Value stocks with a relatively high dividend yield and a moderate growth rate can be classified as retirement stocks. These stocks ensure a steady flow of income for senior citizens. That is extremely important during times of uncertainty and high inflation.
Here is a list of three retirement stock picks that comes to my mind right now. They are a must have in your portfolio if you are thinking about stable returns. Let us have a look at each of them.
Ryman Hospitality Properties Inc (NYSE:RHP)
operates in the real estate industry and specializes in group oriented, destination hotel assets in both resort and urban markets. With a market capitalization of $1.8 billion, the company has a high dividend yield of 5.7% which is far better than the industry average of 1.36%. Being a real estate investment trust (REIT), Ryman Hospitality Properties Inc (NYSE:RHP) enjoys a preferential tax status and hence distributes a significant portion of its taxable income to shareholders. This suggests that the high dividend yield of Ryman Hospitality Properties Inc (NYSE:RHP) will continue in the future. The company’s quarterly gross profit margin is at 39%. If you are an income investor and wish to have a steady cash flow after retirement, look at this fact. The returns of Ryman Hospitality Properties Inc (NYSE:RHP) to investors from both price appreciation and dividend exceeds the S&P 500 index by a huge margin. Putting the same in figures, it is at 72% vis-à-vis the S&P’s 14%. One more favorable fact for Ryman Hospitality Properties Inc (NYSE:RHP) is that it has a low beta and is less volatile to the external market conditions. REIT funds are hot picks now which will propel Ryman Hospitality Properties Inc (NYSE:RHP)’s growth prospects. All these factors make Ryman a strong buy.
Cablevision Systems Corporation (NYSE:CVC)
is the fifth largest cable company in the US and operates as a media and telecommunication company. It has more than 3 million video customers and Internet subscribers. The company has been increasing its dividends since 2008 and currently has a yield of 4%. The earnings-per-share growth rate for the next two years is estimated at 22%, which is quite impressive if I compare it to the entertainment industry’s 13%. Despite the company’s fourth quarter 2012 revenue growth being low due to cable lines affected by hurricane Sandy, Cablevision Systems Corporation (NYSE:CVC)
has been successful in adding more net subscribers. Cablevision Systems Corporation (NYSE:CVC) increased the price
of its high-speed Internet service by $5 a month in early 2013 which will improve its margins. Data usage is set for a huge growth in the future, providing a thrust to Cablevision Systems Corporation (NYSE:CVC)’s growth. The stock can be bought cheaply at $15 and provides a great opportunity for retirees.