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Bet on These 3 Stocks to Grow Your Wealth Post Retirement

Retirees can not only protect their life-time of wealth and savings but can also add to it. Chevron (CVX), McDonald's (MCD) & Coca-Cola (KO) are stock...

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This story originally appeared on Zacks

Retirement is often seen as an extended hiatus, allotted to rest and relaxation. But, to enjoy the new chapter of life, retirees not only need to protect their life-time of wealth and savings but also need to add to it. This is only possible through a solid investment strategy.

- Zacks

Making Money After Retirement

When it comes to wealth, protecting and growing it should be in focus for every retired person. To achieve this, one must consider investing in the stock market. The companies which could make good investment bets for retirees are the ones with dominant and established businesses which offer reliable dividend payouts. The firms should also have the potential of boosting earnings year after year.

This strategy can help a retired person steer clear of risky stock investments, thereby avoiding excessive market volatility. Here, we have employed our proprietary stock screener to zero down on three such prospective stocks. These companies have established business models and a history of payout hikes. These firms are also currently paying lucrative dividend yields. All the three firms carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3 Stocks in the Spotlight

Chevron Corporation CVX is an integrated energy giant with a strong footprint in Permian – the most prolific basin. Being a leading oil and gas producer in the basin, majority of the company’s Permian acreages are responsible for insignificant to no royalty payments. Thus, with trivial royalty payment, the company will generate handsome shareholder returns.

Under its strong management team, Chevron has been demonstrating excellent capital spending discipline, thereby generating handsome cashflow. This allows the company, which roots back to 1879, to consistently return cash to shareholders. The global integrated energy major pays a hefty dividend yield of 5.5%, which compared favorably with the S&P 500's yield of 1.23%.

The second-largest oil company in the United States has a significant earnings growth potential. The Zacks Consensus Estimate for its 2021 and 2022 earnings per share has seen upward estimate revisions over the past 30 days, suggesting earnings growth potential.  

With a footprint in 39,000franchised and company operated stores, spanning across more than 100 nations, McDonald's Corporation MCD is a leading fast-food retailer in the world.

With the first restaurant opened in 1955, the company has turned 93% of its store base to franchise units, thereby generating stable franchise revenues. Most of the analysts are of the view that this business model has paved the way for stable cashflow generation.

The company has a strong preference for long-term shareholder value generation and pays a dividend that yields 2.2% on the current stock price. Over the past seven days, the stock has witnessed upward earnings estimate revisions for 2021 and 2022, respectively.

The Coca-Cola Company KO is the largest manufacturer of soft drinks in the world. Over time, the company has broadened its product portfolio that comprises sports drinks, bottled water and juices. The company has been making changes to its line of soft drinks to better-suit health-conscious consumers.

It has been returning capital to stockholders and pays a dividend that yields almost 3% on the current stock price. Over the past 60 days, the stock has witnessed upward earnings estimate revisions for 2021 and 2022, respectively.



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Chevron Corporation (CVX): Free Stock Analysis Report

 

CocaCola Company The (KO): Free Stock Analysis Report

 

McDonalds Corporation (MCD): Free Stock Analysis Report

 

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