SPECIAL REPORT The Top 7 Stocks for 2024

7 Retirement Stocks That Every Long-Term Investor Should Own Now

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  • Apple (AAPL): Apple is a very promising stock with a global presence and robust balance sheet. 
  • Microsoft (MSFT): This tech giant is the perfect choice for investors looking for steady growth and passive income.
  • Johnson & Johnson (JNJ): A true dividend king, the company has increased dividends for 61 years. 
  • Read on to find out more about the best long-term retirement stocks to invest in!
long-term retirement stocks - 7 Retirement Stocks That Every Long-Term Investor Should Own Now

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Here’s a look at the top long-term retirement stocks to buy now. Building a solid retirement portfolio is all about identifying companies that can withstand any storm in the market. While it is interesting to earn passive income through them, it is important to look for stable companies that have a rock-solid balance sheet and can perform well in an inflation or a recession. A retirement portfolio should have a long-term outlook and not just focus on dividend stocks. In this article, I recommend seven retirement stocks that should be a part of your investment portfolio. These are the long-term retirement stocks you will never regret buying. 

Long-term retirement stocks: Apple (AAPL)

Apple logo on a pink and purple background. AAPL stock.
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One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). It enjoys the best position in the industry and has the finest products and services to offer. The one thing that sets Apple apart from the rest is its brand name and customer loyalty. AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD).

The company enjoys a significant amount of free cash flow and has already produced a free cash flow of $90.6 billion in the first three quarters of the year. Even in a market recession, Apple can easily survive. With the company expanding its services segment offering and strengthening its stronghold across the global market, Apple is here to stay and it will thrive. This is one retirement stock you wouldn’t regret holding onto. 

Microsoft (MSFT)

The Microsoft logo outside a building representing MSFT stock.
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What is better than investing in a retirement stock that also pays a steady dividend? Microsoft (NASDAQ:MSFT) is a tech giant that has been in the business for as long as I can remember. It has a suite of exceptional products and is now leveraging artificial intelligence (AI) to improve its performance.

It has integrated AI tools in Microsoft 365 Copilot that can be used with each business customer’s data and the company will be charging $30 per user per month for the same. This income will reflect in the coming quarter and I expect it to be a significant contributor to the total revenue. 

The demand for Microsoft’s products will never die and this is why it is one of the top retirement stocks to own today. MSFT stock is up 36% YTD and the company has announced a quarterly dividend of $0.68. There is a high chance that it could hike the dividend in the coming years. With Microsoft, you enjoy passive income as well as capital appreciation. 

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
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Despite dealing with several lawsuits, Johnson & Johnson (NYSE:JNJ) hasn’t taken a single step back. One of the largest healthcare companies, JNJ has several products that are industry stalwarts and continue to generate solid revenue for it. The company has spun off the consumer healthcare division and this will be beneficial for it since we will see better revenue numbers from the pharmaceutical and medical devices segment.

Johnson & Johnson has products that will never go out of demand and no matter the economy, consumers will be happy to spend on their health and wellbeing. JNJ stock is trading at $163 today and it has a dividend yield of 2.79%. The company has reported outstanding second-quarter results and they are proof of its financial strength.

It reported a revenue of $25.5 billion, up 6.3% year-over-year (YOY) and the pharmaceutical segment accounted for over 50% of the total sales in the quarter. Having consistently increased the dividends for 61 years, this Dividend King will be an ideal addition to your portfolio. 

Procter & Gamble (PG)

Procter & Gamble Union Distribution Center. P&G is an American Multinational Consumer Goods Company
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One of the best retirement friendly stocks, Procter & Gamble (NYSE:PG) is a well-known name in the market with several global brands. The company has steadily increased the dividend for the last 66 years and announced a quarterly dividend of $0.94 per share, a 3% YOY rise. Despite inflation and high interest rates, the company had a strong 2023. It reported a net revenue of $20.6 billion, a 5% YOY rise, and an EPS of $1.37, a 13% rise for the fourth quarter of 2023.

The one reason to bet on this stock is its products that are necessities for many and will not go out of demand. Another reason is its diverse business model which allows the company to enjoy a steady income each year. The management believes in rewarding shareholders and has been doing so for years. It paid out $9 billion in dividends this year. Additionally, it expects to see an increase of 3% to 4% in revenue this year.

Berkshire Hathaway (BRK-A, BRK-B)

A Berkshire Hathaway (BRK.A, BRK.B) sign sits out front of an office in Lafayette, Indiana.
Source: Jonathan Weiss / Shutterstock.com

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a top stock pick of Warren Buffett and one stock you can buy and hold forever. If you want to add it to your portfolio, you might want to consider the more affordable B-class shares. In the recent quarter, it reported a revenue of $85.39 billion, a 20.5% increase YOY, and its earnings before income tax increased by a whopping 543% to hit $44.6 billion.

A lot of investors are concerned about picking this stock due to Buffett’s age, but he has a team in place that can handle things well. Many investors consider it to be the best retirement stock in America. After reporting impressive financial results, the stock has hit an all-time high. BRB-B stock is trading at $360 today but it is still worth taking your position. The stock has a long way to go from here and it is one of the leading retirement investments. 

Pepsi (PEP)

Logotype of PepsiCo (PEP) against the blue sky
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A personal favorite, PepsiCo (NASDAQ:PEP) is a dividend aristocrat with a strong global presence. Known for delicious snacks and beverages, Pepsi has been around for many years and has become a household name today. It has raised its dividend for the last 50 years and enjoys a dividend yield of 2.84%. It fairs much better than many of its competitors.

The company reported strong financial numbers and has shown that it is resilient even in times of inflation. There are many reasons why Pepsi is one of the must-own stocks for retirees. 

The current quarterly dividend payout is $1.27 and it can increase the dividends in the coming years. Having delivered blockbuster growth, the company raised its outlook for the year and now expects to generate 10% organic growth, up from 8% in the previous quarter. Its profit is increasing too and it has a growth profile that makes it an excellent retirement stock to own. It is steadily growing its market share and could generate good passive income for investors. 

Alphabet (GOOG) (GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on a smartphone
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There are multiple reasons to own Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) in your retirement portfolio. The company has had an impressive run this year and reported better-than-expected financial results. It did see a drop in advertising revenue but considering its hold in the market, it wouldn’t take long for the company to see a rebound in the ad revenue.

That said, there is also significant revenue from cloud computing. It is one of the largest cloud infrastructure providers in the world, but still has the potential to increase its market share. Google Cloud is the fastest-growing segment of the company and it showed a 31% YOY growth. If the company can manage to increase its cloud share in the market, we will see even better revenue numbers.

However, one thing is certain, it is hard to imagine life without Google and it is here to stay for many years to come. GOOG stock is trading at $136 and looks undervalued to me. The strong financials and a solid brand name make it a stock to buy and hold forever. 

On the date of publication, Vandita Jadeja 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/2023/09/7-retirement-stocks-that-every-long-term-investor-should-own-now/.

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