Looking towards retirement? The combination of stocks below provides a good mix of capital appreciation potential and yield while you wait. I think the names below could be part of the "world's best retirement portfolio." Please use this research as a starting point of your own due diligence:
Apple Inc. (NASDAQ:AAPL) makes a wide range of products under its flagship iPhone, iTunes and iPad brands. According to the stock quote summary, during the month of July the stock hit a recent high within its 52 week range of $267.84 – $404.50. Since then the stock prices has fluctuated amid fears of another U.S.-led recession and the reappearing European debt crisis. Based on the following indicators I recommend the stock as a buy. Hewlett-Packard (NYSE:HPQ), one of Apple’s competitors, has seen a dramatic decrease in its stock price since August 1. This is a telltale sign that institutional investors consider Apple among the safest among its peers. In the devices field, Apple has laid waste to Nokia (NYSE:NOK), the giant handset maker, and it continues to gain market share versus Microsoft (NASDAQ:MSFT) mobile products. Google (NASDAQ:GOOG) is the only large tech company that can catch Apple at this point. Given its stellar track record, Apple is a solid bet going forward.
Alcoa Inc. (NYSE:AA) is engaged in the production and fabrication of aluminum products. The 52-week range varies between $10.99 - $18.47. A dividend of $0.03 was declared on August 3. At the moment I expect the stock price to appreciate from $11.73 based on its P/E ratio of 13. Increased dividends could also be expected in the following months. I’d recommend the stock as a buy now and sell it as soon as the price hits around $14 plus.
Consolidated Edison, Inc. (NYSE:ED) is a holding company of Consolidated Edison Company of New York and Orange and Rockland utilities. Its 52-week low and high are $47.44 and $56.96 respectively. The P/E ratio of 15 accompanied by a positive EPS of $3.64 means stability for investors.
I would rank the stock of Consolidated Edison, Inc. as a buy, expecting it to increase in value as investors recognize the reliability of its dividend payments, especially when compared to financial stocks.
Wisconsin Energy Corporation (NYSE:WEC) is one of the competitors of Consolidated Edison, Inc. The stock of Wisconsin has been fluctuating rapidly compared to the price movements of Edison. This implies that the stock for Wisconsin is riskier than Edison. Dividends for Consolidated Edison are priced at $0.60, lower than that of Wisconsin Energy Corp. Based on the above statistics I rank Consolidated Edison to be the better buy of the two.
Federal Realty Investment Trust (NYSE:FRT) is an equity real estate investment trust specializing in retail and mixed-use properties. The properties are located primarily the densely populated Northeast and Mid-Atlantic as well as metropolitan areas of California. The P/E ratio is 42 with an EPS of $2.06. A high P/E indicates that investors have high expectations regarding the performance of the stock and are willing to pay up for future earnings growth. The 52-week range according to the stock quotes summary indicates that the stock price has been varying between $74.66 and $91.47. The stock price has been relatively consistent over time. Dividends payments have yet to be initiated. Based on the low volatility in its stock price, and its positive EPS, going forward, I would recommend the stock of Federal Realty Investment Trust as a buy.
One of the competitors of, British Land Co PLC (OTCPK:BRLAF) performed well during the August turbulence but the stock price has dramatically fallen from $596.50 recorded on August 1 to around $500 today. The volume of shares being traded has gradually decreased. The stock 52-week range varies between $459.30 - $902.50. A dividend announcement would help cushion the poor results of the past six weeks but U.S. based operator like FRT remains a better bet. I recommend the stock as a buy.
Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a gas pipeline and storage company. It operates in five business segments: Products Pipelines, Natural Gas Pipelines, CO2, Terminals and Kinder Morgan Canada. The stock 52-week low and high are $63.42 and $78, respectively. The stock has an EPS of 0.58 and P/E 119. A dividend of $1.15 was announced to the shareholders on July 28. On August 1, just before the market's latest carnage, the stock opened the trading day at $71.73. The stock opened around the same level recently. Based on the company's likely dividend growth and consistency amid the latest volatility, I would recommend the stock as a buy.
One competitor to Kinder Morgan, Enterprise Product Partners (NYSE:EPD), has seen quarterly revenue growth of 48% on already substantial revenues over $30 billion. KMP's margins remain higher, however, at 39% gross versus EPD's 17% gross margin. KMP maintains superior profitability relative to its peers. This is one for the long run.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.