Sunday, February 25, 2024
Stocks To Buy

3 Retirement Stocks to Buy and Hold Forever: January 2024

Retirement stocks, often considered the bedrock of a secure financial future, are always relevant for those seeking a stable and reliable income stream as they plan for their golden years. Characterized by their resilience in market volatility, these stocks represent companies with robust balance sheets and a proven track record of performance, even during economic downturns.

Transitioning to a retirement portfolio isn’t just about high dividends, it’s a meticulous selection of firms with unshakable balance sheets and a vision for enduring success. This approach prioritizes long-term growth over short-term gains, ensuring a strong portfolio to withstand market storms. Amidst global crises like geopolitical tensions and extreme weather events, this strategy safeguards financial security.

With incredibly low interest rates, the last two decades have been an exceptional period for the stock market, buoyed by various global events. Throughout that timeframe, these three retirement stocks have demonstrated remarkable resilience. They stand as a testament to the enduring strength of well-chosen investments, making them an indispensable part of a retirement plan.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) stands as a colossus in tech, boasting an 80% stronghold in the PC software market. The launch of Copilot in the Microsoft 365 suite marks a significant stride in artificial intelligence (AI), likely to add new chapters to its already illustrious growth story. This innovation positions Microsoft advantageously, especially if the PC market experiences the resurgence analysts predict.

Microsoft’s latest financials radiate strength with a stellar $56.5 billion in revenue, marking a 13% year-over-year (YOY) increase. This growth primarily springs from the Microsoft Cloud, with the Intelligent Cloud segment alone witnessing a 19% revenue boost. Moreover, Microsoft’s gaming prowess shines, with a revenue of over $15 billion in 2023 in a market growing at a 9.3% compound annual growth rate (CAGR) through 2029. That figure is expected to soar to $20 billion following the Activision Blizzard acquisition.

Outshining Apple (NASDAQ:AAPL), Microsoft ascended as the top public firm recently, with TipRanks rating it a “strong buy” with a promising 9.25% upside, affirming its value as one of the strongest retirement stocks.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) has significantly disrupted the central processing unit (CPU) market. AMD’s 2023 launch of the MI300x graphics processing unit (GPU) chipset marks a bold entry into the AI chip race, directly competing with Nvidia’s (NASDAQ:NVDA) renowned A100 and H100 chips. This audacious move has attracted heavyweights such as Meta Platforms (NASDAQ:META) and Microsoft, eagerly embracing AMD’s groundbreaking chips.

Moreover, it posted a 4.1% YOY revenue bump to $5.8 billion in the recent quarter, powered by a remarkable 42% surge in client segment revenue. For the fourth quarter of 2023, AMD anticipates around $6.1 billion in revenue, marking a striking 9% yearly increase and a solid 5% sequential growth at the midpoint.

AMD’s stock has witnessed a remarkable ascent, surging an astonishing 120% in the past year. This surge is attributed to the company’s innovative products, such as the Versal AI Edge XA system-on-chip (SoC) and Ryzen Embedded V2000A processors, strategically positioning AMD to capitalize on the burgeoning automotive industry.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) has reinvigorated its business post-pandemic, demonstrating resilience and innovation. Additionally, the company recently launched a new AI tool designed to enhance customer experience by providing summarized answers from product reviews and listings. This advancement solidifies Amazon’s position as a blue-chip investment, combining technological innovation with consumer-centric strategies.

Financially, Amazon’s third quarter of 2023 outperformed expectations with an earnings per share (EPS) of 94 cents, surpassing the consensus of 60 cents. This period also saw a significant pre-tax valuation gain of $1.2 billion from its investment in Rivian Automotive. Additionally, a 12.6% YOY increase in revenue, totaling $143.1 billion, further reinforces Amazon’s robust financial health.

Looking forward, Amazon is not resting on its laurels. The company is making strides in AI with its chatbot Q, and enhancing its Prime Video platform by hiring a Walt Disney veteran for its advertising strategy. Amazon’s focus on machine learning for business applications underscores its commitment to remaining at the forefront of technological advancements.

On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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