Skip to main content

3 Dividend Stocks That Are Perfect for Retirees

Friday, March 26, 2021 | Sean Sechler
3 Dividend Stocks That Are Perfect for RetireesBuilding a portfolio and buying stocks based on what stage of life you are in is one of the most important concepts for investors to understand. This is particularly true if you are at or near retirement since it’s very likely you will be more interested in reducing your overall risk and setting yourself up for financial security during your golden years. Some retirees even get to a point where they can live entirely off of their dividend payments, which is a truly impressive feat.

Picking the right individual stocks as a retiree is crucial since capital preservation and generating consistent income are key. Choose wisely and you can essentially “set it and forget it” when it comes to managing your investment account, but choose poorly and you might be in for a lot of unnecessary stress. The good news is that we’ve put together a list of 3 dividend stocks that are perfect for retirees to help you get a better sense of the types of companies you can rely on in your later years.

Cardinal Health (NYSE:CAH)

It makes a lot of sense for retirees to look into buying companies that are leaders in their respective industries, and Cardinal Health is a fine example. It’s a top 3 U.S. distributor of pharmaceuticals, medical-surgical supplies, and related products and is a company that plays a critical role in the healthcare industry. The company generates roughly 89% of its revenue from pharmaceutical distribution, which is noteworthy due to the high barriers of entry in the industry. That means Cardinal Health isn’t going anywhere anytime soon and that retirees can count on dependable sales.

There’s also some nice upside here given that elective procedures should pick up again in the near term. Another strong point to mention about Cardinal Health is that the company is a network administrator in the second stage of the Federal Pharmacy Partnership Strategy for COVID-19. That means the company will help to provide faster access to the COVID-19 vaccine for pharmacies and has an opportunity to become one of the major vaccine distributors, which is certainly a plus. With plenty of share price upside along with a current dividend yield of 3.29%, Cardinal Health is certainly a strong dividend stock for retirees.

Walmart Inc (NYSE:WMT)

Another solid choice for retirees is Walmart, which is the largest retailer in the world and a member of the esteemed dividend aristocrats. With 43 consecutive years of dividend increases, Walmart is a company that has rewarded long-term shareholders for years and has a strong enough business model to continue doing so for decades to come. The company has three main segments which include the classic Walmart Stores, membership warehouse chain Sam’s Club, and an international segment. At the end of the company’s fiscal 2020, Walmart had more than 11,500 retail stores in 27 different countries.

Walmart is a great dividend stock for retirees to consider for several reasons. The consistent dividend growth and a low beta of 0.47 mean that you can rely on consistent income and low-volatility with this stock. There’s also a lot of growth potential here as the company continues to expand its e-commerce capabilities and international presence. Walmart saw its e-commerce sales in the U.S. grow 79% year-over-year in FY 2021, and there’s reason to believe the company has only just scratched the surface of the potential with this new sales channel. It’s also worth mentioning that in FY 2021 the company generated $36.1 billion in operating cash flow and returned $8.7 billion to shareholders through dividends and share repurchases, which should be music to retirees’ ears.

AT&T (NYSE:T)

With AT&T, retirees can own a bargain-priced dividend stock that currently offers a very attractive dividend yield of 6.94%. When you compare that dividend yield to the interest rates that savings accounts offer at this time, it’s easy to understand why this stock is so attractive for income investors. AT&T provides telecommunications and entertainment services to consumers in the U.S., Latin America, and businesses all over the world. Some of the services include wireless communications, long-distance services, data/broadband Internet services, video services, telecommunications equipment, and more.

The company has been divesting its DIRECTV and other cable and satellite TV operations that should help to improve the company’s earnings and reduce its debt load going forward. There’s also a lot to like about the company’s exposure to 5G networks, which are going to play a big role in connecting the world going forward. Finally, the fact that AT&T has a history of generating strong free cash flows thanks to its contract-based business model should give retirees peace of mind.

Featured Article: Support Level


7 Outdoor Recreation Stocks For Growth And Dividends

If American’s liked outdoor activities before, they love them even more now. The COVID-19 pandemic has done many things, and one of them is reinvigorating American’s love of the outdoors. Data from across the industry shows a sustained uptick in revenue that has the entire complex moving higher.

The RV Industry Association, for example, reports shipments of RVs are up greater than 30% in 2020 and are expected to grow another 20% or more in 2021. If data from the two of the industry’s largest manufacturers are any indication, that forecast is very conservative.

And the gains aren’t limited to RVs. Everything that has anything to do with outdoor recreation is booming. Sales at Dicks Sporting Goods, an iconic brand for retail and the outdoors, has seen a sustained 20% increase in revenue since the 2nd quarter shutdowns. If anything, revenue in this sector is being held back by rapidly declining inventory and tight shipping conditions.

The stocks we are about to show all have something in common; the outdoors. Within the group, you will find everything from RVs to Radios and everything in between an outdoor enthusiast could need or want. Some pay dividends and some don’t, but all will deliver solid returns to investors in 2021.

View the "7 Outdoor Recreation Stocks For Growth And Dividends".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AT&T (T)2.3$32.24+0.8%6.45%21.21Hold$31.31
Walmart (WMT)2.5$138.27+1.7%1.59%22.05Buy$154.88
Cardinal Health (CAH)2.6$56.32+0.9%3.44%17.02Buy$62.29
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.