Key Points
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Microsoft and American Express are both highly profitable companies with plenty of room to grow.
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Their yields are modest, but they have been increasing over the years.
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They have resilient businesses that could make them ideal investments to buy and hold for the long term.
There are some stocks that could be excellent long-term investments for all types of investors. Whether you want dividends, stability, or long-term growth, the stocks listed below can be ideal options to hang on to for years and even decades.
Microsoft (NASDAQ: MSFT) and American Express (NYSE: AXP) are both household names that most consumers likely know well. They have strong brands and successful businesses, and they have made for fantastic investments to own over the years.
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Here’s a look at why they could make for great additions to your portfolio today.
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1. Microsoft
Tech giant Microsoft is one of the most valuable companies in the world, with a market cap of $3.1 trillion. Its stock recently went on a decline, however, after investors weren’t thrilled with its latest quarterly results. While the company generated solid 17% revenue growth for the last three months of 2025, analysts were underwhelmed with the growth in its Azure cloud business, where the growth rate was 39% — slightly below the 39.4% that analysts were expecting.
For a company that is valued as highly as Microsoft is, expectations are high. But the reality is that’s ultimately a minor setback in the grand scheme of things. The company is a growth machine, and that’s what matters the most.
Between Azure, Xbox, LinkedIn, Microsoft 365, and its devices, Microsoft has plenty of ways to generate growth in the long term. Plus, it also has strong financials that enable it to invest in its operations and pursue acquisitions. This past quarter, it generated a whopping $38.5 billion in profit — up from $24.1 billion a year ago.
As a bonus, the tech stock also pays a dividend that yields 0.9%. It has raised its dividend for decades, with its most recent hike being a 10% increase that it announced back in September.
2. American Express
Credit card issuer American Express is another terrific investment to buy and hold. It recently posted its year-end results, and it generated $72.2 billion in revenue (net of interest expense) for 2025, which was up 10% year over year, as card member spending remains strong — even amid challenging economic conditions.
Although investors have been worried about a possible temporary cap on credit card interest rates, that isn’t a guarantee to happen. And even if it does, it may not weigh down the business in the long run. Meanwhile, the company still expects solid growth in the year ahead, forecasting that for 2026 its revenue growth rate will be between 9% and 10%.
Amex could also make for an attractive dividend growth stock. Like Microsoft, it also yields around 0.9%. And this year, Amex plans to hike its payout by 16%. And with a low payout ratio of around 20%, there’s plenty of room for more increases in the future.
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American Express is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy.