Retirees should strive to make their nest eggs last. Here are five stocks facing potential complications you might consequently want to avoid in retirement.
Coca Cola (NYSE: KO)
Things won’t go better with Coke in the coming years, suggested The Motley Fool
. It listed the soda giant in August 2015 as one of “2 Dividend Stocks Retirees Should Avoid.” U.S. soda sales have declined over the past decade, while that trend threatens to go global, The Motley Fool said. The stock’s price per share was $39.45 as of Aug. 28, 2015, according to MSN
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Wal-Mart Stores (NYSE: WMT)
The Motley Fool in August 2015 listed this retail giant as one of “2 Dividend Stocks Retirees Should Avoid.” Wal-Mart recently saw its market capitalization surpassed by Amazon, The Motley Fool noted. It suggested that was a “powerful sign of what’s to come.” The Fool concluded: “Wal-Mart came to dominance through an unbeatable combination of low prices, a wide selection of goods, and a convenient shopping experience. Now, however, Amazon is positioned to overtake the once unassailable Wal-Mart on each of those fronts.” Wal-Mart’s stock price per share was $64.94 as of Aug. 28, 2015, according to MSN.
GlaxoSmithKline (NYSE: GSK)
Kiplinger in August 2015 listed GlaxoSmithKline
as a “stock to avoid.” It added: “The British pharmaceuticals giant is beginning to face stiff generic competition for its blockbuster respiratory drug, Advair, which accounts for 16 percent of sales; other respiratory therapies and a promising vaccine business have been slow to develop.” The stock’s price per share was $41.25 as of Aug. 28, 2015, according to MSN.
Tesla Motors Inc. (NYSE: TSLA)
Investors at times become too enthusiastic about companies or sectors and bid prices “into the stratosphere,” said Kiplinger. It added, “Sometimes, this passion fuels a bubble that bursts, as it did for tech stocks in early 2000 and homebuilder stocks in early 2007.” Kiplinger said a good way to protect against such occurrences is to “buy stocks that trade at less than the overall stock market’s average P/E.” With that strategy in mind, it suggested avoiding Tesla. The stock’s price per share was $248.40 as of Aug. 28, 2015, according to MSN.
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Automatic Data Processing Inc. (NYSE: ADP)
Kiplinger also suggested avoiding investment in Automatic Data Processing as part of its recommended strategy of protecting against the bursting of stock market bubbles by shunning stocks that trade at more than the overall market’s average P/E. The stock’s price per share was $78.41 as of Aug. 28, 2015, according to MSN.
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