Top Dividend Stocks for Retirees to Consider
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Verizon's Stability: Verizon Communications (VZ) dominates the U.S. wireless market with a 20-year history of dividend increases, currently yielding 5.4% while maintaining a manageable payout ratio of 56% of estimated earnings, making it a reliable choice for retirees dependent on dividend income.
- Altria's Growth Strategy: Altria Group (MO), a Dividend King, continues to thrive despite declining smoking rates by raising prices, offering a 6.32% dividend yield and projected low-single-digit annual earnings growth over the next three years, appealing to investors seeking stable income.
- Chevron's Resilience: Chevron (CVX) has demonstrated strong resilience amid Middle East turmoil, boasting 39 consecutive years of dividend increases with a current yield of 3.27%, and with Brent oil prices hovering around $100, future dividends may see significant upside, making it suitable for retirees.
- Energy Sector Outlook: Despite uncertainties in the Middle East, Chevron plans for at least 10% annualized free cash flow growth through 2030, and with current oil prices, there is potential for increased dividends, ensuring a stable income source for retirees.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 50.740
Low
43.00
Averages
46.42
High
51.00
Current: 50.740
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Top Dividend Stocks for Retirees to Consider
- Verizon's Stability: Verizon Communications (VZ) dominates the U.S. wireless market with a 20-year history of dividend increases, currently yielding 5.4% while maintaining a manageable payout ratio of 56% of estimated earnings, making it a reliable choice for retirees dependent on dividend income.
- Altria's Growth Strategy: Altria Group (MO), a Dividend King, continues to thrive despite declining smoking rates by raising prices, offering a 6.32% dividend yield and projected low-single-digit annual earnings growth over the next three years, appealing to investors seeking stable income.
- Chevron's Resilience: Chevron (CVX) has demonstrated strong resilience amid Middle East turmoil, boasting 39 consecutive years of dividend increases with a current yield of 3.27%, and with Brent oil prices hovering around $100, future dividends may see significant upside, making it suitable for retirees.
- Energy Sector Outlook: Despite uncertainties in the Middle East, Chevron plans for at least 10% annualized free cash flow growth through 2030, and with current oil prices, there is potential for increased dividends, ensuring a stable income source for retirees.
See More
Top Dividend Stocks for Retirees: High Yield Recommendations
- Verizon's Stable Income: Verizon Communications has increased its dividend for 20 consecutive years, currently yielding 5.4% with a payout ratio of 56% of estimated earnings, indicating strong financial resilience, making it suitable for retirees seeking stable income.
- Altria's Pricing Strategy: Despite declining smoking rates in the U.S., Altria Group offsets falling cigarette volumes by raising prices annually, boasting a 6.6% dividend yield, with analysts projecting low-single-digit annual earnings growth over the next three years, showcasing its resilience in a mature market.
- Chevron's Growth Potential: Amid the Middle East conflict, Chevron maintains a strong track record with 39 consecutive years of dividend increases, currently yielding 3.4%, and is expected to achieve at least 10% annual free cash flow growth through 2030, highlighting robust profitability in a high oil price environment.
- Diversity in Investment Recommendations: While Verizon is considered a solid investment choice, it was not included in the Motley Fool's list of 10 best stocks, reflecting a diverse market perspective on investment opportunities, urging retirees to choose wisely.
See More
Investors Turn to Low Volatility Funds Amid Market Turbulence
- Strong Performance of Low Volatility Funds: The Franklin International Low Volatility High Dividend Index ETF (LVHI) has risen approximately 8% year-to-date, contrasting with the nearly 7% decline of the S&P 500, demonstrating its resilience during market turbulence.
- Significant Asset Management: LVHI currently manages $4 billion in assets, with a 30-day SEC yield of 3.35% and an expense ratio of just 0.40%, providing a stable income source that has attracted substantial inflows.
- International Diversification Strategy: LVHI reduces volatility by investing in international stocks while hedging currency risks; Silverman notes that these stocks are driven by different economic forces than traditional domestic stocks, offering a more defensive investment option.
- Risk Mitigation Tool: Silverman recommends viewing these ETFs as conservative core holdings within a portfolio, capable of balancing higher-risk assets, akin to safety features in race cars, helping investors manage portfolio volatility.
