to Tesco and Sainsbury's. By Roland Head. Big UK supermarkets have regained their status as desirable retail properties since the pandemic. I added Supermarket Income REIT (LSE: SUPR) to my portfolio in July 2024, tempted by the 8%+ dividend yield and near-20% discount to book value. Admittedly, there's a risk that higher interest rates will put pressure on the dividend. But my sums suggest that this REIT will be able to refinance while maintaining its dividend. Recent changes should deliver a sharp drop in management costs. This REIT also benefits from long leases and very reliable tenants. Occupancy is 100% and so is rent payment. Property valuations also seem realistic – another area of possible concern. During the second half of 2024, Supermarket Income sold Tesco's Newmarket store back to the retailer at a price 7.4% above its latest book value. With a forecast yield of 8.3%, I'm quite happy to sit back and collect my quarterly dividends. Roland Head owns shares in Supermarket Income REIT. What it does: Warehouse REIT owns and leases a portfolio of well-positioned warehouses across the UK catering primarily to the e-commerce industry. By Zaven Boyrazian. In a world where e-commerce continues to slowly take market share from brick-and-mortar retail, demand for well-positioned warehouses is growing. This is a trend that Warehouse REIT (LSE:WHR) has been busy capitalising on since its IPO in 2017. However, with interest rates rising rapidly in 2022, real estate investment trusts have had to endure much higher financial pressures. In the case of Warehouse, that ultimately culminated in property disposals to keep debt in check. Despite this, dividends have kept flowing. And while elevated interest rates are still a cause for concern, the sell-off by investors seemed a bit overblown. It seems the private equity markets have also come to the same conclusion since acquisition offers began flying in February 2025. So far, they've all been rejected. Even after the recent rise in stock price, the shares continue to offer an attractive 6.5% dividend yield. And with demand for warehouses unlikely to slow down in the long run, the passive income potential for Warehouse REIT continues to look rock solid, in my opinion. Zaven Boyrazian owns shares in Warehouse REIT. The post 4 REITs Fools own for passive income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended J Sainsbury Plc, Primary Health Properties Plc, Tesco Plc, and Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
