By Matt Frankel, The Motley Fool

10 Great Stocks For Retirement

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1. Johnson & Johnson

• Johnson & Johnson has large and diverse operations in

pharmaceuticals, home health products, and medical devices

• Even though some of its consumer brands are the most well-known

aspect of the company, about 80% of J&J’s revenue comes from its

pharmaceutical and medical devices businesses.

• J&J has about 20 drugs in late-stage development, and spends

more than $8 billion annually on research and development, which

should keep it a market leader in the years to come.

• The medical devices and diagnostics business has grown

significantly through acquisitions over the past several years, and

produces an extremely wide range of products with brand names

such as Ethicon’s, Cordis’s, and Lifescan to name a few.

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Johnson & Johnson (NYSE: JNJ)

• Additionally, earnings are expected to increase by 7%

per year over the next three years.

• J&J is a “Dividend Aristocrat”, having increased its

dividend for 52 consecutive years.

• The company is a rock-solid retirement pick because of

its size and its portfolio of brands, which include

– Band-Aid

– Immodium

– Johnson’s baby products

– Tylenol

– Neutrogena

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Johnson & Johnson (NYSE: JNJ)

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2. Berkshire Hathaway

• Perhaps the best overall retirement stock

in the market because of its diversity and

its management team, Berkshire owns a

diverse collection of businesses, including

– GEICO

– Fruit of the Loom

– See’s Candies

– NetJets

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Berkshire Hathaway (NYSE: BRK-B)

• In addition, the company owns an

excellent stock portfolio featuring 45

companies, many of which are found

elsewhere on this list

• Warren Buffett and his management team

run one of the most shareholder-oriented

companies in the world, always

emphasizing long-term performance

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Berkshire Hathaway (NYSE: BRK-A)

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3. Procter & Gamble

• Procter & Gamble is one of the largest

consumer product manufacturers in the

world

• The company’s products are sold in more

than 180 countries

• Procter & Gamble’s size, geographical

diversification, and impressive brand

portfolio make it a great choice for

decades to come

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Procter & Gamble (NYSE: PG)

• Procter & Gamble’s brands include:

– Pantene

– Gillette

– Crest

– Oral-B

– Vicks

– Dawn

– Downy

– Tide

– Pampers 10

Procter & Gamble (NYSE: PG)

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4. Google

• Google is an excellent retirement

investment because of its commanding

market share and its business model

– Currently, Google commands nearly 80% of

the U.S. Internet search market

– Google’s primary revenue stream

(advertising) is a business that will always be

needed

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Google (NASDAQ: GOOGL)

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5. Wells Fargo

• Wells Fargo is a great choice for a

retirement stock because of its unique

business model and size

• Unlike the other big banks, Wells Fargo

focuses on traditional community banking

operations

• Effectively, it is the United States’ largest

savings and loan-oriented bank

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Wells Fargo (NYSE: WFC)

• Despite its size, Wells Fargo continues to

grow

– The bank has been very successful at getting

current customers to use multiple products

(Wells Fargo’s average banking household

has more than six products with the bank)

– Credit cards, auto lending, and deposits

continue to grow at an impressive pace

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Wells Fargo (NYSE: WFC)

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6. American Express

• Despite a few recent hiccups, including the

end of its partnership with Costco,

American Express is a long-term winner

• The company’s focus on affluent

consumers makes its cards very desirable

to retailers

– As a result, American Express can command

a higher “swipe fee” than rivals Visa or

MasterCard

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American Express (NYSE: AXP)

• American Express has a very loyal

customer base, thanks to its exclusive

“clubs” of cardholders

• In addition, American Express has been

very successful so far in the prepaid and

gift card space, expanding its reach to the

under-banked population

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American Express (NYSE: AXP)

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7. ExxonMobil

• Despite the recent drop in oil prices,

ExxonMobil’s size and cash stockpiles make it a

great long-term pick that trades for 18% less

than its 52-week high

• In a recent upgrade, Goldman Sachs

emphasized Exxon’s ability to generate cash

flow, grow its dividend, and improve its margins

despite the lower oil prices

• Analysts expect the company to increase its

dividend by 6% per year, on average

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ExxonMobil (NYSE: XOM)

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Realty Income Corp.

• In addition to paying a 4.7% dividend yield

on a monthly basis, Realty Income has

produced some very solid growth over the

years

• And it has done so with a relatively safe

and straightforward business model

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Realty Income (NYSE: O)

• Realty Income owns about 4,300

commercial properties, and some of the

reasons this is a great retirement

investment include:

– Tenants are on long-term (15+ year) leases

with rent increases built in (low turnover)

– Tenants pay uncertain costs such as taxes,

insurance, and building maintenance

– Over 98% of the company’s properties are

currently occupied23

Realty Income (NYSE: O)

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9. Coca Cola

• One of the most recognizable brands in the world, Coca-

Cola continues to expand internationally

• The company’s basic strategy is to expand its global

reach and to strategically add more brands to its portfolio

• It makes a great retirement investment because it works

as a business no matter what the economy is doing or

who is running the company

– As Warren Buffett once said, “a ham sandwich could

run Coca-Cola”

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Coca-Cola (NYSE: KO)

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10. Wal-Mart

• Wal-Mart is an excellent retirement

investment because its business model

works very well in good economic times,

while allowing the company to thrive

during recessions and crashes

• When times get tough, more people shop

at low-cost retailers such as Wal-Mart

• Successful long-term investing depends

more on your performance during the bad

times, and this is when Wal-Mart shines 27

Wal-Mart (NYSE: WMT)

• Consider the performance of the following

retailers during 2008

– Target (TGT) – DOWN 30%

– Costco (COST) – DOWN 23%

– Wal-Mart (WMT) – UP 20%

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Wal-Mart (NYSE: WMT)

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This little-known $60,000 Social

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retirement even sweeter

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