Dividend Stocks

Retiring Soon? 3 Safe Stocks to Protect Your Hard-Earned Wealth

You don’t have to give up growth or income when investing for retirement with these stalwarts

Retirement planning involves not just building wealth but also protecting it, making the case for the best safe retirement stocks to buy. Selecting the right stocks for your retirement portfolio is crucial to achieving these goals. 

Among various investment options, certain stocks stand out due to their ability to weather market volatility and provide reliable and stable returns. The companies can be characterized by their robust business models, strong cash flows and reliable dividend payments. Dividend-paying stocks can act as a buffer during market downturns, providing steady income while stock prices fluctuate. As we navigate through 2024, identifying these havens for your hard-earned wealth becomes paramount. 

Now, here are the top 3 safe retirement stocks to buy in 2024 and beyond!

Procter & Gamble (PG)

Source: Jonathan Weiss / Shutterstock.com

Procter & Gamble (NYSE:PG) is a consumer staples giant that has been a stalwart in the stock market for decades. Its vast portfolio of iconic brands and essentials makes it a defensive stock, providing stability in any macroeconomic environment. 

When investors consider the best safe retirement stocks to buy, Procter & Gamble should always be of consideration. Its recession-proof business model and global presence provide insulation against regional economic fluctuations. Additionally, the company’s continued focus on innovation and maintaining brand loyalty has been its specialty. When searching for safe stocks to own for the long haul, consistent dividend payments are always at the top of the list for investors. Procter & Gamble has increased its dividend for 68 consecutive years, further showcasing the strength and resilience of its business model. If you’re an up-and-coming retiree seeking steady cash flow, PG stock is a no-brainer buy in 2024.

PepsiCo (PEP)

Cans of PepsiCo's Pepsi soda are in a bucket of ice.

Source: suriyachan / Shutterstock.com

PepsiCo (NASDAQ:PEP), known for its leadership in the food and beverage industry, offers a compelling combination of stability and growth potential. Its diversified product portfolio across different categories provides a cushion against volatility in any single market.

PepsiCo’s brands are deeply ingrained in consumer culture, ensuring demand and pricing power. Some of its notable brands include its namesake Pepsi Cola but also Frito-Lay snacks, Gatorade, Quaker Oats and Aquafina. The stock has remained extremely stable over the last several decades and has continued to reward patient investors handsomely. Moreover, it can generate robust cash flow from operations driven by its diversification in domestic and emerging markets. In FY23, revenue increased 6% year-over-year (YOY) to $91.47 billion. Earnings per share rose a modest 2% to $6.56 per share. As of June 2024, PepsiCo’s 7% increase in its dividend payment will mark its 52nd consecutive annual increase. This makes PEP stock one of the top safe retirement stocks to buy and hold forever. 

Automatic Data Processing (ADP)

In this photo illustration the stock market information of Automatic Data Processing, Inc. displays on a smartphone with the logo of Automatic Data Processing, Inc. ADP stock.

Source: IgorGolovniov / Shutterstock

Automatic Data Processing (NASDAQ:ADP) is a titan in the human capital management space. Its services are essential, putting their products in high demand regardless of economic conditions. 

Automatic Data Processing holds a dominant position in the payroll and HR solutions market. It generates a significant portion of its revenue from recurring subscription fees for its services, providing a reliable income stream. This also makes the company’s cash flows more predictable, ensuring peace of mind even when the economy gets tough. In FY23, ADP delivered record revenue and earnings, boosted by strong execution and new business bookings growth. Moreover, its annual FCF increased to a record $4 billion. The company continues to invest in cutting-edge technology like artificial intelligence to strengthen its leadership. With ADP marking its 49th consecutive year of dividend increases in 2023, it remains one of the best safe retirement stocks to own for long term investors. 

On the date of publication, Terel Miles did not have (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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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