Saving for your golden years generally follows the tried-and-true principle of acquiring passive income providers, but these retirement growth stocks can offer a twist to this narrative. Don’t get me wrong: you should still stick with your bread and butter. But there’s nothing wrong with adding some responsible seasoning.

Yes, targeting blue chips that pay robust and reliable dividends is the relatively safe approach. However, it’s also possible to be too boring and predictable. With technological advancements happening at breakneck speeds, your portfolio may need to be relevant to be holistically viable. On that note, below are enticing retirement growth stocks to consider.

Uber (UBER)

Based in San Francisco, California, Uber (NYSE:UBER) technically falls under the application software realm. However, we know the company best as a pioneer of the sharing economy. What’s more, the company has branched out from its core ride-sharing business to dominate food deliveries. It’s even moving into the transportation and logistics sector, which makes UBER stock quite compelling.

I wouldn’t say Uber represents a classic play for enjoying your golden years; this, however, is all about expanding the top line. If you’re seeking retirement growth stocks, the sharing-economy specialist should be on your portfolio. Basically, that’s because Uber has revolutionized how we get around, and that’s not changing any time soon. Plus, it’s not just the convenience-at-home factor.

You’ll notice travel demand is booming. In fact, McKinsey & Company noted that the sector is on its way to a full recovery after falling 75% during the pandemic. Uber allows tourists to enjoy ride sharing across borders and, best of all, you don’t have to speak foreign languages to use it. Everything’s done in the app – and shady behavior is penalized through platform removal.

UBER is going to be relevant for a long time. It’s easily one of the retirement growth stocks to buy.

CyberArk Software (CYBR)

Hailing from Israel, CyberArk Software (NASDAQ:CYBR) falls under the infrastructure software space. With its subsidiaries, CyberArk develops, markets and sells software-based identity security solutions and services. Its main markets are the U.S., Europe, the Middle East and Africa. Primarily, CyberArk offers a risk-based credential security management platform. By making sure only the right parties have access to defined data streams, enterprises can function more effectively.

Now, one headwind that works against CYBR stock and the broader cybersecurity industry is the underlying economy. As Bank of America recently pointed out, consumers and businesses have become cautious about their expenditures. That’s not great for CyberArk as the addressable market seeks to cut overhead. That may entail spending less on software.

However, my counterargument would be that while security measures aren’t exactly accretive (or actively productive), they prevent catastrophes. Not only that, the average cost of data breaches is rising. Enterprises will likely look to various security measures, irrespective of the costs.

After all, in the digital realm, an ounce of prevention is worth a pound of cure. CYBR is another example of retirement growth stocks to buy.

Intuit (INTU)

Saving the riskiest idea for last, Intuit (NASDAQ:INTU) falls under the application software ecosystem. Per its public profile, the California-based enterprise provides financial management and compliance products and services. Its target audience comprises individual consumers, small businesses, self-employed workers and accounting professionals. Ordinarily, it’s an easy idea to talk about except for one major problem.

On Thursday, INTU stock cratered because the Internal Revenue Service declared that it will make its direct income tax filing program permanent. In other words, the agency will compete with a private enterprise. Worryingly, in the past five sessions, Intuit shares have slumped almost 17%. It makes sense on some levels because TurboTax’s free filing offer loses much relevance now.

Still, the gig economy could end up providing Intuit with a lifeline. You see, taxes for independent contractors (i.e. gig workers) are generally much more complicated than for employees. Filing a W2? You can do this blindfolded. The IRS’s free program is highly appealing to individuals with straightforward taxes.

But when you’re a 1099 contractor, you’re treated like a company for tax purposes. Those navigating this more complex process often turn to software like TurboTax for step-by-step guidance. Given the continuous growth of the gig economy, Intuit has underappreciated relevance here. Thus, it’s one of the retirement growth stocks to buy on the weakness.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

The post Retirement Rockets: 3 Growth Stocks to Propel Your Savings to New Heights appeared first on InvestorPlace.

If you’re looking for reliable investments to secure your retirement, safe retirement stocks offer a compelling solution. These stocks belong to well-established companies with a proven track record of stability and weathering economic uncertainties. 

