Dividend Stocks

Wall Street Favorites: 3 Retirement Stocks With Strong Buy Ratings for May 2024

What could be better than well-established retirement stocks to buy that you can trust? How about adding to that confidence level with the backing of Wall Street analysts.

To be sure, analysts by themselves don’t dictate nor perfectly predict the success or failure of publicly traded enterprises. If it were that simple, everybody would simply follow their recommendations to a “T.” However, these experts assess companies for a living and their livelihood in many ways depend on their reputation.

So, it’s a good feeling when your own research aligns with that of respected voices on the Street. With that, below are top retirement stocks to buy.

Chevron (CVX)

Source: Sundry Photography / Shutterstock.com

Operating in the broad energy ecosystem, Chevron (NYSE:CVX) represents a giant in the integrated hydrocarbon category. At first glance, such a profile might seem anachronistic for retirement stocks to buy. After all, the political and ideological winds are pushing for renewable energy infrastructure. However, the world continues to run on oil. Not only that, the harsh reality is that this might not change for quite some time.

Yes, electric vehicles may be the future. However, the blistering sales of hybrid vehicles demonstrate that consumers still want combustion-powered solutions. That’s good for CVX stock. Further, the present geopolitical flashpoints in Eastern Europe and the Middle East may present possible supply chain disruptions. Cynically, that’s also positive for Chevron, especially its exploration and production (upstream) business unit.

For the current fiscal year, covering experts believe that earnings per share could land at $12.87 on revenue of $200.84 billion. That’s a noticeable improvement from last year’s results of $12.27 on sales of $187.73 billion. Given the likely ongoing relevance of oil, CVX ranks among the best retirement stocks to buy.

AbbVie (ABBV)

Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA

Source: Valeriya Zankovych / Shutterstock.com

Based in North Chicago, Illinois, AbbVie (NYSE:ABBV) represents a powerhouse in the healthcare space. Specifically, it falls under the drug manufacturing category. AbbVie is perhaps best known for Humira, an injection for autoimmune and intestinal diseases. As well, it features an oncology unit that addresses various cancers. It’s incredibly relevant, thus attracting a strong buy consensus view among covering experts.

However, what’s really enticing in my opinion is AbbVie’s buyout of Allergan. With the acquisition, AbbVie now controls Botox, the anti-wrinkle treatment. Here’s the thing – with young people being obsessed with social media, looking young has taken a priority. Moving forward, I believe the concept of aging with grace and dignity will fly out the window. Cynically, that’s a massive positive for ABBV stock.

Indeed, I believe it’s enough of a positive that AbbVie should be among the best retirement stocks. Behind millennials is Generation Z. Subsequent generations will be even more and more digitally tethered to social media and thus to superficialities.

Oh yeah, you got to love AbbVie’s forward annual dividend yield of 3.84%.

Essential Utilities (WTRG)

A zoomed in photo of a drop of water hitting a container of water's surface.

Source: Sambulov Yevgeniy/ShutterStock.com

Frankly, utility player Essential Utilities (NYSE:WTRG) sells itself as one of the top retirement stocks to buy. Through its subsidiaries, Essential operates regulated services that provide water, wastewater and natural gas solutions to its customers. While there’s often talk about gold and other hard commodities as being precious resources, there is no more precious resource than water. It has no alternative so we must be good stewards of it.

Analysts understand this point quite well. That’s why WTRG carries a unanimous strong buy view. That said, the average price target is rather modest at $41.80, which implies about 7% upside potential. The high-side target comes in at $43, which brings the projected upside to around 10%. However, it’s safe to say the idea here isn’t to get rich off capital gains.

Notably, in the first quarter of this year, Essential posted EPS of 97 cents against an expected target of 77 cents. That yielded a positive earnings surprise of 26%, boding well for fiscal 2024 projections, which call for EPS of $2.03.

For passive income, the company offers a forward dividend yield of 3.13%.

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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