Dividend investing is a popular choice for retirees. These dividend stocks for retirees offer steady cash flow that can help you achieve the 4% rule without selling any of your shares. 

High-yielding dividend stocks can still generate good returns. At the same time, these stocks are often less risky than growth stocks. Investors can use these types of assets to ride off into the sunset and have less financial stress.

However, no dividend stock is a safe bet. Every company has its level of risk. Investors can look for reliable companies that have been around for a while or have competitive moats to ensure dividend payments in the years to come. 

These are some of the top dividend stocks retirees may want to consider.

Prudential (PRU)

Prudential (NYSE:PRU) has been offering insurance policies for almost 150 years. That’s the type of track record many retirees want in a dividend stock. Prudential isn’t the type of stock to outperform the stock market. It’s down 5% throughout the past five years, which doesn’t look good on the surface.

While stock price appreciation isn’t one of the stock’s strengths, it has a 5.50% dividend yield that will get any retiree’s attention. That’s a higher yield than many real estate investment trusts, and those REITs don’t even offer qualified dividends.

Prudential also serves as a good candidate for out-of-the-money covered calls for extra cash flow if you are interested in options trading.

Prudential generated $511 million in net income in the second quarter. The firm also has $4.5 billion in liquid assets and $1.415 trillion in assets under management. Prudential doesn’t only make money with insurance policies. Wealth management services are another component of the company’s business model.

Prudential continues to return capital to shareholders. In the second quarter, the company repurchased $250 million worth of shares and distributed $463 million in dividends.

IBM (IBM)

IBM (NYSE:IBM) has been an aging, flat stock for quite some time. It’s easy to see why the name doesn’t drive much excitement. Shares are down by more than 10% throughout the past 10 years. 

The company’s 4.60% dividend yield makes the long-term loss more palatable. You even end up with a net gain if you include dividend payments.

However, it’s not just the high dividend yield anymore. IBM has been turning the corner and generating meaningful growth for shareholders. IBM shares have gained 30% throughout the past five years. 

IBM’s software sales are rising and contributed to the stock exceeding analysts’ top and bottom line expectations. IBM became an important player in the high-growth cloud computing industry through its $34 billion Red Hat acquisition in 2019.

IBM isn’t on most growth investors’ radars. There are still more enticing opportunities that involve more risk. However, dividend investors can enter this growth-at-a-reasonable price stock and capitalize on a high dividend yield.

Exxon Mobil (XOM)

Clean energy sounds like a great concept, but it is faltering in many parts of the world. The cost to switch to clean energy is high and power grids become less reliable as more people use these energy sources. Plus, that energy doesn’t come out of thin air. The process of obtaining clean energy is actually quite dirty not only for the environment but also for the labor involved with enabling ‘clean’ energy.

It’s important to understand the changing dynamics around clean energy when investors look at stocks like Exxon Mobil (NYSE:XOM). The oil conglomerate is actually one of the many companies spun off from Standard Oil, a company that was founded in 1870. 

People will always need gas to power their cars, and an electric vehicle boom won’t stop the majority of car owners from using gasoline-fueled cars.

Exxon Mobil serves as a useful hedge against inflation since oil is an essential commodity. Shares have gained 30% throughout the past five years and currently yield 3.60%. If you give dividend growth a few years or trade covered calls, you can soon be within the 4% rule’s requirements just for this stock. If you are looking for dividend stocks for retirees, start here.

On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.