In this article, we will take a look at some of the best stocks to buy for the long term.
Dividend stocks offer solid investment options when it comes to long-term investing. A report by Hartford Funds revealed that from 1960 through 2023, 85% of the market’s cumulative total return can be attributed to reinvested dividends and the power of compounding. The report also highlighted that from 1940 to 2024, dividend income made up nearly 34% on average of the total return of the S&P 500.
Dividend stocks have faltered this year in comparison to the market because of the growing appeal of AI stocks. However, all hope is not lost as the Federal Reserve may cut interest rates for the third time this year, which could reduce the appeal of income-generating assets, such as CDs, money market funds, and US Treasuries. This could result in declining yields on these alternatives. For this reason, investors seeking steady income may increasingly turn to dividend-paying stocks.
Christine Benz, Morningstar’s director of personal finance and retirement planning, is a strong supporter of dividend stocks. In her August interview on The Morning Filter podcast, she emphasized their value in building a well-rounded investment portfolio. Here are some of her comments:
“Once you are separated from your paycheck, the idea of having stable sources of income or semistable sources of income is very, very appealing. Then the other thing I would point to is that dividend-paying companies typically are more financially stable than non-dividend-paying companies. There is a sense of financial wherewithal that you get from a dividend-payer. And then when we look at the historical data, we also see that dividend-payers have historically been a little bit less volatile, especially in periods of economic weakness, than companies that do not pay dividends.”
Given this, we will take a look at some of the best stocks to buy for the long term.
Our Methodology
For this article, we screened for companies with a market cap of at least $2 billion, with strong dividend histories and sound financials. From that list, we identified companies with positive revenue growth over the past five years and shortlisted those that have a 5-year average annual revenue growth of over 5%. From that group, we picked 15 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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).
15. Badger Meter, Inc. (NYSE:BMI)
Number of Hedge Fund Holders: 28
5-Year Revenue Growth: 15.22%
Badger Meter, Inc. (NYSE:BMI) is one of the best stocks to buy for the long term.
On December 8, JPMorgan lowered the firm’s price target on Badger Meter, Inc. (NYSE:BMI) to $235 from $240 and maintained an Overweight rating on the shares. The update came as part of the firm’s 2026 outlook on the clean energy market. JPMorgan expects another year of strong performance for utility-scale projects in the renewables space, though it sees the market shifting toward larger, more complex projects and tougher regulations, which could lead to more consolidation. The analyst said they still prefer companies with US manufacturing, diverse customers, and solid balance sheets.
On November 7, Badger Meter, Inc. (NYSE:BMI) declared a quarterly dividend of $0.40 per share, which was consistent with its previous dividend. In addition, the Board approved a new share repurchase authorization for up to $75 million of the company’s outstanding common stock through November 2028. This new program would enable the company to purchase shares from time to time in the open market. In its press release, the company declared that it has been returning value to shareholders through growing dividends for 33 consecutive years.
Badger Meter, Inc. (NYSE:BMI) is an American company that specializes in flow measurement, water quality, and control products, serving water utilities and other commercial customers.
14. Brunswick Corporation (NYSE:BC)
Number of Hedge Fund Holders: 38
5-Year Revenue Growth: 6.77%
Brunswick Corporation (NYSE:BC) is among the best stocks to buy for the long term.
On December 8, Seaport Research initiated its coverage on Brunswick Corporation (NYSE:BC) with a Buy rating and a $90 price target. The analyst, in the research note, highlighted that Brunswick is the largest producer of recreational marine products, noting that the marine market is highly cyclical and now is the right moment to step in. The firm expects the industry to pick up in 2026 as consumers increase their discretionary spending on leisure items like boats and engines.
In the third quarter of 2025, Brunswick Corporation (NYSE:BC) reported growth in its business despite a challenging macro environment and industry backdrop. The company’s revenue of $1.36 billion surged by 6.8% from the same period last year. Its boat retail sales were flat YoY, which showed a comparative progress from the first half of the year. Freedom Boat Club contributed approximately 13% of segment sales.
Brunswick Corporation (NYSE:BC)’s financial performance remained strong, which enabled the company to invest in its business, return value to shareholders, and strengthen its balance sheet. The company’s free cash flow of $111 million in Q3 brought its year-to-date free cash flow to $355 million. Due to this strong cash flow, Brunswick completed $70 million of share repurchases YTD and also boosted its debt reduction target to $200 million.
Brunswick Corporation (NYSE:BC) is an Illinois-based boat-building company that manufactures and markets a wide variety of related products.
13. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 41
5-Year Revenue Growth: 5.55%
Becton, Dickinson and Company (NYSE:BDX) is one of the best stocks to invest in for the long term.
On December 2, Morgan Stanley analyst Patrick Wood lifted the firm’s price target on Becton, Dickinson and Company (NYSE:BDX) to $210 from $197 and maintained an Overweight rating on the shares. The analyst noted that the company’s MedTech “looks well-positioned on several fronts.” The firm also thinks that major product cycles, healthier hospital spending, and valuations near their lows all signal a supportive setup for the industry in the year ahead.
In its earnings for fiscal Q4 2025, Becton, Dickinson and Company (NYSE:BDX) announced that the merger of its Biosciences and Diagnostic Solutions, which the company separated and refers to as New BD, with Waters Corporation will be completed around the end of the first quarter of 2026. New BD will be a MedTech company with far-reaching influence on patients and healthcare worldwide. In FY25, New BD reported revenue of $17.5 billion, compared with $16.8 billion in the prior-year period.
Becton, Dickinson and Company (NYSE:BDX)’s overall revenues for Q4 were $5.9 billion, which showed an 8.3% growth YoY. The company’s cash and cash equivalents at the end came in at $641 million, and operating cash flow was $3.4 billion in 2025. Becton returned $2.2 billion to investors in dividends and share repurchases, exhibiting its commitment to returning value to shareholders.
Becton, Dickinson and Company (NYSE:BDX) is an American multinational medical technology company that manufactures and sells essential medical devices and related products.
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