Safety and predictability are great to have when planning for retirement. However, today’s retirees are more challenged than ever to conservatively produce safe income from dividend stocks. Interest rates are near rock bottom, valuations are running high relative to history and a rate increase from the Federal Reserve could be right around the corner.
Furthermore, many dividend-paying stocks have seen their yields compress over the last few years as investors stampeded into anything with yield. With the economy’s slow growth, dividend growth has also begun to wane.
We set out to find some exceptional dividend stocks that are solid choices for current dividend income and income growth in retirement portfolios. With starting dividend yields between 2% and 5%, this group of blue-chip dividend stocks offers a good balance of safety, yield and growth.
Here is a group of 10 dividend stocks that currently have good yields (3% or greater), and dividend stocks that don’t necessarily have great yield but have excellent dividend growth. We found wide moats with all of them, and investors can learn more about how to build a dividend portfolio here.
Let’s meet the 10 best dividend stocks that form a strong foundation for most retirement portfolios.