While the shaky ground that the equities sector is walking on tempts the idea of acquiring popular investments, you might want to give the top retirement stocks to buy another look. No, these underlying companies aren’t exactly bringing sexy back. But chances are, they won’t put you on your back — at least not like growth-oriented trades that may be vulnerable to extreme volatility.
First off, the top retirement stocks to buy are associated with proven, reliable businesses. Because of their track record, they are less likely to crumble, even under sizable market pressure. Better yet, during a downturn, consumers will gravitate toward the essentials, which naturally benefits blue-chip entities. Therefore, you can at least sleep a little easier at night.
Second, the top retirement stocks to buy offer a balanced mix of capital gains potential with decent dividend payouts. Such an attribute will be particularly important during this inflationary cycle, where the greenback has dropped 11.3% of purchasing power between April 2020 through April 2022.
Of course, you want to stay diversified since no guarantees exist in the capital markets. However, if you’re looking for relatively safe progress, consider these top retirement stocks to buy in June:
MCD Stock: a McDonald's sign and logo on the side of a building
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One of the most recognizable names in American business, fast-food giant McDonald’s (NYSE:MCD) easily ranks among the top retirement stocks to buy. Featuring a powerful and influential consumer brand, McDonald’s as of 2021 had 40,031 restaurants under its belt. This figure may have dipped due to the conflict in Eastern Europe. Still, upcoming fundamentals boost MCD’s prospects.
First, the grand work-from-home experiment could be coming to an end. Even Elon Musk of Tesla (NASDAQ:TSLA) weighed in on this topic, implying through a series of emails that his employees must return to the office or face the consequences. If so, McDonald’s could see rising traffic as worker bees head over there to escape the drudgery with well-caffeinated beverages — and perhaps some fries.
Second, if a recession capsizes the economy, McDonald’s offers an escape, a form of cheap entertainment. Basically, it’s the same thesis that drove the Golden Age of Hollywood during the Great Depression. Therefore, I like MCD as a surprisingly relevant idea among the top retirement stocks to buy.
BlackRock (BLK)
A BlackRock (BLK) sign out front of a BlackRock office in San Francisco, California.
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No stranger to controversy, BlackRock (NYSE:BLK) generated some unwanted headlines throughout the new normal as it courted severe criticisms that it and other asset managers were buying up residential homes, thus killing the American Dream. In turn, BlackRock issued a statement on its website that it is “not buying individual houses in the U.S.”
We report, you decide, I guess.
In all seriousness, despite the less-than-ideal reputation that BlackRock carries, it’s the world’s largest asset manager. And that means at some point, investors ought to consider BLK stock as one of the top retirement stocks to buy. No, you’re probably not going to score environmental, social and governance (ESG) creds with BlackRock. But chances are, you’ll end up in a better position investing in it than against it.
Further, the company is in the business of helping its clients navigate good times and bad, making it appropriate for our times. Finally, a solid 2.95% dividend yield should help you in the decision-making process.
Retirement Stocks to Buy: NextEra Energy (NEE)
Nextra Energy (NEE) website on a mobile phone screen
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Upon Russia’s reckless and destabilizing invasion of Ukraine, the hydrocarbon sector immediately skyrocketed. While fuel costs were already elevated because of inflation, the sudden loss or restriction of global oil and gas supplies exacerbated an already tense situation. However, in the long run, the disruptive event should serve as a long-term catalyst for NextEra Energy (NYSE:NEE), one of the top retirement stocks to buy.
As the world’s largest producer of wind and solar energy, NextEra is already well ahead in a game that many nations suddenly want to play. According to the Yale School of the Environment, several European countries have begun fast-tracking their sustainable energy initiatives following Russia’s attack. To be fair, such initiatives will likely take time. However, the broader pivot to renewables should make NEE stock even more compelling.
Admittedly, the company’s 2.06% dividend yield is nothing to write home about. However, for patient investors, NEE could make up for it through long-term growth in capital gains.
Verizon Communications (VZ)
a Verizon (VZ) storefront building
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As one of the world’s biggest telecommunications conglomerates, Verizon Communications (NYSE:VZ) makes for an intriguing idea among the top retirement stocks to buy. Essentially, Verizon represents access to technology and connectivity that households can’t afford to lose. Almost in the same vein as food and water, Verizon might act as a “sacrosanct” investment.
According to data complied by Statista.com from a February 2021 survey, “nearly half of the respondents stated that on average they spent five to six hours on their phone on a daily basis, not including work-related smartphone use.” That type of loyalty and commitment is not easy to separate from.
But beyond our digital addiction, Verizon is an absolute necessity. From the mobile connectivity angle to broadband services, Verizon offers everything a modern household needs — and this especially rings true if the gig economy expands significantly. Plus, the company’s 4.96% dividend yield is a selling point all on its own.
Retirement Stocks to Buy: BHP Group (BHP)
Smartphone with BHP Group logo in front of BHP website. BHP stock.
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An Australian multinational mining, metals and petroleum firm, BHP Group (NYSE:BHP) is one of the largest businesses of its kind. It’s also one of the top retirement stocks to buy that’s benefitting from a surge in relevance. On a six-month basis, BHP shares are up nearly 8.7%, with momentum continuing to build favorably.
While renewables represent perhaps the most popular topic in the broader energy sphere, you can’t take hydrocarbons out of the picture entirely. Primarily, it’s a scientific matter: fossil fuels command incredibly high energy density. There’s also the matter of capacity factor, or the reliability of power production. Here, wind and solar are the lowest ranked among energy sources.
But what makes BHP Group special under these circumstances is its diversified business. Commanding a range of high-demand products, such as copper, nickel and potash, BHP is something to keep in your back pocket. Plus, its forward yield of 10.7% should draw some interested eyes.
3M (MMM)
3M (MMM) logo on top of a corporate building
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I’ll be the first to admit that I’ve had a like/dislike affair with industrial conglomerate and applied sciences firm 3M (NYSE:MMM). Out of the companies that enjoyed increased demand because of the coronavirus pandemic — remember the N95 respirators? — 3M is one of the more disappointing. In fact, as of this writing, MMM is trading below the highs it reached just prior to the global health crisis.
Still, it’s important to remember that 3M is a massive and incredibly diversified company. With a product portfolio that consists of 60,000 individual brands, 3M is virtually guaranteed to stay relevant through any market cycle. As a result, the company consistently generates robust earnings and positive free cash flow.
To be fair, the stock itself has been lackluster, taking it on the chin during a volatile year so far. However, this could be a discounted opportunity as consumption patterns pivot from discretionary categories to essential and utilitarian ones. Additionally, 3M has a very solid 4.1% dividend yield.
Retirement Stocks to Buy: Walgreens Boots Alliance (WBA)
Walgreens (WBA) store exterior and sign in Pompano Beach, Florida
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Best known for its ownership of retail pharmacy chains, Walgreens Boots Alliance (NASDAQ:WBA) has the advantage of permanent relevance. No matter how many advancements humanity forwards, we will still be beholden to core needs. And as the Covid-19 pandemic proved, some of our biggest threats happen to be the most diminutive.
Just by the numbers, WBA makes for an intriguingly bullish case. According to Precedence Research, the global pharmacy market size was $1.07 trillion in 2021. Experts project that this segment will expand by a compound annual growth rate of 4.7% between 2022 and 2030, culminating in a market size of over $1.6 trillion by the end of the forecasted period.
Encouragingly, Walgreens has demonstrated year-over-year revenue growth for its most recent quarter. In addition, the company features solid fundamentals throughout. Combined with a 4.48% dividend yield, WBA is one of the top retirement stocks to buy in June.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
