The 7 Best Retirement Stocks to Buy After Age 50

The best retirement stocks to buy after age 50 are those that can provide steady income streams. Generally, that refers to strong stocks that provide steady growth, and may even include dividends along the way.

But given that the average 50-year-old in the U.S. can expect to live another 25 to 30 years, the calculus changes. Instead, it’s best if they’re more conservative. That’s because a loss for them is more difficult to recover than for a younger investor. Fortunately, there are plenty of highly respectable retirement stocks to choose from. 

BRK-B Berkshire Hathaway $268.09
LMT Lockheed Martin $391.08
ORI Old Republic International $21.09
DUK Duke Energy $96.09
KO Coca-Cola $56.11
AAPL Apple $142.20
DOC Physicians Realty Trust $14.72

Retirement Stocks: Berkshire Hathaway (BRK-B)

One of the best retirement stocks to buy after age 50 is Berkshire Hathaway (NYSE:BRK-B). Warren Buffett’s company seeks investments in companies that are priced lower than their intrinsic worth. In addition, his firm seeks investments in companies that are holistically strong rather than those that simply benefit from market dynamics. In other words, his long-term view yields long-term success. 

That is true based on the 10-year returns on BRK-B stock. Those returns have averaged 11.39% annually. That has far surpassed the average annual 6.01% returns of the New York Stock Exchange.

Here’s an interesting comparison that, at first blush, appears to make BRK-B stock less attractive: The Nasdaq has provided average annual returns of 13.1% over the last decade. That’s higher than the 11.39% from BRK-B. That would seem to suggest that simply investing in an index fund that tracks the Nasdaq is a better choice. However, the last decade has been an anomaly marked by easy money that has inordinately favored the tech-heavy Nasdaq index.

Stick with BRK-B as quantitative tightening continues. 

Lockheed Martin (LMT)

Lockheed Martin (NYSE:LMT) stock has had a strong year. While we remain in a bear market, LMT stock has persevered, with shares appreciating more than 19% year-to-date. 

That strong performance this year is likely to improve, as Russian President Vladimir Putin calls on 300,000 reservists to fight in Ukraine. That should serve as a strong catalyst for Lockheed Martin and other defense stocks. The deeper Putin digs his heels in, the higher defense stocks should rise. 

Retirement investors will appreciate that LMT comes with a dividend that hasn’t been reduced in more than two decades

Retirement Stocks: Old Republic International (ORI)

Old Republic International (NYSE:ORI) is a Chicago-based insurance company that offers real estate and property insurance, which is generally a steady business. That makes the ORI stock attractive to retirement investors who appreciate the staid nature of the business. 

With retirement investors looking for steady returns, this company’s metrics indicate that it should continue to fare well for them. ORI stock boasts a P/E ratio of 6.5x. That P/E ratio is better than 77% of industry peers. It also suggests value in a sector already known to house a plethora of value picks. Importantly, Old Republic isn’t deeply undervalued, which often suggests very weak demand. 

Old Republic Insurance saw its net income fall 4.8% in the most recent quarter. However, share prices continued to rise following the late July news. Now that market conditions have again soured, ORI has slipped. Investors should stay the course and remember that the firm’s 4.39% dividend yield is an attractive buffer in leaner times and a strong incentive in any market. 

Duke Energy (DUK)

Few stock classes are more stable than the utilities sector where Duke Energy (NYSE:DUK) can be found. That’s precisely the reason that utilities stocks often pop up on value and long-term investing lists. 

Over the last 10 years that stability has translated to an average annual return of 10.2% for DUK shares, far better than its index. Those strong returns also include a dividend that was recently increased to $1.005 from 98.5 cents. It should be noted that those 10.2% average annual returns do not include reinvestment of the firm’s dividends during that period. So, although Duke Energy is a clear dividend income pick, it also produces strong returns without them. 

For the most part, Duke Energy doesn’t surprise investors. That is reflected in EPS figures that have been very close to consensus figures over the last four quarters. If dependability is key, DUK is a great choice. The company reaffirmed its 2022 EPS guidance in its most recent earnings report. 

Retirement Stocks: Coca-Cola (KO)

Coca-Cola (NYSE:KO) is another one of the best retirement stocks to buy after age 50. It has recently come into sharper focus in 2022 as investors pivoted into value. 

There are lots of metrics that suggest Coca-Cola will continue to produce strong returns. Yes, it includes a well-known dividend that hasn’t been reduced since 1963. So, it will almost certainly continue to provide income for investors in that form. But I’m more interested in the fact that Coca-Cola as a company invests well. The company’s weighted average cost of capital is 6.79% today. Its return on invested capital is 13.29%. In other words, Coca-Cola has a strong track record of taking a dollar and turning it into much more than a dollar. 

Apple (AAPL)

Apple (NASDAQ:AAPL) stock constitutes the bulk of Warren Buffett’s portfolio. It accounts for 40% of his stock holdings with Bank of America (NYSE:BAC) next closest, at 14%. 

That should tell investors something about Apple’s investment worthiness as a tech stock. While tech has suffered mightily in 2022, Apple has fared well. In addition, it isn’t a tech company that depends on loose monetary policy to keep its share prices afloat. Warren Buffett clearly perceives AAPL shares to represent holistic value. Apple’s resilience proves it as quantitative policy tightens.

For 50-year-old retirees or those approaching retirement, AAPL shares make sense. The stock is steady relative to other tech stocks, but provide strong growth potential. We very well may be at the dawn of a new era in which Fed policy stifles tech stocks. However, even if that‘s true Apple looks like a strong bet. 

Retirement Stocks: Physician’s Realty Trust (DOC)

Physician’s Realty Trust (NYSE:DOC) stock presents an interesting conundrum. On the one hand, the company is heavily invested in a real estate market that shows signs of bursting soon. On the other hand, the company solely invests in healthcare real estate properties. So, given that healthcare is one of the industries with relatively inelastic demand, DOC stock is a real estate investment that appears quite safe. 

Retirement investors will appreciate that DOC stock has upside built into share prices based on simple target prices. Those figures suggest 21.87% upside from current prices. 

In the most recent quarter, Physician’s Realty Trust reported revenues that increased from $80.57 million to $91.89 million. It is clear that the firm is in a growth phase. That said, net income declined by $700k in the quarter as rising costs translate into operating expenses that jumped by 33%. 

As things normalize over the next several quarters those expenses should decline. In turn, DOC share prices should rise and investors who buy in now get the benefit of a dividend that yields 5.95%. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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