These 3 Reliable Stocks Are Ideal For Retirement Portfolios
Resilience is a difficult quality to find in the stock market, which is why investors tend to pay a premium for established companies that can provide solace during market volatility.
These are the types of investments that you can count on through thick and thin to deliver steady returns, which makes them ideal retirement account holdings.
Resilient stocks can also perform well during an economic downturn, which provides peace of mind when many other areas of the market are facing heavy selling pressure due to their weak earnings prospects.
With equity markets in free-fall mode again, it doesn’t hurt to put together a shopping list of resilient stocks that investors can feel comfortable adding even during heavy volatility.
These are companies that get more attractive as their prices decline, which makes them perfect buy-the-dip opportunities should we continue to see equities pulling back.
That’s why we’ve put together the following list of 3 resilient stocks to buy for retirement. Let’s take a deeper look at what makes these great picks for the long haul.
1. Archer-Daniels-Midland
Consumer staples are always a great pick for investors looking to anchor their portfolio with resilient stocks, and Archer-Daniels-Midland (NYSE:ADM) stands out as one of the strongest options to consider in the sector.
It’s one of the world’s leading producers of food and beverage ingredients, as well as other products made from a variety of agricultural products. Archer-Daniels essentially buys crops from farmers and then takes care of storing, transporting, and processing those crops before selling them.
Whether it's corn or soybeans, this company plays a huge role in keeping the world from going hungry, which means there will always be a steady demand for Archer-Daniels products and services.
We don’t often see consumer staples stocks move with a lot of momentum, but that’s exactly the case with Archer-Daniels-Midland given a tight supply environment and strong global protein demand.
The stock has rallied over 36% year-to-date and could be due for a pullback in the coming weeks, which could present an intriguing buying opportunity.
Archer-Daniels also offers a 1.67% dividend yield and has increased its dividend in each of the last 48 consecutive years, which is certainly a testament to this company’s business model and consistent earnings.
2. Walmart
Next up on our list of resilient stocks to buy now is Walmart (NYSE:WMT), the world’s largest retailer. It’s a great choice for retirement thanks to its unrivaled scale and the company’s ability to outprice competitors in the competitive retail industry.
Walmart is also a great pick for the long-term as the company can put up strong sales numbers in any economic environment. In fact, the stock will likely outperform during recessions as consumers look to save money on basic goods and services.
It’s also an appealing option thanks to its dividend aristocrat status, which means that investors can anticipate steady dividend growth over the years.
There’s also plenty for investors to love about Walmart’s efforts in expanding its e-commerce business, and additional business segments like healthcare and financial services also have a lot of growth potential.
A strong balance sheet, long history of dividend increases, and recent earnings growth are additional reasons to consider adding a position here.
Shares of Walmart are trading around all-time highs ahead of the company’s Q1 earnings report coming in May, and with the market continuing to favor low-volatility names it’s easy to envision shares outperforming.
3. Berkshire Hathaway
One of the first investors that come to mind when you think of the word resilient is Warren Buffett, a man who has made plenty of mistakes over the years yet still continues to improve his holding company’s performance.
Mr. Buffett wasn’t always a billionaire, and the fact that he has consistently learned from his mistakes and improved upon his investing strategy over the years should give investors a lot of confidence in adding shares of Berkshire Hathaway (NYSE:BRKb) for retirement.
It’s been an incredibly strong stock thus far in 2022, and with diversified exposure to insurance, railroads, energy, financial services, publishing, retailing, and manufacturing, it’s hard to find many downsides to adding this company to your retirement account.
Berkshire shares are trading at an 8.65 P/E ratio at this time and might present a great buying opportunity if we continue to see the market pullback. Berkshire also tends to outperform the S&P 500 more often than not, which is certainly another great sign that it could be a great stock to anchor your retirement portfolio.
Finally, the company’s acquisition of investment holding company Alleghany (NYSE:Y) is another potentially masterful move by Mr. Buffett that only strengthens the company’s portfolio.