Change is constant. There are not many things in life, and in investing, which stay the same.
So when constructing a portfolio, it's a good idea to think long and hard about which shares are the most likely to stand the test of time. Here are 2 holdings I feel confident are destined to be among the most reliable over the next few decades…
Sydney Airport Holdings Pty Ltd (ASX: SYD)
While technology is ever-improving, moving between cities, so far, remains unchanged. Uber is aiming to chip away at the moat of Transurban Group (ASX: TCL) by offering its air-taxi service, around the cities of Sydney and Melbourne as soon as 2020. But the only disruption to Sydney Airport looks to be the arrival of a second airport in Western Sydney.
It's likely over the next few decades, strong Australian population growth, along with the increasing middle-classes from developing countries, will see travel numbers swell substantially. This means both airports are likely to prosper, although Sydney Airport still has a competitive advantage in being closer to the city, offering greater convenience.
Currently, Sydney Airport trades on a distribution yield of 5.3%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Listed in 1903, this is one of Australia's oldest companies. And one with a very impressive track record.
The family investment conglomerate has grown over the decades and is now worth around $5 billion. Soul Patts own large stakes in a long list of companies from a diverse range of industries, including mining, financial services, telecommunications and healthcare. It also holds a portfolio of properties and shares. I believe Soul Patts will be able to adapt to disruption because of its experienced management and its flexibility, given its portfolio diversification.
The company keeps its costs low and has paid a dividend to shareholders every year, even during the Great Depression. A loyal shareholder who invested in Soul Patts 40 years ago, would have received a return of 16.4% per annum over that time.
Currently, Soul Patts trades on a PE of 15 and a grossed-up dividend yield of 3.8%.
Foolish takeaway
With the pace of change increasing, there are not many 'bottom-drawer' stocks these days, but these two are far more dependable than most. Each is likely to continue to deliver solid returns for shareholders and a growing income stream for decades to come.
