In this article, we will look at the 12 Best Long-Term Stocks to Invest in for Retirement.
Days are gone when investors simply put money into fixed-income assets for their appealing yields, generating solid streams of income to finance a comfortable retirement. According to the Bureau of Labor Statistics, retirees spent an average of $59,616 in 2025, or about $5,000 a month. While $5000 might not be enough for everyone, saving and investing enough is crucial.
Building a nest beyond the traditional approach is becoming increasingly popular. Dividend-paying stocks from top-notch, low-risk companies offer an avenue to build steady, solid income streams. That’s because such companies boast strong recurring revenue and are constantly innovating without overextending.
“If you invested $100,000 today and the stock averaged a conservative 10% annual return (slightly below its 20-year average), your portfolio could grow to roughly $259,000 in 10 years,” said Danny Ray, founder of PinnacleQuote. “Furthermore, reinvesting dividends could push that number even higher.”
Finding solid income-producing stocks averaging a 3% dividend yield is a sure way to grow one’s retirement nest, hassle-free. The stocks are ideal for combating inflation and boosting passive income over time.
Likewise, Susan Dziubinski, an investment specialist at Morningstar, insists that investors with a greater risk appetite or a longer retirement runway should consider stocks. According to Dziubinski, undervalued stocks with significant advantages and reliable cash flows would be ideal long-term investment plays for retirement.
“While these aren’t necessarily stocks to own forever (because there’s no such thing; stocks require monitoring!), these are companies that, given their competitive advantages, should be around and fighting off competitors for the long term,” she wrote in an email response.
Amid growing concerns of potential market correction with equities at all-time highs after two years of blockbuster gains, let’s take a look at some of the best long-term stocks to invest in for retirement.
Our Methodology
We sifted through financial media reports and ETFs tracking high-quality US stocks to find the best long-term US stocks to invest in for retirement. From that list, we settled on stocks with dividend yields of more than 3% and returns on equity of more than 15%. We also focused on less volatile stocks with betas between 0 and 1 and detailed hedge fund holdings. Finally, we ranked the stocks in ascending order by the number of hedge funds holding stakes in the third quarter of 2025.
Note: The data is of February 10, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Long-Term Stocks to Invest in for Retirement
12. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield: 6.46%
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is one of the best long-term retirement stocks. On February 5, TD Cowen reiterated a Hold rating on Enterprise Products Partners L.P. (NYSE:EPD) and raised the price target from $33 to $34.
The price target hike follows remarks that the company completed 2025 with a record fourth quarter of natural gas inlet volume of 8.1 Bcf/d and a record NGL fractionation volume of 1.9 million BPD. The volume increase led to a higher gross operating margin in the NGL segment and a record net income attributable to common unit holders.
“We continue to forecast strong natural gas and NGL production growth in the Permian Basin as gas-to-oil ratios continue to increase and as producers use new completion technology, develop new geologic horizons, and step out further on their inventory of locations,” said A.J. “Jim” Teague, co-chief executive officer.
The company reported net income of $5.8 billion, or $2.66 per common unit on a fully diluted basis, compared to $5.9 billion, or $2.69 per common unit on a fully diluted basis. Operational distributable cash flow was $7.9 billion. Distribution declared increased 3.6% to $2.175 per common unit, marking the 27th consecutive year of distribution growth.
Adjusted cash flow from operations rose to record highs of $8.7 billion, compared to $8.6 billion in 2024. Likewise, the company repurchased $300 million of its common units, bringing total repurchases to $1.4 billion.
Enterprise Products Partners L.P. (NYSE:EPD) is a major North American midstream energy company that transports, stores, and processes natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
11. Albertsons Companies (NYSE:ACI)
Dividend Yield: 3.37%
Number of Hedge Fund Holders: 40
Albertsons Companies, Inc. (NYSE:ACI) is one of the best long-term retirement stocks. On February 2, Albertsons Companies, Inc. (NYSE:ACI) issued $2.1 billion in senior notes to refinance its existing debt.
The company issued $1.2 billion in aggregate principal amount of 5.625% senior notes due in 2032 and $900 million in 5.75% senior notes due in 2034. Albertsons Companies is to use the net proceeds to redeem all $1.35 billion of its outstanding 4.625% notes due 2027 and $750 million of its outstanding 5.875% notes due 2028.
