5 Retirement Stocks to Buy and Hold for the Rest of Your Life

  • The market weakness is a great opportunity to pick up retirement stocks that may have been overheated.
  • Dollar General (DG): The retailer is expected to open 1,000 new stores in 2022.
  • Home Depot (HD): The home improvement retailer plans to continue increasing dividend payments.
  • JPMorgan Chase (JPM): Shares offer a compelling buying opportunity at 52-week lows.
  • McDonald(MCD): The fast-food chain can prosper in just about every market environment.
  • Walmart (WMT):The Dividend Aristocrat continues to gain market share against its peers.
a financial planner showing a couple a piece of paper

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As an investor, you are already looking for ways to add value to your hard-earned money as you plan for long-term goals, and these retirement stocks may fit the bill.

Amid declines on Wall Street, some investors are allocating an increasing portion of their portfolio to retirement stocks they would want to hold for decades.

Many of us save and invest for financial security in the future. Wells Fargo (NYSE:WFC) reminds us that investing may help us with long-term goals.

Bear markets are a natural part of the market cycle on Wall Street. Seasoned investors typically position themselves to benefit from them. The S&P 500 index is currently down 18% year-to-date, while the tech-heavy Nasdaq 100 has declined more than 28% during the same period.

Therefore, this month could be the perfect time to buy solid retirement stocks and forget about them for an extended period. Against this backdrop, here are five retirement stocks to buy and hold for decades.

DG Dollar General $231.86
HD Home Depot $289.69
JPM JPMorgan Chase $118.04
MCD McDonalds $244.19
WMT Walmart $147.48

Dollar General (DG)

Dollar General (DG) store front with yellow store sign, midday

Source: Jonathan Weiss / Shutterstock.com

Dollar General (NYSE:DG) is one of the largest consumer retailers in the country.

The company boasts more than 80 years of history, operating over 18,000 stores in 46 states. It plans to add more than a thousand new stores to its total count during the 2022 fiscal year.

Dollar General reported Q4 2021 results on March 17. Net sales increased 2.8% year-over-year to $8.7 billion. However, same-store sales decreased 1.4% year-over-year, driven by a decline in customer traffic. Diluted earnings per share (EPS) fell 1.9% year-over-year to $2.57.

The retailer used most of its net cash flow of $2.9 billion to repurchase stocks and make dividend payments. Management declared a quarterly cash dividend of 55 cents per share, representing a 31% increase compared to the prior quarter.

DG stock is down just a little more than 1.5% for the year. Shares are trading at 20.3 times forward earnings and 1.6 times sales. Meanwhile, the 12-month median price forecast for DG stands at $255.50.

Home Depot (HD)

Home Depot (HD) sign backdropped by blue sky

Source: Rob Wilson / Shutterstock.com

Home Depot (NYSE:HD) is the largest home improvement retailer worldwide. It has more than 2,300 stores across North America. HD is among the popular retirement stocks for buy-and-hold investors as a result of its generous dividend payments.

Management announced Q4 2021 results on Feb. 22. Revenue came in at $35.7 billion, achieving 10.7% growth year-over-year. Diluted EPS per share increased 21.1% to $3.21, up from $2.65 in the same quarter in 2020.

The company benefits from a strong housing market and soaring home prices, driving homeowners to remodel their homes. Fiscal 2022 guidance includes diluted EPS growth in the low single digits.

Management announced a 15% increase in dividends, up to $1.90 per share. HD stock currently supports a 2.6% dividend yield.

HD stock has lost roughly 29% so far this year. Shares are trading at 19.1 times trailing earnings and 2.1 times sales. Meanwhile, the 12-month median price forecast for HD is $380.

JPMorgan Chase (JPM)

A sign for JP Morgan Chase & Co (JPM).

Source: Bjorn Bakstad / Shutterstock.com

JPMorgan Chase (NYSE:JPMis one of the world’s largest financial institutions, with assets that exceed $3 trillion. It offers consumer banking, commercial banking, corporate and investment banking, as well as asset and wealth management.

JPMorgan Chase announced Q1 results on April 13. Revenue of $30.7 billion was down 5% year-over-year. Gross Investment Banking revenue declined 35% to $729 million. Diluted earnings per share came in at $2.63, down 42% year-over-year from $4.50 for the same period last year.

The financial institution boasts an enormous scale in consumer and investment banking. Management anticipates net interest income (NII) to benefit from the anticipated interest rate hikes through 2022.

During the quarter, the company also distributed $3 billion in dividend payments and repurchased $1.7 billion of common stock. In addition, there is a new share repurchase program of $30 billion, effective May 1. The dividend yield currently stands at 3.2%.

JPM stock is down by 27% so far this year. Shares are trading at 11.0 times forward earnings and 3.1 times sales. Meanwhile, the 12-month median price forecast for JPM stands at $150.63.

McDonald’s (MCD)

A McDonald's (MCD) burger box and fries rest on a flat surface.

Source: 8th.creator / Shutterstock.com

McDonalds (NYSE:MCD) is possibly the most famous fast-food chain worldwide. The company continues to transform the fast-food industry, growing its enormous global footprint via partnerships with independent restaurant franchisees.

McDonalds reported Q1 2022 results in late April. Revenue came in at $5.67 billion, corresponding to an 11% year-over-year growth. But diluted EPS came in at $1.48, down from $2.05 a year ago.

Analysts concur that the fast-food giant can thrive in just about every market environment. McDonald’s is passing along higher food costs to customers, managing to offset inflationary pressures via price increases, and focusing on drive-thru and delivery sales.

Recent research suggests that the U.S. fast-food industry is expected to grow at a compound annual growth rate (CAGR) of over 5% between 2020 and 2027.

As a result, we can expect the fast-food giant to be at the forefront of this increase. Moreover, the fast-food giant generates a dividend yield of 2.2% at current prices. It is an outstanding defensive stock due to its slow but steady growth.

Yet, MCD stock is down by 9% so far this year. Shares are trading at 25.4 times forward earnings and 7.9 times sales. Meanwhile, the 12-month median price forecast for MCD is $281.50.

Walmart (WMT)

Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background

Source: Jonathan Weiss / Shutterstock.com

Walmart (NYSE:WMT) is the largest retailer by revenue across the globe. It operates roughly 11,400 stores and employs about 2.3 million people.

Walmart reported Q2 2022 on Apr. 21. Total revenue was $152.9 billion, up just 0.5%. A year ago, it had been $152.1 billion. Adjusted EPS was $1.53. During the full year, the retailer generated $24.2 billion in operating cash flow .

Despite the current bear market, WMT stock looks like a safe bet with its slow but steady growth. The retail giant uses its massive size and scale to gain further market share.

It can also offer better prices across key segments without sacrificing earnings growth. Meanwhile, the Dividend Aristocrat generates a 1.5% dividend yield and offers continued growth potential.

WMT stock is up 2% so far this year. Shares are trading at 22.6 times forward earnings and 0.7 times sales. Meanwhile, the 12-month median price forecast for WMT is $167.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.


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