In this article, we discuss the 5 best stocks for retirement. If you want to read our detailed analysis of retirement stocks and go directly and see Retirement Stock Portfolio: 10 Safe Tech Stocks To Consider.
5. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Cisco Systems, Inc. (NASDAQ:CSCO) ranks fifth on our list of the best stocks for retirement. An American multinational technology company reported solid fiscal Q4 results, with EPS beating the market estimates by $0.01 at $0.84. Cisco Systems, Inc. (NASDAQ:CSCO) reported revenue of $13.13 billion, showcasing an 8.1% year-over-year growth.
Since the beginning of the year, Cisco Systems, Inc. (NASDAQ:CSCO) delivered a 26.9% return to shareholders, while the stock gained 39.9% in the past year. Over the years, the stock has generated profitable results, soaring by 84.9% in the past five years. Cisco Systems, Inc. (NASDAQ:CSCO) pays an annual dividend of $1.48 per share, yielding 2.65%. The company has increased its dividend by 26.55% in the past three years, with its dividend payout ratio of 51.2%.
In September, Fahad Najam of MKM Partners raised the firm’s price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $69, while keeping a Buy rating on the shares. As of Q2, 60 hedge funds are reported having stakes in the company, up from 59 in the previous quarter. The total value of these stakes is over $4.2 billion.
ClearBridge Investments mentioned Cisco Systems, Inc. (NASDAQ:CSCO) in its Q1 2021 investor letter. Here is what the firm has to say:
“Also in IT, we added Cisco Systems, which provides IT and networking services in the form of network security, software development and cloud computing. Cisco continues to derive over 50% of its sales from on-premise deployments of its products of enterprise and small and midsize customers, while recurring revenues from software are becoming a larger part of the mix. Return-to-office enterprise spending should offer upside to its core campus business. Cisco was an early technology leader in sustainability over two decades ago, through its Internet-connecting capabilities which supported live concerts in partnership with the United Nations Development Program to raise awareness and funds to fight poverty. Cisco has very strong environmental standards (including driving lower energy consumption in IT departments through new product innovations and a longstanding goal to reduce emissions and reliance on non-renewable energy sources). Its data privacy and supply chain management policies are best in class.”
4. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 72
On October 13, QUALCOMM Incorporated (NASDAQ:QCOM), an American multinational company announced a quarterly dividend of $0.68 per share, yielding 2.21%. The company has grown its dividend by 14.7% in the past 3 years. QUALCOMM Incorporated (NASDAQ:QCOM) ranks fourth on our list of the best stocks for retirement.
This September, Tigress Financial lifted its price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $195, with a Buy rating on the shares. The firm’s analyst noted that the company will benefit from the raised smartphone demand in the coming quarters. QUALCOMM Incorporated (NASDAQ:QCOM) gained 95.7% in the past five years.
In fiscal Q3 2021, QUALCOMM Incorporated (NASDAQ:QCOM) posted an EPS of $1.92, beating the estimates by $0.24. The company’s revenue stood at $8.06 billion, up 64.5% from the prior-year quarter. As of Q2 2021, 72 hedge funds were bullish on QUALCOMM Incorporated (NASDAQ:QCOM), compared with 73 in the previous quarter. The total value of these stakes is over $4.04 billion.
ClearBridge Investments mentioned QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2021 investor letter. Here is what the firm has to say:
“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Though Intel Corporation (NASDAQ:INTC) is considered as one of the pioneer semiconductor companies, its reputation has been targeted recently due to the global chip shortage. To overcome the loss, the company has decided to cut the prices of its GPUs to drive more customers. However, the quarterly earnings of Intel Corporation (NASDAQ:INTC) remained intact as the company posted an EPS of $1.28 in Q2, beating the market consensus by $0.19.
Intel Corporation (NASDAQ:INTC) pays an annual dividend of $1.39 per share, yielding 2.58%. The company has a track record of four years of consistent dividend growth, with a dividend payout ratio of 26.2%. Ken Fisher’s Fisher Asset Management is the company’s leading shareholder, with shares worth $1.7 billion. In addition to this, 78 hedge funds tracked by Insider Money reported having stakes in Intel Corporation (NASDAQ:INTC) in Q2 2021, compared with 83 in the previous quarter. The value of these stakes is $6.76 billion.
Alger, an investment management firm, mentioned Intel Corporation (NASDAQ:INTC) in its Q1 2021 investor letter. Here is what the firm has to say:
“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL), a multinational technology company, recently came under hot water as it announced to cut its production targets for its most anticipated iPhone 13, due to the global chip shortage. However, Wall Street presented a positive outlook for the company. Recently, Citigroup lifted its price target on Apple Inc. (NASDAQ:AAPL) to $170, while keeping a Buy rating on the shares. The firm’s analyst appreciated the company’s solid cash flow generation, despite experiencing supply chain troubles.
Apple Inc. (NASDAQ:AAPL) gained 388.6% in the past five years, showing stable returns for shareholders. The company pays an annual dividend of $0.88 per share, yielding 0.61%.
Of the 873 elite funds tracked by Insider Monkey, 138 hedge funds are reported having stakes in Apple Inc. (NASDAQ:AAPL) in Q2 2021, valued at $145.5 billion. This shows that the hedge fund sentiment remained positive for the stock, as 127 hedge funds had positions in the company in the previous quarter.
ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) tops our list of the best stocks for retirement. On September 30, the tech giant announced to expand its Xbox cloud gaming service to Australia, Japan, Brazil, and Mexico. The Xbox Game Pass Titles will be accessible through the respective country’s supported devices.
In October, Morgan Stanley lifted its price target on Microsoft Corporation (NASDAQ:MSFT) to $331, while maintaining an Overweight rating on the shares. The firm’s analyst appreciated the company’s new developments in its new segments, Public Cloud and Collaboration and Robotic Process Automation and Task Management. In the past year, Microsoft Corporation (NASDAQ:MSFT) delivered a 37.8% return to shareholders, while the stock gained 407.4% in the past 5 years.
Microsoft Corporation (NASDAQ:MSFT) pays an annual dividend of $2.24 per share, yielding 0.74%. The company has increased its dividend by 31.45% in the past three years. As of Q2 2021, 238 hedge funds tracked by Insider Monkey have positions in Microsoft Corporation (NASDAQ:MSFT), compared with 251 in the previous quarter. The total value of these stakes is $62.4 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
You can also take a look at 10 Monthly Dividend Stocks To Breeze Through Your Retirement and 10 Dividend Stocks for the Small-Cap Investor
