3 Retirement Stocks to Buy Now: Q3 Edition – InvestorPlace

Posted: July 22, 2024 at 2:36 am


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If youre retiring, already retired, or even thinking about retiring, its always a good idea to protect your portfolio with retirement stocks. One way to do that is by buying safe dividend stocks.

Look at artificial intelligence data center real estate investment trusts (REITs), like Digital Realty (NYSE:DLR), for example. With a yield of 3.16%, DLR has been swept upin the artificial intelligence demand boom, where data center demand is expected to rise at a 15% CAGR through 2030,according to Goldman Sachs.

Almost every industry is now looking for new AI functionality that can streamline processes and improve results. In this new digital landscape,data centersare uniquely positioned to both provide and benefit from AI applications,says Digital Realty.

With DLR, youre investing in a safe REIT thats seeing explosive demand. All while getting paid a yield of 3.16% just to hold it.

Here are three similar retirement stocks you may want to buy today.

Source: Shutterstock

The last time I mentionedIron Mountain(NYSE:IRM),I said, The REITwhich isaggressively expanding its data center capacityto meet the demand of the generative artificial intelligence (AI) boomis just as attractive as Digital Realty Trust.

That was on June 5 as IRM traded at about $81. Today, IRM is up to $98 and still worth buying. Helping, analysts at Stifel raised their price target to $103 from $86 a share, with a buy rating. Plus, earnings are still solid.

In its first quarter, the REIT reported funds from operations of $1.10, which beat by 18 cents. Revenue of $1.48 billion, up 12% year over year, beat by $30 million. Better, the REIT carries a yield of 2.66% at the moment. It also just paid a quarterly cash dividend of 65 cents, which was paid out on July 5 for the second quarter.

Source: Ken Wolter / Shutterstock.com

Another one of the hottest retirement stocks with a yield is Equinix (NASDAQ:EQIX), a REIT that operates248 data centers across 70 countries on six continents serving over 10,000 leading businesses. Yielding 2.14% at the moment, the REIT is still a buy, even at $795 a share.

Earlier this month, Goldman Sachs initiated a buy rating on EQIX with a price target of $879. The firm believes the REIT has the potential to continue delivering strong numbers thanks to favorable supply and demand dynamics in the data center market. Analysts at Mizuho also initiated coverage with an outperform rating, with data center fundamentals improving.

Even Stifel analysts just reiterated a buy rating on the REIT, with a price target of $920.

The firm also noted that The robust demand for Equinixs services is expected to contribute to an acceleration of growth in the second half of 2024. The companys pipeline is described as robust, and there is a strong belief in Equinixs ability to maintain high conversion rates and manage churn levels effectively, as noted by Investing.com.

Source: T. Schneider / Shutterstock

Theres also American Tower (NYSE:AMT),a telecommunications and data center real estate investment trust (REIT) that yields just over 3%. It also just paid out a recent $1.62 per share dividend on July 12, with more likely to follow shortly.

Helping, Raymond James recently upgraded AMT to a strong buy with a price target of $248. The firm also noted AMT is primed for the best growth among U.S. tower stocks over the next three years. All of which happened following AMTs earnings beats.

In its most recent quarter, AMT beat and raised its 2024 guidance for earnings and adjusted EBITDA. Its first-quarter adjusted funds from operations (AFFO) was $2.79, as compared to an estimate of $2.57. Total operating revenue of $2.83 billion was above estimates of $2.8 billion. And its total operating expenses of $1.06 billion fell from $1.99 billion year over year.

Moving forward, AMT expects to deliver AFFO of $10.30 to $10.53, as compared to expectations of $10.38. Thats also above its prior outlook for a range of $10.21 to $10.45.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Ian Cooperdid not have (either directly or indirectly) any positions in the securities mentioned.The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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3 Retirement Stocks to Buy Now: Q3 Edition - InvestorPlace

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July 22nd, 2024 at 2:36 am

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