Picking and choosing low-risk retirement stocks that fit seamlessly into every investor’s portfolio is basically impossible. Variables like the tax structure of your retirement account, age, risk tolerance, and personal investment preferences all drive your decision-making when selecting low-risk retirement stocks. Still, as a general rule, screening for low-risk retirement stocks includes selecting for factors like performance history, prospects for future growth, and favorable financial metrics. Likewise, for those approaching retirement, dividends are crucial as they provide a reliable income stream. Younger investors, meanwhile, can benefit from dividends by reinvesting them to expand their holdings automatically.

Many investors will adjust their retirement portfolios to mitigate risk as they approach retirement. Still, these three low-risk retirement stocks are prime for a buy-and-hold strategy and offer retirement investors of all types plenty of opportunity ahead.

Valley National Bancorp (VLY)

If you’re in the market for low-risk retirement stocks, this cheap bank stock with a hand in the emerging cannabis industry is undervalued and offers investors a 6.3% dividend yield. As Federal Reserve rate prospects improve, smaller regional banks like Valley National Bancorp (NYSE:VLY) could see relief from high borrowing rates and reduced consumer loan interest.

Valley National is an attractively priced regional bank, trading at just 0.57 book value and 7.75x earnings, marking it as both undervalued and often overlooked. The bank maintains a strong balance sheet with a low debt-to-equity ratio of only 0.56, significantly lower than the industry average of 1.2, highlighting its minimal leverage relative to its peers. Its recent stock buyback initiative and Treasury Bill-beating yield further demonstrate its financial health.

Analysts generally regard Valley National as undervalued, with an average price target of $9.44—about 31% above its current share price. The sentiment around the bank’s stock is increasingly positive, with 44% of analysts now recommending a “hold” on Valley National, showing a 300% increase in positive sentiment compared to the previous polling period.

H&R Block (HRB)

Even though tax season has passed (unless you’re filing late), H&R Block (NYSE:HRB) remains an excellent low-risk retirement stock year-round. Looking beyond the seasonal nature of tax services, H&R Block is expanding its revenue streams to maintain a consistent cash flow.

To counteract the cyclical nature of the tax industry, H&R Block introduced a mobile banking service, which quickly became successful and continues to grow. In less than two years, the service attracted $456 million in net customer deposits and 316,000 signups, demonstrating H&R Block’s ability to capture market opportunities. Moreover, the company is adopting new technologies to streamline tax filing, including a collaboration with Microsoft (NASDAQ:MSFT) on an AI-powered tax assistance tool.

H&R Block’s appeal among low-risk retirement stocks is boosted by its impressive 11% total yield, which includes a 2.5% dividend yield and the rest in stock buybacks. With a moderate payout ratio of 33%, H&R Block is able to reinvest a significant portion of its earnings into growth initiatives while still substantially rewarding shareholders and retirees.

Sharkninja (SN)

Snagging a consumer discretionary stock, particularly an appliance manufacturer, to add to a bucket of low-risk retirement stocks might initially seem risky since the industry tends to collapse during poor economic periods. However, Sharkninja (NYSE:SN) consistently bucks this trend, boasting a massive 20% compounded annual sales growth rate since 2008 despite the Housing Crisis, 2019’s flash crash window, COVID-19, and today’s mild recession all happening within the same timeframe.

Since its IPO last summer, Sharkninja shares yielded a 77% return to early investors, blowing away the S&P 500’s performance. This momentum shows no signs of slowing, as evidenced by the company’s latest quarterly report, which exceeded its annual average by posting a 25% sales bump. The sales stat is particularly impressive as major retailers like Target (NYSE:TGT) post poor earnings amid inflation and suppressed consumer sentiment.

The one thing Sharkninja lacks compared to other low-risk retirement stocks is a consistent dividend schedule. Management prefers plunging excess cash into the business to fuel growth, which is clearly working. Still, Sharkninja has already proven it isn’t averse to special dividends, as it distributed $1.08 per share to investors to celebrate a successful 2023 sales season.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.