Some stocks have a great payoff, but over time they will eventually become worthless. By choosing the right stock you can continue to make money for many years.
Who has the staying power?
Some IPO's might seem like a great investment, but could drain the money that you have invested. Look at the companies that have been around for decades, not just years. Also look at their stocks chart. Have they had steady gains throughout the years? Was there a dip and why? It is important to look at a company's past to see what direction that it could be taking. Some stocks have a steady growth but might get passed by because they are not making as big returns as some of the flashier stocks. Though they may lack the huge growth of some stocks, the stocks with staying power will offer a security that others will not. While nothing is a sure thing in the stock market, there are some opportunities that will continue to payoff for many years.
Look at companies you have heard of.
One great way to find a stock that will make money for years is to think of a company that you have heard of. If it is a company that you have known of for awhile, chances are they might be a publicly traded company. Think of some household brands that you know, write them down, and then research. While all of these stocks might not be moving in the right direction, chances are, some of them will. Also, if it is a company you know of, think about how you have reacted to their goods or services that they offer. Is it something that you feel will only be around for a bit, or could it be something that you would continue to see being purchased in the future? Another thing to consider is their competition. Have they been moving up or down in rank compared to other companies. If they have been dropping, it is possible that they could be bought out, but it could cost you a fortune as their stock dives until that point.
How long have they been paying dividends?
This is something else to think of when looking to find a stock that will make money for years. If a company is making money, they will be paying dividends steadily. Some companies might pay dividends for awhile but become too overwhelmed and have to cut their dividends. If this happens, it can make the value of their shares drop dramatically. That is why it is a good idea to look at how long a company has been paying dividends and if it has been cutting back on what they are paying. A lot of this will reflect their balance sheet as well. Take a little time to see what type of profits they are making and what they are giving back. If it is a steady incline, and the good or service is well known, the company could be around for many years to come. With a good dividend on top of that, your money that you are making will be able to grow at an even faster pace than usual.