CSL Limited (ASX: CSL) shares have consistently outperformed in recent decades. The Aussie biotech giant listed in 1994 for a stock-split-adjusted price of $0.76 per share. Given its current share price of $301.18 per share, that means a $10,000 IPO investment would have netted you a 40,000% return on investment. Not bad, hey?
Why CSL shares have rocketed higher
The CSL share price gains have been built on steady expansion and successful research and development. The biotech giant is everywhere in pharmaceuticals and the medical sector with a strong track record.
Investors have come along for the ride with CSL shares surging higher. Even when ASX 200 shares were hammered in March and April, CSL held its value.
In fact, shares in the biotech giant have climbed higher in 2020. Given the S&P/ASX 200 Index (ASX: XJO) is down nearly 20% in the same period, I'd say CSL is a strong defensive buy.
That's just one of the reasons why I'd consider CSL to be an investment to buy and hold forever.
Why I'd buy and hold CSL shares forever
Apart from a history of capital gains, I think CSL offers a number of good qualities. The group's earnings are non-cyclical which can be handy when times get tough.
On top of that, CSL shares have a handy dividend yield of 0.97%. While that's far from what's offered by the A-REITs or other top ASX dividend shares, it's still a good income boost. That's particularly the case when you consider CSL shares are worth around $300 each.
On top of dividends, CSL still has strong growth potential ahead. Normally, there's a trade-off between paying dividends and reinvesting for future capital gains. However, CSL could offer investors a magic combination of both.
The Aussie biotech group has a significant market share and a promising R&D pipeline. If the company can bring some of its best products to market in the coming years, I'd say its share price could be climbing higher.
This includes developing a potential COVID-19 treatment announced in conjunction with the Federal Government. CSL will seek plasma donations from 800 people who have recovered from COVID-19 to continue work on a potential treatment for the virus.
Foolish takeaway
CSL shares have a strong history of capital growth and also have a handy dividend. With non-cyclical earnings and a $137 billion market capitalisation, I think CSL could be one to buy and hold forever.
