7 High-Yield Retirement Stocks to Buy for Your Nest Egg

  • These seven high-yield retirement stocks to buy are among the top picks to build a retirement portfolio that will provide a stable income.
  • Amcor (AMCR): Is a global leader in developing and producing responsible packaging.
  • 3M Company (MMM): This conglomerate has a company history of 120 years.
  • AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas.
  • Cardinal Health (CAH): An integrated healthcare services and products company operating intentionally.
  • Chevron (CVX): This energy giant has several big projects underway.
  • Exxon Mobil (XOM): Here’s another global oil giant with a rich company history of 152 years.
  • International Business Machines (IBM): The iconic technology company transforms the past, present, and future of technology.
Detailed shot of shiny golden eggs with retirement paper in animal nest against white background. Nest egg. Retirement.

Source: Dan Kosmayer / Shutterstock

Building a retirement portfolio is a challenge. One has to compensate for the loss of income and it is a process that takes time and dedication. However, it does not need to be a complex decision as the need for a low-risk and income-oriented portfolio is clear. Today, I will discuss seven high-yield retirement stocks to buy to build your nest egg now.

These seven stocks are dividend aristocrats, a list of high-yield stocks suitable for a retirement portfolio as they are among the “65 members of the S&P 500 that haven’t just paid dividends for at least 25 consecutive years – they’ve raised their dividends for a minimum of 25 straight years.”

All these companies have strong balance sheets, well-established businesses, very attractive dividend yields, and can sustain economic and business cycles with capital appreciation. For simplicity, the following data is referred to at closing stock prices on May 20, 2022.

Here are my top seven high-yield retirement stocks to buy for your nest egg:

Ticker Company Price
AMCR Amcor plc $13.20
MMM 3M Company $147.98
ABBV AbbVie Inc. $151.93
CAH Cardinal Health, Inc. $58.07
CVX Chevron Corporation $177.14
XOM Exxon Mobil Corporation $97.15
IBM International Business Machines Corporation $135.96

High-Yield Retirement Stocks: Amcor (AMCR)

green beer bottles in a factory line, ready to be sealed. represents packaging companie

Source: shutterstock.com/zedspider

  • Sector: Consumer Cyclical
  • Industry: Packaging & Containers
  • Forward Dividend & Yield: $0.48 (3.68%)

Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments: Flexibles and Rigid Packaging. Amcor provides packaging solutions for many products, such as beverages, food, healthcare, home care, personal care, and pet care.

This global leader in responsible packaging has about 46,000 employees, with business operations in more than 40 countries and revenue of $13 billion. Additionally, the company is focused on sustainability by making packaging that is recyclable and reusable.

Amcor has 39 years of a dividend increase and a forward payout ratio of 57.81%. The dividend frequency is quarterly. The expected 3 to 5 year earnings per share (EPS) growth is 9.82%.

3M Company (MMM)

Source: Pavel Kapysh / Shutterstock.com Large

  • Sector: Industrials
  • Industry: Conglomerates
  • Forward Dividend & Yield: $5.96 (4.09%)

3M Company (NYSE:MMM) is a diversified technology company worldwide, operating through four segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The company was founded in 1902, giving it 120 years of business history. The list of 3M Company products is endless, with 19,079 items on its official website providing solutions for various industries, such as electronics, energy, manufacturing, automotive, communication, and transportation.

3M Company has 65 years of dividend increases with a forward payout ratio of 52.74% and a quarterly dividend frequency. The expected 3-5 year EPS growth for such a mature company is not negligible, as it stands at 9.5%.

High-Yield Retirement Stocks: AbbVie (ABBV)

ABBV Stock: Offering Oil Yield Without Oil's Risk

Source: Piotr Swat / Shutterstock.com

  • Sector: Healthcare
  • Industry: Drug Manufacturers — General
  • Forward Dividend & Yield: $5.64 (3.78%)

AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. It has an extensive range of products for immunology like Humira and Skyrizi. In the neuroscience field, it offers Botox, Celexa and Fetzima. Additionally, the company has treatments for oncology, virology, eye care, aesthetics, and other specialty areas.

The firm is investing in big data technology, precision medicine, and in genetics and genomics.

AbbVie has 50 years of dividend increases with a forward payout ratio of 46.8% with a quarterly dividend frequency. The expected 3 to 5 year EPS growth is 2.54%.

