Do you want $1 million in retirement? 3 Stocks to Buy Now and Hold for Decades

Want to retire a millionaire? Unless you’re one of the lucky few who can build a successful business or was born into wealthy relatives, the best path to that goal is likely to involve decades of investing, allowing the power of compound growth to build your nest. For you. A diversified portfolio of high quality stocks can do wonders if you give it enough time.

And what better place to find dominant companies with decades-long growth opportunities than in healthcare? Healthcare isn’t going anywhere and is already a multi-trillion dollar industry in America. With that in mind, here are three of the best healthcare stocks money can buy right now.

1. UnitedHealth Group

UnitedHealth Group (UNH -0.26%) it is a massive conglomerate with two primary units. Its UnitedHealthcare segment provides health insurance and benefits to tens of millions in the United States and more than 2 million in South America. Its Optum segment provides healthcare and pharmacy services to more than 100 million people, and technology services to hospitals and other healthcare providers.

UNH Total Return Price Data by YCharts.

In the past four quarters, it generated more than $380 billion in revenue. Its size is a competitive advantage for UnitedHealth because it can provide more value for less money, which in turn helps it continue to gain market share. UnitedHealth is a behemoth with a market cap of over $500 billion, but it’s still growing. Analysts believe UnitedHealth can grow earnings by an average of 13% annually over the long term. The company has also increased its dividend payments for 15 consecutive years. The stock is poised to continue delivering stellar returns, assuming the company doesn’t run into antitrust issues.

2. Abbott Labs

Medical products company Abbott Labs (ABT 0.36%) has evolved over the years. It spun off its main pharmaceutical business over a decade ago AbbVie, but this did not prevent the shares of the parent company from offering market returns. Today, Abbott Labs sells consumer health products, medical devices, testing equipment and generic pharmaceuticals in emerging markets.

Abbott Labs is also a dividend king with a 53-year payout streak, which investors looking for growing income in their portfolios should like. Today, it only spends about half of its earnings on dividends, so it should have plenty of room for future growth.

ABT Total Return Price data by YCharts.

Most importantly, Abbott has positioned itself well for long-term growth. After divesting AbbVie, the company aligned itself with growth trends in cardiovascular and diabetes care. Analysts who cover the company, on average, believe it will grow earnings by 8% to 9% annually over the long term, and the dividend adds nearly 2% to investors’ returns. Abbott likely won’t deliver explosive earnings, but years of steady returns in the 8% to 10% range from growth and dividends can add up to life-changing wealth.

3. Eli Lilly

The pharmaceutical giant Eli Lilly (LLY 0.18%) might be the most explosive stock of the three. The company hit it big with its GLP-1 receptor agonist drugs Wegovy and Zepbound, which are prescribed for diabetes and weight loss, respectively. Combined sales of all GLP-1 drugs worldwide reached about $40 billion last year, and some forecasters expect that could nearly quadruple to $150 billion annually by 2032. Eli Lilly is one of the few pharmaceutical companies with FDA-approved GLP-1. products. However, Eli Lilly is much more than that: it has a deep pipeline and a broad portfolio that includes many products with growing sales.

LLY Total Return Price Data by YCharts.

Analysts believe that Eli Lilly will generate an increase in revenues that will have an average of 20% annually in the next three to five years. Long-term investors shouldn’t sleep on Eli Lilly’s dividend potential, either. The company has increased its payout for 10 consecutive years. Although it currently has just 0.6%, the payout ratio is just 31% of this year’s estimated earnings. Look for management to accelerate this payout as Eli Lilly enjoys rapid growth in the coming years. This makes the stock a strong contender for market-beating total returns.