10 Great Retirement Stocks to Buy Today

Blain Reinkensmeyer
Posted on Mon 15th Jun, 2009 05:29:50 PM

Thinking about retirement or are looking to update your retirement portfolio for the best stocks. Investing for retirement does not have to be difficult, you just need to know where to look for advice.

Why browsing through Yahoo Finance today I ran across a list of 10 great stocks to add to your retirement portfolio:

  1. GROWTH AND INCOME: Abbott Labs (ABT), Dividend Yield: 3.6%
  2. GROWTH AND INCOME: McDonald’s (MCD), Dividend Yield: 3.5%
  3. BARGAIN GROWTH: Accenture (ACN), Earnings Growth: 12%
  4. BARGAIN GROWTH: Cisco Systems (CSCO), Earnings Growth: 11%
  5. DEEP VALUE: Baker Hughes (BHI), Dividend yield: 0.6%
  6. DEEP VALUE: Valmont (WMI), Dividend yield: 0.7%
  7. SMALL CAP: NutriSystem (NTRI), Return on Assets: 29%
  8. SMALL CAP: Aaon (AAON), Return on Assets: 20%
  9. FOREIGN VALUE: Petrobras (PBR), Dividend yield: 0.6%
  10. FOREIGN VALUE: Unilever (UL), Dividend yield: 3.9%

Some of these stocks are better than others and in our opinion are more dependable long term. Companies like NutriSystem (NTRI) are a bit more speculative and risky versus say McDonalds (MCD) or Cisco (CSCO). I am pretty surprised Johnson and Johnson (JNJ) was not featured here.

Lastly, Unilever (UL) was a nice find and a good stock to include for the list. The consumer staples company owns brands such as Lipton’s, Dove, and Ben & Jerry’s. The other Foreign pick, Petrobras (PBR) has a market cap of nearly $200 Billion and analysts predict the company could grow earnings by 20% over the next five years.

What stocks would you add or remove from this list?

Related Posts:

Source:
Fortune: The Best Stocks to Retire On
by Katie Benner, Mina Kimes and Eugenia Levenson
Yahoo Finance, Wednesday, June 10, 2009

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3 Responses

  1. Abbott Laboratories is not really cheap. Besides no one knows the implications for drug makers caused by pushed Obamacare.

    McDonald’s Corp. : Price/Book Value = 5.
    LT Debt/Equity = 0.82
    Dividend is not only criteria to pick up and recommend stock.

    Accenture Ltd. : Price/Book Value = 9.55
    You must be kidding!

    NutriSystem Inc. (NTRI) – Dividend yield is good to be true. I suspect company will cut it. Stock is not cheap.

    Aaon (AAON) – General Building Materials. I would not bet on quick housing and commercial real-estate recovery.
    Price/Cash per share = 90.45

    For energy sector why ADR Petrobras (PBR) is attractive? It is because Petrobras is foreign company? Are you ready to overpay simply to own Brazilian stock?
    Exxon (XOM), Chevron Corp. (CVX) are more attractive with dividend yield ~ 3%.

    Unilever plc (UL) is great brend. But it is ADR and investor is imposed to the counter party risk in case if ADR is not sponsored directly by Unilever.
    Unilever plc Price/Book Value = 4.68

    Why you would not recommended Kraft Foods (KFT) or Procter & Gamble Co.(PG) instead of Unilever (UL)? They are holding better value then UL.

    UL
    ——————-
    P/B 4.68
    Debt/Eq 1.14
    LT Debt/Eq 0.76
    Dividend % 3.91%

    KFT
    ——————
    P/B 1.66
    LT Debt/Eq 0.82
    Debt/Eq 0.90
    Dividend % 4.59%

    PG
    —————–
    P/B 2.46
    Debt/Eq 0.64
    LT Debt/Eq 0.34
    Dividend % 3.43%

    Cisco Systems (CSCO) and Baker Hughes (BHI) – reasonable recommendation.

Other Websites Referencing This Post

  1. Preparing Your Retirement Investment Portfolio - Money & Investing - Banks.com
  2. Weekly Dividend Investing Roundup - June 20, 2009 | The Dividend Guy Blog

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