The 3 Best Retirement Stocks to Buy in July 2024

Core Insights - The article emphasizes the importance of preparing for retirement stocks, especially in light of recent economic disruptions caused by Covid-19, meme stocks, and interest rate hikes [1][2]. Group 1: Retirement Stock Considerations - Investors are encouraged to focus on dividend-paying companies with a history of rising returns, as these stocks have historically outperformed non-dividend payers [3]. - From 1972 to 2019, S&P 500 dividend-paying equities yielded 10.19% returns compared to 4.27% for nonpayers, indicating a strong preference for dividend growers [3]. - Dividend-paying equities exhibit lower volatility, with a beta of 0.89 and a standard deviation of 16.15%, making them a safer investment choice [3]. Group 2: Federal Realty Investment Trust (FRT) - FRT reported disappointing first-quarter 2024 funds from operations of $1.64 per share, impacting market sentiment [6]. - As a real estate investment trust, FRT must distribute 90% of taxable revenue to shareholders and has maintained a 56-year streak of dividend increases with a quarterly cash payout of $1.09 per share [7]. - FRT is investing in growth initiatives, including a $90-$95 million refurbishment project in Bala Cynwyd, expected to yield a 7% return on investment [8]. Group 3: Walmart (WMT) - Walmart has outperformed 99.67% of retail-defensive companies, consistently generating profits over the last decade [9]. - The company holds a "strong buy" rating with a potential upside of over 8%, based on a target price of $73.85 [13]. - Walmart's Q1 FY2025 sales reached $161.5 billion, exceeding expert projections, with an EPS of $1.34 [20]. Group 4: AT&T (T) - AT&T offers an industry-leading yield of 5.8% and has a potential upside of around 17%, reflecting its recovery from past merger challenges [15]. - The company reported revenue of $30.03 billion, slightly below projections, but achieved a 29.3% year-over-year increase in operational income [16]. - AT&T aims to generate at least $16 billion in free cash flow for the year and has successfully reduced its long-term debt from $230 billion to $132.8 billion [22][23].