Baby Boomers Retiring and Spending Big: 5 Companies May Benefit Huge

Print Email

The baby boomer generation was between 1946 and 1964 and turned into a huge influence on our society. Now with many retiring and others right behind them, they are also a very powerful force in the economy, as many wealthy boomers have a ton of time on their hands and plenty of money to spend.

A recent UBS research report notes that various segments of the economy may be set to disproportionately benefit, as all that money that was stashed away in savings, pensions, IRAs and 401(k) plans starts to gush out and be spent. They have put together a baby boomers stock list, of 16 companies they think will benefit from this cash tidal wave. These five also pay solid dividends

Ameriprise Financial

This top company offers investors solid upside potential and a very nice dividend. Ameriprise Financial Inc. (NYSE: AMP) provides a range of financial products and services in the United States and internationally. The Advice & Wealth Management segment offers financial planning and advice, as well as brokerage services primarily to retail clients through its advisors.

Its Asset Management segment provides investment advice and investment products to retail, high net worth, and institutional clients through unaffiliated third-party financial institutions and institutional sales force. In recent years Ameriprise has recruited heavily from the top Wall Street firms ranks.

Ameriprise returned $568 million to investors in the first quarter via buybacks and dividends, as well as raised its quarterly payout by 12%. Trading at a forward price-to-earnings number of just over 9 and PEG of 1.11, the stock makes sense for investors looking to add a top financial.

Investors receive a 3.33% dividend. The Wall Street consensus price target for the stock is $109.89. Shares closed Wednesday at $90.13.

Carnival

Boomers love to cruise, and this is one of the sector leaders. Carnival Corp. (NYSE: CCL) operates as a leisure travel and cruise company in North America, Europe, Australia and Asia. It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line and Seabourn brands in North America, as well as the Costa, AIDA, P&O Cruises (UK), Cunard and P&O Cruises (Australia) brands in Europe, Australia and Asia.

The company operates 99 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates 11 hotels or lodges, approximately 300 motor coaches and 20 glass-domed railcars. In addition, the company is involved in the leasing of cruise ships. It sells its cruises primarily through travel agents and tour operators.

Shareholders are paid a 2.97% dividend. The UBS price target is set at $58, and the consensus target is $55.02. The shares closed most recently at $47.15.