3 Stocks for Upcoming Retirement

Brit Ryle

Posted May 25, 2022

3 Stocks for an Upcoming Retirement

Do you have plans to retire soon?

If so, you might be reconsidering those plans given the recent – and seemingly constant – market volatility and inflation.

And that would be a fair consideration.

After all, you have probably spent your career saving money so you can live comfortably throughout retirement.

Retirement is a big step, and it's something that you have been planning for quite some time and don’t want to push back the start of any further.

You are most likely relying on your investments to keep you financially stable as you begin to shift from being in the workforce to your retirement.

And with the current market volatility and reports of even higher inflation, you could be resistant to that shift.

But I would posit that market performance alone should not be the only deciding factor as to when you begin your retirement.

So, if you’re on the cusp of retirement, you’ll want to position your investments to preserve their balance by holding some less risky stocks, ones that can offer low risk and can weather the volatility.

Here are three stocks that could be beneficial to your retirement portfolio and that you may want to consider…

  1. McDonald’s Corporation (NYSE: MCD) is a restaurant chain that has essentially been the pioneer of the fast-food industry. It has been around since the 1950s and has remained resilient for more than seven decades. Without a doubt, the company has seen good and bad markets but has managed to come out alive. McDonald’s has more than 38,000 locations worldwide. It has a franchise model, which means that it has been able to make its money from rent and sales royalties while its franchisees pay for the maintenance and store operations. Over the last 46 years, McDonald's has been able to pay and raise a dividend to its shareholders. McDonald’s investors have received a 2.2% dividend yield. And over the past decade, the company has managed to grow its earnings per share by close to 7% on average each year.

  2. Procter & Gamble (NYSE: PG) is involved in some of the household staples that you most likely buy each month like soaps, lotions, and laundry detergents — the company sells thousands of products under hundreds of brand names such as Crest, Tide, Pampers, Gillette. All items that a household might need to get by. The company has been in existence since the 1800s. The brand is beloved and consumers tend to buy its products for brand awareness and reliability. Consumers would budget for these types of products that PG sells because these products are crucial to a person’s everyday life of cleanliness or hygiene.

  3. Coca-Cola (NYSE: KO) has been part of the NYSE since 1919. It’s an American beverage producer known for its legendary beverage that was invented in 1886. Just like McDonald’s, Coca-Cola has been able to withstand the ups and downs of the stock market. KO has paid out a dividend to its shareholders for about 60 years, and when choosing to invest in a dividend stock you’d want to invest in a company that will continue to pay out a dividend and grow that dividend. Coca-Cola has been a reliable blue-chip stock and has rewarded its shareholders over the years and could be a good fit for your retirement portfolio. Recently, Coke’s dividend yield is 2.7%, which equals about $0.44 per share each quarter. KO has to stay profitable and has been able to deliver strong financial results even during market turbulence — its recent revenue was at $10.5 billion. 

These are examples of the types of stocks that you may want to include in your retirement portfolio. They may reduce the stress that market volatility and the effects of inflation could have on your retirement.

Remember… there will always be good years in the market… and bad years in the market. 

That is just reality.

Don’t stress over the market forces you can’t control.

Just make sure you manage the parts of your portfolio that you can.

Stay calm and enjoy your retirement.

Until next time,

Brit Ryle

Pro Trader Today