7 Retirement Stocks to Buy for Any Market Conditions


  • Although the market turmoil may have investors scrambling for cover, these retirement stocks can likely withstand the heat.
  • Brookfield Infrastructure (BIPC): One of the largest owners and operators of critical global infrastructure networks, Brookfield presents unbeatable relevance.
  • Duke Energy (DUK): A classic name among retirement stocks, Duke Energy’s pertinent business and compelling coverage map make it a worthwhile idea.
  • American Electric Power Company (AEP): A massive electric utility firm covering 11 states, AEP commands permanent relevance among retirement stocks to buy.
  • Merck (MRK): A powerhouse in the big pharmaceutical industry, Merck should benefit from its enviable product portfolio.
  • AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks.
  • Exxon Mobil (XOM): While experts are screaming that electric vehicles are the future, crude oil likely has a long, lucrative road ahead.
  • Philip Morris (PM): If you don’t mind digging into vice plays, PM could provide a relevant lift regarding retirement stocks to buy.
Coins stacked next to a calculator that says "retirement plan." Retirement stocks.

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Just as society thought it was about to turn a corner with the vexing coronavirus pandemic, Russia’s unprovoked attack on Ukraine unsettled global markets, sending many investors seeking shelter from the storm. Despite the volatility, the equities sector still represents one of the best places to grow your money and as such, retirement stocks to buy command relevance.

Of course, you can’t just pick out any idea and expect it to perform well. Unfortunately, this year has witnessed multiple headwinds. Setting aside escalating geopolitical tensions in Europe, the choices that the Federal Reserve made to keep the U.S. economy afloat following the Covid-19 breach have now come to roost in the form of rising inflation. Given this tricky backdrop, investors must be selective regarding retirement stocks.

To better navigate the treacherous waters, your long-term portfolio should consist of companies that don’t just address immediate needs, but will be around well into the future. Granted, qualified ideas are difficult to find, but it’s not impossible.

Here are some intriguing names to consider for retirement stocks to buy:

BIPC Brookfield Infrastructure Corporation $71.49
DUK Duke Energy Corporation $109.42
AEP American Electric Power Company, Inc. $99.54
MRK Merck & Co., Inc. $93.48
ABBV AbbVie Inc. $152.46
XOM Exxon Mobil Corporation $93.04
PM Philip Morris International Inc. $101.12

Retirement Stocks to Buy: Brookfield Infrastructure (BIPC)

Brookfield Infrastructure logo on a phone screen in front of a blurred computer screen. BIPC stock.

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An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. Specifically, the company invests in transmission and telecommunication lines, toll roads, ports and pipelines.

In other words, if it goes through the global supply chain, there’s a chance that Brookfield is involved. Thus, if you’re looking for a relatively stable and proven investment for retirement stocks to buy, BIPC should be high on your list. Though troubles weigh on global business networks currently, they will eventually fade. But before then, you’ll want exposure to BIPC.

Brookfield is also attractive for investors seeking retirement stocks in that its dividend yield is a solid 3.03%. It’s also recovering in terms of revenue performance since the Covid-19 pandemic, although management will need to address the net losses. Ultimately, though, patient investors should find lots to like about BIPC stock.

Duke Energy (DUK)

The logo for Duke Energy (DUK) is seen on a sign at one of the company's offices.

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One of the classic ideas among retirement stocks to buy, Duke Energy (NYSE:DUK) is a go-to name for those with a long-term perspective. An electric power and natural gas holding company, Duke is essentially permanently relevant. As I like to say, people expect the lights to turn on when they flip the switch. Bad stuff happens when it doesn’t.

Aside from the obvious and cynical, DUK enjoys a fortuitous advantage in its coverage map. Levering a strong presence in the Southeast (Florida, South Carolina) and Midwest (Indiana, Kentucky, Ohio) regions, Duke Energy might see increased demand from migration patterns. As coastal metropolitan areas become overly crowded and expensive, many astute millennials are moving to states with lower costs of living, coinciding with Duke’s coverage map.

Finally, DUK makes for a solid case for retirement stocks to buy because of its dividend yield, which currently stands at 3.62%. With a solid track record of profitability, the company should be able to take care of its shareholders for years to come.

Retirement Stocks to Buy: American Electric Power Company (AEP)

the American Electric Power logo is magnified on a website

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One of the biggest electric utility firms in the country, American Electric Power Company (NASDAQ:AEP) provides a solid mix of capital return potential and passive income. On a year-to-date basis through the May 16 session, AEP has gained over 12%. At the same time, its dividend yield stands at a solid 3.15%, making it one of the more intriguing retirement stocks to buy.

