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Equities have historically outperformed the bond and fixed income securities. For example, stocks have returned 9.6% annually since the Great Depression in 1929, 40% higher than bonds, which have returned 5.6% annually over this period. Goldman Sachs (NYSE:GS) analysts expect the benchmark S&P 500 index to generate 6% median annualized returns over the next 10 years, with a 90% probability of outperforming bonds through 2030. Moreover, 25% of the total shareholder returns are expected to come from dividends.
Given this backdrop, large-cap companies Walmart Inc. (WMT), Flower Foods, Inc. (FLO), and Group 1 Automotive, Inc. (NYSE:GPI), which possess solid fundamentals and pay stable dividends, could be wise retirement investments.
