Investing

3 Bulletproof Stocks Baby Boomers Will Kick Themselves for Not Buying Now

Chris MacDonald

Published: March 14, 2025 1:34 pm

As baby boomers approach or enter retirement, investment strategies are shifting from high-growth stocks to more stable, income-generating assets. While many boomers still hold heavy stock allocations, with nearly 30% of individuals aged 60 to 65 investing almost entirely in equities, market volatility poses a risk to their financial security. 

To balance growth and stability, financial experts recommend reallocating funds toward dividend-paying stocks and high-quality bonds. This can help those nearing retirement ensure they’re generating consistent income, while protecting their invested capital against market downturns.

Indeed, given the volatility we’ve seen play out in the market of late, the search for defensive stocks to buy does appear to be on. These three blue-chip companies are among those I think are the most bulletproof, if we do see these recession fears boil over into a broader market downturn.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) is among the leading fast food giants globally, and a blue-chip stock many long-term investors look to for portfolio stability.

During the Great Financial Crisis, McDonald’s was one of the few large-cap stocks to not only make it though the crisis relatively unscathed, but actually see its stock price surge higher. Trade-down from consumers to lower-cost options in the out-of-home dining category led to significant share price gains for the restaurant gain operator. With global operations, McDonald’s is also often viewed as a macro play on the global growth of quick service restaurants, and the company continues to expand its footprint in a number of higher-growth markets.

Now, the company has encountered some recent headwinds tied to the rise of GLP-1 drugs, and expectations that sales could be on the decline if fast food truly goes out of fashion around the world. But the reality is that prior health-related trends and shifts have done little to detract from the company’s brand as the leading fast food company globally.

Analysts continue to project strong sales growth for McDonald’s, with the average consensus price target on MCD stock sitting at $327.52 per share, implying upside of roughly 10% from here. In my view, if we do see recessionary headwinds unfold, this is one of the few companies that may not see analysts downgrades, at least not to the same extent as its peers.

So, for those seeking companies with relatively stable cash flows and a high likelihood of retaining its value in a potential crisis, this is a top stock to consider right now.

Occidental Petroleum (OXY)

Occidental Petroleum (NYSE:OXY) is an energy giant that’s come into focus for many investors thanks to the rather large position taken in the energy giant by renowned investor Warren Buffett.

Occidental has seen tremendous growth not only in the company’s core oil and gas exploration and production businesses, but in the company’s other operations as well. Of course, as an oil & gas giant, energy prices matter a great deal to the company’s valuation and its share price. But with a diversified business model that includes chemicals and vinyls, mistreat and marketing, transportation, processing and storage, there’s a lot to like about this company’s cash flow stability, even in periods of market downturns. 

It’s true that energy prices can deteriorate during downturns, and any material decrease in the price of oil will be felt by investors. But the company’s broader operations do provide ballast in times of uncertainty, and the company’s current valuation of 12-times forward earnings is very cheap, relative to its growth prospects.

If the energy market remains strong (as the Trump administration clearly wants to see), this is a potential beneficiary of the recent regime change baby boomers may want to consider adding to their list of core portfolio holdings.

Altria Group (MO)

Altria Group (NYSE:MO) is classified as a consumer staples company, but is a company that’s probably best known for its core cigarette business. 

As a cigarette giant, Altria’s investment allure really has faded in recent decades. As such, the company’s forward price-earnings multiple of 10-times isn’t surprising. Without demand from large institutional investors, many of whom have various mandates to avoid investing in such stocks, there’s a more narrow set of investors in this name. That makes shares of the company more relatively illiquid, but also provides buying opportunities for those seeking cash flow growth in times of trouble.

Additionally, it’s worth pointing out that like its peers, Altria is on a long-term trajectory to move away from cigarettes, focusing on the company’s other smokeless nicotine products. Nicotine pouches are in, with vaping and other cigarette offerings under social pressure (and for good reason).

We’ll have to see if the company’s longer-term shift away from harmful nicotine products can lead more investors to this name, which isn’t for everyone. But for those looking to hunker down, this is a stock I think is at least worth a look at this valuation.