As with Duke Energy above, American Electric Power enjoys a compelling coverage map. This one in particular spans 11 states — including millennial destination spots like Ohio and Texas — and serves 5.5 million customers. Therefore, because of migration patterns largely fueled by economic necessity, it’s quite possible that AEP could enjoy increased demand.

Financially, the company is rock-solid. After suffering a noticeable sales drought in 2020, annual revenue is now exceeding pre-pandemic norms. In addition, it consistently drives robust net income, making AEP among the most dependable retirement stocks to buy.

Merck & Co. (MRK)

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One of the ironies of the Covid-19 pandemic was that it didn’t holistically benefit the broader healthcare industry. Indeed, because of initial fears associated with the mysterious SARS-CoV-2 virus, many chose to avoid hospital and clinical settings unless absolutely necessary. Thus, the pandemic wasn’t exactly a boon for pharmaceutical giant Merck & Co. (NYSE:MRK).

But now that both the virus itself and the fear of Covid-19 are fading, Merck might make for an intriguing idea among retirement stocks to buy. Specifically, investors should key in on the company’s enviable product pipeline. Thanks to societal normalization, people are much likelier to visit health facilities for non-Covid-related issues.

Of course, Merck has a powerhouse oncology drug in Keytruda, which should bolster MRK stock in the long run. According to Mordor Intelligence, experts project the cancer immunotherapy market to command nearly a double-digit compound annual growth rate from now until 2027.

And while you’re waiting for this narrative to fully materialize, you can take advantage of MRK’s 3% dividend yield.

Retirement Stocks to Buy: AbbVie (ABBV)

abbvie (ABBV) website and logo on mobile phone

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Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. Under the Allergan brand were several intriguing products, the most attractive (in my opinion) being Botox.

Say what you want about the neurotoxic protein, it’s a popular treatment because humans want to keep their youthful appearance as long as possible. More significantly, the gradual normalization of society could positively affect Botox. Basically, as more people go out and about, they’ll want to look their best. That’s doubly so if workers are recalled to the office.

However, another demographic aspect might help Botox sales — and thus AbbVie — for decades to come and that’s aging millennials (and eventually Generation Z). Given that western societies have generally become more concerned with physical appearance, people from these demographics would be even more incentivized to consider Botox.

Exxon Mobil (XOM)

exxon mobil (XOM) gas station

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Listing Exxon Mobil (NYSE:XOM) as one of the retirement stocks to buy might draw scorn, ridicule, or both. For one thing, society at large has shifted toward an economic ecosystem that favors environmental, social and governance (ESG) sentiments. Big oil doesn’t really factor into such thought processes. Moreover, arguably most analysts proclaim that electric vehicles (EVs) are the future. That’s going to put XOM in a bind.

Well, maybe not. Sure, the war in Ukraine has spurred colossal interest in alternative energy solutions, which EVs play a significant role in. However, the harsh reality is that integration of EVs will take time. For example, the infrastructure to support the electrification of transportation isn’t fully developed. Additionally, EVs are currently extremely pricey, only accessible to affluent households.

Sorry to burst any bubbles, but the road to true mainstreaming of EVs could take many, many years. In the meantime, hydrocarbon-based infrastructure is ready to go, making XOM a surprisingly intriguing idea among retirement stocks to buy.

Retirement Stocks to Buy: Philip Morris (PM)

Philip Morris factory offices in Lithuania. PM stock.

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Some folks have certain principles or values they want to uphold with their investment portfolios. If that’s you, I can totally respect that. Therefore, you might not want to hear about tobacco giant Philip Morris (NYSE:PM). At the same time, I can’t assume that everyone has the same thought process. For those that don’t mind a little vice in their retirement stocks, PM might fit the bill.

For starters, the vaping community has recently gravitated toward smaller devices due to their convenient profile and ease of use. Such a subculture shift benefits Philip Morris perfectly, which specializes in both heated tobacco products and e-cigarettes that focus on the experience of smoking rather than the wizardry of digital devices.

Second, it’s not unreasonable to believe that as stress levels rise globally due to recession fears — and perhaps an actual recession materializing — many people may turn to coping mechanisms such as cigarettes, both the analog and electronic varieties. Of course, it’s a cynical thesis. But if that doesn’t bother you, PM might be an interesting name among retirement stocks to buy.

On the date of publication, Josh Enomoto 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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/7-retirement-stocks-to-buy-for-any-market-conditions/.

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