7 Retirement Stocks to Buy at 52-Week Lows

Investors are pricing in a substantial number of interest rate cuts in the coming months, which has led to a surge in stock prices. And while investors might think they’ve missed out on the run, they haven’t. Even in this frothy market, there are still a few pockets of value to be found. We can look at the following seven high-quality retirement stocks below, for example, each trading within 5% of their 52-week lows.

Starbucks (SBUX)

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Starbucks (NASDAQ:SBUX) is the world’s leading coffee shop chain. It has about 16,000 locations just in the U.S.

But what investors may not appreciate is the size of its international operations. Starbucks has just under 40,000 stores in total, meaning that the majority are located outside the U.S.

In any case, investors have focused too much on Starbucks’ near-term problems. Sure, it faces competition from the likes of Dutch Bros (NYSE:BROS) in the United States. Inflation has hurt consumer spending. And Starbucks’ China market is currently in the doldrums.

But, over the long term, Starbucks is one of the world’s most well-known and liked brands. Plus, it has plenty of room to grow in many countries across Asia, Europe, and Latin America. Among the top retirement stocks, SBUX is an opportunity near its 52-week low.

BP (BP)

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Oil giant BP (NYSE:BP) has long been one of the top retirement stocks to own, especially for its 4.58% yield. Plus, BP has consistently generated truckloads of free cash flow.

Unfortunately, the company lost its way over the past 15 years. First, the Deepwater Horizon disaster was a huge reputational blow to the company. Then, the company invested heavily in renewable energy for uneven results. Throw in the late 2010s slump in oil prices, and BP experienced a lost decade.

However, BP has turned over a new leaf. It has finally put the Deepwater Horizon behind it. The company slashed its investments in renewable energy in 2023. Instead, BP has spent more of its capital on oil and gas, while rewarding shareholders. The shareholder-friendly approach adds further appeal at a time when BP stock is trading for just 7x forward earnings and offers a 4.58% dividend yield.

Pfizer (PFE)

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Pfizer (NYSE:PFE) is another one of the top retirement stocks to own today.

While its COVID-19 vaccines have largely run their course, revenues have dropped sharply from the 2021 and 2022 peak years. Investors have dumped PFE stock, assuming that the company’s fortunes will surely fade as the vaccine-related prosperity dries up.

But that seems like a mistake. Pfizer’s revenues jumped from $41 billion in 2019 to $58 billion in 2023, and analysts see that rising to $60 billion this year and $63 billion in 2025. That is to say that Pfizer was able to use its vaccine windfall to develop other profitable lines of business and the company should be worth more today than it was in 2019.

Instead, PFE stock is down from $37 to $27 since January 2020. In addition to the discounted share price, this pharma giant is now offering a greater than 6% dividend yield.

Hormel Foods (HRL)

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Hormel Foods (NYSE:HRL) has dramatically overhauled its product portfolio to adapt to the times and preferences of younger consumers. For example, Hormel acquired Jennie-O and has now positioned that brand as a leading purveyor of low-fat turkey meat nationally. It has made numerous other acquisitions in organic and naturally-raised meat products in recent years as well.

In addition to that, Hormel is making waves in non-meat-based proteins. It has a line of plant-based protein alternatives. It bought the Planters snack nut business along with Justin’s line of natural nut butter products. As if that weren’t enough, Hormel has a partnership with Mexico’s Herdez to import that firm’s authentic salsas for the burgeoning American market.

Hormel shares have declined over the past two years as profit margins slumped. Commodity prices soared, and Hormel has had to pay a lot more for labor at its factories as well. But with inflation starting to moderate, Hormel should enjoy a solid comeback in 2024. The company is a Dividend King with a stunning track record of 57 consecutive annual dividend increases. Shares currently yield 3.7%.

Franco-Nevada Corp. (FNV)

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Franco-Nevada Corp. (NYSE:FNV) is a dominant player within the precious metals royalty streaming space. These firms work, as specialty finance companies that provide capital to emerging gold, silver, and other metals miners.

Franco-Nevada has been one of the best performers within the mining space historically. Its stock is up more than 600% since the 2008 financial crisis. And it developed a powerful niche in securing and profiting from royalty streams across the industry. This is particularly valuable now as inflation has emerged as a real threat to investors and people are looking for protection in gold and other metals.

Despite the positives, FNV stock is currently near 52-week-lows. All thanks to a dispute over a contract with First Quantum (OTCMKTS:FQVLF), a Canadian company that operates a large copper mine in Panama. Unfortunately, with Panama ruling the mine’s permit is invalid, it’s been closed.

Pinnacle West Capital (PNW)

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Pinnacle West Capital (NYSE:PNW) is a U.S. utility holding company that owns Arizona Public Service and Bright Canyon Energy.

While the long-term outlook is bright, PNW stock has entered a short-term slump. Utility stocks, in general, have underperformed due to high-interest rates. Pinnacle West also faces regulatory review from the state’s controversial utility commission. These factors have combined to push PNW stock to near 52-week lows; it yields more than 5% today.

Air Products & Chemicals (APD)

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Another one of the top retirement stocks to consider is Air Products & Chemicals (NYSE:APD), a specialty chemical company that produces oxygen, hydrogen, nitrogen, helium, and other such gases for a wide variety of commercial and industrial uses.

APD stock plunged on Monday following a weaker-than-expected earnings report. However, there was a lot of volatility in those numbers tied to changes in energy and commodity prices. The bigger picture is that the company saw rising volumes of products sold, and it maintained guidance for significant earnings per share growth in 2024. With the stock now under 18 times forward earnings, this Dividend Aristocrat is now on sale.

On the date of publication, Ian Bezek held a long position in FNV, HRL, and BP stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

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