3 Best Dividend Stocks for Retirement
Passive income is perhaps the most attractive benefit a stock can offer for a retiree. When that's the main goal, the higher the dividend yields, the better. But that comes with a caveat: only as long as the stock is supported by an established, reliable company.
There are massively high dividends out there that come with risk, such as Annaly Capital Management, a mortgage real estate investment trust (mREIT) that yields more than 13%. Since it deals with mortgages, it's highly susceptible to interest rate changes. That makes it potentially inconsistent, which might suit a younger investor but not work as well for a retiree dependent on consistent income.
In addition, the best portfolio is a diversified one, so you'd want to spread your confidence among different industries and not only invest in REITs, for example. With those factors in mind, I recommend Realty Income (NYSE: O), Prudential Financial (NYSE: PRU), and Procter & Gamble (NYSE: PG).
Source Fool.com
