As you draw closer to retirement, you should normally lower the risk profile of your portfolio to protect your retirement assets from irrecoverable losses. This does not suggest, however, that you should eliminate all equities from your portfolio as you draw closer to retirement. According to Statista, those with longer life expectancies may plan on living an additional 18 to 20 years after retiring at age 65. A good strategy to make sure you don’t outlive your retirement funds is to allocate a percentage of your portfolio to stable equities rather than risky companies since the S&P 500 has never experienced a loss over any 20-year rolling period. It is safer to make investments in the ten equities listed below as you approach closer retirement. Let us see about Safe Stocks To Buy Near Retirement.
Top Safe Stocks to Buy Near Retirement
UGI Corp
UGI has grown its dividend payout for 35 years, and it has paid dividends continuously for 138 years. The service provider, a propane distributor, and regulated gas utility control a continuous revenue flow from several angles. Despite the financial crisis that persisted throughout the pandemic of 2020, people remained dependent on gas and propane, enabling UGI to maintain a constant cash flow. The company wants to rely less on fossil fuels in the future and switch to greener, more sustainable energy sources, such as gas collected from landfills. The stock currently yields 3.28 percent.
United Parcel Service (UPS)
The largest postal service in the world, United Parcel Service, has been in operation since 1907 and has been consistently paying dividends since 1969. The company’s remarkable network of trucks, planes, and locations throughout the globe that promptly deliver items to millions of consumers serves as a demonstration of its wealth. With a current dividend yield of 3.39 percent, UPS shares the same qualities of consistent cash flow as UGI and the other companies on our list. 53 years in a row, UPS has increased its dividend, and it is certain to do so in the years to come.
Chevron (CVX)
Chevron, a cash flow powerhouse, pays a substantial dividend of 3.12 percent to its owners to share out its wealth. Although the sector has been maligned for years, especially by environmentalists, oil and gas remain vital to the economy of the United States and the rest of the globe and will do so for the foreseeable future. The rise in oil prices that has taken place since they hit a 2020 coronavirus pandemic low has benefited Chevron. Chevron has consistently raised its dividend for 35 years, displaying its flexibility in every economic environment.
Duke Energy
One of the biggest electric firms in the country, Duke Energy boasts a strong dividend or return. The regulated utility has paid a cash return on each share of common stock since the company’s 96th consecutive year, which was commemorated in 2022. Additionally, Duke Energy has plans to soon transition to using more renewable energy while also modernising, influencing, and expanding its reach. The firm presently yields a handsome 3.56 percent, and through 2016, it expects share prices to increase by 5 to 7 percent.
Walgreens Boot Alliance (WBA)
A stock’s “safety” is assessed using several factors. One is a consistent cash flow that is backed by a product line that is profitable even in a difficult economic environment. The other is a substantial dividend yield that is increasing. This statement is true about Walgreens Boots Alliance. The company, which rivals CVS as a retailer, is healthcare, pharmacy, and retail enterprise. For 46 years straight, Walgreens has grown its dividend, and it is currently giving its owners a handsome 4.50 percent return. The share price variations are nearly half as intense as those of the market as a whole, according to the stock’s five-year beta, which is a rough estimate of volatility and is at 0.54 for the stock.
Legget and Platt
A manufacturer of mattresses, automobiles, flooring, furniture and other durable items, Leggett & Platt offers a high dividend yield. The firm has been raising its dividend for 51 years, and its current 4.53 percent dividend yield reflects this. The company credits its dividend performance to its focus on producing goods that are necessary to consumers but only account for a tiny fraction of the cost of the goods. This firm is a wonderful alternative for retirement stocks for people searching for large dividends and wants to further extend its markets to include a 6 to 9 percent yearly growth.
Kimberly-Clark (KMB)
Kimberly-Clark is a reliable defensive investment since it sells goods like toilet paper, diapers, paper towels, and feminine care products that people often buy regardless of how the economy is doing. As a result, the business has healthy cash flow, which helps to pay its current 3.54 percent dividend. Since Kimberly-Consumer Clark’s product portfolio is so varied, even if some segments are performing poorly, the corporation has enough other high-quality items to make up for that shortcoming. Kimberly-Clark has been able to increase its dividend for 49 years in a row as a consequence.
Conclusion
These are the top safe stocks to buy near retirement. You can research more and plan accordingly the stocks and assets to buy. In a good retirement portfolio, stocks offer the best chance to beat inflation over long periods.
