For investors needing retirement stocks in their portfolios, one rule stands out, especially in times like these with the recent tumbles and dips: Slow and steady wins the race.
Now may just be a great time to buttress damaged portfolios with names beyond the usual (and worthwhile) stalwarts such as Exxon Mobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO).
What we’re looking for are names within an industry that are perhaps a bit down on disappointing news, but not the kind that might sink the boat. We need to find stocks where the drop in price provides a nice entry point, and very nice, steady dividend yields.
So, where should we go prospecting? Well, how about in the machinery, farming and engine businesses? The overall machinery and power technology industry is certainly staggering a bit, as companies retool their earnings guidance based on a multitude of factors. Among them: falling worldwide commodity prices and demand, drought in the U.S. heartland and abroad, and the dicey economy in China — with far worse in Europe.
But don’t despair. These conditions also creating some good buys for your retirement portfolio. I can think of at least three solid players, all of which will reward your patience: Caterpillar (NYSE:CAT), Deere (NYSE:DE) and Cummins (NYSE:CMI).
Let’s take a look: