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Apple Inc. (AAPL), The Procter & Gamble Company (PG), Wal-Mart Stores, Inc. (WMT): What are the Best Stocks for the Next Five Years?

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The Dow Jones Industrial Average (INDEXDJX:.DJI) recently pulled back from 15,500 to 14,852 before recovering back to 15,227. Over the past couple week’s market experts were speculating on a recession, but now those same market experts are talking about new highs in the stock market. This is typical behavior; bears come out in every market pullback just to be reined in by a positive wave of buying. The bulls start talking about higher levels every time the market recovers. It is just the way it is.

Going forward investors need to stick with their own investment thesis, especially during periods of volatility. Everyone has an investment thesis. Some believe in value, others believe in growth, and some believe in a mix. What matters is that investors invest with the mindset of long-term growth. The best strategy to counter long-term volatility is the long-term accumulation in a stock rather than a gimmicky tactic of day trading.

Three stocks that I like

In general, I prefer stocks that have a healthy mix of value, growth, and income. The stocks I pick don’t excel at any of the three categories, but provide enough of each to make it a worthwhile investment opportunity.

Investors should stay the course with Apple Inc. (NASDAQ:AAPL), The Procter & Gamble Company (NYSE:PG) , and Wal-Mart Stores, Inc. (NYSE:WMT)

Apple Inc. (AAPL)

Apple a solid investment

Anyone who recommends Apple is starting to sound like a broken record. I know it gets old, but we have to stick to basics. Investing doesn’t always need to be complicated.

The company’s brand is the most powerful in the world, according to Forbes. The hidden component to Apple Inc. (NASDAQ:AAPL)’s pricing premium is the way consumers perceive the brand. The perception surrounding Apple is a mix of luxury, refinement, style, uniqueness, creativity, and class.

Apple Inc. (NASDAQ:AAPL)’s unique content and product ecosystem makes it easier for users to upgrade, and use applications across the iMac, iPad, and iPhone. Those with an Apple ID have a built-in advantage as it lowers the cost and standardizes the Apple experience across all form-factors of computing. This is going to be increasingly important for users as every other product ecosystem isn’t as cross compatible as Apple Inc. (NASDAQ:AAPL)’s, with the exception of Microsoft Corporation (NASDAQ:MSFT).

Apple trades at a 10.4 earnings multiple, which is reasonable considering the 20.9% average growth rate over the next five years. The growth is likely to be sustainable considering the high rates of growth projected for both smartphone and tablet devices by various sources like IDC and Gartner. The company also compensates its investors with a 2.8% dividend yield, which is more generous than Treasury bond yields. The company is also buying back $60 billion worth of shares, which will limit the share float thus stimulating demand for the remaining shares.

Retail is a winner

Wal-Mart Stores, Inc. (NYSE:WMT) is a compelling investment going forward. Recently the company announced that it would be hiring more temporary workers in order to offset the lack of labor during peak hours of business. The company is hoping to improve upon the shopping experience while keeping in mind its fiduciary duty to its shareholders.

One of the main reasons why I like Wal-Mart Stores, Inc. (NYSE:WMT) is that it’s remarkably consistent, and it upholds its values better than most company’s often do. The company’s every-day-low-price strategy isn’t immensely popular because it has closed a lot of small businesses, but there’s no denying that everybody likes inexpensive things.

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