Three stocks with long-term potential: United Parcel Service, Hormel Foods, and Medtronic

The world is uncertain today, with geopolitical conflicts unfolding across multiple regions. The market is unsettled, with stocks at record highs despite consumer concerns about high costs and the potential of a recession. You should be very particular about which companies you invest in if you are a long-term investor looking to hold stocks for decades. Three stocks with strong long-term potential are United Parcel Service, Hormel Foods, and Medtronic. This is why you can buy and hold these stocks for the long term despite today’s uncertainty. United Parcel Service is an entrenched giant. Amazon has opened up its distribution network to outsiders. That’s an issue for delivery giant United Parcel Service, but it won’t put UPS out of business. In fact, UPS has been shifting away from high-volume, low-profit-margin customers like Amazon to focus on more profitable business. It is more likely that Amazon is simply picking up the scraps as UPS changes its focus. That said, UPS has spent years on its business overhaul, and investors are taking a wait-and-see approach with the stock. The shares remain 50% below their 2022 high. Still, there are signs of progress, most notably the fact that revenue per piece in the U.S. business has been growing despite overall revenues falling. That’s exactly the outcome management is looking to achieve, with the company saying the second half of 2026 will be the inflection point for the turnaround. Hormel Foods has an ace up its sleeve. Shares of Hormel Foods are down 60% from their 2022 high. The company has been facing some headwinds and is reworking its brand and product portfolio. However, like UPS, it is seeing early signs of success. Notably, organic growth is trending higher again. The food maker is also focused on protein, which is on-trend with current consumer buying habits as the use of GLP-1 weight-loss drugs spreads. Meanwhile, Hormel is a Dividend King, with over five decades of annual dividend increases supporting its lofty 5.6% dividend yield. So the company has lived through difficult times before without too much trouble. In fact, it is fairly common for consumer staples businesses to overhaul their brand portfolios from time to time. Medtronic is innovative and more focused. Diversified medical device maker Medtronic has increased its dividend annually for 48 years, putting it close to Dividend King status. It has survived through difficult periods and continued to reward shareholders well. Its yield is an attractive 3.6%, largely thanks to the stock's 40% decline from its 2021 high. Right now is, clearly, a difficult period. The big story is that Medtronic got a little bloated, which happens to large companies over time. It has been working to slim down and refocus on its highest profit businesses. The most recent big move was the spin-off of Medtronic's diabetes business, MiniMed. That move is expected to boost Medtronic's profitability and be immediately accretive to earnings. Meanwhile, the company has new products gaining traction, such as its Hugo surgical robot. That should help push business growth. Watch the dividend checks roll in. One key theme with UPS, Hormel, and Medtronic is dividends. In uncertain times, dividends can give you something to watch other than stock prices, which tend to be more volatile. And, as an added bonus, each of these companies appears to be making important progress with business overhauls. That remains true even though Wall Street isn't giving them credit for the improvements being made.