Safe stocks for retirement are those that are less inclined to suffer in times of turmoil or represent a sector that is more recession-proof than others. That’s not to say that a safe stock will never see a decline – but safe stocks for retirement are more likely to withstand the negative pressures in a poor economic climate.
Because these are retirement stocks, we’re also looking for companies that pay a decent dividend. Quarterly or monthly dividend payments are great sources of passive revenue for an investor in retirement.
For this list, I use my Portfolio Grader exclusive tool to find the best stocks to buy. The Portfolio Grader evaluates stocks on their fundamentals, such as sales growth and operating margin, and also factors in buying pressure and quantitative factors to determine a letter grade. Just like school, an “A” stock is the best and an “F” stock is at the bottom of the barrel.
A magnifying glass zooms in on the logo for Alliance Resource Partners, L.P. (ARLP)
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Alliance Resource Partners (NASDAQ:ARLP) is a top coal producer in the eastern U.S. As a master limited partnership, ARLP has the tax benefits of private partnerships as well as the liquidity of publicly traded companies.
Alliance is doing a credible job of trying to diversify its business, investing in EV charging station company Francis and electric motor manufacturer Infinitum Electric.
Coal is still king of ARLP, though. The company scored big with second-quarter earnings, posting revenue of $616.5 million and earnings per share of $1.23, beating estimates of $563.14 million and EPS of 94 cents – and that performance certainly helps its grade.
ARLP stock is up big in 2022 – more than 80%, and it pays a dividend yield of nearly 6.8%. ARLP has an “A” rating in the Portfolio Grader.
Black Stone Minerals (BSM)
Production operator communicate between central control room by using radio to operate ball valve at offshore oil and gas processing platform for control gases and liquid crude oil process. Energy Stocks. CEI stock
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Black Stone Minerals (NYSE:BSM) is a bet on high oil prices. And while the price of oil is less than $90 right now, it’s still high – and there’s a solid case to be made that oil prices will stay there.
First, consider the global pressures. Saudi Arabia shocked the White House by cutting oil production just before the midterm election – Washington believed that it had struck a deal to boost oil production before the Saudis reportedly backed out. Analysts now expect the price of oil to remain steady at least through the end of the year.
That bodes well for BSM stock, which is up 72% so far this year. Second-quarter earnings were also solid, with revenue of $180.37 million and EPS of 41 cents beating estimates of $138.85 million and EPS of 40 cents. And on top of that, Black Stone pays a dividend yield of more than 10%.
As long as the price of oil remains high, Black Stone will benefit from inflated profit margins. BSM stock has an “A” rating in the Portfolio Grader.
Global Partners (GLP)
High gas prices in the U.S. President Biden is considering a gas tax holiday.
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High oil prices are also giving Global Partners (NYSE:GLP) oversized earnings these days. The gasoline wholesaler and retailer is up 25% so far this year and has increased by 27% since mid-June.
The improved cash position gave Global Partners the money it needed to purchase Tidewater Convenience, which allowed it to increase its footprint in the mid-Atlantic.
GLP’s revenue in the second quarter was a whopping $5.32 billion or 62% more than a year ago. Net income of $160.64 million and EPS of $4.61 was also a massive improvement on a year-over-year basis.
GLP stock also pays a dividend yield of 8.2%, helping push its Portfolio Grader rating to an “A.”
Alpha Metallurgical Resources (AMR)
A top aerial view of an open pit mine industry, with a big yellow mining truck for coal
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Alpha Metallurgical Resources (NYSE:AMR) isn’t a household name, but it’s a solid pick if you’re looking for safe stocks to buy for your retirement.
Alpha Metallurgical Resources is a major producer of metallurgical coal, which is a grade of coal that can be used to produce coke – not the drink, but the critical component for steelmaking. AMR has 21 mines around the world to churn out coke to make high-quality steel.
Maybe you aren’t excited about that business – but if that’s the case, you’ve missed out on some pretty exciting returns. AMR stock is up nearly 170% so far this year. Revenue in the second quarter was $1.34 billion, which was a 238% increase from a year ago.
AMR stock has an “A” rating in the Portfolio Grader.
Genuine Parts Company (GPC)
Person wearing red shoes stepping down on car brake.
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If you want a safe dividend stock, it would hard to find something that fits the bill as well as Genuine Parts Company (NYSE:GPC). The high price of even used automobiles has people keeping their cars longer than ever these days – the average new car buyer is keeping their car for 8.4 years.
That means plenty of preventative maintenance – or even some overhauls – to keep older cars on the road. That should help GPC stock keep the profits rolling in. Earnings for the third quarter did just that, with revenue of $5.38 billion and EPS of $2.23 beating top- and bottom-line estimates of $5.37 million in revenue and $2.05 EPS.
GPC stock is also a dividend aristocrat, as it raised its dividend payout for 66 consecutive years. You won’t get rich with the 2.1 dividend yield, but it’s consistent and that’s all you need from a safe retirement stock.
GPC stock is up 22% so far this year, and it has an “A” rating in the Portfolio Grader.
Brigham Minerals (MNRL)
Offshore oil rig near Harlingen, Nederlande. Oil producing is a major economic factor in the Netherlands.
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Another energy stock to consider for your retirement is Brigham Minerals (NYSE:MNRL), a Texas company that makes its money by buying oil and gas mineral and royalty interests. It has oil and gas mineral rights in Oklahoma, New Mexico, Colorado, Texas, Wyoming and North Dakota.
But the company won’t be around for much longer. In September, Brigham agreed to a merger with Sitio Royalties (NYSE:STR) in an all-stock transaction that is expected to close early next year. Brigham shareholders will receive 1.133 shares of STR stock for each share of MNRL they hold.
After the merger, Sitio will be one of the biggest publicly traded mineral and royalty company in the U.S.
But for now, MNRL is still being traded and is a solid way to get in on the new company. MRNL stock has an “A” rating in the Portfolio Grader.
Applied Industrial Technologies (AIT)
workers on a construction site with the sun setting in the background
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Formerly known as the Ohio Ball Bearing Company, Applied Industrial Technologies (NYSE:AIT) makes bearings, power transmission products, power components and systems and other industrial products. It handles everything from power transmissions to seals and fluid power systems and hoses.
Many of its products are critical for motor vehicles – which we established earlier are being kept longer than ever by their owners thanks to the increase in prices for used autos. If someone is going to keep their car running, they’re going to need the types of products that Applied Industrial is making.
The company has consistently been a good earnings performer, which helps its rating in the Portfolio Grader. For the fiscal fourth quarter 2022, revenue of $1.06 billion was better than analysts’ expectations for $977.43 million. EPS of $2.02 was better than the expected EPS of $1.66.
AIT stock is also doing much better than the overall market, showing a 13% gain in 2022. Add in a dividend yield of 1.16 that nonetheless has increased for 12 consecutive years, and you get a stock that has an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier has positions in ARPL, BSM, GLP, AMR, MNRL and AIT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
