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10 great dividend stocks for retirement

Retirees need income and stability more than flash and fast growth. Here are 10 stocks designed to keep your golden years gleaming.

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56Comments
Aug 13, 2014 11:29PM
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"10 Great Dividend Stocks for Retirement" . . . are your kidding me?

The dividend yields on the ten stocks mentioned range from 2.1 to 3.6%, with the majority being below 3%.  That's not even keeping up with the real rate of inflation as experienced by retirees . . . and this is not even considering the 15% dividend payout loss due to Federal taxes on dividends.

As other posters have noted, there are far better dividend-paying stocks that have solid fundamentals to minimize downside risk.

The tag line says "Retirees need income ..." but this article is not the place to find it.
Aug 14, 2014 12:31AM
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Serious question:

Is there some benefit to owning say ten dividend paying companies is widely diversified industries, and getting an average yield of around 3%, say compared to owning a dividend ETF or two that owns at least a few dozen stocks and pays the same 3%?

I see much less risk in owning the 2-3 ETFs, and in effect owning 30, 40, 50 companies, as compared top the 8-10 stocks. 

Am i wrong or missing something?
Aug 15, 2014 8:15PM
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Don't agree with most of their choices. Go back to the old tried and true, ATT, ConEd, Chevron, J&J, Kimberly Clark, etc, necessities that people need no matter what the ecomomy, toothpaste, toilet paper, medications, power, water. I stay away from the "tech-ie" stuff that is a fad today gone tomorrow. Maybe not huge dividends (what is today?) but better than what you {don't] get in the bank, steady payers some have not missed a dividend in 100 years, past performance not promises.  Look at the regional banks also not bad returns.  I'd stay away from retail or gambling houses. Best to do your homework in depth yourself.
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I have 5 dividend  stocks that pay me an averaged 7.5% in dividends and have grown averaged to 42% in the last 5 years. The dividends I cash out each year and use to supplement my SS income.

My grand daughter age 11 years old overheard me talking to her mother one day and asked me about the stocks because she was not seeing any gain on her savings account of $2,000.00 she saves 50% of all money she earns and receives for others as gifts etc..

Her mother and I had a Scott Trade account opened and put $500.00 of here savings into it and purchased a few shares of the same stocks I have. currently she has 2/3 rds of her money in stocks and is gaining nicely she is very happy on the results.

Teach you children and grand children how to save and the reasons for doing it at an early age they will thank you for it and be glad you took the time to help them.

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What a pathetic dividend article by MSN...who chases 2 % dividends?...BUY LNCO for a safe 9 %  + dividend and make buckets of cash.
Aug 13, 2014 8:55PM
Aug 17, 2014 10:58AM
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Las Vegas Sands almost went out of business when the Great Recession hit in 2008.  Take a look at the historical stock price of Sands.  While they are currently trading at $68 per share, the share price dropped from over $100 per share in 2007, down to a low of less than $2 per share in 2009, as most on Wall Street thought they would go under.  Not exactly a company I would consider a "stable" retirement investment.  
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To get $1,000 a month for shoring up your SS at 3% dividend, you'd have to have $400,000 in capital.  If you take out another 3% each month from sale of capital, or another $1,000, that would be $24,000 a year for the first year. Each year the amount you would get is slightly less by $360.  i.e. 2nd year is  $23,640, 3rd year is $23,280 

 

It would take 34 years for you to have about $4,000 left over in stock and have gotten for the 34th year $12,120. 

Aug 14, 2014 7:23AM
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3.2%? Is that the best you got? Nobody's gonna retire on your 10 best. You better read the other guys article, he thinks the market is about to choke.



Aug 13, 2014 9:50PM
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The Fed at zero interest rate and then give the money to the banks, are they nuts??
Aug 17, 2014 8:03AM
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This article is laughable.  Not one recommendation exceeds 5% and that isn't even keeping up with the present rate of inflation.  Someone needs to take a reality pill.  Up until 2008 when 'dubyah' wiped out our treasury and national economy I held several small cap positions that were paying in excess of 14% annual average dividends.  Needless to say I was and still am a very small low end investor who cannot afford hundred dollar a share stocks.


