Buy and hold these three stocks for your retirement portfolio. One is an entertainment behemoth, one is a super-charged index-type investment, and one is soon to reach a dividend milestone.
Kimberly-Clark (NYSE: KMB) makes products that everyone needs whether they’re young, old, rich, poor, male, or female. The company is also recession-proof and offers a dividend that has gone up over 23% in the last five years. In fact, the company has raised its dividend for the last 48 years and is on track to be a dividend king in 2022. Kimberly-Clark, owner of brands like Huggies, Depend, Kleenex, and Kotex sells products that are used by one-quarter of the world’s entire population and holds the first or second top market share in 80 countries.
These brands are well-recognized for a reason: The company spends over half a billion dollars on advertising annually and as a result, has strong brand loyalty. Kimberly-Clark sells most of its products in the U.S., but its international markets are slowly gaining steam as they represented over 47% of all sales in 2020. This is where future growth will be concentrated as populations and birth rates are significantly greater in developing countries outside of the U.S. To that end, the company acquired Softex Indonesia in October and further boosted its Asian market share, specifically its Southeast Asia presence.
In 2018, the company initiated its Force on Reducing Costs Everywhere, or FORCE, program which is responsible for savings of over half a billion dollars thus far. This company, which has a steady revenue stream, pays an ever-growing dividend, and culls wasteful processes to save money is a no-brainer for your portfolio.
2. Berkshire Hathaway
Imagine a fund that applies a filter of strict investment principles to a stock index like the S&P 500. Now imagine this fund is run by a man investors call an oracle and you have Berkshire Hathaway (NYSE: BRK.A). CEO Warren Buffet and his team of portfolio managers are ever-vigilantly making additions, subtractions, and modifications to their current holding of 47 stocks which include companies like Apple, Coca-Cola, and Snowflake.
Most investments adhere to Buffett’s tenets of easily analyzed and transparent businesses with high profit margins that pay dividends. The CEO also values companies with competitive moats, or clear advantages against others in their field. Not to be stifled by rigid rules should a hot investment opportunity come along, Buffett and his team have also demonstrated flexibility with their investments in multiple tech companies, a few IPOs, and the sale of the company’s airline positions.
The company’s stock price is up over 6% year-to-date (YTD) in 2021 at $365,900 on February 22. If this is a bit steep for you, you can take a position with Class B (NYSE: BRK.B) shares at $242.59.
Disney (NYSE: DIS), was already a force to be reckoned with, but once its biggest revenue generator, Parks and Resorts, took a hit, it was forced to adapt. In the meantime, Disney is making strides with its over-the-top (OTT) offering, Disney+. As of last month, the company acquired nearly 100 million subscribers to its popular streaming service, a number it expected to reach in 2024. Now analysts are predicting that it will overtake Netflix as the global OTT market leader by 2026.
The reason people are flocking to the service is the quality of programming. Over the years, Disney has built up an impressive portfolio of highly popular franchises like Lucasfilm, Marvel, and Pixar, in addition to acquiring 20th Century Fox and National Geographic, all of which have a home on Disney+. The service is expected to be profitable by 2024, by which time Disney’s theme parks, resorts, and cruises will also have resumed normal operations.
I haven’t even begun to list all of this organization’s assets, real estate holdings, and intellectual property ownership which all translate to future dollars in the form of box office receipts, park visits, streamer subscriptions, toy, merchandise, and video game sales. To offset pandemic-related losses, the company suspended its semi-annual dividend payments for 2020 and for the first half of 2021 thus far.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Contributing Writer at MyWallSt
David fell in love with the stock market in 2000 after making $30,000 overnight on Techniclone. His favorite stocks today are Netflix, Google, Amazon, and Apple as they are the market leaders in their sectors and are safe long-term investments.