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Highlights
- Investor saving for retirement should aim to build passive income by investing in quality stocks, then holding them for long-term and receive regular dividend income.
- Investors may invest across the diversified mix of high-yielding dividend stocks to enhance returns at retirement.
Planning for retirement is one of the most important goals in financial planning to achieve financial freedom by the age of retirement. Start putting money aside for retirement as early as possible with consistency can win the race over making long-odds wagers.
The traditional tools like saving accounts don’t pay high returns so investors saving for retirement should aim to build passive income by investing in quality stocks, then holding them for long-term and receive regular dividend income. They may invest across the diversified mix of high-yielding dividend stocks to enhance returns at retirement as good retirement stocks pay dividends no matter what’s happening in the economy.
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According to experts, around £30,000 each year is required for a comfortable retirement and for many it may also go up to £600,000, so with rising inflation globally investors should consider increasing their contribution by 1 or 2% of their income in retirement.
Also Read: 5 simple tips to boost your retirement income
Let us now look at 5 FTSE-listed stocks that can be a good buy for your retirement in 2022.
- Evraz Plc (LON: EVR)
Evraz Plc is an international vertically integrated steel manufacturing and mining business and is a constituent of FTSE 100 Index.
Evraz Plc’s current market capitalization stands at £8,816.32 million, and it has given a return of 20.90% in 1 year with earning per share of 0.58. Its 5-year average dividend yield is 11.1%. The Evraz Plc’s shares were trading GBX 584.40, down by 3.31%, around 1 PM BST on 14 January 2022.
- International Consolidated Airlines Group S.A. (LON: IAG)
International Consolidated Airlines Group is one of the leading airlines holding company in the UK, Ireland, and Spain. International Consolidated Airlines Group’s current market capitalization stands at £8,211.98 million, and it has given a return of 8.54% in 1 year with earning per share of -1.96. Its 5-year average dividend yield is 6.2%. Its shares were trading at GBX 164.38, down by 0.69%, around 1 PM BST on 14 January 2022.
Also Read: 5 key personal finance tips for 2022
- Rio Tinto Plc (LON: RIO)
FTSE 100 constituent Rio Tinto Plc is engaged in production of iron ore, gold, copper, diamonds, uranium, energy, and minerals. In December 2021, the company entered into an agreement to acquire the Rincon Lithium project in Argentina.
Rio Tinto Plc’s current market capitalization stands at £68,185.93 million, and it has given a return of -8.86% in 1 year with earning per share of 6.04. Its 5-year average dividend yield is 5.8%. Its shares were trading GBX 5,423, down by 0.73%, around 1 PM BST on 14 January 2022.
- Persimmon Plc (LON: PSN)
FTSE 100 constituent Persimmon Plc is one of the largest UK housebuilding serving local markets. Persimmon Plc’s current market capitalization stands at £8,324.90 million, and it has given a return of -0.15% in 1 year with earning per share of 2.00. Its 5-year average dividend yield is 7.9%. Its shares were trading at GBX 2,602, down by 0.23%, around 1 PM BST on 14 January 2022.
- British American Tobacco PLC (LON: BATS)
British American Tobacco Plc is one of the largest tobacco and cigarette manufacturing business in the world and is a constituent of the FTSE 100 Index. Its current market capitalization stands at £68,266.96 million, and it has given a return of 8.01% in 1 year with earning per share of 2.80. Its 5-year average dividend yield is 5.9%. Its shares were trading GBX 3,002.50, up by 0.92%, as on 14 January 2022.
Also Read: How can you boost your income in 2022?
