Retirement stocks are something every investor should consider, and when deciding which retirement stocks to buy, you can’t go wrong by choosing Dividend Kings. S&P 500 Index constituent stocks that have increased their dividends for the past 25 consecutive years.
Dividend growth stocks 11.7% compound annual return From 1986 to 2016, dividend stocks yielded 9.9% compared to 9.9%. This outperformance is even greater during times of market volatility because dividend stocks are more resilient. This is great because the market is not yet in full recovery mode. With inflation continuing, there has only been one rate cut this year, which further illustrates our position.
But recent evidence supports the better performance of dividend stocks: Over the past decade, dividend stocks have outperformed bonds in absolute terms. iShares Select Dividend ETF (Nasdaq:Devi) It has earned an annual return of 8.66%.That compares with 1.5% for the aggregate bond index.
Additionally, a small number of well-performing large-cap stocks, driven by industries such as technology, have been significant contributors to the overall market. NVIDIA (Nasdaq:NVDA) Pass by Microsoft (Nasdaq:MSFTThanks to the AI boom, Amazon has become the most valuable company in the world.
Dividend companies, especially those in the value range, offer compelling prospects for investors as the earnings growth gap between these leaders and the rest of the market narrows. More importantly, they also offer a valuation advantage when researching retirement stocks.
AbbVie (ABBV)
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Dividend Kings AbbVie (New York Stock Exchange:ABV) has grown its dividend for the past 52 years, making it one of the best healthcare retirement investments. Its 3.53% dividend is well above the healthcare industry average of 1.5%, even after losing the patent for Humira.
Humira and its acquisition of Botox maker Allergan are AbbVie’s best-known products. Humira lost its U.S. exclusivity last year, but AbbVie It’s making up for lost revenue. Skyrizi and Rinvoq have been added.
In addition, AbbVie Phase 3 trials have begun For the multiple myeloma drug ABBV-383. This experimental drug targets BCMA, which is found in the plasma cells of multiple myeloma.
moreover, Pursuant to a worldwide license agreement AbbVie is collaborating with FutureGen Biopharmaceutical to develop FG-M701, a next-generation TL1A antibody for inflammatory bowel disease. The collaboration highlights AbbVie’s development of immunology and autoimmune therapies.
In some cancer treatments, Elahele Fully FDA approvedEpkinly was granted priority review for relapsed/refractory follicular lymphoma. The SELECT-GCA trial and the LEVEL UP trial comparing RINVOQ to Dupixent showed favorable results for RINVOQ in the treatment of atopic dermatitis.
On the financial side, citing business progress, the company raised its 2024 adjusted diluted EPS guidance to $11.13-$11.33 from $10.97-$11.17. AbbVie continues its tradition of shareholder value by paying a cash dividend of $1.55 per share, up 285% since 2013, making it a top choice among retirement stocks.
Johnson & Johnson (JNJ)
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Stock investment after retirement is generally Johnson & Johnson (New York Stock Exchange:J.N.J.(Note: Older adults looking for a steady income might consider the company’s pharmaceuticals, medical devices and consumer health products businesses, especially after its shares fell more than 8% since the start of the year after reporting mixed quarterly results and narrowing full-year forecasts.
But analysts expect JNJ to bounce back. Most of them rate the company a “moderate buy” with a 12-month price target of $176. They see a 20% upside potential thanks to strategic acquisitions such as Ambrx Biopharma and Shockwave Medical.
Johnson & Johnson Acquires Clinical-Stage Biopharmaceutical Company Ambrex Biopharma. Acquisition strengthens J&J’s oncology pipelineIncludes ADC studies in metastatic castration-resistant prostate cancer.
J&J The Leader in Intravascular Lithotripsy Shockwave Medical A drug for the treatment of complex calcific artery disease. The deal could boost revenues for J&J, as the company is based in a high-growth country where demand is unmet.
Financially, Johnson & Johnson First Quarter Earnings Increased 2.3% to $21.4 billion. Improved MedTech and Innovative Medicine drove the increase. The company also announced regulatory approvals for TECVAYL, RYBREVANT, and DARZALEX.
Essential Utilities (WTRG)
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Essential Utilities (New York Stock Exchange:W.T.R.G.) is down about 7% over the past year, with its latest quarterly earnings report causing some dampening sentiment. WTRG beat analysts’ expectations of $0.77 and posted EPS of $0.97. Quarterly revenue of $612.07 million missed the $750.08 million estimate. Regulated Natural Gas’s operating profit missed estimates due to higher than average temperatures.
Mainly in managed waters, The company intends to invest Infrastructure investment will be $1.3-1.4 billion in 2024 and $7.2 billion by 2028.
The company has paid quarterly dividends for 79 years, but in 32 of those years Payments have been increased 33 timesIn June, WTRG declared a quarterly cash dividend of $0.3071, a 7% increase from the prior year.
Essential Utilities is expanding by acquiring other businesses. WTRG has signed contracts for six new sewer systems in Pennsylvania and Illinois, serving more than 215,000 people. WTRG is also Delcora It bought the Philadelphia Sewerage Authority, which serves 198,000 people, for $276.5 million, and is looking to acquire more companies that could bring it to 400,000 more people.
Finally, Essential Utilities Aiming to reduce Scope 1 and 2 greenhouse gas emissions The goal of a 60% reduction by 2035 is important as ESG investing grows, and the company wants to ensure its water meets the latest EPA contaminant requirements to attract people looking for sustainable retirement equity.
As of the publication date of this article, Faizan Farook did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com’s copyright. Publication Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
