The key, though, is picking the right stocks. So we asked three of our contributors to each highlight a stock they see as a great investment for your 401(k). Here's what they had to say.
Been there. Done that. Doing it again
Todd Campbell: Unless you're bumping up on retirement, money that's socked away in a 401(k) plan should be viewed through a long-term lens. For the long haul, there are few companies that I like as much as Celgene Corp (NASDAQ:CELG).
Celgene is the biggest maker of medicine used to treat multiple myeloma, and it's quickly expanding into the treatment of autoimmune diseases, such as psoriasis.
Its top-selling drug is Revlimid, a multiple myeloma drug that's expected to generate $6.7 billion in sales this year and has patent protection until 2027 in the U.S. and 2024 in Europe. Celgene also markets Pomalyst, another multiple myeloma drug, and Abraxane, a pancreatic cancer drug. Both of those drugs are selling at a billion-dollar annualized sales clip.
Celgene launched Otezla, its first autoimmune disease drug, in 2014, and it's off to one of the best starts ever in the indication. Otezla sales were $242 million in Q2, up 170% year over year. Sales of Otezla aren't slowing, and additional growth could be on the horizon from it and other R&D programs that target blood cancer, Crohn's disease, and multiple sclerosis.
All in all, management thinks its irons in the fire can drive revenue to at least $21 billion in 2020 from an estimated $11 billion this year. That's a heady forecast, but the company's proven ability to deliver in the past suggests investors should give management the benefit of the doubt.
Taken a few punches, but still fighting strong
Tyler Crowe: I'm a firm believer in the power of dividend stocks in a 401(k). That powerful recipe of reinvested dividends, tax-free capital gains, and time can be a wealth-generating machine. To make this work, though, you need to find a company that has the ability to pay a steady and increasing dividend over time. It also helps if that company pays a relatively high yield. One company that really stands out in this regard is oil rig owner and lessor Helmerich & Payne (NYSE:HP).
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Dynamic Wealth Research was founded on the principle the world is changing at an ever-increasing pace. The greatest profit opportunities an investor will ever find are from massive, sweeping changes. Dynamic Wealth Research analyzes and closely follows these changes, keeps its readers on the leading edge of them, and shows you how to be best positioned these anxious, interesting, and ultimately profitable times.
