3 Retirement Stocks to Buy Now: Q2 Edition

Stocks to buy

Everyone should save up for retirement. Even saving a few extra dollars each month can go a long way since it builds a habit and makes you more conscious about long-term goals. This reality has led to my list of retirement stocks to buy now.

Buying retirement stocks can result in less volatility and steady cash flow. Some corporations have been paying dividends for decades, and a few companies have been around for more than 100 years. Some retirement stocks are poised to check off both of those boxes for long-term investors. 

If you want to build up your retirement portfolio, these three retirement stocks to buy now are worth considering.

Walmart (WMT)

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Walmart (NYSE:WMT) offers a respectable dividend yield, growth prospects, and a significant competitive advantage. The retailer is the top place for buying affordable products. Walmart has carved itself as a leader since its founding more than 60 years ago. 

The retailer has achieved steady revenue and earnings growth over the years. Revenue came in 5.7% higher in Q4 FY24. Success with global e-commerce sales and advertising is exciting for the company and can result in higher profit margins. Leadership felt optimistic enough to hike the dividend by 9% this year. That’s the highest dividend increase in more than a decade. The dividend hike also comes amid a recent stock split. It seems like the company is focused on providing value for shareholders.

Analysts have noticed Walmart’s successes and have rated the stock as a “Strong Buy.” The stock has a projected 9% upside. The highest price target of $75.99 per share suggests a 27% rally. The company’s recent acquisition of Vizio Holdings can help with that price target. Vizio will expand Walmart’s advertising segment, which will generate higher profit margins than retail sales. It’s one of those retirement stocks to buy now.

Caterpillar (CAT)

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Caterpillar (NYSE:CAT) is a top-notch construction equipment company that has been in business for almost 100 years. The stock has a reasonable 18 P/E ratio and a 1.42% dividend yield. Dividend growth investors will love the fact that Caterpillar has raised its dividend by an annualized 8.70% over the past five years

Construction is an essential service and will remain in demand regardless of the economic cycle. The prospect of lower interest rates can drum up more demand for the sector and accelerate Caterpillar’s revenue. The Federal Reserve isn’t in a rush to reduce rates, but it can happen by the end of the year. That development should help Caterpillar, but it’s already doing fine as it is.

Full-year revenue increased by 13% year-over-year. Full-year profits rose from $12.64 per share in 2022 to $20.12 per share in 2023. Caterpillar also returned $7.5 billion to shareholders through stock buybacks and dividend distributions. The stock has outperformed the market with a 25% year-to-date gain and a 163% gain over the past five years.

Cintas (CTAS)

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Cintas (NASDAQ:CTAS) provides business supplies and safety equipment for more than one million businesses in North America. The company’s stock has exceeded market returns. It’s up by 13% year-to-date and has gained 208% over the past five years. 

Cintas has a 0.81% dividend yield and has commanded an impressive growth rate. The firm has an annualized 21.05% dividend growth rate over the past decade. The company recently hiked its dividend by 17.1%.

Investors cheered on the company’s recent earnings report which showed big increases in revenue and net income. Net sales increased by 9.9% year-over-year while net income was up by 22.0% year-over-year. Cintas is gaining market share but still has plenty of opportunities left to explore. 

Data from the U.S. Small Business Administration reveals there are 33.2 million businesses in the United States alone. Not all of these businesses are good fits for Cintas since this data includes independent contractors with LLCs. However, it shows that the company can tap into more opportunities and reward long-term investors.

On the date of publication, Marc Guberti did not have (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.comPublishing 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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