There aren’t many shares on the ASX that I’d be willing to hold for the next decade, let alone til I’m 100. However, there are a few I’d like to hold for many years to come.
The problem for many ASX shares is that industries are constantly changing and therefore it’s hard to commit to such a long holding period. Just look at how Telstra Corporation Ltd (ASX: TLS) went from unassailable industry leader to its current state of being attacked from all sides by competitors.
Here are the three ASX shares I’d like to hold until I’m 100:
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is a listed investment company (LIC) that invests in leading Australian funds. But, those fund managers work for free so that Future Generation can donate 1% of its NTA per year to youth related charities.
I like the idea of Future Generation for the long-term because its underlying holdings are very diverse, shareholders get to keep 100% of the outperformance because there are no performance fees and it aims to provide a growing income stream.
It currently has a grossed-up dividend yield of 5.4%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is an investment conglomerate, it takes large stakes in businesses it believes are long-term opportunities. It has already been operating for around a century, its structure allows it change its holdings as it sees fit – which likely means it will be operating in another century.
Some of Soul Patts’ largest holdings include TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW). I like that its largest holdings are mostly defensive and could be reliable even in a recession.
It’s trading with a grossed-up dividend yield of 3.1%.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that owns a variety of farms including cattle, poultry, vineyards, almonds, cotton and macadamias.
I think farmland can be an extremely long-term investment because farms have already been useful assets for many hundreds of years. The growing population and limited arable land should mean that farms steadily grow in value over time.
Rural Funds aims to increase its distribution by at least 4% a year, so it could be an excellent income share to own over the coming years.
It currently offers a distribution yield of 4.7%.
Each of these businesses could make dependable long-term investments whilst paying a growing income stream to shareholders. None of them are likely to generate huge returns, but they should let you sleep easy at night.
At this point in the cycle I think Rural Funds may be the best bet, but it’s trading at a premium to its underlying value. There could be better value opportunities out there.
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Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and TPG Telecom Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.