Retirees want their portfolios to provide safe, consistent, reliable income that grows faster than the pace of inflation. Retirees want investments that will protect their nest egg, allow them to sleep easy at night, and provide steady income.

Dividend stocks perfectly match retirement investor needs. Dividend stocks can also lead to early retirement. Investing in high quality dividend growth stocks provides retirees with consistent, reliable, growing dividend income.

Some are high risk — high yield stocks. They can be appealing to retirees, but they are dangerous. Other dividend stocks have fantastic growth potential and a high degree of safety — but have very low yields. These stocks may make good investments for younger investors. But to find the best dividend stocks for retirees nowyou must match all of the criteria above and make sure the stock is trading at fair or better value.

This article examines the 10 best dividend stocks for retirement today.

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All 10 stocks match the requirements discussed above. Archer-Daniels-Midland ADM is one of the largest agricultural product businesses in the world. Retirees should take notice of Archer-Daniels-Midland. The company is one of the highest ranking stocks using The 8 Rules of Dividend Investing.

Best of all, it is deeply undervalued at current prices. Growth is not over at Archer-Daniels-Midland. The long-term growth driver for the company is growing global populations. Growing populations mean more food. More food leads to more profits for Archer-Daniels-Midland shareholders. In the shorter run, the company is growing through shedding low margin businesses and acquiring higher margin businesses. The one downside to the stock is its fluctuating earnings. Right now, the company is in at a cyclical low point.

Archer-Daniels-Midland is trading near all-time dividend yield highs. Keep in mind earnings are currently depressed. Flowers Foods FLO is the second largest baking company in the United States Grupo Bimbo is larger.

Flowers Foods bread and cake brands are better known than the company. Flowers Foods owns the following brands among others:.

The bread industry may seem boring — but the growth that Flowers Foods generates is exciting. Growth should continue far into the future for Flowers Foods.

People will be buying bread for a long time…. Geographic expansion will lead to growth, as will growing out underserved areas geographically. Flowers Foods Investor Presentationslide 5. In addition to geographic growth, Flowers Foods will also see benefits from organic bread growth. The company has paid steady or increasing dividends for 29 consecutive years — the kind of stability retirees need from their dividend investments.

These two factors make it difficult for new entrants to the bread industry to compete with Flowers Foods. The company is currently trading for a price-to-earnings ratio of A fair price-to-earnings ratio for the company is likely 20 around Flowers Foods is trading around fair value at current prices. The company makes a good investment for retirees looking for safety, current income, and income growth. The company satisfies the high yield requirement retired investors need. Verizon currently has a 4.

What differentiates Verizon from most utilities is its faster growth rate in comparison. Growth has been faster in recent years. The company grew adjusted earnings-per-share Growth was driven primarily by margin expansion from divesting old business lines and acquiring more profitable operations. Verizon Q4 Results Presentationslide 6. Verizon recently acquired AOL to build a digital and video growth platform centered on mobile users which will be monetized through advertising.

The company is in the early stage of monetizing its content platform through its Go90 app. The telecommunications market has high barriers to entry which inhibit competition due to the large up-front costs of building a network.

Additionally, spectrum auctions prohibit competition. Verizon stock is currently trading for a price-to-earnings ratio of just The company has a high 5. No business can increase its dividend payments for 32 consecutive years without having a strong competitive advantage. The company is one of the largest players in the oligopolistic and heavily regulated United States telecommunications industry. The telecommunications industry has very high fixed upfront costs.

In addition, spectrum option costs are measured in the billions. This limits the amount of companies in the telecommunications industry which helps to make the largest current firms even more profitable. The company is expanding into Mexico in an attempt to drive growth. Consolidated Edison ED is an electricity and gas utility corporation with operations in New York, New Jersey, and Pennsylvania.

The company is one of the larger utilities in the United States and rules for traded dividend stocks over 3 million customers. Consolidated Edison Investor Relations. The company has paid rising dividends for 42 consecutive years.

The company has a well-above-average dividend yield of 3. Consolidated Edison combines a fairly high gps forex robot fx choice with extreme consistency.

The utility industry is very slow changing. People will very likely still need gas and electricity to their house or at least electricity 50 years from now — just as they did 50 years ago. This means Consolidated Edison will likely be able to increase its dividends at about the pace of inflation — or a bit faster. In total, I expect Consolidated Edison to grow earnings-per-share at 3.

Consolidated Edison stock is similar to a bond — that can pay rising income year after year. Consolidated Edison is currently trading for a price-to-earnings ratio of SCANA Morgan Stanley Utilities Presentationslide 1.

SCANA is focusing heavily in growing its nuclear power generating capabilities. The company has been able to pass increasing rate increases to help pay for the cost of expanding its nuclear power operations. SCANA has higher expected earnings-per-share growth than Consolidated Edison because the company operates in states that are seeing faster population growth. Investors should expect total returns of 7. SCANA has increased its dividend payments in 61 of the last 65 years.

Utilities are highly regulated — and SCANA is no exception. The company has some room for additional growth as it is earnings a bit less than government mandated maximums. SCANA is currently trading for a price-to-earnings ratio of The company is likely trading around fair value given its solid expected total returns and low risk operations. Southern Company SO is an electricity utility that supplies power to over 4. Southern Company is extremely stable. The company has paid dividends every quarter… Since The company has not reduced its dividend payments since at how to identify trend in intraday trading and probably much longer.

