3 Retirement Stocks to Buy Now: May 2024

Stocks to buy

Saving up for retirement will give you more choices as you get older. While many believe retirement is out of reach, the top retirement stocks to buy can help grow your portfolio and offer more financial flexibility as you age.

It’s possible to work part-time instead of full-time. You can also choose to downsize and move to an area with a lower cost of living to stretch your money. Good things can happen if you invest in retirement stocks, and it’s better to have a small nest egg than nothing.

These are some of the top retirement stocks to buy that are worth considering for long-term investors.

Microsoft (MSFT)

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Investors looking for retirement stocks should prioritize established corporations with large market caps. These stocks are less likely to experience sharp declines. Furthermore, large market cap stocks should continue to appreciate if they have a history of posting good financials.

Microsoft (NASDAQ:MSFT) has the financials and an impressive $3.16 trillion market cap. It’s the largest company in the public markets. Microsoft is also up by 15% year-to-date and has gained 237% over the past five years. Wall Street analysts believe the stock can gain an additional 16% from current levels and have rated it as a “Strong Buy.”

The tech giant reported 17% year-over-year revenue growth and 20% year-over-year net income growth in Q3 FY24. Microsoft Cloud is a driving force, but the company has many segments under its corporate umbrella. PCs, business software, Xbox and LinkedIn are some of the company’s additional assets. Microsoft’s diversification, double-digit revenue and net income growth suggest a good future for long-term investors.

American Express (AXP)

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People will continue to use their credit and debit cards to buy goods and services. These cards are more convenient and secure for many consumers. The companies that issue these cards make money from every transaction, which has increased over the years.

American Express (NYSE:AXP) is one of the beneficiaries of this trend. Its revenue reached $15.8 billion in Q1 2024, an 11% year-over-year improvement. Net income surged by 34% year-over-year to reach $2.4 billion.

The stock has more than doubled over the past five years and is off to a good start with a 29% year-to-date gain. It’s been outpacing the stock market during those timeframes. American Express trades at a low 20 P/E ratio and offers a 1.16% yield. The fintech firm also has a good dividend growth rate. It’s maintained an annualized growth rate of 10.51% over the past decade. American Express increased its dividend by 17% this year.

Walmart (WMT)

People will always need to buy goods and services. Many of those same consumers will gravitate toward companies that offer affordable prices and quality products. Walmart (NYSE:WMT) has been checking off those boxes for decades while generating sizable shareholder returns.

The stock is up by 21% year-to-date and has gained 88% over the past five years. Wall Street analysts are projecting an additional 9% return from current levels and have rated the stock as a “Strong Buy.” Investors can wait for the stock to realize that return while receiving quarterly dividend payouts. The retailer currently has a 1.29% yield.

Walmart’s revenue growth doesn’t resemble a growth stock but has been steady over several years. Revenue increased by 6.0% year-over-year. Notable performances include a 21% year-over-year growth in global e-commerce sales and a 24% year-over-year improvement in the company’s global advertising business. Adjusted EPS increased by 22.4% year-over-year. 

On this date of publication, Marc Guberti held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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