Retirement may feel far away, but the steps you take today will impact what your life looks like when that time arrives. Accumulating retirement stocks can put you in a better position in your later years and give you extra income. Investing allows your money to work hard for you instead of sitting in the bank and not keeping up with inflation.
Some retirement stocks provide steady dividends while others are likely to give out dividends in the future. The best retirement stocks have rising revenue and profits, along with long-term catalysts.
The great thing about most retirement stocks is that you don’t have to spend as much time monitoring them. These corporations have become household names and have a history of delivering long-term returns. They have loyal customer bases that can benefit investors.
Wondering which retirement stocks may be a good fit for your portfolio? These are some of the top picks to consider.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has a strong lead in multiple industries. Amazon’s online marketplace reinvented commerce and forced competitors to offer free two-day shipping for their members. Amazon makes millions of products readily available, but that’s not the company’s only strength.
The tech giant is the leading cloud computing provider with almost one-third of the entire market. The cloud business, Amazon Web Services grew by 17% YOY in the first quarter, while overall sales jumped by 13% YOY. While double-digit growth rates are impressive, the company’s advertising segment is attracting more attention from investors.
Amazon ad revenue came to $11.8 billion in the quarter which was up by 24% YOY. There isn’t much competition in the ad industry besides the well-known duopoly. However, Amazon’s continued ad growth and platforms can help it gain market share from its fellow tech giants. Wall Street analysts are optimistic about the stock and believe that it has more room to run. The average price target suggests a potential 23% upside.
Chipotle (CMG)
Chipotle (NYSE:CMG) is one of the healthiest fast-food restaurants in the industry. The focus on health has helped Chipotle keep its elevated prices while competitors with less healthy food options have been forced to offer affordable choices and minimize the price hikes.
Shares have more than tripled over the past five years and are up by 11% year-to-date. The restaurant chain attracted plenty of buzz leading up to its 50-for-1 stock split but is now in a deep correction. The lower price presents a long-term buying opportunity for patient investors.
Chipotle’s second-quarter results suggest there’s still plenty of upside for the stock. Revenue increased by 18.2% YOY to reach $3.0 billion. The company also opened 52 new restaurants in the quarter and reported a 33% YOY growth in net income. Chipotle’s net profit margin came to 15.3%. The restaurant giant remains on target to open 285 to 315 restaurants this year.
Garmin (GRMN)
Garmin (NYSE:GRMN) presents growth at a reasonable price, trading at a 25 P/E ratio and offering a 1.69% yield. Shares have more than doubled over the past five years and are off to a 41% year-to-date gain.
The company operates in five industries: fitness, outdoor, aviation, marine, and automotive OEM. All of those segments improved YOY in the first quarter, but the Fitness segment is the most impactful. Many athletes use Garmin watches to gain more data on every workout. You can see it in the results. Garmin reported 40% YOY revenue growth for its Fitness segment. It’s the second-largest category and makes up roughly a quarter of the company’s total sales.
The Auto OEM segment grew at a robust 58% YOY to reach $129 million in revenue. It’s the smallest segment of Garmin’s business, but a rising growth rate can make it more impactful in future earnings results.
On this date of publication, Marc Guberti held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
