Though it would be nice to be able to retire with a sufficient amount of money held safely in a savings account, there is a potential for greater financial gain long-term when money is invested in stocks, despite the risks. In 2019, the stock market experienced an incredible increase compared to previous years. Within the year, the S&P 500, NASDAQ, and Dow Jones Industrial increased well over 20%, which were nearly record-breaking numbers. With that said, the stock market holds great potential, and now is as good a time as any to begin investing and saving for your future.
If you’re retired or planning to retire soon, you should consider using a retirement account to invest some of your savings in what is known as “retirement stocks.” These stocks are often high-value stocks that are more likely to increase in value than other stocks. There are more affordable options available, but the profit margins for these stocks is lower than the more expensive stocks, statistically speaking. Essentially, retirement stocks will provide you with greater dividends and profit margins when held long-term.
What Are the Best Retirement Stocks to Invest In?
The logic behind investing in retirement stocks is the potential for greater profit as time progresses. With that said, a majority of retirement stocks are rather expensive per share but yield greater results over time. It can be difficult to determine which stocks you should invest your money in to profit in the long run.
Here are some of the best retirement stocks to invest in as of 2020:
- Berkshire Hathaway
- Microsoft Corp.
- Realty Income
- National Retail Properties
- Public Storage
- Toronto-Dominion Bank
- Urstadt Biddle Properties
Berkshire Hathaway is a global-scale holding company owned by American billionaire Warren Buffett. This company is responsible for leading businesses like GEICO, Dairy Queen, and Duracell. In recent years, Berkshire Hathaway has become one of the largest shareholders in some of the nation’s most prolific airlines. The stock is available as Class A stock, which is valued at over $300,000, and Class B stock, valued at less than $300.
While the company has not paid dividends to its shareholders in several decades, the value of the Class A stock increased by about 11% in 2019 alone. This stock increases in value relatively consistently and is one of the best stock choices, regardless of whether you purchase Class A or Class B stocks.
Microsoft Corp. is a global-scale technology company created and owned by Bill Gates. Since its inception in the 1970s, Microsoft has turned to producing and selling technology-based items such as computers, tablets, and computer software. The Microsoft Corp. stock is much more affordable than other high-end stocks at a few hundred dollars per share, but it has been steadily increasing in value since its entrance into the stock market in the 1980s. In 2019, the value of Microsoft Corp. stocks increased by over 55% in total. The value of the stock has successfully increased for eight years in a row.
Apple Inc. is a global-scale technology company founded by Steve Jobs and Steve Wozniak in the 1980s. In the years since Apple was created, the company has become a global force in technology, selling items such as smartphones, computers, tablets, watches, and computer software. Apple stocks are relatively affordable, and currently valued at over $300.
The value of Apple stocks fluctuates from year to year and can be a risky stock to invest in depending on the new products they’re releasing and the public’s perception of said products. Apple stocks increased in value by over 86% in 2019, recovering from a slight loss experienced the year prior.
Realty Income Corporation
Realty Income Corporation is a multinational real estate investment trust (REIT) known publicly as “The Monthly Dividend Company.” The corporation owns retail space that is rented out by major companies like Walgreens, FedEx, and 7-11. As its nickname suggests, Realty Income Corporation pays its shareholders monthly dividends, unlike many REITs that pay dividends less frequently.
The price of this stock is extremely affordable, at less than $100, and has somewhat consistently boosted in value since 2014, with only one year with a minor loss. In 2019, the value of the stock rose by nearly 17%, with most increases since 2014 being over 10%.
National Retail Properties
National Retail Properties is a real estate investment trust that specializes in renting out space in shopping centers and malls. This company was founded in the 1980s and now owns several thousand properties across the United States. As of 2020, the stock’s value is somewhere around $50, though the value has been increasing in the last several years. Other than a near 27% decrease in value in 2008, when the stock market and housing market crashed, their stock has only dropped in value on three occasions, and it was less than a 3% decrease in each instance. In 2019, the stock increased in value by over 10%, following an increase of over 12% from the year prior.
Public Storage is a nationally known self-storage company with locations throughout North America and Europe. Though considered a storage company, Public Storage is also a REIT. The average stock value for Public Storage as of 2020 is about $200, which is over double the value of the stock back in 2008. Over the last 11 years, the value of Public Storage stock increased in eight of those years. In 2019, the value of the stock increased 5% from the previous year, which was significant given the fact that the stock declined in value over the three previous years (2016-2018).
Verizon Communications, Inc.
Verizon Communications, Inc. is a worldwide telecommunications company known for providing quality telephone, Internet, television, and cell phone plans. As cell phones began increasing in popularity as the early 2000s progressed, the value of Verizon stock steadily increased as well. For the most part, this stock has increased in value for a majority of the last 9 years, with any decrease in value being relatively minor compared to previous losses that Verizon experienced. In 2019, Verizon stocks increased in value by over 9%, following another successful year in which the stock value was up over 6%.
Toronto-Dominion Bank (TD Bank Group)
Toronto-Dominion Bank, more commonly referred to as TD Bank, is a Canadian-based international banking corporation. As of 2020, TD Bank is one of the top 10 banks in the United States and one of the largest banks in the world. Recently, the stock has fluctuated in value at around $50, which has been its approximate value since 2017. Though TD Bank Group’s stock value has been relatively inconsistent within the past few years, the company does pay out quarterly dividends to its shareholders.
Urstadt Biddle Properties
Urstadt Biddle Properties is an American-based REIT that leases properties in the tri-state area, which includes Connecticut, New Jersey, and New York. While the company owns less than 100 properties within the local area, the property owned is typically large-scale and includes shopping centers and malls in upscale areas. Since the late 1990s, Urstadt Biddle Properties has been a relatively low-value stock, currently valued at around $20 per share.
Though the stock’s value has been extremely inconsistent in recent years, it still holds great potential in the market. In 2019, the stock broke a two-year streak of declining value, with a significant increase of over 29% within the year.
AT&T is another globally known holding company recognized as one of the top telecommunication companies in the world. They offer a variety of services and products, including providing Internet to customers, cell phone plans, and television connection. Because of the great number of competitors on the stock market, AT&T’s stock values vary greatly from year to year.
Since 2006, the stock has experienced significant increases of over 45% some years while also declining over 30% in others. In 2019, AT&T stocks rose in value by almost 37%, effectively recovering from an almost 9% and 27% loss in the previous two years, respectively.
Retirement stocks are a great investment that can yield profit well into your retirement period. Though often more expensive than other stocks in the New York Stock Exchange, you are likely to receive more frequent payouts and dividends from the companies you are invested in.
To get involved with retirement stocks and begin planning for your future, here are some steps you should follow.
- Determine how much money you want to invest in retirement stocks and fund a brokerage account.
- Begin working with a licensed broker (either full-service or discount) in order to access the stock market and begin trading freely.
- Research popular retirement stocks and figure out which ones you are interested in investing in (which are known to have high returns, dividends, etc.).
- Purchase retirement stocks and monitor their activity frequently while you’re a shareholder.
- Trade and sell stock at your leisure, gaining the insight of your broker along the way.
If you need additional help figuring out how to invest for your retirement, consider signing up for a webinar or read our free e-book to learn more about trading.