Image Source: Pexels
The ideal retirement investment stocks provide:
In other words, the ideal retirement investment gives you high (and growing) passive income.1. High YieldsThe need for high yields is obvious. The higher the yield, the more income you receive for every dollar invested. It doesn’t take a genius to say that more income is a good thing.2. Growing IncomeYour high yield income stream needs to grow to help offset inflation. The reality of inflation means that a static income stream will see its purchasing power erode over time.3. Passive IncomeAnd finally, your growing high yield income stream needs to be passive for it to be actually useful for retirement. You shouldn’t have to do much work to keep the income coming in.With all three goals in mind, we recommend investors consider the Dividend Champions, a group of over 130 stocks which have increased their dividends for over 25 consecutive years.Retirees are typically concerned with generating high income, growing that income, and achieving as much income safety as possible.The following 10 ideal retirement investment stocks represent the highest-yielding Dividend Champions with Dividend Risk Scores of ‘A’ or ‘B’ in the Sure Analysis Research Database, and at least 25 years of consecutive dividend increases.All 10 ideal retirement investment stocks stocks are based in the United States. The 10 ideal retirement investment stocks are ranked by dividend yield, from lowest to highest.
Ideal Retirement Investment Stock: Polaris Inc. (PII)
Polaris designs, engineers, and manufactures snowmobiles, all-terrain vehicles (ATVs) and motorcycles. In addition, related accessories and replacement parts are sold with these vehicles through dealers located throughout the U.S.The company operates under 30+ brands including Polaris, Ranger, RZR, Sportsman, Indian Motorcycle, Slingshot and Transamerican Auto Parts. The global powersports maker, serving over 100 countries, generated $8.9 billion in sales in 2023.On February 1st, 2024, Polaris raised its quarterly dividend 1.5% to $0.66.On October 22nd, 2024, Polaris reported third quarter results for the period ending September 30th, 2024. For the quarter, revenue decreased 23.6% to $1.72 billion, which missed estimates by $50 million.
Source: Investor PresentationAdjusted earnings-per-share of $0.73 compared very unfavorably to $2.72 in the prior year and was $0.18 less than expected.For the quarter, Marine sales were down 36%, On-Road fell 13%, and Off-Road, the largest component of the company, declined 24%. Decreases in all three businesses were mostly due to lower volumes.Off-Road was negatively impacted by higher promotional spend and product mix. On-Road and Marine both suffered from weaker product mix. Gross margin contracted 204 basis points to 20.6%.Click here to download our most recent Sure Analysis report on PII (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Northwest Natural Holding (NWN)
Northwest was founded over 160 years ago as a natural gas utility in Portland, Oregon.It has grown from a very small, local utility that provided gas service to a handful of customers to a very successful regional utility with interests that now include water and wastewater, which were purchased in recent acquisitions.The company’s locations served are shown in the image below.
Source: Investor PresentationNorthwest provides gas service to 2.5 million customers in ~140 communities in Oregon and Washington, serving more than 795,000 connections. It also owns and operates ~35 billion cubic feet of underground gas storage capacity.Northwest Natural Holding Company reported a third-quarter 2024 net loss of $27.2 million, or $0.71 per share, compared to a net loss of $23.7 million, or $0.65 per share, in the same period in 2023. Revenue was $136.93 million, a 3.21% year-over-year decrease, but exceeded expectations by $4.47 million.For the first nine months of 2024, net income was $33.9 million, or $0.88 per share, down from $49.2 million, or $1.37 per share, for the same period in 2023.Click here to download our most recent Sure Analysis report on NWN (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Eversource Energy (ES)
Eversource Energy is a diversified holding company with subsidiaries that provide regulated electric, gas, and water distribution service in the Northeast U.S.The company’s utilities serve more than 4 million customers after acquiring NStar’s Massachusetts utilities in 2012, Aquarion in 2017, and Columbia Gas in 2020.Eversource has delivered steady growth to shareholders for many years.
