3 Exceptional Stocks to Build Long-Term Wealth

With many stocks looking overvalued, many investors may be tempted to sell. However, there are several factors to consider before taking profits:

• Time horizon – when an investor will need the money
• The availability of better alternative investments
• Tax ramifications from taking short-term or long-term gains

This article only focuses on the first factor. For long-term investors, time is almost always an ally. But that depends on the stock.

Blue-chip stocks come to mind. The companies behind these stocks are mature that generate significant profits that they return to shareholders in the form of buybacks and dividends. In fact, many of these companies are part of an elite group of dividend payers known as Dividend Aristocrats or Dividend Kings that have increased their dividends for 25 and 50 consecutive years, respectively. These names often attract large institutional ownership, which helps stabilize price movements and supports steady, long-term returns.

Yet long-term investing doesn’t have to be limited to dividend payers. Growth-oriented companies in emerging industries can also provide durable value if their business models scale successfully over time. Some speculative growth stocks eventually evolve into the next generation of blue chips—making them worth considering for patient investors.

Building a Sustainable Future in the Space Economy

Rocket Lab USA Inc. (NASDAQ: RKLB) remains speculative, with revenue in the hundreds of millions and no profitability yet.

However, the company is one of the best stocks to own in the emerging space sector. For now, much of the company’s revenue comes from its launch business, which sends satellites and their payloads into space. However, over time, the company plans to grow its services business significantly, making it an end-to-end space business. 

RKLB stock has increased 473% in the last 12 months and is trading about 25% above analysts’ consensus price target. This explains why short interest in the stock is above 14%. Investors who need access to the capital invested in RKLB stock may want to lock in profits. 

However, with over 70% institutional ownership, major investors appear confident in Rocket Lab’s sizable backlog and long-term potential. For investors with extended time horizons, this could be an early-stage growth story worth holding through volatility.

Premium Retail Power With Reliable Returns

Costco Wholesale Corp. (NASDAQ: COST) offers the opposite profile — a mature, profitable business known for reliability. While trading at a rich valuation near 50x earnings, Costco’s membership-based model delivers recurring revenue and boasts a retention rate near 90%. The company recently raised its membership fee for the first time in seven years and has seen no drop in the retention rate.

This revenue goes almost directly to the company’s bottom line, and Costco has a long history of returning capital to shareholders through both buybacks and dividends. In fact, the company is known for issuing special dividends to its shareholders in addition to the quarterly payouts.

COST stock is trading at $915 per share as of this writing. However, for much of 2025, it was trading over $1,000 per share. Costco has a history of splitting its shares but has indicated it has no plans to do so. With a stock price that is too high for retail investors who might prefer to buy whole shares, hopes for a split will persist.

A Dividend King With a Deep Drug Pipeline

Biopharmaceutical companies are typically associated with speculative penny stocks, but AbbVie Inc. (NYSE: ABBV) shows investors the other side of the story. AbbVie may not be a household name, but its drugs, such as Humira, Rinvoq, and Skyrizi, are all blockbusters that have propelled the growth in ABBV stock. The company also recently received FDA approval for its oncology drug, Emrelis.

The success of these drugs is evident in the ABBV stock total return of over 225% in the last five years. That includes a dividend that yields 2.8%. Plus, AbbVie has increased the payout of its dividend for 53 consecutive years, putting it in the elite Dividend King category.

But deciding if a biopharmaceutical stock is a long-term investment ultimately depends on its pipeline. AbbVie has over 90 drug candidates in clinical trials, with more than 50 of those in late-stage trials. These drugs span the areas of immunology, neuroscience, and oncology.

For long-term investors, AbbVie combines defensive income with meaningful growth potential, offering a balance rarely found in biopharma.

How It All Ties Together

Whether through Rocket Lab’s growth potential, Costco’s dependable business model, or AbbVie’s income and innovation, the underlying message is the same: time in the market matters more than timing the market. A mix of established dividend payers and emerging innovators can position long-term investors for both stability and growth—the essence of a durable portfolio.

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