I have personally come up with a theme for this year and that is, “Opposites Attract.” This simply suggests that the list of stocks I’m about to give you might not really have anything in common with each other, but are well placed to earn you a good income and also attract growth for your retirement portfolio.
Different from the previous years, you will not find any flock of Dividend Aristocrats nor a group of only blue-chip behemoths. Instead, you will get a melting pot of names that are not famous and may not actually be the highest yielders or even have a lengthy history of dividend increases compared to the well-known names. However, if you are keen, you’ll notice some vital trends that actually add value. We see some important trends to these names which investors can use as snippets particularly when discussing their portfolio with others. Good examples of such trends include:
- Water is important for human survival
- Affordable medical care is a vitality in the lives of retirees
- China has a tremendously huge population
Generally, we do have a feeling that these names offer a long-term opportunity for both income and growth.
Medtronic plc. Ordinary Shares (NYSE:MDT)
My first pick this year is actually Medtronic (MDT). There no doubt that MDT is among the largest medical device makers that have designed and manufacture devices like defibrillators, pacemakers, stents, heart valves, and also insulin pumps. With a staggering number of people reaching retirement age every day (about 10,000), our society is quickly aging and of course it comes with numerous health challenges that MDT can certainly fix. So, do you see what I mean? More retirees simply means there will be more medical procedures and in turn enormous profits for the companies like MDT.
American Water Works Company Inc (NYSE:AWK)
Water has always been referred to as Blue Gold and this simply because of the important role it plays in human life. So, the question is, why not tap into a stable utility company with a proven steady for growth? Serving roughly three million customers, American Water works provides not only water but wastewater services to industrial, commercial, and residential customers, mostly in markets that are regulated. Whilst these markets can be seen as a huge risk by some, it also offers a stable flow of revenue which is certainly good for current income. If interested, you can also check out Aqua America (WTR) for more exposure.
Gilead Sciences, Inc. (NASDAQ:GILD)
For a couple of years now, I’ve been a big fan of Gilead and even rooting for them. We all know that people are today living longer and a significant part of that translates to developing necessary treatments for life-threatening diseases, mostly those that are infectious. In the past, GILD was only known for its focus on hepatitis B and C and HIV; but today they have expanded and have a greater niche allowing them focus on cardiovascular and cancer. Whilst it is one of the lower yielders, there is a general feel that it has the most room for growth.
The Author does not own any of the stocks discussed in the article.