This Australian stock is 15% cheaper today, but it’s a “forever” hold

There aren’t too many Australian stocks on our market that I would be generous enough to call a ‘forever hold’. After all, the future is usually only obvious in hindsight. And forever is an awfully long time.

For a company to be called a ‘forever hold’, we must have absolute confidence that it produces a good or service that is highly likely to remain in demand in decades’ time, for one. But it must also, arguably, have a strong track record of moving with the times and always keeping its shareholders at the forefront of its priorities.

I believe Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is one of those rare Australian stocks.

Washington H. Soul Pattinson, or Soul Patts for short, is a diversified investment house that invests in an underlying, diversified portfolio of assets it manages on behalf of its investors. This portfolio is huge in scope and scale, holding assets that range from other blue chip ASX shares to private credit, venture capital and unlisted assets.

Australians are almost certainly going to be looking for a reputable investing manager to look after and build their wealth for time immemorial. So that’s the first box of our ‘forever hold’ criteria ticked.

Why this Australian stock could be a forever hold

But what of our other requirements? Well, I think Soul Patts has these covered, too. And covered well.

This is a company that has been moving with the times for more than a century. Yep, Soul Patts first listed on the ASX way back in 1903, but has actually been around in some form or another for longer than the ASX (or its predecessor, the Sydney Stock Exchange) itself.

The past 25 years have arguably seen more global economic disruption than any other period in Soul Patts’ life, given the rise of the internet and the seismic changes it has unleashed worldwide. Yet, this Australian stock has managed to ride the wave without missing a beat.

In September last year, the company gave the markets an update, noting that Soul Patts investors had enjoyed a total return (share price growth plus dividend returns) of 13.7% per annum over the 25 years to 23 September 2025. That’s a whopping 5.7% per annum more than the broader market. Soul Patts also outperformed over the three-, five-, and ten-year periods to that date.

Past performance is never a guarantee of future success, of course. But it’s certainly worth more than nothing.

Not only that, but Soul Patts also possesses the best dividend track record on the ASX. This Australian stock’s shareholders have enjoyed an annual dividend increase every single year since 1998. That’s quite a feather in this company’s hat.

So I think Soul Patts is an Australian stock that ticks all of the boxes for a ‘forever hold’ investment. And right now, at just over $38 a share, Soul Patts shares are down by more than 15% from the 52-week high of $15.14 that we saw in September last year. Take that how you will.

The post This Australian stock is 15% cheaper today, but it’s a “forever” hold appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.