See More
Investor Anxiety Rises as Market Volatility Peaks
- Increased Market Volatility: The CBOE S&P 500 Volatility Index is nearing a multi-month peak, which historically signals potential market corrections, leading to heightened investor anxiety and possible short-term instability.
- Defensive Investment in Verizon: Verizon Communications offers a forward-looking dividend yield of 5.7%, providing stable cash income amid economic uncertainty, highlighting its investment value as consumer demand for mobile services remains strong.
- Coca-Cola's Stability: With a dividend yield of 2.8%, Coca-Cola, despite being lower than Verizon's, boasts a 64-year history of dividend increases and a diverse beverage portfolio, making it a reliable investment during economic downturns as consumers continue to purchase its products.
- Resilience of Waste Management: Waste Management is recognized as a defensive stock that historically performs well during market downturns; despite being a cliché choice, its consistent demand during economic hardships makes it a popular pick among investors.
See More
Investment Outlook for Energy Transfer and Digital Realty
- Stable Returns from Energy Transfer: Energy Transfer owns a diverse portfolio of midstream energy assets, with a targeted annual distribution growth of 4% to 6%, making its high forward yield of 6.9% particularly attractive to investors seeking stable income amidst market volatility.
- Rapid Growth of Digital Realty: Digital Realty Trust focuses on owning and leasing data center space, benefiting from the rapid growth of artificial intelligence, with earnings growth forecasted at 9% to 10% over the next two years, which should lead to increased cash distributions and stock appreciation.
- Verizon's Transformation: Verizon Communications has seen its stock rise 25% year-to-date, shedding its reputation as a yield and value trap, as better-than-expected quarterly results and subscriber growth have led to a higher valuation, reflecting market confidence in its future growth.
- Defensive Investment Strategy: In the current market environment, investors are advised to focus on high-quality dividend stocks, with Energy Transfer, Digital Realty, and Verizon emerging as ideal choices to maintain portfolio stability during economic cycle fluctuations.
See More
Analysis of Defensive Stock Investment Strategies
- Energy Transition Investment: Energy Transfer (ET) boasts a diverse portfolio of midstream energy assets, with a current stock price of $19.40 and a market cap of $66 billion, targeting annual distribution growth of 4% to 6%, making it a solid choice for stable returns.
- Digital Realty Trust: Digital Realty Trust (DLR) focuses on data center investments, currently priced at $175.73 with a market cap of $61 billion, and is expected to see earnings growth of 9% to 10% over the next two years, which should drive further increases in distributions.
- Telecom Sector Recovery: Verizon Communications (VZ) has seen a 25% increase year-to-date, with a current stock price yielding 5.5%, as better-than-expected quarterly results and subscriber growth have improved its valuation, indicating a recovery from its previous
See More
Top Dividend Stocks for Retirees to Consider
- Verizon's Stability: Verizon Communications (VZ) dominates the U.S. wireless market with a 20-year history of dividend increases, currently yielding 5.4% while maintaining a manageable payout ratio of 56% of estimated earnings, making it a reliable choice for retirees dependent on dividend income.
- Altria's Growth Strategy: Altria Group (MO), a Dividend King, continues to thrive despite declining smoking rates by raising prices, offering a 6.32% dividend yield and projected low-single-digit annual earnings growth over the next three years, appealing to investors seeking stable income.
- Chevron's Resilience: Chevron (CVX) has demonstrated strong resilience amid Middle East turmoil, boasting 39 consecutive years of dividend increases with a current yield of 3.27%, and with Brent oil prices hovering around $100, future dividends may see significant upside, making it suitable for retirees.
- Energy Sector Outlook: Despite uncertainties in the Middle East, Chevron plans for at least 10% annualized free cash flow growth through 2030, and with current oil prices, there is potential for increased dividends, ensuring a stable income source for retirees.
See More
Top Dividend Stocks for Retirees: High Yield Recommendations
- Verizon's Stable Income: Verizon Communications has increased its dividend for 20 consecutive years, currently yielding 5.4% with a payout ratio of 56% of estimated earnings, indicating strong financial resilience, making it suitable for retirees seeking stable income.
- Altria's Pricing Strategy: Despite declining smoking rates in the U.S., Altria Group offsets falling cigarette volumes by raising prices annually, boasting a 6.6% dividend yield, with analysts projecting low-single-digit annual earnings growth over the next three years, showcasing its resilience in a mature market.
