3 Dividend Stocks Perfect for Retirees
With interest rates near all-time lows, retirees are looking further up the risk curve for income to cover their costs in retirement. Dividend-paying stocks are a natural next place to look, but they come with a huge asterisk attached. Those payments are not guaranteed, and as 2020 showed us, companies can and will cut their dividends if their business gets into deep enough trouble.
As a result, if you're looking for dividends to be a source of your retirement cash, you need to consider the quality of those dividends as well as the amount of dividends you get. You also should set yourself up so that instead of directly spending them, your dividends help feed a savings or bond ladder, and that ladder provides your actual spending cash. That way, if your dividends do get cut, you don't find yourself scrambling for cash.
With those key parameters in mind, here are three dividend stocks that just might be perfect for retirees to consider.
Source Fool.com