Go to your browser and type in "highest dividend paying stocks that sell for under $5 per share."  Then do some due diligence and look closely at their financials as well as what funds own them and then diversify with as many as you can afford.  I found that when one is down the others will be up and vice versa so I was able over a period of about 9 years to average about 9.5% annual dividend income on an investment of only eleven thousand dollars (Initial investment plus dividend reinvestment).  My lowest paid 7% and my highest paid 14% as I mentioned earlier.


For these recommendations to pay that kind of dividend I would have to be a one percenter to be able to buy enough stock to generate such revenues in which case I probably wouldn't need to be invested to retire anyway.  This is precisely the kind of advice you get from the so called pros who advise the heck out of you and pocket their commissions for misleading you.  Rubbish.

Aug 17, 2014 6:36PM
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Most posters here lie about their big returns :(
Aug 17, 2014 11:54AM
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No matter what, there is always a risk with investments. You can gain a lot, some, or lose some, or all. Hopefully, you will make sound decisions on the information at the time. Hopefully, American corporations will establish a sound economy, where the ordinary Americans get a decent salary/wage, and that way can afford to buy the products/services they produce (no outsourcing!). This is the only way to a sound economy, with stable corporations, offering dividend.
Aug 17, 2014 11:41AM
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I like the fact that if I own the dividend stock (as opposed to ETFs) , I can sell some if I think the increase in share price is a better deal. If the investment is in an IRA, there is no tax unless you take the money as a distribution, right, and then it is only as a regular income tax. I guess the key is to live on a small distribution and still enjoy life...
Aug 20, 2014 12:28PM
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Quite a few stock/Investing tips here from posters, thanks for that.

I've already filled half a notebook page taking notes from everyone.

 

Several questions:

1.  can you buy shares directly from a company, without going through a brokerage.

 

2. can you set up a dividend re-investment plan, if so, do you still pay taxes on dividends that are re-invested.

 

3. Are there companies that pay dividends, cap the price of their stock & do stock splits?  if so, who are they.

 

Thanks again, I'll be doing my Homework regarding the market starting today.  I'm 47 years old, I've never invested before, Mainly because I've never been more than blue collar lower middle class. I'm working hard to change that someday, hopefully sooner rather than later.

Aug 13, 2014 10:09PM
Sep 5, 2014 1:00PM
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This had to be a joke or a misnamed. None of the stocks pay very much considering the cost to purchase them. With an average of 3%, I do  not find these enticing when I am looking for dividends of more than 4% and preferably 5%. My financial advisor would never advise me buy these just for that reason. I often wonder what the credentials are for some of the writers.
Aug 17, 2014 11:31AM
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I have owned this stock for a year. It has not preformed. There was an additional charge from my broker as the stock is a foreign co. Also I found out that the dividend is paid only once a year not quarterly and to my surprise when I received my check the dividend was reduced  my 30% for dividend taxes. I also own GSK Glasxo a German Co. They pay dividends quarterly and the Dividend tax is not held out on the payment of that Dividend. For the last two reasons I am planning on selling the stock.
Sep 8, 2014 7:55AM
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NO dividend stocks!  ObamaCare included huge gigantic increases in taxes on dividends. 

Time to sell them not buy, wish this author had included this in his hype on dividend paying

stocks.  Your return will now belong to the government to spend.  Remember this in November.


Aug 23, 2014 10:38AM
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Why won't anyone EVER recommend Altria, Philip Morris , Reynolds American...? Solid companies, dividends significantly higher than those mentioned and a lot of retirees that wouldn't put those "risky" stocks in their portfolio lived out their golden days with a lot less money waiting for these companies to collapse. :)
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