Dividend Stocks

The Retirement Rainmakers: 3 Stocks Delivering Both Income and Growth

Generally speaking, retirement income stocks tend to be boring, predictable affairs for a reason. At this point, you don’t want to be rocking the boat. However, enterprises that are too boring can also be problematic because they may not be keeping pace with the times.

On that note, it may be more advantageous to consider compelling enterprises that bring a healthy mixture of growth and dividends. Here’s a rethink on the familiar narrative of retirement income stocks to buy.

Sysco (SYY)

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Based in Houston, Texas, Sysco (NYSE:SYY) falls under the food distribution industry. Through its subsidiaries, the company engages in the marketing and distribution of various food and related products. Its customers primarily are food service or companies listed under the broad food-away-from-home sector. Among 12 experts, four of them rate shares a “strong buy” while five rate them a “buy.”

In the trailing 12 months (TTM), Sysco posted net income of $2.08 billion on sales of $78.02 billion. On a per share basis, earnings comes out to $4.10. Presently, SYY represents one of the classic retirement income stocks, providing a dividend yield of 2.85%. Not only that, the payout ratio is quite reasonable at under 50%.

For fiscal 2024, analysts anticipate that earnings per share will reach $4.33 on revenue of $79.68 billion. Based on the current track record, it’s on pace to hit these figures. Notably, the most optimistic target calls for EPS of $4.55 on sales of $83.2 billion.

Thanks to its relevant and enduring business model, Sysco ranks among the retirement income stocks to buy.

Vipshop (VIPS)

Vipshop Holdings (VIPS) website displayed on a smartphone screen.

Source: madamF / Shutterstock.com

Based in China, Vipshop (NYSE:VIPS) falls under the Internet retail industry, specifically under the consumer discretionary subsector. Per its public profile, Vipshop operates online platforms in its home nation. Through the Vip.com website, the company offers various products, including athletic wear, sporting goods, shoes and bags, fashion accessories and children’s products. Analysts are generally bullish on VIPS stock.

During the TTM period, Vipshop posted net income of $1.19 billion on revenue of $15.69 billion. On a per-share basis, the company posted earnings of $2.17. Looking out to the end of the fiscal year, experts anticipate EPS to reach $2.45 on revenue of $15.74 billion. Considering the present trajectory, VIPS may be on its way to reach those projections.

Interestingly, the high-side target calls for EPS of $2.63 on sales of $16.46 billion. Currently, Vipshop offers a dividend yield of 2.7%. Also, the payout ratio is super low at 19.8%, providing confidence regarding yield sustainability. Therefore, VIPS makes a great idea for retirement income stocks.

Exxon Mobil (XOM)

Exxon Retail Gas Location

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Headquartered in Spring, Texas, Exxon Mobil (NYSE:XOM) represents one of the supermajors of the hydrocarbon industry. Specifically, if falls under the integrated oil and gas sector, meaning that it features businesses in several components of the energy value chain. Analysts overall rate shares a consensus moderate buy with a $136.87 price target, implying over 20% upside potential.

Over the TTM period, the oil giant posted net income of $32.8 billion on sales of $341.1 billion. On a per-share basis, the company posted earnings of $8.16. To be fair, Exxon’s growth slipped in 2019 and in 2020. Also, last year saw an erosion in the top line. However, 2024 could see a recovery, with experts betting on EPS of $9.23 on revenue of $351.25 billion.

To be sure, the hydrocarbon industry seems to be fighting a relevancy battle. Nevertheless, the world runs on oil and may continue to do so for a long time. Further, geopolitical tensions could easily unsettle global supply chains, thus cynically boosting prices.

Exxon offers a dividend yield of 3.34% with a modest payout ratio of 46.57%. It’s one of the surprising retirement income stocks you can trust.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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