The 8 Best Retirement Stocks To Buy and Hold for 2024

It’s never too early to think about retirement, but deciding which retirement stocks are worth your hard-earned money can be daunting. We all want to build a healthy nest egg for later in life, and making the right investments now can alleviate undue financial stress down the road. The question is, what makes a good retirement stock?

At Wealth of Geeks, we pride ourselves on helping others make the best choices when it comes to finances. Since retirement plays a big part in that, we like to think we know a thing or two about the subject.

Our team, full of avid investors and finance fiends, has collectively compiled our tips for crafting a solid retirement portfolio. While there is no specific blueprint for retirement investing, there are a few things we find essential to keep in mind, which we've laid out for you here.

And better yet? We've evaluated dozens of stocks, looked at their viability as long-term investments, and considered their potential for passive income. While there are many great options when it comes to investing for retirement, the stocks included here are ones we think are worth consideration. 

What Should Your Retirement Portfolio Include?

A good retirement portfolio should include between 30% and 40% cash and fixed income, such as bonds and certificates of deposit. These lower-risk and lower-return products offer a stable base for your portfolio to stand on.

The rest of your portfolio should come from stocks. While more volatile, it’s here you’ll grow your assets the most to have sufficient funds once you stop working. However, not just any stock will do. Focusing on long-term growth and dividend stocks is key.

Growth stocks represent companies that remain in good financial standing for years on end. Steady revenue and sales growth push share prices habitually upward.

Dividend stocks give shareholders passive income just for being an investor. Depending on the organization, these payments may reach your bank account monthly, quarterly, or once per year.

When it comes to the best retirement stocks, we tend to favor companies with longevity that repeatedly prove themselves in their respective niches. So, without further ado, let’s look at the stocks we think are a solid choice for any retirement portfolio.

PepsiCo, Inc (NASDAQ: PEP)

PepsiCo traces its origins back to 1898 and has been a global leader in food and beverage for 125 years. While we’re all familiar with the iconic drink, Pepsi owns popular Frito-Lay, Gatorade, and Quaker products. The company boasts more than 500 unique food and beverage brands.

Today, we see Pepsi products in more than 200 countries and territories worldwide. Many of its most iconic offerings in these regions regularly generate more than $1 billion in annual sales.

From a stock standpoint, PEP checks all the boxes of a long-term winner for retirement. Its share price has gradually increased over the past 40 years, which is ideal for any retirement portfolio.

PepsiCo’s financials further back up its future prospects. Revenue continues to rise year after year while sales are solid across the globe. If that wasn’t enough, PepsiCo has raised its dividend without a single misstep for over 50 years. Its current yield of 3.02% is one more reason to give PEP a closer look.

Microsoft Corp (NASDAQ: MSFT)

Bill Gates and Paul Allen had a vision for the budding personal computer industry in 1975, and Microsoft was born. The company moved into the spotlight after IBM asked Microsoft to produce the operating system for its first PC. Forty years later, Microsoft still reigns king with its Windows line of software.

Over the years, the OS manufacturer broadened its horizons to include several other applications and hardware. The most noteworthy are the Xbox game console, the Internet Explorer browser, the Office productivity suite, and cloud computing.

This tech giant isn’t resting on its laurels, either. The company recently acquired Activision in a $69 billion deal, which means Microsoft will eventually hold controlling rights to popular games like Call of Duty and CandyCrush. It’s also actively partnering with OpenAI of ChatGPT fame to bring AI into many of its offerings.

It would be hard to imagine personal computing without Microsoft, and its latest Windows 11 shows the company still has a lot to give in the space. Competitive advantages keep Microsoft at the forefront of the tech world and will likely do so for some time.

Numbers across the board look solid as Microsoft plans for the future. It’s already recovered and then some from the damage done by 2022’s economic downturn.

Walmart Inc (NYSE: WMT)

Walmart seemingly appeared out of nowhere in the late 80s and now has roughly 10,500 stores in 19 countries. More than 75% of these exist in the United States, boasting low prices on various goods.

This is a company that knows how to cater to its clientele. Many supercenters are open 24 hours a day, but Walmart also finds a home for its discount stores and neighborhood markets in communities that need them.

It takes convenience to the next level with a massive eCommerce portal. The online platform allows Walmart to further innovate with curbside pickup and user-friendly mobile features.

Just as Walmart is known for stability and consistency inside its stores, the same holds true with its stock price. Shareholders have enjoyed a healthy upward trend that hasn’t deviated much over the years. The retail titan routinely brings in more than $160 billion in quarterly revenue. To add to the excitement, Walmart recently achieved Dividend King status with its 50th straight year of dividend growth.

Best Dividend Stocks for Retirement

Who wouldn’t benefit from some passive income during their golden years? These top dividend stocks provide just that.

Realty Income Corporation (NYSE: O)

Realty Income’s dividend history is hard to beat, with 640 consecutive shareholder payouts. It has increased its dividend 122 times since its IPO in 1994 and remains dedicated to continuing this trend.