They may not make you a millionaire overnight, but they can provide you with a steady stream of income and safeguard your nest egg from market turbulence. Additionally, these companies often have competitive positions in their respective fields. By putting your money in these dependable companies, you can reduce your portfolio’s risk and rest assured your retirement plans remain on course.

Now, let’s unpack the best safe retirement stocks to buy in 2024!

Walmart (WMT)

Walmart (NYSE:WMT) is truly one of the most remarkable businesses in the world. Founded in 1962 as a discount retailer, the company has grown into the largest retailer in the world by revenue. Moreover, it remains the world’s most dominant grocery retail chain, with incredible pricing power and scale. 

Walmart is a business that allows retirees to sleep peacefully at night owning in both good and bad times. In a world that is becoming increasingly expensive, Walmart has been able to keep prices low compared to its competitors. Walmart’s focus on affordability has been steadfast, making it a go-to chain for items beyond the grocery segment. Furthermore, the company is embracing the digital age, creating new systems to grow its e-commerce footprint. That is characterized in its latest Q4 FY24 financial results, which saw e-commerce sales up 23% year-over-year, surpassing more than $100 billion. With a more than six-decade track record of growth and stability, WMT stock is a noteworthy candidate for your retirement portfolio.

Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) is a multinational giant behind countless household staples. It is one of the world’s most powerful companies, owning notable brands for everyday consumer products.

PG is often considered a safe haven stock, due to the company’s large moat and recession-resistant business model. The company’s global presence provides geographic diversification, mitigating risks associated with economic instability in any one region. Moreover, its established distribution networks and robust supply chain further enhance its resilience. Procter & Gamble has maintained steady cash flows over the past decade while continuing to grow its dividend per share. Earlier this month, P&G increased its quarterly dividend to $1.0065 per share. That marked the 68th year of consecutive dividend increases, making PG one of the top safe retirement stocks to buy in 2024. 

Coca-Cola (KO)

Coca-Cola (NYSE:KO) is one of the world’s most iconic and beloved brands. Its global presence, vast distribution network and large moat make it an incredibly stable investment for aspiring retirees. 

Coca-Cola stands as a beacon of stability and resilience, making it an attractive option for retirement portfolios in 2024. With a track record spanning over a century, Coca-Cola has weathered economic downturns, geopolitical uncertainties and changing consumer preferences. The company’s global footprint, diversified product portfolio and strong brand recognition provide a sturdy foundation for long-term growth. Coca-Cola boasts a history of steady dividends and shareholder returns, making it appealing for retirement investors seeking a stable income stream. Its strong cash flow generation coupled with disciplined capital allocation further solidifies its status as a top safe retirement stock. As the company continues to see strong growth in emerging markets, retirement investors can safely bet on the company’s long-term growth outlook.

On the date of publication, Terel Miles did not hold (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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

The post 3 Safe Stocks to Set You Up for a Comfortable Retirement appeared first on InvestorPlace.

While the golden years may be decades away for many of you, here’s the thought process behind retirement stocks for new investors: they represent an inevitability.

Honestly, the aging process may seem to take forever, especially if you’re stuck in a rut climbing the career ladder. However, that might be a blessing in and of itself. When you’re having fun, time just seems to fly. And before you know it, you’re sitting around in a park bench bemoaning how things were different in your day.

Given that no one is going to escape Father Time – and eventually the Grim Reaper – you should think about these retirement stocks for new investors. Yes, it’s a different name but it’s very much the same game.

Meta Platforms (META)

Social media platform and overall technology juggernaut Meta Platforms (NASDAQ:META) is everywhere these days. That’s about as good a reason as any to target it as one of the retirement stocks for new investors. What may have started out as an idea in a dorm room has catapulted into a leading player in some of the most innovative sectors.

Likely, the trend will only continue to rise. In many ways, META stock is the investment equivalent of sliced bread. While there are other social media networks available for users to choose, none commands the global reach and utility of Facebook. It’s a platform you can grow old with, not age out of, which in my opinion is a risk factor impacting Snap (NYSE:SNAP).

It’s not a perfect investment – nothing is. And surely, I have big questions about the company’s pivot to the metaverse. Nevertheless, that wart aside, Facebook will probably continue to rise in prominence. And its investments in areas such as virtual reality and augmented reality should pay off.

