Building wealth in the long term means you'll need to make investments that can stand the test of time. Evergreen companies that are proven to succeed in a variety of different market conditions are hard to come by, but the good news is that I'll be sharing three such stocks with you today.
All three of these companies are profitable and growing. Likewise, they're remarkably consistent over time, and there's next to zero chance of their going away anytime soon. Let's investigate each in detail.
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1. STAAR Surgical
STAAR Surgical (STAA -3.81%) is worth holding forever because it's creating a solution to a problem that will only become more prevalent with time: myopia.
With the help of STAAR's implantable collamer lenses (ICLs), nearsighted people like myself can be freed from squinting to read distant signs, assuming they're willing to undergo an outpatient procedure to insert the lens into their eyes. In contrast to more common fixes like glasses or contact lenses, ICLs are more convenient because they don't require cleaning or regular replacement. That's why it holds 9% of the global market for myopia correction, which is worth $230.4 million in trailing 12-month revenue.
STAAR is making more money from sales of its lenses over time. In the last 10 years, its annual revenue rose by 261%, whereas its annual free cash flow (FCF) grew by a stupefying 3,100%. Moving forward, the company will continue to prioritize expanding its penetration of the Chinese market, where its market share has grown from 2% in 2015 to a whopping 20% as of 2020.
With rapid progress like that, it's clear that there isn't much standing in its way.
2. Becton, Dickinson
Whereas STAAR Surgical is a tightly focused growth stock bent on advancing with its lone class of products, Becton, Dickinson (BDX -1.42%) is a mature healthcare supply company that's broadly diversified. Its customers include biomedical research laboratories and hospitals, both of which have an ongoing need for BD's scientific reagents, analyzer machines, test tubes, and sample collection equipment. Without key products like anesthesia sets, certain customers couldn't perform core functions like surgery, so its base of revenue is quite reliable.
In 2021, it brought in $20.2 billion, and its galaxy of products is set to continue expanding, with more than 100 new launches planned through 2025. Its yearly revenue has grown by 163% since 2012 , which isn't half bad for a giant with a $74 billion market cap. Part of its recipe for success is being able to rapidly innovate in response to emerging issues, which it most recently did when it developed a coronavirus diagnostic test in 2020.
In short, BD is worth holding forever because it'll be an essential company in healthcare for the foreseeable future. It pays a dividend that currently has a forward yield of 1.2%, and it's also (slowly) hiking its dividend over time, with its payment rising by 93% in the past 10 years. The stock might not beat the market every year, and its growth probably won't make you rich on its own, but its stability is a major appeal that is likely to pay off for long-term holders.
3. Abbott Laboratories
Much like BD, Abbott Laboratories (ABT -0.48%) is a healthcare supplier and medical device maker with a long history of steady growth. It's also living proof that massive businesses can continue to expand quickly as long as they consistently keep innovating. In 2021, its sales topped $43.1 billion, an increase of about 23% compared to 2020's sum.
Medical devices like Abbott's continuous glucose monitors (CGMs) for diabetes management are one of its primary growth drivers, with sales of its new FreeStyle Libre monitors rising by 36% in the fourth quarter of 2021 alone. Of course, sales of its BinaxNOW at-home coronavirus diagnostic tests and its adult nutrition products contributed too -- not to mention its ever-growing collection of surgical tools.
With such a wide set of offerings, Abbott is highly diversified. Its expansion over time makes this stock a great dividend hiker -- Abbott has increased its dividend for the last 50 years running, thereby earning it a membership in the highly exclusive Dividend King club. In the last five years alone, its payment has increased by 77% -- bringing its current yield to 1.5% -- and continuing its pace of increases is a priority for management.
With performance as consistent as Abbott's, there's much to like about this stock.
