In this article, we will take a look at the 5 Best Long-Term Dividend Stocks to Invest In According to Billionaires. For deeper discussion and analysis, read 10 Best Long-Term Dividend Stocks to Invest In According to Billionaires.
5. Costco Wholesale Corporation (NASDAQ:COST)
Number of Billionaire Holders: 27
Truist raised its price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,011 from $977 on May 29. It reiterated a Hold rating on the stock. In a research note, the analyst said Costco’s ability to consistently deliver mid-single-digit comparable sales growth despite operating at an annualized sales run rate of about $300 billion continues to be impressive. The firm noted that one of the few fundamental concerns is that membership growth has continued to slow.
Also on May 29, BofA increased its price goal on Costco to $1,200 from $1,185. It maintained a Buy rating following the company’s third-quarter results, which came in “largely in line with expectations.” After reviewing the results, the firm left its FY26 EPS estimate unchanged and raised its FY27 EPS forecast by $0.10, citing a modest improvement in its SG&A outlook.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that sell a mix of nationally branded and private-label products across a broad range of categories.
4. The Cigna Group (NYSE:CI)
Number of Billionaire Holders: 29
On May 26, Barclays turned more cautious on The Cigna Group (NYSE:CI), downgrading the stock to Equal Weight from Overweight. It also trimmed its price target on the stock to $304 from $310.The firm said Cigna has less room for earnings upside than some of its peers because of its limited exposure to government insurance programs. In addition, Barclays pointed to uncertainty tied to the company’s pharmacy benefit manager transition and questions around how quickly investment spending may ease. The analyst also sees a less attractive risk-reward setup ahead of Cigna’s investor day in September. Concerns around commercial membership losses and the possibility of AI-driven job cuts were among the factors cited in the research note.
A few days earlier, on May 22, UBS took a more positive view. The firm raised its price recommendation on Cigna to $400 from $375. It reiterated a Buy rating on the stock. According to UBS, managed care companies broadly lifted their guidance after reporting stronger-than-expected first-quarter results. Performance benefited from favorable respiratory trends and typical seasonal cost patterns. The firm added that higher Medicare Advantage rates, steadier enrollment in ACA exchanges, and modestly better Medicaid results have increased confidence in a recovery in margins. At the same time, insurers continue to face pressure from specialty drugs, GLP-1 treatments, and behavioral health costs.
The Cigna Group (NYSE:CI) is a global health company with two operating segments: Evernorth Health Services and Cigna Healthcare.
3. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Holders: 31
Reuters reported on May 27 that Bank of America Corporation (NYSE:BAC) expects its trading revenue to rise 15% in the second quarter from the same period a year earlier, following market volatility driven by higher US tariffs, according to CEO Brian Moynihan.
Speaking at a financial conference, Moynihan cautioned against making straightforward year-over-year comparisons. He made the following remark:
“Got to be careful year over year. You got to remember last year was liberation quarter, so some of these numbers will look big.”
Moynihan said investment banking remains in “pretty good shape.” He also noted that wealth management revenue is expected to grow in the low teens on a percentage basis compared with the prior year. Global dealmaking has recently regained momentum after a sharp slowdown in the weeks following the start of the Iran war. Companies and investors have largely looked past market volatility and continued to pursue larger transactions.
According to Moynihan, the pipeline for initial public offerings remains full, with activity levels staying strong. He also said consumer spending and credit quality continue to hold up well, supported by a healthy labor market despite ongoing inflationary pressures and elevated interest rates.
Bank of America’s internal data showed that total credit and debit card spending per household increased 4.8% year over year in April, up from 4.3% growth recorded in March.
Bank of America Corporation (NYSE:BAC) is a bank holding company and financial holding company. Its business segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Billionaire Holders: 34
Mizuho analyst Vijay Rakesh raised the firm’s price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $540 from $500 on May 27. He reiterated an Outperform rating on the shares. The firm also increased its wafer fab equipment spending forecast for 2026 to $153 billion from $142 billion and for 2027 to $190 billion from $163 billion. In a research note, Rakesh said the earnings estimates for Lam Research, Applied Materials, and MKS appear understated given the improving industry outlook. According to Mizuho, the wafer fab equipment market continues to benefit from NAND node transitions, spending by TSMC, and strength in DRAM and high-bandwidth memory pricing.
Earlier in the month, on May 19, Argus raised the firm’s price goal on Applied Materials to $500 from $420. It maintained a Buy rating following the company’s second-quarter earnings beat. Analyst Jim Kelleher said Applied Materials appears well-positioned for long-term growth, supported by a combination of cyclical, demographic, and secular trends. The analyst noted that some of the industry’s newest growth drivers include surging demand for large CPU and GPU configurations used to power large language models for generative AI and, more recently, agentic AI. Argus also pointed to the growing focus on domestic semiconductor manufacturing, which is increasingly viewed as a national security priority.
Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, services, and software to the semiconductor, display, and related industries.
1. Visa Inc. (NYSE:V)
Number of Billionaire Holders: 46
On May 28, Replit announced a partnership with Visa Inc. (NYSE:V) aimed at expanding the use of AI-powered software development within large enterprises. As part of the agreement, Visa has invested in Replit, which is an agentic software creation platform. The two companies are also working to integrate Visa Intelligent Commerce into Replit’s platform. The integration is intended to help developers build applications and AI agents that can initiate secure transactions and accept payments through Visa’s global network directly within their workflows.
The investment reflects Visa’s long-term view that AI-native software creation will become an important part of the future commerce infrastructure.
Visa initially adopted Replit to support internal prototyping and software development across its teams. The platform is now used by more than 1,000 Visa employees. Building on that relationship, the companies are exploring ways to bring Visa Intelligent Commerce into Replit’s development environment. Visa Intelligent Commerce is the company’s portfolio of initiatives designed to enable secure, AI-driven commerce experiences at scale.
The planned integration would allow developers to access payment capabilities natively while building AI agents and applications, embedding those tools directly into their development workflows.
Visa Inc. (NYSE:V) is a global payments technology company that facilitates commerce and money movement across more than 200 countries and territories. Its network connects consumers, merchants, financial institutions, and government entities through a range of payment technologies.
While we acknowledge the potential of V to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about the cheapest AI stock.
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