One person’s perception of an ideal retirement might be different from that of another person. However, everyone thinks of the same thing. Everyone wants plenty of income. It is a necessity to have a portfolio that is invested in growth. However, it is much better to have a large portion of this investments yielding a regular income. Thus, it is best to search for the best retirement stocks.
France’s Total SA
Large, integrated oil companies are great sources of dividends. Investors will find it appealing to see these oil companies with diversified and expansive assets that make them untouchable regardless of the performance of energy prices. An example would the U.S. multinational Exxon Mobil. This domestic stock is great, but investors can also do well with international stocks.
France’s Total SA has an estimated thirty-three percent in market capitalization as that of Exxon Mobil. Even with this relatively smaller number of assets compared to the U.S. company, these assets still perform better compared to its peers. Thus, it was able to withstand the recent oil downturn. With oil on the rebound, dividends from Total often have high-yield value.
VanEck Vectors Fallen Angel High Yield Bond ETF
Junk debt is a debt with lower rates that result from a company facing higher costs of borrowing and bigger coupon payments on their bonds. This produces greater yield for investors. These fallen angels companies are companies who have degraded from investment to junk status.
Nuveen Municipal Value Fund
Another overlooked trait in retirement investments is tax efficiency. Municipal bonds are great ways on how to reap income without being anxious of the IRS. A closed-end fund is similar to ETFs as they have bonds and stocks as assets. The Nuveen Municipal Value Fund is such an example of CEF.
Enterprise Products Partners
Investors will find master limited partnerships (MLPs) as great income. Most MLPs are related to the energy transportation. However, Enterprise Products Partners is one of the best in its kind. It is one of North America’s largest logistics firms. EPD currently yields an estimated 6%.
Shares International Select Dividend ETF
Portfolio can be diversified in international stocks. One of these is iShares International which is a nest of 97 international stocks from various developed countries.
In many cases, it can be financially rewarding to look at retirement stocks that majority of investors are ignoring. Keep in mind that it’s not always prudent to stick with the herd, especially when it comes to financial vehicles to build your retirement nest.
David Milberg is an experienced credit analyst in NYC. He is a long-time owner of Milberg Factors, a factoring and finance company with locations in New York, California, and North Carolina.