There is a lot of anxiety in the fixed income markets, which is especially unsettling for folks living on fixed incomes.
Bond yields — forever the backbone of the fixed income investor — have vanished. But the entire concept of retirement investing is built on having investments that are considered safe. Retirees aren’t crazy about risk; they want to know their life savings are safe in investments designed to offer capital preservation while throwing off that regular monthly income.
However, they’ve been forced to move further out on the risk curve in order to replace those bond yields. That means many are now buying dividend stocks.
Of course, there is a wide range of dividend stocks out there. But for retirees who want safety, the best investments are companies that are both powerhouses and that have a long history of paying dividends — death-defying dividend stocks, if you will. I’m particularly focused on dividend stocks that maintained their payments during the financial crisis.
Here are three of the best dividend stocks if you’re seeking safety.