Earlier on January 15, Morgan Stanley downgraded Albertsons Companies, Inc. (NYSE:ACI) to Underweight from Equalweight and cut the price target from $20 to $14. The downgrade came amid concerns that the company is facing competition in the grocery market, which could lead to significant market share losses.
The downgrade also underscores the company’s limited top-line growth drivers, as sales have been driven by pharmacy rather than core food sales. Morgan expects Albertsons Companies to face margin pressure from excluding benefits from IRA rebates.
Albertsons Companies (NYSE:ACI) Inc is a major U.S. food and drug retailer. It offers groceries, pharmacy services, fuel, and general merchandise, supported by manufacturing plants and distribution centers.
10. Kimberly-Clark Corporation (NASDAQ:KMB)
Dividend Yield: 4.91%
Number of Hedge Fund Holders: 42
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best long-term retirement stocks. On January 29, shareholders approved the proposed acquisition of Kenvue by Kimberly-Clark Corporation (NASDAQ:KMB). The voting results indicate that 96% of Kimberly-Clark Corp approved the issuance of shares in connection with the proposed acquisition.
The proposed merger is poised to result in a combined company with a significant presence in global health and wellness. It will result in the merger of Kimberly-Clark brands, including Huggies and Kotex, with Kenvue’s Aveeno, Band-Aid, and Tylenol.
Earlier on January 28, Evercore ISI lowered its price target of Kimberly-Clark Corp from $120 to $115 while reiterating an In Line rating. The price cut comes amid growing concerns of stiff competition in the US diaper market. Retailers are reportedly using diapers as loss leaders to attract shoppers.
The end of exclusivity at Costco, which holds a significant share in US diaper sales, is also seen as a headwind. Kimberly-Clark Corp has also stopped manufacturing Costco’s private-label diapers. Walmart has already rolled out a second China-imported diaper brand amid shipping costs and tariffs expected to intensify competition in the sector.
Evercore expects continued pressure on the diaper profit pool to significantly impact Kimberly-Clark more than its competitors.
Kimberly-Clark Corporation (NASDAQ:KMB) is a leading global manufacturer of personal care, consumer tissue, and professional products, with brands such as Huggies, Kleenex, Scott, and Kotex. The company serves over 175 countries and focuses on products made from natural or synthetic fibers.
9. Omnicom Group Inc. (NYSE:OMC)
Dividend Yield: 4.10%
Number of Hedge Fund Holders: 42
Omnicom Group Inc. (NYSE:OMC) is one of the best long-term retirement investments. On January 29, Omnicom Group Inc. (NYSE:OMC) appointed Jantzen Bridges as Global President of Credera, its enterprise transformation consultancy. Bridges, with over 20 years of experience at firms like Accenture and EY, will lead AI-enabled transformation programs, reflecting Omnicom’s push to help clients redesign data platforms and technology strategies as AI reshapes enterprise operations. Credera has more than 4,000 consultants worldwide supporting AI-ready systems and operating models.
On January 21, reports emerged that experimental marketing agency Jack Morton is separating from Omnicom Group Inc. (NYSE:OMC). The spinoff is to take place in a private equity deal, barely two months after Omnicom Group acquired Jack Morton as part of a multi-million-dollar takeover of IPG. The spinoff will result in Jack Morton becoming an independent entity.
Meanwhile, NewsGuard has reportedly sued the Federal Trade Commission for allegedly violating the First Amendment by prohibiting Omnicom from contracting with news ratings services as a condition of its merger with Interpublic Group. Omnicom acquired Interpublic in an effort to strengthen its advertising edge.
According to NewsGuard, the FTC is using its power on an issue that does not concern trade or commerce, but rather to censor speech.
“In addition to the direct restrictions imposed on Omnicom and its affiliates, other NewsGuard clients have been scared away by the FTC’s actions,” NewsGuard alleges.
Omnicom Group Inc. (NYSE:OMC) is a leading global marketing and corporate communications company that provides advertising, strategic media planning and buying, digital marketing, public relations (PR), and customer relationship management (CRM) services. Operating in over 70 countries, it serves over 5,000 clients through renowned agency networks.
