Selecting an ideal retirement stock is complex due to factors like tax structure, age, risk tolerance, and preferences. Diversified portfolios across industries with strong past performance and future potential are key. Dividends offer income and growth through reinvestment. Adjusting portfolios over time is common, but these three retirement stocks are suitable for a long-term strategy. Investing your money now could provide retirement security.
Devon Energy (DVN)
Despite potential risks from the Federal Reserve’s policy, Devon Energy (NYSE:DVN) holds promise as a high-yield dividend stock. While the energy sector faces challenges, Devon Energy remains a strong long-term investment. Despite recent share declines, the shift towards social normalization, such as the return to offices, could positively impact traffic volumes. This could benefit DVN and other hydrocarbon companies.
Devon Energy achieved record Q2 oil production at 323,000 barrels per day, with projections for Q3 reaching up to 330,000 barrels per day. The company’s stock buybacks, totaling 3.8 million shares in Q2 and 39.6 million shares since late 2021, also contributed to increased shareholder value.
Devon retired $242 million in debt after Q2, leading to a net debt-to-EBITDA ratio of 0.7-times. With a stronger balance sheet, Devon’s dividend yield is approximately 4.6%. The absence of a predicted U.S. recession by the Federal Reserve is expected to support oil and gas demand. Devon’s CEO foresees a positive outlook for 2024. The company focuses on maintaining steady activity and leveraging reduced costs to enhance free cash flow and shareholder returns.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) offers a 2.8% dividend yield. I grew optimistic about QSR stock in late 2022 due to its restaurant popularity, especially after hiring Patrick Doyle from Domino’s Pizza (NYSE:DPZ).
QSR’s strong performance continued, with a 9.7% revenue increase in Q1 compared to the previous year, along with a 10% rise in global comparable sales. Additionally, its adjusted EBITDA rose by 15.6% to $588 million.
Restaurant Brands offers the opportunity to enhance a growth investment approach, providing not only share price appreciation but also increasing dividends while demonstrating dedication to communities and environmental responsibility. Those seeking exposure to global markets and the fast-food sector can find significant potential in this company, particularly in the long run as expansion efforts and operational improvements yield results. For those looking to add to their retirement stocks, QSR is a promising one to consider.
Berkshire Hathaway (BRK-A, BRK-B)
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), often overlooked as a Warren Buffett stock pick, represents his diversified holdings. Investors seeking to mirror Buffett’s choices can do so with the more affordable B-class shares. Berkshire actively buys back its shares, with $4.4 billion repurchased in Q1. Previously limited, buybacks now occur below intrinsic value, bolstered by over $25 billion in cash reserves.
In Q1 2023, Class B’s total revenue surged by 20.5% year-over-year to $85.39 billion. The Insurance and Other segment revenue grew by 7.8% YOY to $63.46 billion. Earnings before income taxes jumped by 543.3% YOY to $44.06 billion. Net earnings for Class B shareholders increased by 536.3% YOY to $35.50 billion.
Purchasing Berkshire stock carries risk due to Buffett’s age, 92. While he has a capable team, his expertise is unmatched. However, investing could be valuable to benefit from his wisdom while gaining access to his stock picks. You won’t want to miss out on adding this one to your retirement stocks.
On the date of publication, Chris MacDonald has a position in QSR, BRK-B. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
