Investors seeking a low-maintenance strategy to build wealth over the long term can benefit from choosing stocks that prioritize stability and growth. This approach focuses on stocks that offer reliable dividends and strong long-term performance, requiring less frequent oversight. Here, we examine three stocks from the beverage, defense, and quick-service restaurant sectors that can provide significant advantages for a long-term investment portfolio.
Historically, Coca-Cola (NYSE:KO) has been a reliable dividend payer, consistently increasing its dividend for over six decades. The company’s strategic shift towards non-carbonated beverages aligns with changing consumer preferences, further solidifying its long-term growth potential. Lockheed Martin has demonstrated robust financial performance, driven by its space and defense segments, securing significant government contracts. Restaurant Brands has shown impressive growth through menu innovation and strategic investments, though it faces competition from industry giants like McDonald’s.
Coca-Cola’s Strategic Shift
Coca-Cola is transitioning towards non-carbonated drinks as soda sales decline, influenced by changing consumer preferences and the impact of weight-loss drugs. Despite trading below recent averages, analysts anticipate sales growth in 2025. Coca-Cola, a Dividend King, has increased its payout for 63 consecutive years.
“Coca-Cola raised its 2024 forecast, expecting 9-10% organic revenue growth, up from 8-9%, and 5-6% comparable earnings growth, up from 4-5%,” the company stated.
Lockheed Martin’s Growth in Space Segment
Lockheed Martin, known for its defense contracts, has seen strong growth in its space segment. In the last quarter, space net sales increased by $310 million compared to Q1 2023, and operating profit grew by $45 million year-over-year.
“The company’s innovation in defense and strategic acquisitions have boosted investor confidence,” according to a recent statement.
Restaurant Brands International has demonstrated impressive growth, particularly through its Tim Hortons, Burger King, and Popeyes brands. The company’s focus on menu innovation, digital strategies, and operations has driven its success. However, competition from McDonald’s remains a challenge, particularly in the value menu segment.
“Restaurant Brands’ Q2 same-store sales rose 1.9%, with international locations up 2.6%,” the company reported.
These three stocks—Coca-Cola, Lockheed Martin, and Restaurant Brands—present viable options for investors seeking long-term stability and growth. Coca-Cola’s strategic pivot to non-carbonated beverages positions it well for future growth, while Lockheed Martin’s strong performance in the defense and space segments ensures continued profitability. Restaurant Brands’ focus on innovation and strategic investments promises steady growth, though it must navigate competitive pressures. Selecting stocks from diverse sectors can help investors achieve a balanced and resilient portfolio.
