The Social Security cost of living adjustment (COLA), which is tied to the rate of inflation, was a whopping 8.7% this year. It is expected to be around 3.2% for 2024. That’s a big increase for retirees living on a fixed income. While the Social Security increase can be used to help with everyday living expenses such as groceries, gasoline and mortgage payments, it can also be used to invest. Specifically, retirees can use any surplus funds from their higher Social Security payouts to buy stocks. Now is an opportune time to put your money to work in the market after stocks declined throughout August and September. The share prices of many blue-chip companies are now trading at affordable prices and attractive valuations. Investors can buy these stocks low and sell them high when the share price eventually rises. Here are seven stocks to buy with your 2024 Social Security increase.

McDonald’s (MCD)

McDonald’s Corp. (NYSE:MCD) just announced that it’s raising its quarterly dividend payment by 10%. As of December 15 this year, stockholders will receive a quarterly dividend payment of $1.67 per share. This is up 9.9% from $1.52 previously. The higher payment gives MCD stock a dividend yield of 2.66% based on the current share price. Throughout the last decade, the company has more than doubled its annual dividend payment to $6.68 a share from $3.08.

McDonald’s paid its first dividend to shareholders in 1976 and has increased its payout every year since. The company is known as a “dividend aristocrat.” This refers to any company that has raised its dividend payout for 25 consecutive years or longer. The increased dividend payment coincides with a pullback in MCD stock on concerns that new weight-loss drugs will hurt sales. However, most analysts say those concerns are overblown. Year to date, McDonald’s stock is down 6%. Buy the dip!

Walgreens Boots Alliance (WBA)

Speaking of dividends, did you know that retail pharmaceutical chain Walgreens Boots Alliance (NYSE:WBA) pays a quarterly dividend that yields 8.51%? The dividend payment of 48 cents per share each quarter gives Walgreens one of the highest dividend yields among companies listed on the Standards and Practices (S&P) 500 index. The dividend is high largely to make-up for the poor performance of WBA stock, which is down 40% this year. However, hope arrives at Walgreens with the appointment of veteran healthcare executive Tim Wentworth as the new CEO.

Wentworth is the former CEO of the largest United States pharmacy benefits management company, Express Scripts. He retired in 2021 but is coming out of retirement to lead Walgreens. Wentworth is taking the helm at a time when Walgreens faces numerous challenges, notably trying to pivot to become a provider of healthcare services as well as a retail pharmacy. Walgreens has taken a majority stake in primary care provider VillageMD. Walgreens acquired specialty pharmacy provider Shields Health as well as homecare provider CareCentrix.

Integrating these businesses has negatively impacted Walgreens’ earnings. The company has also seen its revenue decline due to a fall in demand for Covid-19 vaccines and tests. Walgreens’ board of directors said that they wanted to hire an executive with extensive healthcare experience who could bring the company’s new services together under one roof. Time will tell if Wentworth is successful. In the meantime, there is that high-yielding dividend for investors to take advantage of with their Social Security increase.

Birkenstock (BIRK)

It’s early days in the publicly traded life of German shoemaker Birkenstock (NYSE:BIRK). The company just raised about $1.5 billion from its initial public offering (IPO) on the New York Stock Exchange. This is giving the company a market value of more than $8 billion. While the IPO didn’t go exactly as hoped, there is reason to remain bullish on BIRK stock throughout the long-term. Shares began trading at $41, which was below the IPO price of $46.

Birkenstock is much more mature and seasoned that most start-up companies that hold IPOs. This is a company that has been making its popular line of sandals and other footwear since before the Declaration of Independence was adopted by the Continental Congress in 1776. The company is also profitable, unlike most companies that come to market. Net profits at Birkenstock have risen by $91 million throughout the last two fiscal years. Revenues grew from $770.9 million in fiscal 2020 to $1.3 billion in fiscal 2022.

Throughout the long haul, BIRK stock should be a solid addition to a portfolio.

