An Investment Insight into ASX 200’s Long-Term Shares
Curating your portfolio with shares that show resilience and potential for growth is essential for long-term success. While certain shares may ebb and flow with economic cycles, others project a steady demand for their services and products, backed by solid management and robust business models. Herein, we highlight two such shares from the ASX 200 Index deemed worthy of a prolonged holding period.
The Vanguard Shares to Consider
The premiere option is BHP Group Ltd, a cornerstone within the global mining sector. Over the past decade, BHP shares have seen a 28% increment, showcasing its stronghold within the market. While share prices may waver with the commodities cycle, BHP’s consistent dividend payouts remain a major attraction. Its diverse portfolio, encompassing copper and uranium in addition to iron ore and coal, positions it well for continued relevance and profitability.
Moving onto the realm of technology infrastructure, NextDc Ltd, a visionary in data centre development and operation, emerges as the next candidate for buy-and-hold investors. Despite its nascent dividend history, NextDc’s stock has skyrocketed approximately 1010% over the last decade. Driving its forward momentum is the burgeoning demand for advanced data centres, a demand catalysed by the expansion of AI technologies—a trend evidenced in NextDc’s impressive half-year financial results.
Recently, NextDc bolstered its market foothold with a significant $1.3 billion capital raise, underpinning the continued growth of its data centre assets in major Australian markets like Sydney and Melbourne.
- Decade Performance: BHP Group Ltd with a 28% increase, NextDc Ltd with a 1010% surge.
- Dividend Profile: BHP has a strong track record, while NextDc is seen as a future potential for dividends.
- Growth Drivers: Commodity demand and diversification for BHP; AI technology demand for NextDc.
Final Considerations
When choosing shares to hold for an extended period, it’s paramount to consider more than just past performance. Looking at fundamental strengths and the evolving market landscape, BHP and NextDc surface as compelling choices. With their growth-oriented strategies and structural positions within key sectors, they offer investors potential rewards well into the future. For those building a decadal investment timeline, these two ASX 200 shares present a strategic starting point.