Some people have been investing and tending to their portfolios for many years, often decades. Others are relatively new to the investing world and started building their portfolios more recently. The stage in life of the investor often determines how they invest, and in which stocks they choose. New investors tend to focus on growth to build their nest egg, while retired people, or those close to leaving the workforce, place their investing interests in companies yielding more income potential.
Stable stocks are likely to have better odds for maintaining an established retirement income. Consistently performing stocks are also a sensible bet for investors at any stage in their investing careers. By themselves, or in addition to more volatile stocks, historically stable stocks provide a healthy balance of income and growth to financial portfolios of any size.
Inflation is apt to, and often does outpace market-wide dividend yields. The dividends of these 10 retirement stocks, and their dividend growth, could prove to play an important role in amassing a retirement nest egg.
Retirement stock to buy: Walmart (NYSE: WMT)
People either love or hate shopping at Walmart, but as an investment, it is a solid bet. Even with Target Corporation (NYSE: TGT) as its closest brick and mortar competitor and Amazon (NASDAQ: AMZN) reigning supreme over online sales, Walmart has figured out how to remain competitive in the consumer market.
To challenge Amazon, Walmart has expanded on its e-commerce segment by offering free and/or low price shipping, curbside grocery delivery, and streamlining of the “ship to store” process. Their efforts have paid off with news of 23% growth in online sales in the most recently reported quarter. Walmart will further open its market by offering higher end brands through an online partnering with Lord & Taylor in spring of this year, reaching into the hitherto untapped luxury market. In view of efforts put forward by the mega-retailer, it’s obvious Walmart will remain the world’s biggest retailer for the foreseeable future.
Retirement stock to buy: Bank of America Corp (BAC)
Bank of America has had its struggles since the subprime mortgage meltdown between 2007 and 2010. Although it failed its so called stress test in 2011, it has passed it every year since (2014 and 2015 were provisional). Bank of America appears to be emerging from its troubled past as an efficient banking leader. Although dividend yields are modest now, there is room for a good amount of potential growth. Rising interest rates and a grand supercycle of economic growth could make the next several years big ones for Bank of America.
Retirement stock to buy: AT&T (T)
Even though AT&T has seen its share of challenges, dividend payouts are reliably good. With broadband and wireless telecom emerging as commodities, and changes in cablevision viewing, as well as facing political flak over their efforts to acquire Time Warner Inc (NYSE: TWX), AT&T has seen some challenges. In the end, AT&T has carved out its place in its important markets, and it has got the breadth and capital to acquire what it takes to remain relevant for the future.
Retirement stock to buy: Merck & Co., Inc (NYSE: MRK)
Merck & Co is just one of several solid investments in the pharmaceutical sector, but MRK has some attractive things in its research and development pipeline that make it a sensible bet above the others. Keytruda, a cancer treatment, doubled its sales in the last quarter. Announcement of Phase 3 studies of its pneumococcal disease vaccine (PVC-15) as well as data emerging on LYNPARZA, a breast cancer treatment drug, are just two other projects cementing Merck as a pharmaceutical company to invest in for the future.
Retirement stock to buy: Southern Company (NYSE: SO)
Utility stocks have a definite place in a retirement portfolio and Southern Co is delivering higher than industry standard dividends. 2018 marks the 17th consecutive year SO has raised the dividend on its common stock. Serving more than 9 million customers in 9 southern states through a dozen companies, it is one of the largest energy providers in the U.S. With their companies offering wind, solar, electric and nuclear power, and more innovations in the pipeline, SO is a solid utility company looking toward the future.
Retirement stock to buy: American Water Works Company, Inc. (NYSE: AWK)
Water, another utility, makes a solid retirement investment in part because there is usually little to no competition in most area markets. Furthermore, water companies tend to raise their prices to customers regularly, in spite of lower water consumption. AWK serves 15 million people in 47 U.S. states and Ontario, Canada, employing nearly 7,000 people. With AWK’s stock more than doubling over the last 5 years, it looks like this investment will continue to pay solid dividends for years to come.
Retirement stock to buy: Visa, Inc (NYSE: V)
Credit cards are not going anywhere, even with some forecasting cryptocurrencies as the future of business and commerce transactions. Of the big names in the credit card market, Visa is the biggest, holding the largest market share. V continues to innovate by eliminating the signature required on transactions with chipped cards, and testing fingerprint authentication (first in the industry to use a fingerprint platform). With fewer people carrying around cash and increasing online shopping, Visa is poised to continue to offer reliable dividends for retirement investors.
Retirement Stock to buy: Boeing Co (NYSE: BA)
Aircraft manufacturing giant Boeing has the stronghold in the industry with its commercial and military aircraft, as well as manufacturing defense systems, satellites, and information and communication systems. With Boeing forecasting the sky to be dotted with 41,000 new airplanes over the next 20 years, nearly doubling what is in service now, its dividend future looks bright for investors.
Retirement stock to buy: Intel Corporation (NASDAQ: INTC)
Technology is ever evolving, and Intel is devoted to thriving in the evolution. With their technology making its way into self-driving cars, networking solutions, and graphics processors, the company is moving toward solutions rather than products. Intel recently raised their dividend another 10%, continuing over 20 years of reliable, increasing dividends for their investors.
Retirement stock to buy: Realty Income Corp (NYSE: O)
Holding at least one real estate investment trust (REIT) in a retirement investment portfolio is smart because, by nature, they produce tax efficient rental income for their shareholders. With the very biggest brick and mortar retail names (Walmart, Kroger, BJs Wholesale, the top three pharmacies, to name a few) as tenants, O is handling the “retail apocalypse” well with sales and earnings up in 2017, and projecting to continue the upward trend this year.
Retirement stock investing is for the long haul, but retirement can last for many years.
It can take a long time to build up a retirement portfolio that lasts for all of those golden years. By paying attention to what is in their investment stable now and choosing historically stable dividend generating stocks, investors can hope to enjoy the retirement they had envisioned for its duration.