Southern Company Investor Relations. Southern Company pays large dividends. Southern Company is similar to Consolidated Edison in that it is not a fast growing business. The company has managed to compound earnings-per-share at 3. Southern Company is currently trading for a arcanems how to make money ratio of Like the other utilities in this article, Southern Company is likely trading around fair value given its stability, high yield, and growth prospects.

Emerson Electric EMR has an enviable dividend record. Emerson Electric is no exception:. Emerson Investor Conference Presentation. Temporary negative growth has caused Emerson stock to become a bargain.

Emerson is not a slow growth company. The company is suffering temporarily as are many other manufacturers from the decline in oil and gas prices, the growth slowdown in emerging markets, and the stock options negotiations United States dollar. The company has around manufacturing facilities spread around the world.

Emerson Electric is splitting up its business to focus on its best individual business units. These divestitures will very likely create value for shareholders over the charity fundraising jobs from home run as it better focuses the company on its core competencies. Emerson Electric combines a high yield, with a very long streak of rising dividends, a low price-to-earnings ratio, and a value unlocking catalyst in upcoming divestitures.

While some manufacturers are struggling due to the global growth slowdown, Johnson Controls continues to post favorable results. Johnson Controls stock currently has a 3. Johnson Controls has compounded its earnings-per-share at 7. Johnson Controls appears deeply undervalued at current prices. The company is trading for a price-to-earnings ratio using adjusted earnings of just Johnson Controls had paid steady or increasing dividends for 38 consecutive years.

Cummins CMI is the diesel rules for traded dividend stocks industry leader. The company has the following market shares by category and region:. Cummins has a strong competitive advantage in diesel engine manufacturing. The company is much larger than competitors Navistar NAV and Detroit Diesel not publicly traded.

Caterpillar CAT also manufactures diesel engines, but it is not the industry leader. Cummins competitive advantage in diesel engine manufacturing has led to 25 consecutive years of steady or rising dividend payments. The global growth slow down and strong United States dollar have impacted the company — but not to the same degree as the selloff in the stock.

Low stock prices have caused Cummins dividend yield to rise to 3. Cummins currently has a conservative payout ratio of When the macroeconomic environment shifts, Cummins will very likely return to growth.

The company has compounded earnings-per-share at I expect Cummins to continue growing earnings-per-share at a double-digit clip over the long run as it repurchases shares, increases efficiency, and continues its organic growth. Now is an excellent time to purchase this industry leader while it is still trading at a discount to fair value. This article analyzed 10 great businesses that fit the 5 characteristics retirement investors should look for in dividend stocks.

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All 10 of the best dividend stocks for retirement analyzed in this article are shown below, sorted by dividend yield:. Businesses with extremely high yields tend to either have serious risks associated with the business or tend to have negative growth prospects.

Retirement investors who reach for yield run the very real risk of seeing their income stream decline over time. Investing in businesses with favorable growth prospects and above average yields provides a balance of current income and rising income potential in the future. Above all else, it is critical to take a long-term perspective when investing; even in retirement perhaps especially in retirement.

6 Rules for Successful Dividend Investing | Investopedia

Published March 8 thRetirees want their portfolios to provide safe, consistent, reliable income that grows faster than the pace of inflation. But… Not all dividend stocks are created equal. The last thing you need in retirement is for your nest egg to get scrambled. The best dividend stocks for retirees have the following characteristics: High yield for income A strong competitive advantage for safety A long growth runway for reliable future growth A long record of dividend increases for consistency Finding great businesses like this can be very challenging… But to find the best dividend stocks for retirees nowyou must match all of the criteria above and make sure the stock is trading at fair or better value.

Archer-Daniels-Midland Archer-Daniels-Midland ADM is one of the largest agricultural product businesses in the world.

Flowers Foods Flowers Foods FLO is the second largest baking company in the United States Grupo Bimbo is larger. Flowers Foods owns the following brands among others: People will be buying bread for a long time… Flowers Foods has a long growth runway ahead. Flowers Foods Investor Presentationslide 5 In addition to geographic growth, Flowers Foods will also see benefits from organic bread growth.

Flowers Foods has traded for a price-to-earnings ratio above 20 for much of the past 5 years. Verizon Verizon VZ is the largest wireless carrier in the United States. Verizon Q4 Results Presentationslide 6 Verizon recently acquired AOL to build a digital and video growth platform centered on mobile users which will be monetized through advertising.

Consolidated Edison Consolidated Edison ED is an electricity and gas utility corporation with operations in New York, New Jersey, and Pennsylvania. SCANA Morgan Stanley Utilities Presentationslide 1 SCANA is focusing heavily in growing its nuclear power generating capabilities. Southern Company Southern Company SO is an electricity utility that supplies power to over 4. Georgia Alabama Mississippi Florida Southern Company is extremely stable. Southern Company Investor Relations Southern Company pays large dividends.

Emerson Electric Emerson Electric EMR has an enviable dividend record. Emerson Electric is no exception: Battery systems Car interiors and components Building control systems and power solutions Johnson Controls has the following automotive market shares by region: Sure Dividend Johnson Controls has compounded its earnings-per-share at 7.

Cummins Cummins CMI is the diesel engine industry leader. The company has the following market shares by category and region: Sure Dividend Low stock prices have caused Cummins dividend yield to rise to 3. Final Thoughts This article analyzed 10 great businesses that fit the 5 characteristics retirement investors should look for in dividend stocks High yield for income Trading at a fair or better price A strong competitive advantage for safety A long growth runway for reliable future growth A long record of dividend increases for consistency All 10 of the best dividend stocks for retirement analyzed in this article are shown below, sorted by dividend yield: Johnson Controls has a dividend yield of 3.