Defining millennials as those born between 1981 and 1996, when considering retirement investment stocks, we must focus on companies that are projected to have longevity over the next two or three decades.
Millennials, being a generation unique from both their Gen-X and Boomer predecessors as well as from Gen-Z, require a particular approach to investing. However, the principle that applies universally is the importance of choosing stocks that will significantly contribute to your wealth. This implies examining dividend-paying stocks to maximize the benefits of compounding, which, akin to texting, thrives on efficiency.
However, the need for growth should not be dismissed. As retirement for millennials is still about 20 or more years away, there is abundant time to develop a substantial nest egg, even for those who may be late bloomers in the realm of financial planning. Moreover, several outstanding growth stocks are anticipated to continue their upward trajectory far into the future.
Historical performance, of course, cannot completely dictate future performance. During the past two decades, the majority of stocks benefitted from extremely low interest rates. But, the economy has also encountered numerous wars and financial crises during this period. Even so, many stocks have demonstrated resilience, making them appealing options for millennial investors planning for a stable retirement.
One such firm is Archer-Daniels-Midland (NYSE:ADM), whose mission is to provide nutrition to the world by converting natural ingredients into human and animal nutrition. While the business model may not be glamorous, it is profitable. As a leader in sustainability, Archer-Daniels-Midland is in line with the millennial generation’s increasing interest in understanding the source of their food. The agricultural biostimulant, NeoVita 43, recently launched by the company to boost corn yields, is a significant step towards enhancing food security and promoting sustainable agriculture.
Over the past 20 years, the ADM stock price has seen an impressive increase of approximately 405%. Coupled with the fact that ADM has consistently paid a dividend each year, this makes it an attractive option for millennial investors.
Microsoft (NASDAQ:MSFT) should undoubtedly be considered when considering retirement stocks for millennials. Having an established lead in artificial intelligence (AI) with its investment in OpenAI, which created ChatGPT, Microsoft is a frontrunner in the tech sector. The investment made by Microsoft in generative AI clearly reflects in the launch of the Microsoft Copilot 365 AI tool.
In the past two decades, MSFT stock has skyrocketed over 1,300%. Owing to its 22 consecutive years of dividend growth, Microsoft is nearing the status of a dividend aristocrat, an honor given to companies with a minimum of 25 consecutive years of dividend growth.
Costco (NASDAQ:COST) also offers a robust case for inclusion in millennials’ retirement portfolios. The math is simple; it generates revenue now and will continue to do so in the future. Trading over $500 a share, COST might take some time to buy into, but with comparable store sales continually rising, increasing revenue, and consistent 20-year dividend growth, it represents an appealing balance of price and value.
Aware of the current state of the housing market, millennials should also consider Lowe’s (NYSE:LOW) as a viable choice for their retirement portfolio. Over the past two decades, the LOW stock price has amplified by offering more than 560% growth.
The crucial role of dividends is demonstrated by Lowe’s, which has a record of enhancing dividends for 51 consecutive years. This consistent necessity ensures a steady revenue stream.
Welltower (NYSE:WELL), a real estate investment trust (REIT) specializing in healthcare properties, particularly those designed for long-term care is another promising consideration.
Two final stocks for consideration, Lululemon Athletica (NASDAQ:LULU) and Chewy (NYSE:CHWY), while not currently paying dividends, offer potential for rapid growth and merit inclusion in your retirement portfolio.
With millennials tending to have fewer children and often treating pets as family members, Chewy, an online retailer of pet supplies, holds potential for significant long-term growth. Despite recent declines in its stock price, the firm’s determination to expand into fields such as telemedicine and prescription products bodes well for its future.
These seven stocks demonstrate resilience, growth potential, and solid dividend history or the promise of one in the future, making them must-owns for millennial investors planning their retirement portfolios.
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