Retirement may seem far off for many new investors, but it’s never too early to start planning for the future. With that in mind, here are three retirement stocks every new investor should consider adding to their portfolio.
First on the list is Meta Platforms (NASDAQ:META), the social media giant formerly known as Facebook. As the company continues to dominate the tech industry and expand into innovative sectors like virtual reality and augmented reality, it’s a solid investment choice.
There is a belief that the prominence of Meta Platforms will continue to rise. Its investments in areas such as virtual reality and augmented reality should yield positive outcomes. Moreover, the possible introduction of a dividend could be a gamechanger for investors, with analysts rating META stock a consensus strong buy.
Next up is H&R Block (NYSE:HRB), a tax consultancy firm that may not seem like the most exciting investment, but its relevance is set to increase with the growth of the gig economy. According to projections, the gig economy’s market value could reach $455.2 billion by 2023 and expand to $918.94 billion by 2028, representing a compound annual growth rate (CAGR) of 14.22%.
The growth in the gig economy implies a sizable leap in complexity and filing requirements, potentially boosting demand for tax consultancy services. Analysts rate H&R Block as a hold with a $55 price target, but its forward relevance and dividend yield make it an attractive option for new investors.
Lastly, consider adding IBM (NYSE:IBM) to your retirement portfolio. The aging tech giant recently celebrated its 100th birthday, and though it may not seem like the most enticing investment, it’s time for a rethink. IBM stock has been on a surprisingly robust run, with shares gaining almost 15% of market value since the beginning of the year and nearly 45% in the trailing one-year period.
As the company continues to innovate and pioneer trends in digital intelligence, it’s well-positioned for future growth. Practical applications arising from the enterprise are expected to increase in the future.
In conclusion, Meta Platforms, H&R Block, and IBM are three retirement stocks that new investors should consider adding to their portfolios. As these companies continue to grow and adapt to changing markets, they offer long-term potential for investors looking to secure their financial future.
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