If you stop to think about it, your investments in your retirement "golden years" really have to be like your automobile: it must be dependable, reliable and not leave you stranded on the side of the road with the helpless feeling that the rest of the world is passing by you.
A team of Motley Fool
contributors have suggested stocks they think are a solid investing choice for a savvy retiree right now.
- Philip Morris International (NYSE:PM). "A dividend yield of more than 4% provides valuable income for those looking to cover their living expenses from their investments, and over time, Philip Morris has given shareholders regular boosts in the payouts they receive," the Fool reported. "The stock has performed well even through tough economic times in many overseas markets, speaking to the loyalty Marlboro customers have for the brand."
- Enterprise Products Partners (NYSE:EPD) has a distribution yield of 6.4%. "The first thing to understand about Enterprise is that unlike so many other companies in the oil and gas industry, its pipeline & processing business is mostly insulated from the ups and downs of commodity prices," the Fool reported.
- Texas Roadhouse (NASDAQ:TXRH). Last quarter, revenue was up 12%, net income jumped 24%, restaurant margins were up 112 basis points, and same-store sales grew 4.5% at company-owned stores. "Amazingly, that was the 24th quarter in a row that comps increased, which is a testament to just how well-run this company is," the Fool reported.
- BlackRock Enhanced Capital and Income (NYSE:CII) is an indexed ETF with a twist: It boosts the yield by using a strategy of selling call options on equity indexes. "The fund primarily sells calls against the S&P 500, but those premiums that it brings it substantially increase its distribution yield, which is currently sitting at an impressive 8.9%," the Fool reported.
- CVS Health (NYSE:CVS) will retain close to 60% pharmacy/drugstore market share in the U.S., and it could gain even more if Walgreens Boots Alliance struggles to put Rite Aid's somewhat unpopular brand in the rearview mirror. "CVS Health is also a play on two major demographic shifts: the retirement of baby boomers and an increasing life expectancy," the Fool reported.
Meanwhile, Seeking Alpha
also has spotlighted what they classify as the three biggest threats to your retirement — and none of them involve finding the next big stock.
SA's Mark Morelli warns of this deadly trio:
- Spend within your means and plan for inflation to ravage your investments.
- Invest in dividend growth stocks to ensure a steady and increased stream of income over time.
- Diversify so that market crashes do not destroy your portfolio.
"Most of the risks can be appropriately mitigated with a few tweaks leading up to, and early in, the golden years."
(Newsmax wire services contributed to this report).
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