Investing for retirement can be one of the most essential steps to securing a future of overall financial stability. Nowadays, many investors need to start preparing a nest egg at a young age despite the idea of retirement seeming unnecessary.
This preplanned and deliberate course of action proves the easiest route to financial freedom at an older age. And, the stock market can be a great facilitator of that goal.
Therefore, let’s examine three stocks that interest investors. They are long-term investment options that could greatly benefit any portfolio.
Cardinal Health (CAH)
Cardinal Health (NYSE:CAH) is a large healthcare distribution company that supplies an international market with healthcare products and services. CAH primarily targets hospitals, surgery centers, laboratories and physician facilities.
Over the past year, its share price has increased by approximately 25%, primarily due to its solid business model and a spike in demand for its generic drug products.
On Feb. 2, Cardinal Health released its earnings for Q2 of 2024, stating that total revenue increased by 12% year-over-year (YOY). A net loss of $130 million was reported for Q2 of 2023, but in Q2 of 2024, it grew to a net income of $354 million. Also, the company raised the guidance for the remainder of the fiscal year 2024. Cardinal Health anticipates earnings per share will be $7.20 to $7.35, compared to previous projection of $6.75 to $7.00.
In addition, CAH offers investors a sturdy dividend yield of 1.94% on an annual basis, increasing every year for nearly three decades. Its last quarterly payout to shareholders was 50 cents per share, which was distributed on Apr. 15.
Thus, Cardinal Health proves a healthy option to add to a retirement portfolio. Over the past five years, its share price has more than doubled. Clearly, it’s a decent income-generating company, providing investors with reliable returns due to its firm business model.
Toyota Motor (TM)
Toyota Motor (NYSE:TM) manufactures a range of vehicles that include trucks, vans, sedans, SUVs, electric vehicles (EVs) and luxury models.
On Feb. 6, Toyota Motor released its Q3 earnings for 2024, stating that total revenue increased by 23% and net income nearly doubled YOY. Also, TM raised its total sales expectations of approximately $294 billion from its previous estimate of $290 billion.
Recently, Toyota Motor announced its sales numbers for March, stating that sales increased dramatically YOY by 22% to over 200,000 units. Most notably, EV sales skyrocketed for Toyota, which saw March sales increase by 61% to over 78,000 units. EVs made up slightly over one-third of the sales for March.
Toyota is a solid vehicle supplier whose price has increased by 66% over this past year and grown by 84% over the past five years. It is a great option for investors seeking exposure to the car manufacturing industry. Therefore, with strong growth projections and skyrocketing EV sales, Toyota is a long-term hold opportunity that investors should watch.
Manulife Financial (MFC)
Manulife Financial (NYSE:MFC) is a provider of various financial products, including asset management, insurance, and annuities.
One of the major factors that draw investors to MFC is its strong dividend yield, which is approximately 4.73% on an annual basis. Its board of directors has raised it for ten consecutive years. And, the most recent quarterly distribution to investors occurred on Mar. 19.
Over the past year, its share price has increased by 18% and 27% over the last five years. Focusing on Manulife Financial as a long-term investment option would be more of an income generation opportunity, with expected share price appreciation to be secondary.
On Feb. 14, Manulife reported its earnings for Q4 of 2023, in which it stated that total revenue grew by 15% and net income rose by 85% YOY.
Manulife Financial stands as a solid opportunity, especially for a retirement account. It offers a sturdy and consistent dividend yield for investors who are seeking long-term income generation. With its promising business model of wealth management and similar services, MFC is a great addition to any investment portfolio.
As of this writing, Noah Bolton did held a LONG position in TM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
