If you’re over 50 and are starting to think about setting up a roadmap to retirement, or if you’re looking to wind down gradually by easing into some sort of semi-retirement, it’s a wise idea to revisit your portfolio and tinker with an investment strategy that may better suit your needs once you’re ready to shift gears.
Whether you choose to dip a toe or foot into the retirement waters as you enter your early or late 50s or if you’re looking to prepare for that one date you can finally call it quits from your job, know that there are many ways to reposition your portfolio to meet your new slate of needs.
In this piece, we’ll concentrate on the types of growth stocks for investors hoping to retire within five years to a decade. Indeed, certain blue-chip growth stocks can help you get that one big final sprint toward the retirement finish line. And while you should be taking some risks off the table as you inch ever so closer to your potential retirement date, ignoring the growth factor may be what pushes your retirement date further down the line.
In any case, somewhat flexible retirees who are willing to stay invested for at least five years may wish to consider the following two intriguing stocks, which, I believe, provide a good mix of long-term growth and dividend growth.
Key Points About This Article
- Investors who are a decade away from retirement may wish to pursue prudent blue chips that are still capable of growing earnings.
- Apple and Chevron are two standout blue chips that make sense to own for five years or more.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Apple
First up, we have Apple (NASDAQ:AAPL) stock, which has been fluctuating wildly following the somewhat underwhelming launch of its latest iPhone 16 line. Aside from a new camera button and slightly better hardware, the latest and greatest iPhone doesn’t seem like a must-upgrade for those who already have an iPhone 15 Pro or Pro Max. With Apple Intelligence coming into last year’s model, it seems all too easy to pass up on this year’s release.
JP Morgan (NYSE:JPM) analyst Erik Woodring, who has an overweight rating alongside a fairly hefty $273 per-share price target (that entails 22% upside from Thursday’s close), admitted that iPhone 16 “lead times are down,” but astutely pointed out that such an early figure tends to “have little predictive power.”
With Apple Intelligence not yet available on launch, I think it’s premature to dub the iPhone 16 as a relative disappointment as earlier data trickles in. It makes more sense to look out to the next several months to gauge demand. After all, consumers are probably waiting until they can get their hands on Apple Intelligence in-store before they open their wallets.
In any case, Woodring sees next year’s model—the iPhone 17—as having the potential to kick off a “bigger cycle.”
He’s right. The iPhone 17 could boast beefier upgrades, including a more AI-capable A19 chip, a slimmer new model (iPhone Air?), and perhaps an Apple-made 5G modem. Additionally, a more polished version of Apple Intelligence will likely be available upon that device’s release.
All considered, the stage for a supercycle may be set for September 2025. For patient growth-minded investors seeking a great entry point, perhaps today’s levels (just north of $220 per share) could prove attractive.
Chevron
For investors who want a better mix of income and growth, Chevron (NYSE:CVX) may be a more intriguing option to consider at this juncture. Coincidentally, Chevron is also a name that Warren Buffett has been selling out of in recent quarters.
Though Buffett’s moves may be a red flag for some, I’m more inclined to believe that such share sales have more to do with diversifying the previously-overconcentrated Berkshire Hathaway (NYSE:BRK-B) stock portfolio. As such, investors seeking a good mix of income and value still have plenty to love from the name, especially now that it’s down 13% in the past year and more than 22% from all-time highs.
The big oil firm looks like a big value play, especially for investors lacking exposure to the energy patch. With a lofty 4.5% dividend yield and a very reasonable 10.6 times forward price-to-earnings (P/E) multiple, CVX stock stands out as a dirt-cheap blue chip to pick up while it’s down. Despite a rough second-quarter showing, CEO Mike Wirth insists his firm’s growth is on the right track.
As Chevron moves full speed ahead on its big capital projects while continuing to take advantage of potential opportunities in the space, I’d not sleep on the name just because its refining margins aren’t as high as they could be. Additionally, strong management and elevated oil prices could be conducive to substantial dividend growth over the next couple of years.
All considered, I’d be inclined to take Mr. Wirth’s word that Chevron is still well-equipped to grow from here.
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