The team takes dividends so seriously that they’ve trademarked “The Monthly Dividend Company” name. This means retirees enjoy monthly income from holding shares of O stock instead of typical quarterly or annual funds. Current yields sit at a healthy 5.62%.

As a real estate investment trust (REIT), Realty Income owns and manages over 13,250 properties in the United States, Spain, Italy, Ireland, and the United Kingdom. The company leases buildings to more than 1,300 clients across 85 industries.

Clientele primarily represents long-term commercial operations such as grocery stores, restaurants, and service-based businesses. The cash flow from these rentals supports Realty Income’s incredible dividend streak.

Share prices are nothing to laugh at, seeing over 500% overall growth from its time going public. The REIT’s most recent dip comes after an acquisition announcement that should help the company grow long-term.

Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson began in the late 1800s after three brothers discovered an overwhelming need for safe surgical equipment. It was the first to introduce sterile sutures, gauze, and other products that significantly reduced infection and disease postoperatively.

It’s no surprise that Johnson & Johnson remains on the cutting edge of medicine with multiple lines of healthcare, safety, and baby products. The company also makes hundreds of prescription and over-the-counter medications. There’s a good chance you use one of their products every day without even realizing it.

The company’s MedTech division is continuously innovating new devices and equipment. Focus areas include orthopedics, surgery, and vision.

Like Walmart, JNJ is a dividend king with a 61-year increase streak. Its current yield is 3.06%, which we can only expect to increase with time.

Johnson & Johnson’s long history makes it an excellent retirement pick, even if fantastic dividends weren’t on the table. It keeps recording impressive revenue numbers and showcases products that are always in demand, no matter the state of the economy.

Exxon Mobil Corp (NYSE: XOM)

ExxonMobil is an oil and natural gas provider striving to meet the ever-increasing demand for energy. More than 62,000 employees in 60 countries make up the team working to meet this goal.

The company has come far from humble beginnings as a kerosene manufacturer nearly 150 years ago. Its products have been used extensively during the last century and a half to help achieve milestones like the first transatlantic flight.

While petroleum is a major source of revenue, ExxonMobil’s chemical products and industrial solutions offer a nice supplement. A steady eye on alternative fuel sources and material innovations looks to keep the company’s momentum strong.

These sectors have contributed to gross profit numbers of $100 billion over the last two years. Of that income, roughly 35% is free cash flow.

It’s no surprise to see ExxonMobil paying out and increasing its dividend faithfully for the last 41 years. Owning shares right now nets you a 3.80% yield. We’re optimistic these dividends will keep increasing thanks to ExxonMobil's continued success.

Best Growth Stocks for Retirement 

Long-term growth strategies fit perfectly into any retirement portfolio. These are the ones we have our eyes on now.

UnitedHealth Group Inc (NYSE: UNH)

United Healthcare is one of the largest providers of health insurance coverage in the United States. It currently covers 152 million individuals with a network representing 1.3 million physicians and 6,700 facilities.

The company’s reach extends far beyond our borders. Services are available for Americans overseas and people living in Europe and South America. Such an extensive network is only possible due to United Healthcare’s dedication to healthy individuals over the last 45 years.

UNH isn’t afraid to make strategic acquisitions to grow its footprint further. A number of these have come in recent years.

These moves and a solid member base lead to higher-than-expected revenue and earnings year after year. We don’t see any sign of this trend stopping soon, leaving room for more growth. To top off an impressive resume, UnitedHealth Group pays a quarterly dividend yield of 1.38%.

NVIDIA Corp (NASDAQ: NVDA)

You may know NVIDIA for its graphical processing units (GPUs) that vastly dominate the personal computing space. The company also works in automotive design, simulation, and high-performance applications. Any one of these niches could paint NVIDIA a bright future. Its foray into artificial intelligence earns it a spot on this list.

NVIDIA has a firm grasp on the microchip technology essential for artificial intelligence (AI) to function. The engineers behind the technology are hard at work making the most advanced chips and systems to keep up with demand. No one else has come anywhere near this milestone.

NVIDIA’s growth prospects are off the charts as a result. There’s no telling how big AI can get with its potential in almost every industry.

Share prices are already high from the chip manufacturer’s momentum, but we’d argue there’s plenty of upside ahead. Grabbing shares now could pay off when you’re ready to cash in.

How Long Should You Hold Stocks for Retirement?

The best approach when looking into stocks for retirement is to think long-term. Generally, holding these types of stocks for at least five to ten years or more is recommended.

This longer timeframe helps you ride out the natural ups and downs of the stock market. The best retirement stocks tend to grow despite short-term market fluctuations. Holding your investments for an extended period allows you to benefit from potential market growth and reduce the impact of market downturns.

It's essential to periodically review your investments and make adjustments as you near retirement to ensure they match your goals. Consulting a financial advisor can provide personalized guidance tailored to your retirement plans.