Lastly, its introduction of a dividend is a possible gamechanger. Analysts for good reason rate META stock a consensus strong buy.

H&R Block (HRB)

To be blunt, H&R Block (NYSE:HRB) might seem an incredibly odd idea for retirement stocks for new investors. As a tax consultancy firm, it’s incredibly boring. However, this boring business is about to get exciting – at least on the relevancy front. It’s all about the burgeoning gig economy.

Earlier this year, Statista noted that in 2023, analysts projected that the gig economy could reach a market value of $455.2 billion. Looking ahead, analysts project that the space could expand to $918.94 billion by 2028. From levels seen in 2022, this trajectory would represent a compound annual growth rate (CAGR) of 14.22%.

Here’s why HRB stock will likely become more important. Companies hire employees. In contrast, the gig economy fosters independent contractors. Stated differently, the tax profile is far different from employees to contractors. It’s a sizable leap in complexity and filing requirements, potentially boosting demand for tax consultancy services.

Analysts rate H&R Block a hold with a $55 price target. I think this is ungenerous considering its forward relevance and dividend yield.

IBM (IBM)

An aging tech giant, IBM (NYSE:IBM) recently had its 100^th birthday. Before I receive emails regarding the nuances of Big Blue’s origin, the name International Business Machines materialized in February 1924. In the present day, IBM doesn’t seem a particularly enticing idea for retirement stocks for new investors. However, it may be time for a rethink.

For one thing, IBM stock has been on a surprisingly robust run. Since the beginning of the year, shares gained almost 15% of market value. In the trailing one-year period, they swung up almost 45%. While tech fans have coalesced around the usual suspects, Big Blue has been quietly reasserting itself as an innovator. After all, its Watson computer system – capable of answering questions posed in natural language – helped forward the concept of machine learning.

Further, because it has limited expectations, it wouldn’t be surprising to see IBM stock continue its ascent. While other companies are latching onto digital intelligence, IBM has been pioneering this trend. Looking ahead, I see more practical applications arising from the Armonk, New York-based enterprise.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

The post 3 Starter Retirement Stocks Every New Investor Should Own appeared first on InvestorPlace.

Investors often strive to retire as millionaires, but overly aggressive strategies can hinder this goal. Opting for quality stocks and maintaining a long-term approach are key. Despite media hype for hot stocks, successful investors prioritize patience over frequent trading. Riding the market’s long-term growth trajectory is more effective.

Consider three companies with enduring demand for products and services, ideal for long-term investment in building a desirable retirement fund.

Berkshire Hathaway (BRK-B)

When talking about resilient stocks for uncertain economic times or retirement, Berkshire Hathaway (NYSE:BRK-B) comes first. The company is now within spitting distance of a $1 trillion market valuation, despite CEO Warren Buffet cautioning against growth expectations in his annual letter. Shares surged almost 2% to $429 on Monday, nearing the milestone. 

The Omaha-based company proudly showcased its excellent $167.6 billion cash reserve and $37.3 billion for operating earnings. The financials surpassed its high record in 2022 at only $30,8 billion.

Valuation-wise, Berkshire Hathaway is driving growth through its consistent increase in shareholder equity. The company’s wisdom is showcased by its capital allocations and investment strategies. This robust capital foundation supports strategic endeavors, including acquisitions and diverse investments. The company’s stock repurchase program, targeting its own shares below intrinsic value, offers downside protection and value enhancement to existing investors. I anticipate this program will continue for some time. 

Berkshire Hathaway’s blend of prudent financial stewardship, astute investing, and corporate responsibility positions it as an ethical, long-term growth prospect. Perhaps the next $1 trillion stock, Berkshire has set high standards for other corporate competitors. Therefore, it will remain one of the greatest companies ever put together.

Northrop Grumman (NOC)

First established as Northrop Aircraft in 1939, the company then reincorporated into Northrop Corporation a few years later. Acquired by Grumman in 1994, the new management finally renamed it Northrop Grumman (NYSE:NOC). The major defense company offers diverse products to the U.S. Department of Defense (DOD) as per its newly restructured business units since 2020.

