It’s easy to get distracted from what really matters in your retirement account with all the craziness around Reddit investors and the volatile stocks they’re targeting.
But while headlines focus on niche stocks like GameStop and BlackBerry, some of my favorite retirement plays have been hard at work growing their businesses and giving investors reliable returns.
Today, I wanted to take a break from the hyped-up stories in the media right now and focus on three of my favorite names that deserve a spot in your retirement account today.
We’ll take a look at the charts, the fundamentals and what to expect in the year ahead.
So take some notes and consider investing in these retirement juggernauts if you haven’t already.
The King of Smartphones Records a Blowout Quarter
It’s no secret I’m a fan of Apple Inc. (AAPL). The company has been one of the best-performing plays in my Lifetime Income Report dividend newsletter over the years.
Since we originally recommended the stock in December 2015, investors have been able to lock in total returns of more than 360%
And judging from what we heard from Apple last week, there should be plenty of additional profits to come.
Apple reported record revenues for the past quarter that topped $111 billion.
I’ve been watching this company’s business for years, and it’s still hard to wrap my head around revenues above $100 billion.
More importantly, the company’s earnings came in above expectations at $1.68 per share.
As fundamental investors, earnings are ultimately the most important metric for us because those profits are what pay for the dividends we receive.
While the company’s iPhone sales drove growth, it was encouraging to see the other areas of Apple’s business showing strength.
Sales of iPads, MacBooks and services all trended higher. That tells me that Apple’s diversification of different sources of profit should continue to help the company grow.
Looking at the chart of AAPL below, you might notice that the stock has been treading water for the majority of the last few months.
It’s helpful to remember that even the best stocks don’t just go up in a straight line.
Sometimes after a strong run, the best stocks will pull back for a bit as speculative traders take their profits off the table and more committed investors buy shares on the pullback.
This is a very healthy process known on Wall Street as “shaking out the weak holders.”
After a few weeks (or even a few months) of pullbacks like this, investors left holding shares of AAPL will be more committed to their positions.
So when the stock continues to move higher (like we’re starting to see this year) there will be fewer shares available for sale.
According to the laws of economics, when supply is tight and there’s demand for a stock, the price should rise.
That’s what I expect now that AAPL has reported such a strong quarter and the stock has completed its consolidation period after hitting its last all-time high.
Consider adding some to your retirement account!
Online Shopping Drives the Delivery Business
Another strong dividend stock that I’m watching closely is United Parcel Service Inc. (UPS).
Just this morning, the company reported sales that were up 21% to a record $24.9 billion last quarter.
The company also reported earnings of $2.66 per share, which was well above the $2.14 that investors expected.
Shares surged higher following the report, and I expect us to continue to see momentum in this name in the weeks and months to come.
The coronavirus crisis has led to more people shopping online, which naturally drives more demand for UPS’ delivery business.
And even though vaccines are starting to help reduce the risk of spreading the virus, the convenience of online shopping will continue to drive UPS’ business even as the overall economy reopens.
One of the best reasons to invest in UPS today is the company’s 2.6% dividend yield. And keep in mind with its current $1.01 quarterly dividend, UPS is generating plenty of profit to increase that dividend over time.
Shares peaked late last year and seem to be in the middle of their own consolidation period as you can see in the chart below.
But looking forward, strong earnings and a generous dividend should drive more investors to the stock, helping to drive the share price (and your retirement wealth) higher over time.
Look Out for News From This Income Champion Tomorrow!
I’m particularly looking forward to hearing from one of our strong retirement income plays Qualcomm Inc. (QCOM) this week.
The stock has been on a tear as you can see in the chart below.
And since we first recommended it to Lifetime Income Report readers in September 2019, shares have more than doubled!
QCOM is scheduled to report earnings tomorrow after the market closes.
The management team will host a conference call shortly after the release to discuss the details and probably take some questions and answers.
If you’re not familiar with the company, QCOM develops semiconductors that are used in mobile devices.
So as more people upgrade their phones and other devices to take advantage of the new 5G network technology, demand for QCOM’s chips continues to rise.
The stock currently pays a quarterly dividend of $0.65, which rounds out to a 1.6% yield.
And while a 1.6% yield certainly isn’t on the high side, QCOM is earning several times its $0.65 dividend every quarter in profits.
So there’s plenty of room for QCOM to increase that dividend over time.
Meanwhile, strong momentum for shares continues to push the stock higher, leading to more wealth for investors.
I’d encourage you to have some shares in your account before tomorrow’s earnings announcement.
So there you have it, three plays that are paying great dividends, helping you grow your wealth and providing stable returns without the crazy volatility we’re seeing in the news for other less legitimate companies.