As we move into June, I’ve identified three top retirement stocks that could be excellent long-term investments. While many investors have been focused on the cryptocurrency market, as Bitcoin (BTC-USD) aims for another new all-time high. However, there are some compelling strong buy retirement stocks that offer great value and stability.
As you approach or enter retirement, focusing on reliable, income-generating assets becomes increasingly important. These strong buy retirement stocks have been carefully selected for their potential. They have the capability to provide steady growth and income over the long term, ensuring a secure financial future.
These companies are those that one can buy and hold forever thanks to their financial stability and strong competitive moats. I think that these will help investors sleep soundly at night knowing they are blue-chip names.
With this optimistic outlook, here are three retirement stocks with strong buy ratings for June 2024.
AbbVie (ABBV)
AbbVie (NYSE:ABBV) is a major player in the healthcare sector. The company is known for its blockbuster drug Humira and the acquisition of Allergan, which brought Botox into its portfolio.
The company continues to expand its therapeutic pipeline with partnerships and acquisitions. It developed CAR-T cell therapies in collaboration with Umoja Biopharma and acquired Mitokinin for its Parkinson’s disease treatment.
Furthermore, AbbVie has raised its adjusted diluted EPS guidance for 2024 to $11.13-$11.33, up from the previous guidance of $10.97-$11.17. This includes an unfavorable impact of 8 cents per share related to acquired in-process research and development (IPR&D) and milestone expenses incurred during the first quarter of 2024.
The company expects a high single-digit compound annual growth rate (CAGR) in total sales through 2029, with significant contributions from its key drugs Skyrizi and Rinvoq. These drugs are projected to generate combined revenues of more than $27 billion by 2027.
Essential Utilities (WTRG)
Essential Utilities (NYSE:WTRG) provides regulated water, wastewater and natural gas services. Its critical role in providing essential services and a steady dividend yield makes it a reliable stock for retirees.
The dividend yield stands at 3.32% and has a growth rate of 7%.
Additionally, in terms of growth, Essential Utilities continues to expand through acquisitions. In 2023, the company acquired seven water and wastewater systems, adding over $44.5 million in rate base and more than 11,000 new customers or equivalent dwelling units. The company has six pending purchase agreements for additional wastewater systems in Pennsylvania and Illinois. These systems are expected to serve over 215,000 customers and total approximately $380 million in purchase price.
Financially, Essential Utilities has updated its guidance for 2024, anticipating net income per diluted common share to be $1.96 to $2. Despite challenges such as warmer-than-normal weather affecting regulated natural gas operating revenues, the company expects to exceed this guidance.
Delta Air Lines (DAL)
Delta Air Lines (NYSE:DAL) is highly rated for its recovery in the travel sector and strategic initiatives to improve financial stability. Its strong buy ratings come from its balanced capital deployment and growth in higher-margin businesses.
In the first quarter of 2024, Delta reported operating revenue of $13.7 billion and an operating income of $614 million. The company achieved a free cash flow of $1.4 billion and reduced its adjusted net debt to $20.2 billion, down by $1.2 billion from the end of 2023. Delta also maintained strong liquidity with $7.4 billion, including $2.9 billion in undrawn revolver capacity.
For the full year 2024, Delta expects earnings per share to be between $6 and $7, with a free cash flow forecast of $3 to $4 billion. The company anticipates a record revenue for the June quarter, with an operating margin of 14-15% and EPS of $2.20 to $2.50.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.