Business

9 Dividend Stocks That Could Be Appropriate For The Soon-To-Be-Retired Crowd

It’s wise to keep the circumstances and age in mind when you are creating an ideal portfolio. While youngsters are blessed with ample amount of time and the remuneration to take care of the losses in the stock market, those on the verge of retirement need income and stability, that too in a timely manner. Hence, a soon-to-be-retiring person can maintain a perfect stock portfolio with the help of strong organizations that pay substantial dividends. So presented below are some of the most prominent companies that offer impressive dividend stocks.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 hedge fund letters, conference, scoops etc

Dividend stocks for the soon-to-be-retiring

soon-to-be-retiring
RitaE / Pixabay
  1. Coca-Cola

Regardless of where you live, it’s highly likely that you would get a Coca-Cola product. The company produces non-alcoholic beverages like Minute Maid, Powerade, Sprite and Coca-Cola itself, and it sells in some 200 countries all across the globe. Coke is the most famous and well-established organization that garners humongous earnings. It offers consistent dividend payments that only increase with time. The company’s annual dividend rate of $1.22 per share has elevated tenfold since 1991. That’s definitely a promising figure.

  1. Exxon Mobil

The company has been preferred by many in terms of maintaining the retirement portfolios, and the stock comes across as more valuable today given its 4%-plus dividend.

The company is ideally considered as one of the most conventional investment options in the volatile energy sector. Exxon has managed to serve its shareholders well and paid continuous dividends for more than a century, owing to its AA+ credit rating from Standard & Poor's.

  1. Procter & Gamble

This organization is another favourite among the low-risk investors is Procter & Gamble. The consumer goods company produces multiple different products under 65 brands, which include Pampers, Gillette, Cascade, and Crest.

The company operates from multiple different regions in the world, which allows it to enjoy a major presence in several consumer product categories, be it grooming, beauty, home care and health care. All in all, it’s a force to reckon with.

Through their constant emphasis on consumers’ needs, and the development of innovative products, and the judicious investments on marketing procedures, Procter & Gamble has time and again produced favourable outcomes for income growth investors over time. What’s more, P&G has paid dividends for 127 straight years while expanding payout each time in the last 61 years.

  1. Pfizer

As one of the most successful drug manufacturers in the world, Pfizer is engaged in a perpetual struggle to replace revenue from the drugs losing patent protection with new additions from its development pipeline. Patent losses on major products and a steady competition from generic drugs have acted as hindrances to its growth.

However, the outlook of the company is changing. Pfizer has received 10 approvals from the FDA in 2017, which is higher than what it has achieved any year in the last decade, and a favourable prospect could be quite close where new drugs more than make up for the decreasing revenue from patent-protected drugs.

An aspect of Pfizer that conservative income investors will find appealing is its diversification. Instead of putting the onus of the firm’s success on any single drug, Pfizer’s portfolio is wide and healthy. No drug produced by the company is larger than 11% of company-wide sales, and the development pipeline consists of more than 90 products lined up, which includes 15 potential future blockbusters that are estimated to be approved for sale by 2022.

  1. AT&T

This organization is considered as a dividend aristocrat that has continuously paid higher dividends every year for more than three decades. It’s also the most prominent communications company in the world, offering wireless telecommunication service to 153 million customers, catering to 47 million pay-TV connections and integrating 16 million internet connections in service.

AT&T has invested $140 billion in capital investments over the past half a decade to protect the humongous array of hard-to-imitate assets.

Now the organization's increased debt load from the latest acquisitions and investments, indicates that the payout growth may continue to be less over the upcoming years. But the dividend, which offers the highest yield as per the Dow Jones Industrial Average is on solid ground.

  1. Crown Castle International

This company maintains the highest-yielding stock in Bill Gates’ dividend portfolio and a distinguished provider of communications infrastructure in the United States.

The real estate investment trust (REIT) owns, leases and operates approximately 40,000 cell towers and close to 60,000 route miles of fiber across the country. Wireless carriers like AT&T are based on Crown Castle’s infrastructure so they can present wireless services to businesses and consumers alike.

  1. Target

Amidst the news of a massive data breach during the last holiday shopping season left this popular shopping destination absolutely bereft of shoppers, pushing the retailer to slash the prices. Add to it a poorly thought-out expansion into Canada and the outcome was dissatisfactory earnings in the fiscal year that ended last February. Yet the experts and analysts expect considerable growth in the earnings in the coming year, and that is a positive sign for those investors who want to lock in on a stock that’s highly likely to scale up sooner rather than later.

  1. Verizon

This is another extremely popular communications giant that offers wireless services in the country, with nearly 115 million wireless retail consumers and offering 4G LTE network to more than 98% of the U.S. population.

Now even though the telecom industry’s competitive environment does seem to be transforming, Verizon’s dividend remains a strong suit for retirement income. The organization and its predecessors have an amazing track record of paying dividends for over three decades, and Verizon has increased its payout for 11 consecutive years.

The management of the organization revealed that a $10 billion cost reduction plan is underway, which is estimated to be accomplished by 2022 and fund the organization’s dividend through cash savings. Along with the company’s hassle-free and recession-resistant cash flow generation and experts’ predict that the low-single-digit earnings will also grow over the coming years. So, Verizon’s payout should improve over time.

  1. Whirlpool

This manufacturer of home appliances has a huge role to play, whether you’re heating up food or cooling it down, or washing clothes or dishes. The products of this company include washers, refrigerators, dryers, dishwashers and freezers under different brand names, like Jenn-Air, KitchenAid, Maytag and Amana, which adorn the kitchens and laundry rooms all around the world. Experts have revealed that the core earnings of the organization look solid, specifically due to a revival in the U.S. housing sector.

So you can easily consider these prominent organizations to accumulate lucrative dividend stocks.


About The Author:

Nathan WIlliam is an academic expert for Tophomeworkhelper.com and has been providing assignment help to the students for the past one year. She has been a seasoned marketing professional and has worked with reputed organizations. She has acquired her MBA degree from the University of Queensland.