The 3 Best Retirement Stocks to Buy Now: September 2023


  • Diversification before and during retirement is critical, and investors should expand their search across multiple sectors.
  • Caterpillar (CAT): The construction giant marked 2023 with healthy earnings, and its automation tools make it a compelling pick for AI-based retirement investing.
  • West Pharmaceutical Services (WST): This pharmaceutical packaging company is bullish on its future, and investors can diversify beyond basic biotech with this retirement stock.
  • Emerson Electric (EMR): Manufacturing and engineering solutions remain in demand, and this company is well-positioned for continued sustainable growth.
Best Retirement Stocks - The 3 Best Retirement Stocks to Buy Now: September 2023

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Building a well-rounded portfolio is crucial as you plan for financial stability in your retirement. Diversification is critical, ensuring your investments are spread across various sectors and asset types.  This has led to the rise of the best retirement stocks to buy.

Many retirement investors focus on dividend yield, as predictable income through retirement is vital to cash flow projections. But, while dividends can play a significant role in wealth growth, pay attention to the importance of solid fundamentals and growth prospects in the stocks you choose. 

These three retirement stocks meet the mark, offering sector diversification and continued financial stability – with decent dividend yield to boot. 

Caterpillar (CAT)

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Caterpillar (NYSE:CAT) manufactures construction, mining, and other engineering equipment. With a dividend yield of 2.12% and an impressive track record of consistently raising dividends for 31 years, this stock has been a favorite among long-term and retirement investors.

 The stock is up 20% since January, beating earnings and revenue estimates in Q2. Caterpillar reported a 22% increase in revenues, which reached $17.3 billion. Earnings per share came in at $5.67, or $5.55 on an adjusted basis.

 Caterpillar’s position as the largest global construction and mining equipment manufacturer makes it a crucial barometer for the global economy’s health. More important for future prospects, though, is Caterpillar’s commitment to AI and automation. 13% of construction professionals use automation tools today, but 60% expect to do so in the future. 

Caterpillar is on the cutting edge of the industry with a suite of automated construction equipment, including self-digging solar ditch machines. Adaptability to emerging trends is key, and Caterpillar proves it has the foresight to capitalize on new tech and expand its market share.  This helps make it one of those best retirement stocks.

Investors looking for a blend of capital appreciation and steady income should consider Caterpillar a strategic addition to their portfolios, benefiting from its cyclical upswings and consistent dividend growth.

West Pharmaceutical Services (WST)

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West Pharmaceutical Services (NYSE:WST) specializes in designing and manufacturing injectable pharmaceutical packaging and delivery systems. The company offers a wide range of in-demand, essential products, including syringes, auto-injectors, and self-injection platforms.

Despite its modest 0.20% dividend yield, WST demonstrates impressive stock performance and returned a healthy 74% since January.

In its most recent earnings report, West Pharmaceutical Services exceeded analyst expectations. While net sales of $753.8 million showed a modest decline of 2.3%, organic net sales also decreased by 2.5%. Reported-diluted EPS came in at $2.06, down from $2.48 in the same period the previous year, but adjusted-diluted EPS amounted to $2.11, compared to $2.47 a year ago.

Despite these fluctuations, the company is optimistic about its future performance. West Pharmaceutical Services raised its full-year 2023 net sales guidance to $2.995 billion. That’s up a hair from the previous high of $2.990 billion. Additionally, the company revised its full-year 2023 adjusted-diluted EPS guidance to a new range of $7.65 to $7.80. The revision marks an improvement from the earlier range of $7.50 to $7.65. All in all, it’s one of those best retirement stocks to consider.

Investors seeking long-term growth for their retirement portfolio in the diversified pharmaceuticals packaging industry may find West Pharmaceutical Services an intriguing choice. Its long-term sustainability and in-demand products mean its future is assured, alongside management’s optimistic outlook.

Emerson Electric (EMR)

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Emerson Electric (NYSE:EMR) is a diversified company that manufactures products and offers engineering services across industrial, commercial, and consumer markets. While its stock has remained relatively flat this year, EMR is an attractive choice for income-focused investors. Today, the company offers a 2.3% dividend yield. But, more importantly to those focused on sustainable dividends, EMR raised its dividend for 66 consecutive years.

In its most recent earnings report, Emerson Electric beat analyst estimates by reporting quarterly earnings of $1.29 per share, lower than the previous year’s $1.38 per share. However, revenue figures came in at $3.95 billion, surpassing expectations. The company’s performance was affected by ongoing supply chain disruptions, a challenge faced by many players in the industry.

Due to their crucial role in supporting infrastructure, industrial stocks are known for their dependability. As a prominent player in global industrial automation, Emerson Electric plays a vital role in shaping the future of industrial processes and technologies.

Emerson offers stability through its consistent dividend history and is pivotal in the industrial automation sector. Tools within the sector remain essential for global infrastructure development. Emerson faces short-term challenges related to supply chain disruptions. Still, its strong track record and innovation make it a compelling option for investors adding industrials to their retirement portfolio.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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