ASX investors have plenty of pleasing Australian stocks to consider buying for the long-term and holding for life.
We don't necessarily need to own an investment forever, but I think owning for longer periods of time is a good idea because it gives us more of an opportunity for an investment to work out positively.
There are some investments I couldn't commit to owning for the long-term. But, there are others that I could see myself owning for a long time to come. I normally mention a business like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) in an article like this, but there are three others I'll highlight.
Propel Funeral Partners Ltd (ASX: PFP)
Propel is a morbid idea, but I think it's one of the most interesting businesses on the ASX for a long-term buy. It's a funeral provider, the second largest in Australia and New Zealand.
Due to the ageing demographics of Australia, the total number of deaths is expected to increase at a compound annual growth rate (CAGR) of 2.6% between 2025 to 2030. This growth rate could accelerate in the next decade, with a CAGR of 2.9% between 2031 to 2040.
While that's not incredible growth, it's a solid rate when added to the regular inflation of funeral prices and potential acquisitions the business is likely to see in the coming years.
With the operating leverage for an Australian stock like this, I'm expecting its operating profit margins to steadily climb over time, which could help push the Propel share price and dividend upwards.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is already one of the oldest businesses on the ASX and I think it will be around for a very long time to come.
My confidence is partly based on the fact that its operating model allows it to invest in new sectors, unlocking growth avenues. Some of the recent areas it has invested for growth include healthcare and lithium mining, which is quite different to its core competency of retail.
I think this Australian stock owns two of the best retailers in Australia – Bunnings and Kmart. They generate high returns on capital (ROC), are clear leaders in their subsectors and continue to invest for growth.
I'm optimistic Wesfarmers has a compelling long-term future if it continues expanding its best businesses and tries to unlock other ways to grow earnings.
Rural Funds Group (ASX: RFF)
I think this real estate investment trust (REIT) is one of the most Australian stocks out there – agriculture is a very important industry for the Australian economy.
However, farming can be a volatile and cyclical industry, so leasing farms could be a safer and more consistent way to make returns from the sector.
Rural Funds owns farms across the country, including cattle, almonds, vineyards and macadamias.
I like that the business can decide to invest in whichever farms it thinks are the best to deliver long-term returns. Farmland has been an important asset for thousands of years, so I think the underlying assets have a good future.
The Australian stock continues to trade at a very sizeable double-digit discount to its adjusted net asset value (NAV) – the underlying value of the business (including farm values, water entitlements and loans). I also think it's a great option for passive income with a distribution yield of around 6%.