Northrop Grumman Corporation has seen significant progress in the Sentinel Intercontinental Ballistic Missile (ICBM) program, testing vital components at their Utah facility. Testing provided crucial data, reducing program risk and ensuring flight success. Additionally, the company collaborates closely with the Air Force during the EMD phase.

Due to institutional investors ‘ influence, earnings estimate revisions strongly correlate with a company’s stock price movement. Rising estimates lead to higher stock valuation and institutional buying, increasing prices. For Northrop Grumman, this signifies improved business prospects and potential stock appreciation.

Investors looking for a defensive stock to buy in this environment may want to consider NOC stock here. NOC will continue to provide stellar earnings, no matter what administration is in power. There’s plenty of geopolitical risk right now, and it’s hard to see the U.S. tamping down defense spending any time soon.

McDonald’s (MCD)

One of the most substantial standing and defensive stocks to buy is McDonald’s (NYSE:MCD), and every wise investor knows this. The company’s model balances convenience with affordability, backed by a universally beloved brand. Despite economic downturns, consumer loyalty remains strong. Additionally, innovative ventures like CosMc’s coffee concept promise growth.

While its 2.24% forward dividend yield isn’t groundbreaking, McDonald’s boasts 48 years of consecutive dividend increases, nearing dividend king status. Thus, there’s a reason to like this stock for almost every investor.

McDonald’s has come under fire for its affordability (or lack thereof) by consumers and analysts alike. However, the company’s growth profile in international markets supported by its strong brand and ability to continue innovating with its menu could provide renewed growth for this company that may seem stale to many.

Boring is good, in an environment that’s not necessarily friendly to all investor types. Despite the economy, McDonald’s relative value stands out relative to its peers and continues to create long-term value for shareholders.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

The post 3 Defensive Stock Gems for a Recession-Resistant Retirement appeared first on InvestorPlace.

Not every investor wants to beat the stock market. While high returns from 2023 and the start of 2024 have led to more bullishness, some investors still think back to 2022 and want to minimize their losses from a correction or economic uncertainty.

Dependable dividend stocks can fulfill that objective. These stocks continue to pay out distributions to their investors while having business models that can withstand downturns. Investors should set their sights on companies that have been in business for many years if they seek stability. Good valuations and high yields can make a dividend stock look more dependable.

Dividend investors seeking some top picks may want to consider these assets for retirement stability.

Walmart (WMT)

Walmart (NYSE:WMT) is a well-known retailer that offers less risk than other e-commerce stocks. The equity has a 5-year beta of 0.49, which means it’s less prone to sharp corrections.

Even though the stock has a low beta and has been around for decades, it’s still delivering impressive returns for shareholders. WMT stock is up by 25% over the past year and offers a 1.39% dividend yield at current levels.

The company is also less vulnerable to economic downturns. Walmart specializes in offering affordable products and services. Big-box stores have been the foundation, but e-commerce sales have been increasing. The e-commerce segment experienced 15% year-over-year revenue growth in the third quarter of fiscal 2024.

Walmart also reported a 5.2% year-over-year increase in total sales. International retail sales outpaced domestic sales, while growth rates were higher for U.S. e-commerce compared to international e-commerce.

Walmart continues to reinvest in its equity to generate more value for shareholders. The corporation has bought back 8.7 million shares year-to-date for $1.3 billion. The firm also paid $4.6 billion in dividends in the nine months ended October 31.

Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) has enjoyed a 9% rally to start the year and is up 62% over the past five years. While current market conditions have investors focused on how high stocks can go, P&G offers great stability relative to its peers. While many stocks tumbled in 2022, Procter & Gamble only declined by roughly 7%. The company’s dividend helped to cushion some of those losses, while big tech stocks weren’t as lucky that year.

Procter & Gamble offers a range of essential home care products. It’s one of the last expenses people will cut if the economy slows down. Growth continued in the second quarter of fiscal 2024, as highlighted by a 3% jump in net sales. Core EPS went up by 16% year-over-year as well. The company also raised its core EPS growth guidance.

