Retirement Stocks To Buy ((FREE))
Retirees, lacking a paycheck from a job, must find a different way to generate sufficient income to make ends meet while also ensuring they do not outlast their income stream. Thus, the best retirement stocks to buy in 2022 to meet those goals are ones that pay dividends.
retirement stocks to buy
Even better? Many dividend-paying stocks raise their payouts annually, shielding dividends' purchasing power in the face of today's inflationary headwinds. Higher dividends often signal growth in a firm's earnings power too, providing the fuel for long-term price appreciation.
On that note, here are the 22 best retirement stocks to buy in 2022. The 22 stocks featured on this list look to have secure dividends based on their solid balance sheets and ability to generate cash, yield between 3% and 7%, and have strong potential to keep raising their payouts in the long term.
As is the case with many consumer staples stocks, most of the categories Flowers competes in are very mature and enjoy predictable demand trends. With excellent cash flow generation in all manner of economic environments, Flowers has managed to raise its dividend each year since initiating its payout in 2002.
With an investment-grade credit rating, a reasonable payout ratio near 70%, and the No. 1 brands in faster-growing organic and gluten-free bread categories, Flowers should remain one of the best retirement stocks for 2022.
(And for those worried about a worst-case scenario for the market this year, FLO is also a solid pick for investors thinking about preparing their retirement portfolios for a recession (opens in new tab), as discussed by Simply Safe Dividends.)
Despite the company's ongoing evolution, its dividend has always remained an important fixture, and that's what makes it one of the top retirement stocks today. In fact, GIS has paid uninterrupted dividends every year since 1898.
With diapers, wipes, paper towels and toilet paper remaining in demand even during economic downturns, Kimberly-Clark has historically delivered predictable results in many different environments, making it one of the best retirement stocks on the rmarket today.
KMB will never be the fastest-growing business, as demand for many of its products tracks global population growth. But the stock can serve as a defensive holding for a conservative retirement portfolio.
Overall, Old Republic remains one of the best retirement stocks as we head into 2022 because its conservative financial practices and disciplined underwriting should keep its regular dividend safe and growing despite the industry's cyclical nature.
While banks and other financial stocks are usually cyclical plays, WASH is among the few that look like dependable retirement stocks, earning it a spot in Simply Safe Dividends' top 20 high-dividend stocks list (opens in new tab). The firm should have upside should the economic recovery continue, too.
The defensive nature of regulated utilities and their large dividends often make them popular holdings in conservative retirement portfolios. These qualities have also resulted in many utilities being featured in the most recession-proof stocks analyzed by Simply Safe Dividends.
Looking ahead, Physicians Realty appears poised to continue delivering reliable dividends as it has since making its first payout in 2013. While dividend growth has been lackluster over this period, a high nominal yield still puts DOC among the best retirement stocks for those focused on income.
Business development companies (BDCs) are one of the best areas to find high-yielding stocks according to Simply Safe Dividends. Main Street Capital (MAIN (opens in new tab), $43.85) is no exception, with a dividend yield near 6%.
That said, companies in this industry are riskier investments during economic downturns, which Simply Safe Dividends explained in its guide to investing in business development companies. However, MAIN remains one of the best retirement stocks for 2022 given the firm's relatively conservative style and solid track record of managing risk.
As the bear market continues, the opportunity remains to load up on the best retirement stocks at favorable prices. Macro uncertainties may be putting pressure on these names in the near-term, but over a long timeframe, these types of stocks can generate strong returns.
BCB Bancorp (NASDAQ:BCBP) is a regional bank, with branches across New Jersey as well as in New York. Admittedly, regional banks are a dime a dozen in the public markets, but this is one of the best retirement stocks for a reason.
A distributor of specialty chemicals for water treatment, food products and industrial end-users, Hawkins Inc. (NASDAQ:HWKN) is hardly a household name. HWKN should, however, be considered one of the best retirement stocks out there.
Loan charge-offs resulted in a surprise earnings miss, causing this bank stock to plunge from around $85 per share to around $70 per share. With this in mind, I still consider SFBS stock (which earns an A in Portfolio Grader) a great retirement stock.
