5 stocks for your retirement portfolio

If you're looking for wealth preservation, go for safe companies that pay a dividend and don't swing wildly when the market gets a little iffy.

By Benzinga May 14, 2014 8:40AM

Pedestrians walk by an AT&T store in Times Square on February 21, 2013 in New York City (© Ben Hider/Getty Images)By Tim Parker


A lot has been written about filling a retirement portfolio before you retire, but what about when you're either already retired or close to it? 


What should that portfolio look like? In most cases, the word would be "safe."


You're past the days of taking big risks trying to accumulate wealth -- now, your wealth is going to pay you. With that in mind, we put together a list of stocks that might do well for wealth preservation.


It's time to think like Warren Buffett -- we want safe companies that pay a dividend and don’t swing wildly when the market gets a little iffy.


AstraZeneca (AZN)

Sure, AstraZeneca is in the middle of some M&A drama, but let's assume that the company isn't acquired by Pfizer (PFE). As long as people are still getting sick, health care will remain a good place to park your post-retirement dollars. The stock pays a 4.9 percent dividend and has a beta of 0.5.

If the merger doesn't happen, the stock price will drop, so wait until a resolution to buy. If the acquisition takes place, Pfizer is worth your research time as well.


Anheuser-Busch InBev (BUD)

Over the past five years, the stock is up more than 183 percent and pays a 3.6 percent dividend.


Duke Energy (DUK)

Nothing says boring like a utility stock, but boring is perfect for a retirement portfolio. Duke Energy pays a 4.3 percent dividend and has an ultra low beta of 0.26. The stock is up about 78 percent in the past five years.


General Mills (GIS)

Do you like cereal? So does everybody else.


General Mills is one of those names that receives next to no mention on the financial media networks but should: It pays a 3 percent dividend and has a beta of 0.13. It's up 100 percent in the past five years. Can't get much safer than that without going to fixed income.


AT&T (T)

AT&T and competitor Verizon (VZ) have been longtime favorites for retirement portfolios. AT&T pays a 5 percent dividend, and while recent chart action is no indication, over time, the stock has been quite stable. It's only up about 50 percent in the past five years but some would say that the lag could trigger a rally.


Of course, this list is only to get research started. There are many more names that fit this criteria. And while these are names for a post-retirement portfolio, they have value in other situations too. For example, they're good to have in mind for when the market turns sour.


Disclosure: At the time of this writing, Tim Parker had no position in the companies mentioned.


More from Benzinga

18Comments
May 15, 2014 7:10AM
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AT&T pays a nice dividend, but I'd wait to buy this stock. I own 1/3 as many shares as I owned 15 years ago thanks to Michael Armstrong then CEO who hocked the company to the tune of $100 billion dollars by buying fiber optic companies etc during his buying frenzy. When the company tanked, they did a reverse split of 1 for 3. Now there is talk that they are buying a company for $50 billion - do I hear another price drop and possibly reverse split?  If the yield is still good after they complete a takeover, I might buy more. Better still - no takeover, less financial stress and conduct business as usual.
May 14, 2014 11:09AM
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AZN - trading near all-time highs, not a good time to buy

BUD - up 180% in 5 years, is there any room left to run?

DUK - not a bad pick

GIS - again, trading near all-time highs, 100% gain in last 5 years, does it have any legs left?

T - I won't do business with them so there's no way I'm owning their stock

VZ - not a bad pick


May 14, 2014 4:03PM
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Sold Duke and bought PPL

sold Verizon for ATT

like General Mills

have held Altria (Mo) for a long time and it has done very well

PSEC pays a nice dividend but might keep you awake at night.

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I'm not going to take issue with any of the choices; I'd just be hesistant to try picking individual stocks for my retirement portfolio. A think mutual funds would be a wiser, safer decision. Target-Date or LifeStrategy funds would be good place to start. And don't pay loads; go to Vanguard or TRPrice for no-load funds.
May 15, 2014 2:55PM
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Nows the time to scoop them up fools.
May 15, 2014 4:27PM
May 15, 2014 1:49PM
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Like we said this morning, their goal is to bring us down 200+ in the Dow and they are doing it, we had no doubts whatsoever they would; sadly still over 2 hours to go so they can keep dropping us. Between yesterday and today these scumbags have made more money than they did the last 2 weeks....Oh well, manipulating is allowed down here...Remain on the sidelines, we don't think these mofos are done yet...More after the close.
May 15, 2014 11:13AM
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At 1105 hrs they started to accelerate even more, do not be shocked at all if we have a 200+ down day in the Dow, that is what these scumbags are shooting for....Things looking gloom down here today....Cheating mofos in charge of it all....We will never give up though...More later.
May 15, 2014 10:12AM
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We call it as we see it folks and we warned yesterday after the close to be cautious today, the word was that these manipulators were going to come out with swords drawn doing their thing early and often and that is exactly what they did this morning as soon as the bell rang....They have complete and absolute control on and off the floor....Apparently, unless a miracle happens, will be a day to forget, the sidelines is the best place to be.....Be very very careful.....Cheating still pays on Wall Street sadly...More later.
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