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Not all S&P/ASX 200 Index (ASX: XJO) shares will stand the test of time.
For various company-specific and macroeconomic reasons, some companies that look promising today will not live up to that promise over the next decade.
Others, on the other hand, will find their products and services enjoying ever-increasing demand. And the best among those will already have a strong growth history behind them, with experienced management and sustainable business models.
It’s these ASX 200 shares that you can buy and then all but forget about it.
With that in mind, we look at two such companies I think investors would do well to buy and hold for the next 10 or more years.
Two quality ASX 200 shares to buy and hold onto
BHP Group Ltd (ASX: BHP) is the first outstanding ASX 200 share to buy and hold for the next decade.
Shares in the global mining giant have gained around 28% over the past 10 years.
While that may not be shooting the lights out in terms of share price gains, BHP has a lengthy track record as a reliable dividend payer. Those dividends and the BHP share price will fluctuate over the coming decade alongside the commodities price cycle.
Despite a sharp retrace in iron ore and coal prices, BHP shares currently still trade on a healthy 5.4% fully franked dividend yield.
And BHP has far more in its portfolio than iron ore and coal. While both commodities will remain in strong demand over the next decade, I think BHP’s growing copper ambitions and its world-class uranium assets will help drive ongoing success for the big Aussie miner for many years to come.
Which brings us to the second ASX 200 share to buy and hold for a decade, data centre developer and operator NextDc Ltd (ASX: NXT).
NextDc doesn’t pay dividends. At least, not yet.
But the NextDc share price has soared around 1,010% over the past 10 years.
Now, I’m not sure it can deliver that same kind of growth over the next decade. But it’s certainly possible.
That bullish assessment for this ASX 200 share is largely based on the ongoing AI revolution.
That’s because AI needs a home, too. The generative artificial intelligence chips that make it all work reside in data centres, and demand for next-generation data centres is booming to meet the requirements of AI technology.
This was reflected in NextDc’s half-year results. Among the highlights, revenue for the six months increased 31% year on year to $209 million, representing a new record high.
And the company is well-capitalised for further growth.
In April, the ASX 200 share successfully conducted a $1.3 billion capital raising to accelerate the development and fit-out of its key data centre assets in Sydney and Melbourne.