In this article, we discuss the 5 best retirement stocks to buy now. If you want to read our comprehensive analysis of these stocks and the current market situation, go directly to 10 Best Retirement Stocks To Buy Now.
5. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of June 7: 3.21%
Number Of Hedge Fund Holders: 26
Consolidated Edison, Inc. (NYSE:ED), commonly known as ConEd, is one of the largest investor-owned energy companies in the United States. One of the most prominent dividend-payers in the electric utility sector, the company has grown its dividend payments for 47 years in a row.
On April 21, Consolidated Edison, Inc. (NYSE:ED) declared a $0.79 per share quarterly dividend, in-line with previous. The company’s dividend yield stands at 3.21% as of June 7.
The company posted its earnings report for the first quarter of 2022 on May 5, declaring a revenue of $4 billion, up over 10.42% compared to the revenue over the same period last year and surpassing analyst expectations by $350 million.
On May 23, Guggenheim analyst Shahriar Pourreza upgraded Consolidated Edison, Inc. (NYSE:ED) to Neutral from Sell with a price target of $94, up from $80, following what he calls the removal of a “major regulatory risk” from the company’s earnings outlook over the multi-year rate case period.
At the end of the first quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $485.7 million in Consolidated Edison, Inc. (NYSE:ED), compared to 22 in the preceding quarter worth $323 million. Ken Griffin’s Citadel Investment Group is one of the leading stakeholders in the company, with over 1.19 million shares worth more than $113.3 million.
4. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of June 7: 3.41%
Number Of Hedge Fund Holders: 83
Exxon Mobil Corporation (NYSE:XOM), stylized as ExxonMobil, is an American multinational oil and gas corporation headquartered in Irving, Texas. Having raised its annual dividends consecutively for the past 39 years at an annual average rate of 6%, the oil and gas giant currently pays a quarterly dividend of $0.88 per share, with a dividend yield of 3.41% as of June 7.
Evercore ISI analyst Stephen Richardson upgraded Exxon Mobil Corporation (NYSE:XOM) to Outperform from In Line with a price target of $120, up from $88 on June 7. The analyst sees long-term earnings growth to be driven by upstream upgrading as well as cost reductions, and forecasts Exxon Mobil Corporation (NYSE:XOM) to have an industry-leading ROCE target of 15% and 17% by 2025 and 2027 respectively.
On April 29, Exxon Mobil Corporation (NYSE:XOM) reported that its earnings per share for the fiscal first quarter of 2022 came to $2.07, falling short of EPS estimates by $0.16. On the other hand, the company’s quarterly revenues came in at $90.5 billion, an increase of 53.01% on a year-over-year basis, surpassing revenue estimates by $6.93 billion.
83 hedge funds were long Exxon Mobil Corporation (NYSE:XOM) at the end of the first quarter of 2022, with aggregate stakes worth $8.55 billion. Rajiv Jain’s GQG Partners is the most prominent investor in Exxon Mobil Corporation (NYSE:XOM) with stakes worth approximately $4.27 billion in the company.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in the firm’s fourth-quarter 2021 investor letter. Here is what the firm had to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
3. Duke Energy Corporation (NYSE:DUK)
Dividend Yield as of June 7: 3.51%
Number Of Hedge Fund Holders: 32
Duke Energy Corporation (NYSE:DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. On April 27, the company announced its investment in two projects to convert landfill gas from two North Carolina landfills into renewable natural gas. Each project is expected to produce roughly 500,000 dekatherms of renewable natural gas each year.
Duke Energy Corporation (NYSE:DUK) has paid a cash dividend on its common stock for an impressive 96 consecutive years. On May 5, Duke Energy Corporation (NYSE:DUK) declared a $0.985 per share quarterly dividend, in line with previous. The dividend is distributable on June 16, to shareholders of the company as of May 13.
On May 10, Wells Fargo analyst Neil Kalton raised his price target on Duke Energy Corporation (NYSE:DUK) to $120 from $109 and kept an Equal Weight rating on the shares following quarterly results. The analyst sees an improving regulatory backdrop in NC and substantial energy transition opportunities post 2025.
At the end of the first quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $1.04 billion in Duke Energy Corporation (NYSE:DUK), compared to 36 in the preceding quarter worth $1.1 billion. Of these, Jim Simons’ Renaissance Technologies holds a notable position in Duke Energy Corporation (NYSE:DUK), with over 1.66 million shares worth approximately $185.6 million.
2. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of June 7: 3.68%
Number Of Hedge Fund Holders: 38
Cardinal Health, Inc. (NYSE:CAH) is an American multinational health care services company that engages in the provision of customized solutions for hospitals, healthcare systems, pharmacies, and ambulatory surgery centers.
Another dividend aristocrat on our list, Cardinal Health, Inc. (NYSE:CAH) declared a $0.4957 per share quarterly dividend on May 10, up from the previous dividend amount of $0.4908. The dividend will be paid on June 15, to shareholders of the company as of June 1. Cardinal Health, Inc. (NYSE:CAH)’s dividend yield on June 7 stood at 3.68%.
Earlier this May, Evercore ISI analyst Elizabeth Anderson upgraded Cardinal Health, Inc. (NYSE:CAH) to Outperform from In Line, with a price target of $68, up from $55. After looking deeper at the trajectory of its Medical segment for the fiscal year 2023, the analyst came to the conclusion that the business can drive about $16.7 billion in revenue, or about 6% year-over-year growth, and believes this segment is being undervalued by the market.
Cardinal Health, Inc. (NYSE:CAH) was found in the public stock portfolios of 38 hedge funds according to Insider Monkey’s first quarter, down from 39 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the biggest shareholder of the company, with approximately 3 million shares worth $168.59 million.
1. Realty Income Corporation (NYSE:O)
Dividend Yield as of June 7: 4.35%
Number Of Hedge Fund Holders: 22
Realty Income Corporation (NYSE:O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Spain and the United Kingdom. One of the most prominent monthly dividend-paying stocks, Realty Income Corporation (NYSE:O) has raised its dividend 115 times throughout its 53-year operating history, with the company’s compound average annual dividend growth rate standing at approximately 4.4%.
For the fiscal first quarter of 2022, Realty Income Corporation (NYSE:O) reported an EPS of $1.01, beating estimates by $0.04. Additionally, the revenue came in at $807.34 million, an increase of 93.29% on a year-over-year basis, surpassing market predictions by $58.66 million.
Based on Insider Monkey’s Q1 database, 22 hedge funds were bullish on Realty Income Corporation (NYSE:O), down from 30 funds in the preceding quarter. The total stakes held in Q1 2022 amounted to approximately $284.8 million. Matthew Barrett’s Glendon Capital Management is the largest shareholder of the company, with a position worth roughly $128.68 million.
You can also take a look at 10 Best Value ETFs to Invest in Now and 10 Best Undervalued Large-Cap Stocks According to Hedge Funds.
