Retirement stocks are important in all environments. Every investor should consider investing for retirement instead of being concerned about recent market action, whether bullish or bearish. It’s best to consider the long-term potential of building a retirement portfolio to hold for decades.
Below, I discuss three retirement stocks considered strong candidates to add to a retirement portfolio. These stocks provide investors with solid upside potential in the near and long term and a strong dividend yield for income generation purposes that will lead to increased compound growth.
Allstate (ALL)
Allstate (NYSE:ALL) is a company that provides automotive and property insurance. Other products include Allstate Roadside, Identity Protection, and Dealer Services. These products are sold through call centers, individual agents, and wholesalers.
Over the past year, Allstate’s share price has increased by 54%, primarily due to earnings beating analyst expectations and steady growth within the insurance marketplace.
On Jul. 31, Allstate released its earnings for the second quarter of 2024, stating that total revenue increased by 12% year-over-year. In Q2 2023, a net loss of $1.4 billion was reported, which shifted in Q2 2024 to a net income of $347 million. National insurance policies provided by Allstate also rose by 12% compared to the first quarter of 2024.
Allstate provides investors with a dividend yield of 2.16% on an annual basis. Its most recent quarterly distribution was for ninety-two cents on May 30.
Allstate is in a market that is expected to report consistent growth in the coming years. It offers investors a solid investment opportunity with near—and long-term potential. Allstate could trade even higher following a solid year, especially if its trend of beating earnings estimates continues.
AT&T (T)
AT&T (NYSE:T) is a telecommunications company that provides internet connectivity services and broadband access. It also offers various smartphone phone plans. Other products by T include Cricket, AT&T Fiber, AT&T Business, and AT&T Prepaid.
AT&T reported earnings for the second quarter of 2024 on July 24. Total revenue remained unchanged, and free cash flow increased by 10% year-over-year. AT&T strongly exceeded analysts’ estimates concerning its subscriber growth.
For the second quarter, its net adds for its postpaid plans totaled 419,000, while analyst estimates were much lower, at roughly 219,000. This caused AT&T to spike by 5% following its earnings release.
AT&T offers an annual dividend yield of 5.71%. Its most recent quarterly dividend distribution was twenty-eight cents per share on Aug. 1.
T has reported solid share price application over this past year, which has increased by 37%. With solid earnings potential and if its rapid subscriber growth continues, it will provide investors with continued growth potential.
Seagate Technology (STX)
Seagate Technology (NASDAQ:STX) is primarily a cloud storage company that sells hard disk drives (HDDs) and solid-state drives (SSDs) for use in personal computers and larger-scale operations.
Over the past year, its share price has increased by 34% due to earnings beating analysts’ estimates and raising guidance.
On Jul. 23, Seagate Technology reported earnings for the fourth quarter of fiscal year 2024, stating that total revenue increased by 18% compared to the previous year. In the fourth quarter of FY 2023, a net loss of $92 million was reported, which shifted to a net income of $513 million for Q4 FY 2024. Regarding the first quarter of FY 2025, STX anticipates its total revenue will be roughly $2.10 billion compared to total revenue for Q4 of FY 2024, which was $1.9 billion.
STX has an annual dividend yield of 3.04%. Its most recent quarterly distribution was seventy cents per share on Sept. 22.
Seagate Technology holds consistent potential due to strong market expectations regarding solid state drives (SSDs) and growth opportunities regarding new products such as its HAMR technology. Thus, I think it is one of the best retirement stocks to buy.
As of this writing, Noah Bolton did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.