Most investors wouldn’t put the words “growth stocks” in the same sentence as “retirement,” except perhaps as a precautionary warning against what not to buy.
At face value, this makes sense. Growth picks often end up being fad or glamour stocks and often trade at wildly optimistic valuations. When growth slows down or when expectations fail to live up to the hype, growth stocks can take a serious tumble.
That’s a problem if you’re having to regularly sell stocks to take withdrawals from your account. Just look at recent flame-outs like Snap Inc (NYSE:SNAP) and Yelp Inc (NYSE:YELP). If your retirement hinges on selling these stocks to a greater fool … well, you might be going back to work.
Understandably, most retirees tend to opt for the stability of slow-growth dividend payers. But this too can be a mistake if it overweights you in sectors like utilities or telecom, both of which have limited upside and face a very real threat of technological disruption.
Making it worse, many of the traditional go-to dividend value plays are far from cheap these days. Tobacco giants Altria Group Inc (NYSE:MO) and Reynolds American, Inc. (NYSE:RAI) trade for 20 and 24 times forward earnings, respectively.
You may be living in retirement for 30 years or more, so at least a modest portion of your portfolio should be allocated to growth stocks.
You’re never going to find growth stocks that are truly “future-proof.” Those simply don’t exist. But today, we’re going to look at 10 growth stocks that should be solid contenders for a growth portfolio. It’s entirely possible that not a single one of these will still be around by the time your 100th birthday comes around, but all should be very solid growth engines for many years to come.