Profitability improvements in recent years have enabled Veritiv to pay down debt. Now with low-leverage, management can now return much of this cash to shareholders via share buybacks. A stable business at a dirt cheap price, VRTV stock (earning an A in Portfolio Grader) is one of the best retirement stocks.
In this article, we discuss 30 best stocks to buy for retirement. You can skip our detailed and historical performance of dividend stocks, and go directly to read 10 Best Stocks to Buy for Retirement.
Retirees around the world search for ways to increase their earnings through investments as inflation notched its highest mark in nearly 40 years. In this regard, the Social Security Administration provided relief to retirees with the announcement of increasing benefits by 8.7% this year to weather this inflationary environment, as reported by Bloomberg. Through this increase, the average retiree benefit has grown to $1,827 per month, up $146 from the last year. However, with average annual household expenses for ages 65-74 of approximately $53,000, these social security benefits are not sufficient to cover living expenses smoothly. For this purpose, retiree investors are showing a renewed interest in the stock market, loading up steadily on dividend stocks.
Stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ) are popular among retiree investors as these companies have solid free cash flow generation and hold long dividend growth track records. Further in this article, we will discuss other best stocks to buy for retirement.
For this article, we first used stock screeners to find dividend stocks with a 3-year average dividend growth rate above 10% and payout ratios below 70%. From the resultant list, we picked stocks that have dividend yields above 3%, as of February 9. Along with this, the hedge fund sentiment was measured using data from 920 hedge funds tracked by Insider Monkey in Q3 2022. The stocks are ranked in ascending order of their dividend yields, as of February 9.
Jefferies Financial Group Inc. (NYSE:JEF) is a New York-based multinational independent investment bank that provides related financial services to its consumers. The company currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 3.07%, as of February 9. In the past 3 years, it has raised its payouts at an annual average rate of 33.8%, which makes it one of the best dividend stocks on our list. The company also has a solid payout ratio of 39.2%.
In addition to popular dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ), investors are also positive about Jefferies Financial Group Inc. (NYSE:JEF).
Virtus Investment Partners, Inc. (NASDAQ:VRTS) is an American asset management company that provides related solutions to individual and institutional investors. On December 8, the company declared a quarterly dividend of $1.65 per share, which fell in line with its previous dividend. It has been raising its dividends consistently for the past five years and its 3-year average dividend growth stands at 37.1%. The company is one of the best stocks for retirement on our list as its dividend payout ratio is 39.6%.
On February 8, Corning Incorporated (NYSE:GLW) declared a 3.7% hike in its quarterly dividend to $0.28 per share. The company has been raising its dividends consistently for over 10 years. The stock's dividend yield on February 9 came in at 3.09%. In the past three years, the company has raised its dividend at an annual average rate of 10.5%. It has a healthy payout ratio of 70.1%, which places it as one of the best stocks for retirement on our list.
On December 8, Broadcom Inc. (NASDAQ:AVGO) declared a 12.2% hike in its quarterly dividend to $4.60 per share. This was the company's 12th consecutive year of dividend growth, which makes it one of the best stocks for retirement. In the past three years, the company has raised its payout at an annual average rate of 14.7% and has a payout ratio of 61.9%. As of February 9, the stock has a dividend yield of 3.10%.
Morgan Stanley (NYSE:MS), one of the best stocks for retirement on our list, is a New York-based multinational financial services company that provides related services to its consumers. Following the company's recent quarterly earnings, Deutsche Bank raised its price target on the stock to $102 with an Outperform rating on the shares.
Darden Restaurants, Inc. (NYSE:DRI), one of the best stocks for retirement, currently offers a quarterly dividend of $1.21 per share and has a dividend yield of 3.28%, as recorded on February 9. In the past three years, the company raised its payouts at an annual average rate of 11.7% and has a payout ratio of 63.7%.
Watsco, Inc. (NYSE:WSO) is one of America's largest distributors of air conditioning, heating, and refrigeration equipment. The company is one of the best stocks for retirement on our list as it has paid dividends to shareholders for 48 years in a row. It offers a per-share dividend of $2.45 every quarter, raising it by 11% on January 3. The stock's dividend yield on February 9 came in at 3.32%. It has raised its payouts at an annual average rate of 10.14% in the past three years and has a payout ratio of 59.7%. 041b061a72