Samantha Sharf
Forbes Staff
Johnson & Johnson JNJ -0.1% is the tenth most popular stock among Baby Boomers — the generation born between 1946 and 1964 — making up 0.9% of the average Boomer’s stock portfolio, according to TD Ameritrade. Two key facts make a strong case for why the healthcare giant ranks with this group but not their younger counterparts.
First fact: Boomers are turning 65 at a rate of about 10,00 per day. That trend is expected to continue until around 2030, according to Pew Research.
Second: Last year Fidelity Benefits Consulting estimated a 65-year-old couple will need an average of $220,000 to pay for medical expenses throughout retirement. That’s a lot.
The healthcare giant ranks 14th for Millennials’, the youngest adult generation, and 22nd for Gen Xers, the generation just behind Boomers. Johnson & Johnson, however, is even more popular with people over 70 making up 1.1% of a Senior’s portfolio on average.
Like other generations Boomers are also big fans of Apple AAPL +0.15% (9.9%),General Electric GE +0.04% (1.7%) and Microsoft MSFT +0.75% (1.5%). Compared to younger investors though Boomers are relatively uninterested in tech companies like Alibaba , Tesla Motors TSLA -0.52% and Amazon.com AMZN +0.38%. In fact those names don’t even rank in the group’s top 20 and Tesla doesn’t appear until number 40. Conversely, telco AT&T T -0.55% is popular among Boomers and Seniors, ranking 7th and 2nd respectively, but does not resonate with younger generations.
This post is part of a series on each generation’s favorite stocks right now. Click here to see Gen Xers’ picks and here for Milennials‘. Check back soon for Seniors’.
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