- Chevron's Growth Potential: Amid the Middle East conflict, Chevron maintains a strong track record with 39 consecutive years of dividend increases, currently yielding 3.4%, and is expected to achieve at least 10% annual free cash flow growth through 2030, highlighting robust profitability in a high oil price environment.
- Diversity in Investment Recommendations: While Verizon is considered a solid investment choice, it was not included in the Motley Fool's list of 10 best stocks, reflecting a diverse market perspective on investment opportunities, urging retirees to choose wisely.
See More
Investors Turn to Low Volatility Funds Amid Market Turbulence
- Strong Performance of Low Volatility Funds: The Franklin International Low Volatility High Dividend Index ETF (LVHI) has risen approximately 8% year-to-date, contrasting with the nearly 7% decline of the S&P 500, demonstrating its resilience during market turbulence.
- Significant Asset Management: LVHI currently manages $4 billion in assets, with a 30-day SEC yield of 3.35% and an expense ratio of just 0.40%, providing a stable income source that has attracted substantial inflows.
- International Diversification Strategy: LVHI reduces volatility by investing in international stocks while hedging currency risks; Silverman notes that these stocks are driven by different economic forces than traditional domestic stocks, offering a more defensive investment option.
- Risk Mitigation Tool: Silverman recommends viewing these ETFs as conservative core holdings within a portfolio, capable of balancing higher-risk assets, akin to safety features in race cars, helping investors manage portfolio volatility.
See More
Investor Anxiety Rises as Market Volatility Peaks
- Increased Market Volatility: The CBOE S&P 500 Volatility Index is nearing a multi-month peak, which historically signals potential market corrections, leading to heightened investor anxiety and possible short-term instability.
- Defensive Investment in Verizon: Verizon Communications offers a forward-looking dividend yield of 5.7%, providing stable cash income amid economic uncertainty, highlighting its investment value as consumer demand for mobile services remains strong.
- Coca-Cola's Stability: With a dividend yield of 2.8%, Coca-Cola, despite being lower than Verizon's, boasts a 64-year history of dividend increases and a diverse beverage portfolio, making it a reliable investment during economic downturns as consumers continue to purchase its products.
- Resilience of Waste Management: Waste Management is recognized as a defensive stock that historically performs well during market downturns; despite being a cliché choice, its consistent demand during economic hardships makes it a popular pick among investors.
See More
Investment Outlook for Energy Transfer and Digital Realty
- Stable Returns from Energy Transfer: Energy Transfer owns a diverse portfolio of midstream energy assets, with a targeted annual distribution growth of 4% to 6%, making its high forward yield of 6.9% particularly attractive to investors seeking stable income amidst market volatility.
- Rapid Growth of Digital Realty: Digital Realty Trust focuses on owning and leasing data center space, benefiting from the rapid growth of artificial intelligence, with earnings growth forecasted at 9% to 10% over the next two years, which should lead to increased cash distributions and stock appreciation.
- Verizon's Transformation: Verizon Communications has seen its stock rise 25% year-to-date, shedding its reputation as a yield and value trap, as better-than-expected quarterly results and subscriber growth have led to a higher valuation, reflecting market confidence in its future growth.
- Defensive Investment Strategy: In the current market environment, investors are advised to focus on high-quality dividend stocks, with Energy Transfer, Digital Realty, and Verizon emerging as ideal choices to maintain portfolio stability during economic cycle fluctuations.
See More
Analysis of Defensive Stock Investment Strategies
- Energy Transition Investment: Energy Transfer (ET) boasts a diverse portfolio of midstream energy assets, with a current stock price of $19.40 and a market cap of $66 billion, targeting annual distribution growth of 4% to 6%, making it a solid choice for stable returns.
- Digital Realty Trust: Digital Realty Trust (DLR) focuses on data center investments, currently priced at $175.73 with a market cap of $61 billion, and is expected to see earnings growth of 9% to 10% over the next two years, which should drive further increases in distributions.
- Telecom Sector Recovery: Verizon Communications (VZ) has seen a 25% increase year-to-date, with a current stock price yielding 5.5%, as better-than-expected quarterly results and subscriber growth have improved its valuation, indicating a recovery from its previous
See More
