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In Your 40s? Here are 5 Stocks for the Prime of Your Life

·5-min read
Social Media User
Social Media User

There is a new description for people in their 40s: the sandwich generation.

The term “sandwich” refers to the generation caught in between the financial demands of raising a family and supporting their ageing parents.

However, this negative stereotype fails to capture the true essence of what it means to be in your 40s: you’re in the prime of your life!

Unlike those in their 20s who have just started their careers, those in their 40s should be well-established at work and hold fairly senior positions.

With more than a decade of work experience under your belt, you are likely to have built up sufficient savings and a large investment fund compared to those in the 30s.

At this juncture of your life, your focus should be more balanced between protecting your wealth and growing your funds.

To achieve that, your investment portfolio should have a mix of stocks with both growth and income characteristics.

After all, you still have roughly 20+ years before you hit the retirement age of 65.

Here are five stocks that are suitable for investors in their 40s.

Facebook (NASDAQ: FB)

Facebook has, over the years, defined what social media is all about.

The social media giant operates a platform that allows people to connect, post updates and upload pictures and videos of themselves. The company also owns the chat programme WhatsApp and the picture-sharing site Instagram.

Facebook has enjoyed a sharp growth spurt, with its fiscal 2021 second quarter (2Q2021) recording a 56% year on year jump in advertising revenue.

Net profit doubled year on year to US$10.4 billion.

Daily and monthly average users increased by 6.9% and 7.2% year on year for the quarter to 1.9 billion and 2.9 billion, respectively.

Facebook has grand plans for its future to create its own”metaverse”.

The metaverse is akin to a massive communal cyberspace linking both augmented and virtual reality together to enable people to connect through avatars.

And the company has also recently launched its smart glasses in collaboration with Ray-Ban, allowing people to take photos, record videos and answer phone calls.

The move is one small, but important, step towards its creation of a virtual world.

Frasers Logistics & Industrial Trust (SGX: BUOU)

Frasers Logistics & Industrial Trust, or FLCT, is an industrial and commercial REIT with a portfolio of 103 properties across five countries.

As of 30 June 2021, the portfolio was valued at S$6.8 billion and enjoyed an occupancy rate of 96.3%.

FLCT has a strong sponsor in Frasers Property Limited (SGX: TQ5), a real estate giant with total assets of around S$38.7 billion as of 30 September 2020.

The REIT has more than quadrupled its assets under management from just S$1.6 billion when it was first listed in June 2016, to S$6.8 billion currently.

For its fiscal 2021 first half ended 31 March 2021 (1H2021), FLCT’s distribution per unit (DPU) increased by 9.5% year on year to S$0.038.

Annualised DPU stands at S$0.076 and the REIT’s units offer a forward dividend yield of around 5.1%.

Starbucks (NASDAQ: SBUX)

Starbucks is a coffee chain and specialty coffee retailer with more than 33,000 stores worldwide.

The company has been growing steadily over the years and expanding its store count globally.

For its 2Q2021, total revenue surged by 77.6% year on year to US$7.5 billion as store traffic rebounded from the pandemic low when many stores were forced to temporarily shut.

Net profit clocked in at US$1.15 billion, a sharp reversal from the US$678.4 million in losses incurred in the prior year.

Starbucks raised its quarterly dividend by close to 10% year on year to US$0.45 per share.

The coffee giant has guided for a 10% to 12% year on year increase in earnings per share for the fiscal years 2023 and 2024 and intends to expand its global store count to 55,000 by the year 2030.

Ascendas REIT (SGX: A17U)

Ascendas REIT, or A-REIT, is Singapore’s largest industrial REIT with a portfolio of 211 properties spread across Singapore, Australia, the UK and the US.

Assets under management stood at S$15.9 billion as of 30 June 2021.

For 1H2021, A-REIT reported a 12.4% year on year jump in gross revenue to S$586 million.

DPU inched up by 5.4% year on year to S$0.0766 despite a 12.2% rise in the number of issued units.

Forward dividend yield stands at around 5%, and the REIT’s sponsor is none other than real estate giant CapitaLand Limited (SGX: C31).

Boustead Singapore Limited (SGX: F9D)

Boustead Singapore Limited, or BSL, is an industrial conglomerate with four key divisions — energy-related engineering, real estate solutions, geospatial technologies, and healthcare.

The group reported a 6% year on year decline in revenue to S$685.7 million for its recent fiscal year ended 31 March 2021 (FY2021), net profit (adjusted for one-off items) jumped 23% year on year to S$44.6 million.

BSL also has a track record of paying a dividend every single year, even through the Global Financial Crisis.

For FY2021, the group declared final and special dividends of S$0.03 and S$0.04, respectively, due to the unlocking of value at its subsidiary Boustead Projects Limited (SGX: AVM).

Looking ahead, BSL expects its energy-related engineering and real estate divisions to face headwinds arising from the pandemic.

However, its geospatial division reported record revenue due to strong demand for its smart mapping capabilities and should continue to do well.

Looking for more dividend stock ideas? Then you’ll want to know about these 5 strong SGX companies. We’ve prepared everything you need to know in a FREE special report: “Dividend Stocks That Can Pay You For Life”. Click here to download now.

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Disclaimer: Royston Yang owns shares of Facebook, Frasers Logistics & Industrial Trust, Starbucks and Boustead Singapore.

The post In Your 40s? Here are 5 Stocks for the Prime of Your Life appeared first on The Smart Investor.

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