Stellantis (STLA)

Stellantis (NYSE:STLA), the parent company of Chrysler, is one of the few automotive stocks that is actually up on the year. Since January, STLA stock has gained nearly 40%. What’s especially impressive is that the company’s stock has risen 8% throughout the last month even as it has become embroiled in a prolonged strike at its U.S. facilities by the United Auto Workers (UAW) union that represents 43,000 Stellantis workers. Shares of General Motors (NYSE:GM) have declined 5% since the targeted strikes by the UAW began in September.

Keeping STLA stock aloft is the fact that most of the company’s sales come from Europe, where it makes popular nameplates such as Fiat and Alfa Romeo. The company also has a fair bit of its manufacturing outside the U.S., primarily in low cost centers across South America and the European Union. Having less exposure and dependence to the U.S. market is seen as a positive with UAW members continuing to walk picket lines at American manufacturing plants.

Eli Lilly (LLY)

Pharmaceutical company Eli Lilly’s (NYSE:LLY) stock has been skyrocketing lately on expectations that its weight-loss drug Mounjaro is about to get the greenlight from the U.S. Food and Drug Administration (FDA). So far in 2023, LLY stock has increased 65%, bringing its five-year gain to 445%. This as the company pulls out all the stops to hit the ground running once it gets FDA approval to begin selling Mounjaro like hot cakes. The company just appointed a new chief for its diabetes and weight-loss drug unit ahead of the regulatory decision.

Patrik Jonsson, President of Lilly USA, is taking on additional responsibilities for the company’s weight-loss medication sales starting on January 1, 2024. In his new role, Jonsson will oversee all of Eli Lilly’s obesity treatments, including Mounjaro and other prescription drug candidates such as the company’s weight-loss pill Orforglipron. Mounjaro, which is already approved to treat diabetes, had sales of $979.7 million last quarter. The market for obesity drugs has been forecast to reach $100 billion throughout the next decade.

Intel (INTC)

Intel’s (NASDAQ:INTC) stock is recovering after several difficult years. INTC stock is up 37% this year, including a 13% increase over the last six months. The stock is responding to improved financial results at Intel, as well as steps the company is taking to restructure its business. Recently, Intel announced plans to spinoff its programmable chip business and take it public through an IPO. In a news release, the company said that the spinoff will help it to “…focus on our core business and long-term strategy.”

Intel said the Programmable Solutions Group’s standalone operations will begin on January 1 of next year, and that it will begin reporting the business unit’s financials as a separate company when it reports its Q1 2024 financial results. The actual IPO should occur throughout the next two to three years, said Intel. Last year, Intel completed a successful IPO of its Mobileye Global (NASDAQ:MBLY) business unit that makes microchips for self-driving vehicles. These changes come as Intel pivots to become a microchip foundry rather than a chip designer.

INTC stock has risen 46% throughout the last 12 months.

Costco (COST)

Big box retailer Costco (NASDQ:COST) is always a reliable bet. The company just reported financial results that, once again, beat Wall Street expectations on both the top and bottom lines. Driven by strong grocery sales, Costco reported earnings per share (EPS) of $4.86 versus $4.79 that was forecast. Revenue in what was the company’s fiscal fourth quarter totaled $78.9 billion compared to $77.9 billion that was the consensus estimate among analysts.

The company said that the strong results were due to robust grocery sales. Traffic at Costco stores worldwide rose 5.2% and gained 5% within the U.S. on a year-over-year basis. The company added that it ended the quarter with 71 million paid household members, up nearly 8% from a year ago. That growth outpaced its rate of new store openings, which grew by 3%. Shareholders continue to hold out hope for a membership fee hike at Costco, which hasn’t raised any fees since 2017. However, analysts say it’s only a matter of time.

COST stock has gained 24% this year and is up 148% throughout the last five years.

On the date of publication, Joel Baglole held a long position in LLY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.