This is part two of a three-part series on adjusting your portfolio to follow Boomer money into their retirement.
The one guarantee in the huge shift from working- to retirement-spending for boomers is an increase in healthcare spending. As we age we have more and greater health problems, and the massive number of boomers moving into this category guarantees a big spike.
And, with the advent of Obamacare, healthcare providers who currently are paid about 4% of the costs of providing care to the uninsured will be receiving 100% reimbursement. This alone will drive numbers way up for many parts of the healthcare industry.
One broad-market healthcare play that will directly benefit from increased boomer spending will be Bristol-Myers Squibb (NYSE: BMY).
I know, it is one of the most recognizable pharma plays, and there are probably a dozen big name pharmas that would work, but BMY is one that is poised to continue to capitalize on the growing demand for health services and it deserves a look.
It has been paying a dividend since 1933 and has a broad range of products that treat everything from heart attacks to arthritis, stroke, diabetes and adult leukemia, all of which are focused on our aging population.
It is expected to show an 8.2% growth factor for the next five years and currently pays a very competitive 3.2% dividend.
BMY also meets all of our requirements for a suitable holding in a retired portfolio; an essential industry, stable returns, solid long-term growth prospects, and a competitive dividend with a long history of paying and increasing the dividend.
Healthcare is one absolutely essential industry that will benefit from both the boomers’ shift in their spending habits and from the greater number of insured persons under Obamacare. BMY’s broad base of products makes it a sure winner for many years to come.
Take a look at BMY.
Next week, part III: Transportation…
Editor’s Note: Wealthy Retirement founder and Oxford Club Chief Income Strategist Marc Lichtenfeld recently uncovered one healthcare company that’s going to revolutionize life as we know it – and that’s not hyperbole.
It holds the key to an incredible advancement in medicine called RNA Interference. Nobel Prize winner Dr. Phillip A. Sharp called the initial discovery “the most important and exciting breakthrough of the last decade, perhaps multiple decades.”
And this company has locked down nearly every patent behind RNAi. To learn more about this exciting breakthrough and the company behind it all, click here.