Source: Investor PresentationOn November 4th, 2024, Eversource Energy released its third-quarter 2024 results for the period ending September 30th, 2024.For the quarter, the company reported a net loss of $(118.1) million, a sharp decline from earnings of $339.7 million in the same quarter of last year, which reflects the impact of the company’s exit from offshore wind investments.The company reported a loss per share of $(0.33), compared with earnings-per-share of $0.97 in the prior year.Earnings from the Electric Transmission segment increased to $174.9 million, up from $160.3 million in the prior year, primarily due to a higher level of investment in Eversource’s electric transmission system.Click here to download our most recent Sure Analysis report on ES (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: UGI Corp. (UGI)
UGI Corporation is a gas and electric utility that operates in Pennsylvania, in addition to a large energy distribution business that serves the entire US and other parts of the world.It was founded in 1882 and has paid consecutive dividends since 1885. Its market capitalization is $6.2 billion. The company operates in four reporting segments: AmeriGas, UGI International, Midstream & Marketing, and UGI Utilities.On November 22, 2024, UGI Corporation reported record results for fiscal 2024, achieving an all-time high adjusted diluted EPS of $3.06, driven by strong execution of strategic priorities and efficiency improvements.The company realized a $75 million reduction in operating expenses ahead of schedule, achieving permanent cost savings targeted for fiscal 2025.UGI also returned $320 million to shareholders through dividends, continuing a 140-year streak of consecutive dividend payments and demonstrating a five-year EPS CAGR of 6%.Key accomplishments included significant investments in infrastructure, with $500 million allocated to utility improvements and the completion of the Moody RNG project, expected to produce 300 MMCF annually.Click here to download our most recent Sure Analysis report on UGI (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: NNN REIT (NNN)
National Retail Properties is a REIT that owns ~3,000 single-tenant, net-leased retail properties across the United States.It is focused on retail customers because they are much more likely to accept rent hikes to avoid switching locations and losing their customer base. Its 15-year low occupancy rate is 96% and it typically ranges between 98%-99%.NNN delivered a strong performance in the third quarter of 2024, showcasing disciplined portfolio management and strategic acquisitions.The company tightened its full-year core FFO guidance to a range of $3.28 to $3.32 per share and raised its acquisition guidance midpoint by 22% to $550 million, underscoring a robust pipeline and execution capabilities.NNN reported Q3 core FFO of $0.84 per share, a 3.7% increase year-over-year, and maintained an impressive 99.3% occupancy across its 3,549 properties.Click here to download our most recent Sure Analysis report on NNN (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Realty Income Corp. (O)
Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.Realty Income reported third-quarter 2024 earnings, with EPS at $0.30, missing estimates by $0.06, but revenue of $1.27 billion, a 26% year-over-year increase, beat expectations by $10.01 million. Net income for common shareholders was $261.8 million.The company generated $915.6 million in Adjusted Funds from Operations (AFFO), or $1.05 per share. Realty Income invested $740.1 million in new properties, achieving an initial average cash yield of 7.4%, while maintaining a portfolio occupancy of 98.7%.Click here to download our most recent Sure Analysis report on Realty Income (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Enterprise Products Partners LP (EPD)
Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.
Source: Investor PresentationOn October 28, 2024, Enterprise Products Partners announced its financial results for the third quarter ended September 30, 2024. Revenue reached $13.78 billion, marking a 14.81% year-over-year increase.Distributable Cash Flow (DCF) for the quarter was $2.0 billion, a 5% increase from $1.9 billion in the same period last year.The company declared distributions of $0.525 per common unit for Q3 2024, representing an annualized rate of $2.10 per unit and a 5% increase from the third quarter of 2023.DCF provided 1.7 times coverage of the declared distributions.Click here to download our most recent Sure Analysis report on EPD (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Universal Corp. (UVV)
Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers.The Tobacco Operations segment buys and sells tobacco used to make cigarettes, cigars, pipe tobacco, and smokeless products.Universal buys tobacco from its suppliers, processes it, and sells it to large tobacco companies in the US and internationally.
Source: Investor PresentationThe Ingredient Operations deal mainly with vegetables and fruits but is significantly smaller than the tobacco operations. Universal has been growing this business through acquisitions starting in 2020.Universal Corporation reported its second quarter earnings results on November 7. The company generated revenues of $710 million during the quarter.Additionally, Universal Corporation sold carryover crops during the period, which added to the company’s revenue performance.Click here to download our most recent Sure Analysis report on Universal (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Universal Health Realty Income Trust (UHT)
Universal Health Realty Income Trust operates as a real estate investment trust (REIT), specializing in the healthcare sector. The trust owns healthcare and human service-related facilities.Its property portfolio includes acute care hospitals, medical office buildings, rehabilitation hospitals, behavioral healthcare facilities, sub-acute care facilities and childcare centers. Universal Health’s portfolio consists of 69 properties in 20 states.On October 24, 2024, UHT reported its third quarter results. Funds from Operations (FFO) saw a slight improvement, rising to $11.3 million, or $0.82 per diluted share, from $11.2 million, or $0.81 per diluted share, in the third quarter of 2023. This increase in FFO was mainly due to the rise in net income during the period.The company maintained a strong liquidity position with significant cash reserves and continued strategic investments to enhance its property portfolio.Click here to download our most recent Sure Analysis report on UHT (preview of page 1 of 3 shown below):
Ideal Retirement Investment Stock: Altria Group (MO)
Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the cannabis company Cronos Group (CRON).Altria reported solid third-quarter results, driven by the resilience of its smokeable products and the continued market momentum of the on! nicotine pouch brand.
Source: Investor PresentationThe company’s Q3 revenue was $5.34 billion, a 1.3% year-over-year increase, with adjusted earnings per share (EPS) reaching $1.38, exceeding expectations by $0.03.Altria also reaffirmed its full-year EPS guidance range of $5.07 to $5.15, indicating growth of 2.5% to 4% over 2023.During the quarter, Altria repurchased 13.5 million shares, spending $680 million, and declared dividends of $1.7 billion. The company has $310 million remaining under its repurchase program, anticipated to complete by year-end.Click here to download our most recent Sure Analysis report on Altria (preview of page 1 of 3 shown below):
More By This Author:10 One Decision Stocks To Buy Now
Get Raises For Doing Almost Nothing With Dividend Stocks
10 Best Dividend Champions You’ve Never Heard Of
