In fiscal 2022, the company spent $281 million on buybacks, which equates to 3.8% of its current market value. This is why Old Republic is able to pay out such healthy dividends and also repurchase its own shares. Moreover, the company last year made a decent return on tangible book value of about 10%. ORI is currently trading at 10.7 times forward earnings, while its price-to-tangible book value per share metric is just 1.2. Another way to say this is that the dividend uses less than half of earnings, as the payout ratio is 38.7%. For example, analysts' forecast for $2.53 in earnings per share (EPS) this fiscal year is more than twice the dividend payout. Moreover, as with many of the other best retirement stocks featured here, the annual dividend of 98 cents per share, which yields 3.6% to investors, does not take up much of the company's earnings. As a result, it generally has been very profitable and can afford to pay healthy dividends – both quarterly and special – to its shareholders. Old Republic International ( ORI, $26.92) is a multi-line insurance company that operates in niche markets, such as automobile extended warranty, aviation and commercial automobile, as well as title insurance for real estate transactions. This also aligns with the typical outlook that its shareholders, many of whom are retirees, use when they invest. Its managers usually take a long-term value approach to investing in stocks and bonds. One reason this is possible is that Franklin Resources is known as a value investing company. So, not only does its dividend yield more than many bonds and cash accounts, but investors can count on the payments to rise each year. BEN has had 42 years of consistently raising its dividend. It also doesn't hurt that Franklin Resources is one of the best dividend stocks for growth, which makes it an attractive long-term choice for retirees. Put another way, this company could lose 49% of its earnings and still have enough to pay its dividend. For example, analysts forecast earnings this fiscal year (ending September) of $2.39 per share, which is almost twice the $1.20 per-share annual dividend. For example, one of its iconic brands is the Templeton funds group renowned for its international expertise.Īnother attractive quality is the stock's 5.3% dividend yield, which, like Walgreens, does not use up a large portion of Franklin Resources' earnings. So, again, it makes sense to invest in the company. Many retirees likely have their money in one of this company's funds, ETFs, 401(k) plans, etc. Moreover, with a 47-year streak of consecutive dividend hikes, it's easy to see why WBA is on this list of the best retirement stocks to buy now.įranklin Resources ( BEN, $24.08) is a large money management firm that handles about $1.3 trillion in assets that include stocks, bonds, alternative and other multi-asset categories. However, its stock buybacks are not as large as the dividend payments, as management's focus is on debt reduction for now.Īs a result, the stock is cheap at just 6 times forward earnings, and boasts an affordable dividend payment that yields nearly six times more than the S&P 500. In other words, Walgreens has some wiggle room to reinvest in its business, pay down debt, make acquisitions and buy back shares. As a result, Walgreens produces strong cash flow and pays a solid dividend of $1.92 per share, giving the stock an attractive 6.2% yield.Īnd the payout ratio is only about 57% based on analysts' current-year earnings estimate of $3.34 per share (i.e., $1.92/$3.34). They probably spend more time there than most. It may make some sort of ironic sense for retirees to invest in a pharmacy stock. Retail Pharmacy accounts for over 79% of Walgreen's total sales, based on its fiscal 2023 figures for the period ending August 31. WBA has over 13,000 locations in the U.S., Europe and Latin America with three operating segments: U.S. Overseas, it runs Boots stores, as well as other brands. In the U.S., it operates Walgreens and Duane Reade stores. Walgreens Boots Alliance ( WBA, $21.37) is a global pharmacy and beauty retail chain.
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