3 FTSE 100 stocks I'd buy and hold for the next decade

Burberry
Burberry

For those seeking reliable earnings growth year after year it is hard to look past support services giant Bunzl (LSE: BNZL).

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The impact of Britain's upcoming EU withdrawal is playing havoc with the company's sector rivals like Serco, Mitie and Capita, firms that have been peppering the market with downbeat trading updates since the summer.

But Bunzl's exceptional geographical footprint leaves it less susceptible to these pressures as the company sources more than four-fifths of total revenues from foreign climes. And the business spent £150m in the past year alone on more than a dozen acquisitions to boost its global base still further and keep earnings on an upward tilt.

The City expects Bunzl to print earnings growth of 8% and 4% in 2017 and 2018 respectively, while its hot bottom-line profile and exceptional cash conversion are expected to keep powering dividends higher too. The company has lifted the annual dividend every year for almost a quarter of a century.

I reckon a forward P/E ratio of 19.9 times is great value for a stock of Bunzl's calibre.

Flying high

I am convinced International Consolidated Airlines Group's (LSE: IAG) might in the transatlantic and budget flying segments also sets it on course to deliver excellent returns in the years ahead.

IAG saw group traffic (measured in revenue passenger kilometres) 4.4% higher during January. The business saw traffic across its premium lines shoot 6.9% higher last month, but this was not the only cause for celebration as sales across its low-cost airlines also took off -- traffic at Vueling and Aer Lingus grew 11.4% and 12.3% respectively from a year earlier.

And IAG is due to enter the fledgling low-cost, long-haul segment imminently, a move which will see it flying cost-conscious travellers across the Atlantic. Chief executive Willie Walsh recently said the segment will be a "significant" part of the company looking ahead.

In the meantime City analysts expect growth of 1% and 5% in 2017 and 2018 respectively. I believe a prospective P/E rating of 7.1 times is a great point at which to latch onto the flyer's hot growth potential.

Bag a beauty

The enduring popularity of Burberry's (LSE: BRBY) premium bags and coats makes it a great long-term pick for share investors too, in my opinion.

The fashion star is not immune to broader economic pressures, and moderating demand for luxury goods saw earnings slip 10% in the year to March 2016. But improving conditions in Asia, allied with robust sales in Europe, mean that last year's result is expected to be nothing more than a blip in Burberry's long-running growth story.

And with the Burberry brand boosted by a steady stream of new product launches during the past year, not to mention fresh marketing campaigns across the globe, earnings are predicted to bounce 9% in both fiscal 2017 and 2018.

I believe Burberry is a terrific pick worthy of its premium forward P/E rating of 20 times.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Burberry. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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