- Retiring is a big decision that requires a lot of planning, so let’s take a closer look at these popular retirement stocks and their use cases.
- Raytheon Technologies (RTX): The largest producer of guided missiles in the U.S. and one of the top 10 defense contractors in the world.
- JPMorgan Chase & Co. (JPM): One of the top ten banks worldwide as measured by total assets.
- Stag Industrial (STAG): A U.S. real estate investment trust (REIT) that invests in single-tenant and industrial properties.
- Costco Wholesale (COST): Its success has been attributed to its business strategy, which includes selling products at very low prices.
- Chevron (CVX): A “Dividend Aristocrat” that has been increasing its dividend payment for at least 25 years.
- Bank of Hawaii (BOH): A bank that has been in the market for more than 100 years.
- Digital Realty Trust (DLR): A publicly-traded REIT focused on owning and managing data centers with a solid yield of 3.34%.
There’s no doubt planning for your future with solid investments is a crucial decision to make. Buying retirement stocks may be a good way to help you save for your later years while also providing a source of income when you’re older.
Don’t put off buying retirement stocks, as they can help you reach your financial goals. Investors should consider these prominent equities that are great for any long-term portfolio.
|JPM||JPMorgan Chase & Co.||$122.45|
|BOH||Bank of Hawaii||$74.47|
|DLR||Digital Realty Trust||$135.83|
Raytheon Technologies Corporation (RTX)
Raytheon Technologies (NYSE:RTX) produces missiles, aircraft and satellites. It also provides cybersecurity solutions to government and commercial clients.
The company has been around for nearly 100 years. Raytheon started as a producer of vacuum tubes and other electronics but eventually became a major defense contractor, producing missiles and aircraft.
Raytheon’s products include the Patriot Missile System, Tomahawk Cruise Missiles, AIM-120 AMRAAM missile and the Joint Air-to-Surface Standoff Missile (JASSM).
The company receives much of its revenue from the U.S. government. Thankfully, this customer has a great payment history, which means defense companies and investors can plan better for future growth.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase & Co. (NYSE:JPM) is a multinational banking and financial services corporation headquartered in New York City. It’s the largest bank in the United States with total assets of $3.7 trillion.
The company has a significant impact on the financial sector and the overall U.S. economy. Its revenue reached a record high of $48.3 billion last year despite headwinds. JPMorgan is also a strong dividend growth stock and sports a very high current yield at 3.2%.
JPMorgan is the largest bank in the U.S. It tends to experience challenges from a valuation perspective, but its capabilities boost its net assets. In other words, it can provide more for investors with a lower risk of volatility over time.
STAG Industrial (STAG)
Stag Industrial (NYSE:STAG) is a real estate investment trust (REIT) that invests in single-tenant and industrial properties. The company manages more than $5.8 billion in assets with 551 buildings and 110 million square feet all across the U.S.
E-commerce has been around since the early 1990s, when online retailers started offering a wide range of products not available in physical stores. Retail e-commerce sales are projected to increase by 50% over the next four years, taking in more than $7.4 trillion by 2025.
The secular increase in e-commerce has created an opportunity for new businesses to enter this market. They can take advantage of this trend by offering their products and services to online customers as well as expanding their existing product line.
This trend will help Stag Industrial move forward. Its structure as a REIT also helps matters. It needs to distribute at least 90% of its revenue income to shareholders. Therefore, STAG stock is a premium income play.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) is a warehouse club that offers memberships to buy items at bulk rates.
The company was founded in 1983 by Jim Sinegal and Jeffrey Brotman. It started as a single store in Seattle, Washington and has expanded to become one of the five biggest retailers in the United States, with more than 100 million members worldwide.
Costco is known for its low prices. But with the recent popularity of Amazon and other online retailers, Costco has had to change its strategy to stay competitive.
The company has had to implement new strategies such as sales promotions and increased product selection, and it is working well. Costco generated $192.1 billion in global sales in 2021, a significant 17.5% increase from the year-ago period.
Costco’s competitive advantage is in its leadership position, built from marketing a new product category and price shopping for consumers. It has been around for many years, even through difficult economic periods. COST stock did particularly well during the worst recession in decades and appears to have exited the period stronger than it was when it entered it.
Chevron (NYSE:CVX) is one of the largest oil companies in the world, with a presence in more than 180 countries and territories. It operates in exploration and production, refining and retail marketing.
Chevron ranks as one of the top 20 largest companies on the S&P 500 index by market capitalization. It is also one of the six supermajors (five of which are state-owned enterprises) that dominate global oil production and trade.
Chevron is a Dividend Aristocrat, meaning it has increased its dividend for more than 25 years. The company says CVX stock is worth it, and its performance proves it. Investors have shown confidence in the company from a valuation standpoint over time.
Bank of Hawaii (BOH)
Bank of Hawaii (NYSE:BOH) has been in the market for more than 100 years. It is one of the largest financial institutions in the United States and is also one of the largest banks in the world.
Bank of Hawaii has many branches, ATMs and services to offer its customers. It has a wide range of products including mortgages, credit cards, personal loans and business banking.
Hawaii’s local culture is one of the reasons it’s such a popular destination for tourists and business travelers. Another reason is its tropical climate, which allows businesses to grow year-round without having to worry about harsh winter weather conditions.
One of the key strengths of the Bank of Hawaii is its focus on the island’s requirements. It has a long history of delivering strong dividends and investing heavily in the region. Since the end of Q1, the total assets of the bank have increased by 0.9%. The bank has now reached a new record number with a total deposit amount of $20.7 billion.
Digital Realty Trust (DLR)
Digital Realty Trust (NYSE:DLR) is a commercial real estate company that focuses on the development and operation of data centers, office buildings, and other facilities.
It has developed over 300 data centers across the world. It is also one of the largest providers of wholesale data center space in North America. These facilities are often located in a remote part of the world, such as a desert or a cold region. This is done to reduce power usage and cooling costs. But it also means the cost of moving equipment may be high.
Digital Realty also provides crucial cloud and information technology services other companies need to function successfully. There were significant strides over the last decade for the big data center market, and growth is not yet slowing down. Therefore, the dividend for DLR stock is safe and future-proof.
On the publication date, Faizan Farooque 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.