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3 Stocks Everyone in Their 60s Should Own

WFC Total Return Price Chart
WFC Total Return Price Chart

WFC Total Return Price data by YCharts

It may be difficult for Wells Fargo to grow much larger in coming years, but between rising interest rates, a generally improving domestic economy, and one of the best management approaches to risk management in commercial banking, this megabank looks set to continue giving market-beating returns for years to come.

And that makes it an ideal candidate for the portfolio of someone looking to preserve capital and generate income, while still having upside for the long-term.

George Budwell (Johnson & Johnson): When investing in stocks in your 60s, I think two key themes should be pervasive throughout your portfolio, namely dependability and sustainability. That's why I think the dividend-paying healthcare giant Johnson & Johnson would be a great pick for an older individual.

Given that J&J has been selling Band-Aids, baby powder, and numerous other well-known consumer products for about a century now, this stalwart can certainly check off the "sustainability" box. Its stock also passes the "dependability" test in spades in light of the fact that J&J is a "dividend aristocrat" that has raised its dividend for 53 consecutive years in a row at this point.

JNJ Dividend data by YCharts

Even though J&J is a mature healthcare company, it shouldn't be viewed as a stodgy large-cap, devoid of compelling growth prospects. After all, J&J is considered to be a leader in the world of pharmaceutical research and development, with the company on track to potentially bring 10 new blockbusters to market within the next four years. That's on top of the 14 new medicines J&J has brought to market since 2009.

Thus, J&J offers a lengthy history of dividend increases, strong cash flows that have proven to be sustainable over a long period of time, and a top notch growth driver via its industry-leading pharma pipeline.

Dan Caplinger (Disney): People of all ages can appreciate the money-making juggernaut that is Walt Disney. For decades, Disney has captivated generations of loyal customers in their childhood, with its impressive combination of movies and other content, destination theme parks, and associated merchandise. The development of Disney's television-network empire has taken the company in a completely new direction, but the diversification that its landmark ESPN sports network and Disney's other properties in broadcast and cable TV has not only given the company some balance but also has opened up brand new cross-marketing opportunities for its other businesses. Major acquisitions of Pixar, Marvel, and Lucasfilm have dramatically broadened the available content for Disney to use, and excitement is building over new installments in the Star Wars realm as well as other established franchise themes.

Star Wars is one of more than a dozen billion-dollar Disney franchises. Source: Disney.

For older investors, the downside for Disney is that its dividend yield is relatively small, with the stock currently paying just 1.1%. Yet from a capital-gains perspective, Disney's performance has been phenomenal, with the stock having hit record highs repeatedly over the past three years. Given the pipeline of new entertainment franchises and the opportunity for the company to work its magic to squeeze as much profit as it can from its content, Disney has plenty of potential to keep building itself up for the foreseeable future.

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The article 3 Stocks Everyone in Their 60s Should Own originally appeared on Fool.com.

Dan Caplinger owns shares of Walt Disney. George Budwell owns shares of Johnson & Johnson. Jason Hall owns shares of Wells Fargo. The Motley Fool owns and recommends Walt Disney and Wells Fargo. The Motley Fool recommends Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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