3 Growth Stocks to Buy and Hold Forever

The piece recommends three buy-and-hold candidates—Accenture, Cintas and Rollins—on the basis that each has delivered steady top- and bottom-line growth, strong free-cash-flow generation and rising dividends, with additional upside from acquisition-led expansion. Accenture grew revenue from $50.5bn (FY21) to $64.1bn (FY23), net income from $5.9bn to $6.9bn, averaged ~$8.7bn of FCF, recently raised its annualized dividend to $5.16 (~1.6% yield) and completed acquisitions to bolster silicon design, industrial engineering and IoT capabilities. Cintas expanded revenue from $7.1bn to $8.8bn (FY21–23), net income from $1.1bn to $1.3bn, averaged $1.26bn FCF, reported 9.1% YTD revenue growth and a 31% jump in FCF in the latest period, raised its quarterly dividend to $1.35 and still has low market penetration (~<20% of a ~16m addressable base). Rollins grew revenue from $2.4bn to $3.1bn (FY21–23), net income from $365.6m to $435m, averaged $435m FCF, posted Q1 2024 revenue +14% to $748.3m, and has pursued acquisitions to scale in a highly fragmented pest-control market—collectively offering durable cash generation, dividend growth and acquisition optionality that could support long-term total returns if management execution continues.

Analysis

The article identifies Accenture, Cintas and Rollins as buy-and-hold candidates on the basis of consistent top- and bottom-line growth, strong free-cash-flow generation and dividend increases. Accenture grew revenue from $50.5 billion (FY2021) to $64.1 billion (FY2023) and net income from $5.9 billion to $6.9 billion, averaged about $8.7 billion of free cash flow, raised its annualized dividend to $5.16 (≈1.6% yield) and closed three targeted acquisitions to deepen silicon design, industrial engineering and IoT capabilities.

Cintas expanded revenue from $7.1 billion to $8.8 billion (FY2021–FY2023) with net income up from $1.1 billion to $1.3 billion, averaged $1.26 billion of free cash flow, reported 9.1% YTD revenue growth and a 31% jump in recent free cash flow, and increased its quarterly dividend to $1.35 while management highlights a large addressable base (~16 million businesses) with sub-20% penetration.

Rollins reported revenue growth from $2.4 billion to $3.1 billion (FY2021–FY2023), net income from $365.6 million to $435 million and averaged $435 million of free cash flow; Q1 2024 revenue rose 14% to $748.3 million and net income rose 7% to $94.4 million. The company has pursued multiple acquisitions that have been reported as accretive, but investors should monitor the pace and integration of M&A and its impact on cash conversion and margin trends.

Key Decisions for Investors

• Consider Accenture as a long-term core holding given large, consistent free cash flow and strategic acquisitions, but size exposure after verifying current valuation and the modest ~1.6% yield
• Accumulate Cintas on strength or modest pullbacks to capture dividend growth and secular upside from low market penetration, prioritizing position increases if FCF conversion and new-client wins continue
• Take selective exposure to Rollins to play industry consolidation and recurring demand, while actively monitoring acquisition cadence, integration execution and free-cash-flow conversion before adding to weightings
• Monitor quarterly free-cash-flow trends, dividend raises and the success metrics for recent acquisitions across all three names as triggers to increase, trim or hedge positions