If You're Retired, Consider Buying These 3 Stocks
If you're retired, an ideal retirement portfolio should include both bonds and income-producing stocks. Fixed income is appropriate for retirees because bonds -- at least most Treasury, municipal, and investment-grade bonds -- tend to safely retain their principal value while also throwing off cash in the form of interest payments.
However, an allocation to dividend-paying stocks is also encouraged. After all, high-quality stocks not only pay out dividends, but can also grow that dividend and principal value over time. And with the average life expectancy having risen to 78.7 years as of 2018, dividend growth stocks are likely a necessary part of retiree portfolios, especially for those just entering retirement.
Which stocks to pick? While many retirees often focus entirely on a stock's dividend yield , a payout that is too high often means higher risk, putting not only that dividend but also your principal at risk.
Source Fool.com
