Investing in retirement is different. Once out of the workforce and living on a fixed income, investors need to become more defensive to protect their nest egg. Taking positions in high-flying growth stocks and riding out periods of volatility is no longer the smart play. Once retired, investors need to strike a balance between growth and value stocks. Dividend payments that provide a consistent source of income or capital that can be reinvested are also important.
Oftentimes, the best retirement stocks are blue-chip names that offer a combination of safety, growth and income. While not the most exciting securities to own, these retirement stocks help investors ride out market instability and ensure their finances are secure. Fortunately, several leading blue-chip stocks would be great retirement investments and are available to buy on a dip right now.
Here are three retirement stocks to buy at a 52-week low.
McDonald’s (MCD)
Shares of McDonald’s (NYSE:MCD) are down nearly 10% this year and down 6% over the past 12 months. Not far from its 52-week low, now would be a good time for long-term investors to pick up shares of the Golden Arches. The blue-chip stock has consistently been one of the best retirement stocks that investors can own. Moreover, a reason to buy McDonald’s stock comes from its dividend.
Last autumn, McDonald’s raised its dividend payment by 10%. The company now pays stockholders a dividend of $1.67 per share each quarter. McDonald’s stock has a dividend yield of 2.45% based on the current share price. Over 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 in 1976 and has increased it every year since.
The company has struggled over the past year with inflation and higher menu prices that have driven some customers away. But long term the company will be fine. It recently announced the return of its $5 value meals.
Nike (NKE)
Sneaker and athletic apparel giant Nike (NYSE:NKE) continues to struggle. Down nearly 15% on the year, NKE stock is hovering right around its 52-week low and is currently one of the worst performers in the blue-chip Dow Jones Industrial Average. Patient long-term investors might want to buy the dip. Like McDonald’s, Nike continues to dominate the sector in which it operates, commanding more than 30% of the global market for athletic footwear and clothing, more than any other company.
Also like the Golden Arches, Nike pays a decent dividend to its stockholders. The company currently pays 37 cents a share each quarter, giving the stock a yield of 1.61%. Not the biggest dividend around, but consistent and sustainable. The company has paid a dividend since 1985 and increased it in each of the past 15 years. Though Nike has been struggling lately with rising competition and a sales slowdown in China, it remains dominant due in large part to its endorsements of star athletes.
Most recently, Nike announced that it is signing WNBA basketball star Caitlin Clark to a $28 million endorsement deal.
Intel (INTC)
Patient investors might want to bottom fish the stock of microchip and semiconductor company Intel (NASDAQ:INTC). Down 33% so far this year, INTC stock is currently the worst-performing stock in both the Dow 30 and the benchmark S&P 500 index. That’s because the company continues to struggle with its efforts to expand its microchip manufacturing for its customers.
While things look bleak right now, there are some reasons for retirement-oriented investors to consider a long-term investment in INTC stock. The company pays a quarterly dividend of 13 cents a share, giving its stock a yield of 1.57%, which is in line with other tech stocks. The current valuation also looks attractive, with Intel’s stock trading close to a 52-week low. Furthermore, the company recently received $8.5 billion from the U.S. government to help with its pivot to becoming a foundry.
It will take time, but if the goal is to buy low and eventually sell high, then INTC stock looks interesting at current levels.
On the date of publication, Joel Baglole 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.
