The words “risk” and “inflation” are two words that no retiree (or near-retiree) wants to hear. Retirement is about preserving what you’ve spent building during your working years, and you want to be sure that your money will be there for you until you no longer need it.
Don’t worry if you’re new here or don’t know where to start. I’ve highlighted five bonafide winners below that you can consider for your retirement portfolio.
1. McDonald’s Corporation
Fast food chain McDonald’s Corporation (MCD -0.55%) has revolutionized the fast food industry since the company was founded in the 1950s. Today, McDonald’s has more than 38,000 locations worldwide. The business operates a franchise model, earning its money from rent and royalties on sales, while restaurant owners (franchisees) pay for maintaining and operating the store.
The company is a historical dividend share; McDonald’s has paid and raised a dividend for 46 years. Investors can enjoy a dividend yield of 2.2% and a company whose earnings per share have grown nearly 7% on average each year for the past decade.
2. Lowe’s companies
home improvement retailer Lowe’s Companies (LOW 2.86%) dominates the door-to-door retail category in the United States with its rival Home deposit. It sells appliances, materials, tools and hardware to homeowners and professional contractors. Housing is the biggest purchase most consumers make in their lifetime, and they often spend money improving and maintaining their homes.
Lowe’s has benefited from this consistent demand over the years, and the company is a dividend king, with 59 years of dividend growth. The hot housing market has been great for business – Lowe’s has increased EPS by an average of 24% per year over the past ten years.
3. Procter & Gamble
If you look closely at the soaps, lotions, laundry detergents and other basic household products you buy each month, you might notice Procter & Gamble (PG -2.65%) On the label. The company sells thousands of products under hundreds of brands, including Crest, Tide, Pampers and Gillette. The company has been around since the early 1800s because consumers often buy its products whether the economy is doing well or badly.
4. Altria Group
Smoking rates have been falling in the United States for decades, but it hasn’t stopped Altria Group (MO -3.08%) to perform well for shareholders. The company owns and sells leading tobacco brands in the United States, including its Marlboro brand of cigarettes. Pricing power has allowed Altria to raise prices to offset declining cigarette volumes and achieve sufficient growth to increase the dividend over the past 52 years.
The company erred by overpaying struggling e-cigarette maker Juul, which included write-downs that hurt bottom line profits. However, the company’s operating profits have grown 6% annually over the past decade. Altria offers a generous dividend yielding 6.7% on the current share price.
5. UnitedHealth Group
Healthcare is a multi-trillion dollar industry worldwide and a pillar of society. UnitedHealth Group (A H -0.15%) provides care to 148 million people through health insurance, professional services and products through various partnerships with government agencies, employers and consumers themselves. It’s a massive company that made $285 billion in revenue in 2021 and has a market capitalization of $455 billion.
Firmly rooted in the healthcare system, UnitedHealth benefits from increased spending over time. For example, total healthcare spending in the United States grew by 4% per year from 2010 to 2019. UnitedHealth grew revenue by 11% per year over the past decade and EPS by 14% per year over the past decade. of the same period. Investors can also take advantage of a dividend yielding 1.2% on the current share price.
Every company on this list has enjoyed decades of steady growth and earnings that allow management to pay shareholders a reliable dividend. These actions can preserve and grow your nest egg while providing you with income you can use to cover your living expenses if you are about to retire.
These companies are deeply rooted in stable industries and have thrived through good times and bad. This list could be a great starting point for building a retirement that provides profits and peace of mind.