Cardinal Health (CAH)

Cardinal Health (CAH) sign with bushes in front of it

Source: Shutterstock

  • Sector: Healthcare
  • Industry: Medical Distribution
  • Forward Dividend & Yield: $1.98 (3.55%)

Cardinal Health (NYSE:CAH) is an integrated healthcare company providing services and products in the United States, Canada, Europe, and Asia. It operates in two segments: Pharmaceutical and Medical.

The company provides services for a wide audience, consisting of the home care sector, hospital pharmacy, community laboratory, health centers, retail independent pharmacy, ambulatory surgery center supplies, and solutions, among others. Some of its pharmaceutical products cover sectors like biosimilars, influenza, nuclear medicine, and specialty drugs.

Cardinal Health has 36 years of dividend increases with a very healthy forward payout ratio of 35.77%. The dividend frequency is quarterly. The business outlook is stable and this is reflected in the expected 3 to 5 year EPS growth of 1.62%.

High-Yield Retirement Stocks: Chevron (CVX)

Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath

Source: Sundry Photography / Shutterstock.com

  • Sector: Energy
  • Industry: Oil & Gas Integrated
  • Forward Dividend & Yield: 5.68 (3.29%)

Chevron (NYSE:CVX) is an integrated energy and chemicals company with operations worldwide. The company operates in two segments: Upstream and Downstream. It was founded in 1879, 143 years ago.

The company has important projects, like the Gorgon Project, one of the world’s largest natural gas projects and a very important one for the Australian economy. It also operates the Wheatstone project, one of Australia’s largest resource developments; the Jack St. Malo project in the U.S. Gulf of Mexico; the Big Foot project in the U.S. Gulf of Mexico; the Mafumeira Sul project in Angola; and the Permian Basin project, just to name a few.

Chevron has 35 years of a dividend increase and a forward payout ratio of 38.95% It pays a quarterly dividend. Additionally, the company is expected to have a 3 to 5 year EPS growth of 11.55%.

Exxon Mobil (XOM)

Exxon Mobil Stock Is on the Way Back, but It Will Take Some Time

Source: Jonathan Weiss / Shutterstock.com

  • Sector: Energy
  • Industry: Oil & Gas Integrated
  • Forward Dividend & Yield: $3.52 (3.83%)

Exxon Mobil, (NYSE:XOM) along with Chevron, has been in the best performing sector in 2022: the energy sector. When you invest in the long-term, like building a diversified retirement portfolio, having stocks that have appreciated significantly offers additional investment opportunities. It is not a bad idea to sell some shares and book profits while having the remaining ones continue to build wealth and recurring income.

Exxon Mobil explores and produces crude oil and natural gas in the United States and internationally, operating through Upstream, Downstream, and Chemical segments. It was founded in 1870, 152 years ago.

The firm is committed to achieving net-zero emissions from its operating assets by 2050. It has 38 years of dividend increases and a forward payout ratio of 42.19%. The dividend frequency is quarterly.

The expected 3 to 5 year EPS growth of 20.41% is very high, signaling strong business prospects.

High-Yield Retirement Stocks: International Business Machines (IBM)

Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.

Source: shutterstock.com/LCV

  • Sector: Technology
  • Industry: Information Technology Services
  • Forward Dividend & Yield: $6.60 (5.14%)

International Business Machines (NYSE:IBM) is a provider of integrated solutions and services worldwide and operates through four business segments: Software, Consulting, Infrastructure, and Financing. The firm was founded in 1911, which gives them 111 years of business activity.

The technology firm provides many tools for businesses, such as Hybrid Cloud, Public Cloud, Blockchain, IBM Watson, Security, Data & analytics, and Quantum computing, among others. Some of the services IBM provides offer solutions for different sectors, including Financial Services, Consumer goods, Energy, Retail, and Telecommunications.

The dividend has increased for 28 years, and the firm has a high forward payout ratio of 62.49%.

The quarterly dividend frequency is ideal, like all other high-yield retirement stocks to buy on this list. Additionally, the 3 to 5 year expected EPS growth of 9.02% is strong for such a large and mature technology company.

On the date of publication, Stavros Georgiadis, CFA  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.

Stavros Georgiadis is a CFA charter holder, an Equity Research Analyst, and an Economist. He focuses on U.S. stocks and has his own stock market blog at thestockmarketontheinternet.com. He has written in the past various articles for other publications and can be reached on Twitter and on LinkedIn.


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