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Highlights
- The overall portfolio of the investors as well as the types of stocks they own must change with age according to their risk appetite.
- Profitability, stable cash flows, higher dividend yields, and low business risk, and other related factors must be considered by investors post retirement.
Financial advisors generally recommend people to start investing in the stock markets at any age, but the percentage of stocks allocated in their overall portfolio as well as the types of stocks the investors own should change with age. Older investors are more risk averse than younger investors as they have much more difficulty in dealing with financial setbacks mainly due to lack of recovery time. Therefore, they go for a more conservative approach, which is more focused on stocks with higher profitability, stable cash flows, higher dividend yields, and low business risk.
Protection of wealth is as important as growth of wealth for retired investors and even in this low-interest rate environment, the older investors can potentially thrive by shifting their funds from banks to stock markets. After retirement, investors can’t afford to go for high-risk stocks, and thus they must choose stocks that aren’t very volatile and still offer growing returns.
ALSO READ: 10 Top Retirement Stocks on LSE To Buy
Let’s take a look at some of the stocks you can buy after you retire.
Newriver Reit PLC (LON:NPR)
Newriver Reit PLC is a UK-based specialist real estate investment trust which mainly focuses on retail and leisure property. It is listed on the main market of the London Stock Exchange since 2016 and is a constituent of the FTSE All-Share index. Its current market capitalisation stands at £259.27 million. It has given a return of 66.21% in 1 year. Its average dividend per share stands at GBP 0.06 and its 5-year average dividend yield is 12.5%. The previous close price of Newriver Reit PLC’s shares was GBX 84.50 as on 4 October 2021.
EVRAZ plc (LON: EVR)
Evraz plc is a UK-based multinational company engaged in steel making and mining. Its current market capitalisation stands at £8,340.79 million. It has given a return of 62.40% in 1 year with earnings per share of 0.58. Its average dividend per share stands at GBP 0.92 and its 5-year average dividend yield is 10.4%. The previous close price of Evraz plc’s shares was GBX 571.80 as on 4 October 2021.
ALSO READ: What stocks to buy if you're over 50
M&G PLC (LON: MNG)
London-headquartered M&G plc is a global investment manager engaged in the management of a variety of assets. Its current market capitalisation stands at £5,186.81 million. It has given a return of 23.87% in 1 year with earnings per share of 0.43. Its average dividend per share stands at GBP 0.18 and its 5-year average dividend yield is 9.0%. The previous close price of M&G plc’s shares was GBX 199.50 as on 4 October 2021.
Imperial Brands PLC (LON: IMB)
Headquartered in Bristol, Imperial Brands PLC is a UK-based tobacco company. Its current market capitalisation stands at £14,735.57 million. It has given a return of 14.25% in 1 year with earnings per share of 1.58. Its average dividend per share stands at GBP 1.41 and its 5-year average dividend yield is 8.4%. The previous close price of Imperial Brands PLC’s shares was GBX 1,557.00 as on 4 October 2021.
Persimmon plc (LON:PSN)
Headquartered in York, Persimmon plc is a housebuilding company with a market capitalisation of £8,264.70 million. It has given a return of 1.54% in 1 year with earnings per share of 2.00. Its average dividend per share stands at GBP 2.35 and its 5-year average dividend yield is 7.5%. The previous close price of Imperial Brands PLC’s shares was GBX 1,557.00 as on 4 October 2021.
ALSO READ: 7 FTSE companies that reinstated dividends this year
