In this article, we discuss the 5 best stocks to buy for early retirement. If you want to read our detailed analysis of these companies, go directly to the 10 Best Stocks To Buy for Early Retirement.
5. Cisco Systems, Inc. (NASDAQ: CSCO)
Number of Hedge Fund Holders: 59
Cisco Systems, Inc. (NASDAQ: CSCO) is a California-based technology company founded in 1984. It is ranked fifth on our list of 10 best stocks to buy for early retirement. The firm focuses on the development and marketing of networking hardware, software, telecommunications equipment and other technology-related services and products. The company has recently made investments in the Internet of Things (IoT) universe and security services related to cloud computing and internet-based networks.
On May 19, Cisco Systems, Inc. (NASDAQ: CSCO) posted earnings results for the third fiscal quarter, reporting earnings per share of $0.83 that beat market predictions by $0.01. The revenue over the period was $12.8 billion, up 6.8% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Generation Investment Management is a leading shareholder in Cisco Systems, Inc. (NASDAQ: CSCO) with 23 million shares worth more than $1.2 billion.
4. General Mills, Inc. (NYSE: GIS)
Number of Hedge Fund Holders: 31
General Mills, Inc. (NYSE: GIS) is a Minnesota-based multinational food and retail firm founded in 1928. It is placed fourth on our list of 10 best stocks to buy for early retirement. General Mills stock has returned more than 12% to investors over the past three months. Some of the famous brands owned by the company include Cheerios, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Fruit by the Foot, Haagen-Dazs, Kix, Raisin Nut Bran, Total, Totino’s, Trix, Wanchai Ferry, Wheaties, Yoki, and Yoplait, among others.
In earnings for the third fiscal quarter, disclosed in late March, General Mills, Inc. (NYSE: GIS) posted earnings per share of $0.82, just missing market estimates by $0.02. The revenue over the period was $4.5 billion, beating market predictions by $60 million.
In its Q4 2020 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and General Mills, Inc. (NYSE: GIS) was one of them. Here is what the fund said:
“We purchased a position in General Mills (tkr: GIS). General Mills is a manufacturer and marketer of branded consumer foods and pet food products sold mainly through retail stores. It has greatly benefited from the “people eating at home” theme during the pandemic. Although this growth driver is likely to persist through 2021, that is not the main reason to own General Mills. The management team has done an excellent job diversifying product lines, and has successfully identified new trends and brought products forth accordingly. Some notable brands and products include Annie’s, Cheerios, Betty Crocker, Blue Buffalo, EPIC, Pillsbury and Yoplait. General Mills has maintained a healthy balance sheet, consistent with industry practice. It is relatively inexpensive with a P/E ratio of 15x (about half that of Hormel) and pays a 3.4% dividend, making it a great core holding within the consumer staples sector.”
3. The Coca-Cola Company (NYSE: KO)
Number of hedge fund holders: 61
The Coca-Cola Company (NYSE: KO) is a Georgia-based beverage firm founded in 1892. It is ranked third on our list of 10 best stocks to buy for early retirement. Coca-Cola stock has returned more than 21% to investors in the past year. The firm is one of the largest and most famous beverage companies in the world and owns brands such as Coca-Cola, Fanta, Fresca, Schweppes, Sprite, Aquarius, Ciel, Dasani, Ice Dew, Powerade, Minute Maid, Simply, Ayataka, Costa, and Kochakaden, among others.
The Coca-Cola Company (NYSE: KO) posted earnings results for the first three months of 2021 in April, reporting a revenue of $9 billion that beat market estimates by $370 million. The earnings per share over the period were $0.55.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE: KO) with 400 million shares worth more than $21 billion.
Just like Cisco Systems, Inc. (NASDAQ: CSCO) and Duke Energy Corporation (NYSE: DUK-PA), The Coca-Cola Company (NYSE: KO) is one of the best stocks to buy for early retirement.
2. Duke Energy Corporation (NYSE: DUK-PA)
Number of hedge fund holders: 34
Duke Energy Corporation (NYSE: DUK-PA) is a North Carolina-based energy firm founded in 1904. It is placed second on our list of 10 best stocks to buy for early retirement. Duke stock has offered investors returns 23% over the course of the past twelve months. The company has interests in electric power generation, natural gas, and renewable energy products. The company serves more than 10 million power customers in different states across the United States.
On May 10, Duke Energy Corporation (NYSE: DUK-PA) posted earnings for the first quarter of 2021, reporting earnings per share of $1.26, beating market predictions by $0.05. The revenue over the period was $6 billion, up more than 3% compared to the same period last year.
1. Washington Trust Bancorp, Inc. (NASDAQ: WASH)
Number of Hedge Fund Holders: 7
Washington Trust Bancorp, Inc. (NASDAQ: WASH) is a Rhode Island-based banking and financial services firm founded in 1800. It is ranked first on our list of 10 best stocks to buy for early retirement. The company offers commercial banking and wealth management services and has over 20 branches in different states in the US. Washington Trust stock has returned more than 79% to investors over the course of the past twelve months. The company has a market cap of close to $1 billion and lots of growth potential.
In earnings results for the first quarter of 2021, Washington Trust Bancorp, Inc. (NASDAQ: WASH) posted earnings per share of $1.17, beating market estimates by $0.13. The revenue over the period was close to $59 million, up more than 12% compared to the same period last year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Avenue Management is a leading shareholder in Washington Trust Bancorp, Inc. (NASDAQ: WASH) with 182,745 shares worth more than $9.4 million.
In its Q3 2020 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Washington Trust Bancorp, Inc. (NASDAQ: WASH) was one of them. Here is what the fund said:
“After multiple years of patiently monitoring another bank, Washington Trust Bancorp (“Washington Trust”), its shares finally reached our buy price.
Washington Trust is a high-quality commercial and retail bank that we’ve followed for years. The bank operates in the Northeast with a footprint spread across Rhode Island, Connecticut, and Massachusetts. Washington Trust boasts a rich history—it was founded in 1800 and holds the impressive distinction of being the nation’s oldest community bank. The bank has not only demonstrated an aptitude for navigating countless economic cycles but has also flourished and compounded shareholder value along the way. We believe the bank is well-positioned to continue doing so over the long term as well and is a great addition to the Fund’s compounder bucket. Although Washington Trust enjoys one of the top market shares in its core state of Rhode Island, its share of the market is still in the single digits, leaving significant opportunities for continued gains. Moreover, the bank’s expansion within Connecticut and Massachusetts is still relatively nascent, representing even larger growth opportunities. Additionally, Washington Trust operates a valuable wealth management business, unusually large for a bank of its size, helping it generate an outsized portion of its profits from fee income.
Beyond Washington Trust’s outlook for growth, we would highlight the bank’s extraordinary track record and high quality management team, whom we first met two years ago. Over the years, Washington Trust has proven itself to be a conservative institution, always maintaining a strong balance sheet and best-in-class financial metrics, including consistent profitability, strong returns, and pristine asset quality. This has resulted in the company compounding value at exceptional rates over the long term—at mid-teen percentages on an annualized basis. Given all this, the chance to purchase the bank at a significant discount to our estimate of intrinsic value was quite compelling. To put the valuation opportunity in perspective, we were able to initiate the investment in this quality franchise at a dividend yield of seven percent despite a payout ratio only around fifty percent.”
You can also take a peek at Billionaire Izzy Englander’s Top 10 Stock Picks and Billionaire David Abrams’ Top Stock Picks.
