Preserving capital and generating regular income are two tasks that retirement calls for. Whether you’re buying in 2019 or in the future years, the best retirement stocks to buy must be top dividend payers that can assist retirees in these two tasks.
The Sectors to Watch
There’s a lot of uncertainty going on in the markets. That said, it’s important that retirees look into investing at defensive sectors, such as healthcare.
The last 10 years has been excellent for this sector in part because of the aging population and the rise of health-conscious individuals. Traditionally, health care is a defensive sector, but it’s undeniable that it benefits from higher earnings growth. In fact, the top performing sector in 2018 is healthcare.
In order to find companies that offer the right price, focus less on high-growth areas and look into companies that don’t exactly showcase impressive numbers.
Business development companies (BDC) are expected to perform well in the coming years. These businesses typically invest in small- and medium-size companies with direct equity investments or preferred status.
The Federal Reserve is increasing interest rates, but BDCs are expected to shine this year and in the future. The more interest rates increase, the BDCs are able to expand and make more money.
Like healthcare, industrials is also a defensive sector, which has a lot of room for opportunities this year. Given the volatility of the market and the current economic uncertainty, retirees may want to stay away from natural resource companies — they should look into waste management instead.
Waste management companies offer recycling centers, pollution control, and other environmental services — all of which are much needed in the current state of the environment. It’s not a glamorous sector at all, but investors may hit it big here this year.
Technology has always been an interesting and one attractive sector to consider. However, there is a recent stock market sell-off that has affected this sector seriously, especially big names the likes of Apple. Technology and telecommunication stocks have also taken a hit, but there’s a wiggle room to this the technology sector.
Technology is one eclectic sector and it has numerous companies that may not be as popular as Apple but still shows promise. Investors ought to be better served by these little companies in technology particularly those involved in payroll, credit card processing, and software creation and design.