PG has one of the best records among any dividend stock. The company has distributed dividends for 133 consecutive years. The firm also enjoys a 67-year streak of annual dividend hikes. The corporation recently distributed a $0.9407 per share dividend and is due to raise its dividend again in April.

Microsoft (MSFT)

The world’s most valuable publicly traded corporation is growing in multiple high-demand verticals. Artificial intelligence has been in the spotlight since 2023, and it’s a key area of Microsoft’s (NASDAQ:MSFT) future success. Big investments in the industry and widespread adoption of Copilot have helped the company gain market share in the industry.

The tech giant also has exposure to cloud computing, video games, advertising and other industries. The corporation is practically a diverse portfolio at this point, and it continues to deliver for investors. Shares are up by 61% over the past year and have gained 261% over the past five years.

Microsoft’s earning results from Q2 FY24 demonstrated that the company is still in growth mode despite having a $3 trillion market cap. Revenue increased by 16% year-over-year, while net income went up by 33% year-over-year. The company’s recent acquisition of Activision Blizzard will help it gain more market share in the gaming industry.

The company offers a low dividend yield but makes up for it with high returns and an impressive dividend growth rate. The company recently hiked its quarterly dividend from $0.68 to $0.75 per share, a 10.3% year-over-year increase.

On this date of publication, Marc Guberti held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

The post 3 Dependable Dividend Stocks for Retirement Stability appeared first on InvestorPlace.

If you want to earn money without working for it, investing can prove to be your secret sauce. Picking the right stocks is crucial, but to make money, you need to choose dividend stocks.

It is a slow and steady way to build wealth. These are companies that have a strong record of dividend payments and can withstand the market’s ups and downs. Fundamentally strong businesses can thrive in any economic situation while rewarding shareholders for their investment. Let’s explore building a stable, passive income portfolio with these three dividend stocks for 2024.

Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE:EPD) is provides energy services to producers and consumers of petrochemicals, natural gas, natural gas liquids, and crude oil. With a diversified portfolio. it has multiple segments.

The company makes money by charging a fee to the companies that make use of its assets. This ensures consistent, steady revenue and can sustain a high dividend. Enterprise Products Partners has a dividend yield of 7.50% and has been paying consecutive dividends for the past 25 years. Its current quarterly dividend is $0.52 per share.

The company’s assets put it in a very strong position in the industry, and it can transport over 12.2 million barrels of crude oil daily. It is building two new natural gas processing plants in the Permian basin. Additionally, it has invested over $2 billion for expansion in 2023.

Trading at $27, EPD looks undervalued. With a dividend yield as high as 7%, dividend investors must add this stock to their portfolio. It has grown the dividend payouts at the rate of 3.6% in the past three years. In short, it offers enough liquidity to continuing rewarding shareholders.

Fundamentally, Enterprise Products Partners holds a strong position. Its revenue came in at $12 billion for the third quarter, and the operating income was $1.70 billion. The EPS stood at $0.60 and it expects to see a 6.6% year-over-year (YOY) increase at $0.69 for the fourth quarter. EPD stock is up 7% in the past year and has been moving in the range of $24 to $27. However, don’t expect the stock to soar anytime this year. But the dividend income will help pay for a few of your expenses.

Coca-Cola (KO)

One of the biggest names in the beverage industry, Coca-Cola (NYSE:KO) is a global brand holding a strong market share. Also, it is Warren Buffet’s favorite company. While KO stock is trading at $59 today, it enjoys an impressive dividend yield of 3.08%.

The company has been able to thrive despite inflation and low consumer spending. Additionally, it hiked prices and saw a surge in volume which shows that it enjoys industry pricing power. It reported an 8% rise in annual revenue, coming in at $11.95 billion. Further, the company expects to see a rise in organic sales by 10% to 11% in 2024.

As the economy improves, we could see Coca-Cola report strong revenue numbers and gain higher market share. The biggest competitor of PepsiCo (NASDAQ:PEP) has a higher dividend yield and is much cheaper than PEP stock. Being over 100 years old, Coca-Cola has seen the ups and downs of the market and survived them all. It is a dividend aristocrat with 62 years of payout hikes.

Many choose Coca-Cola over Pepsi for its high dividend yield, steady market growth, and impressive free cash flow. KO stock will bring stability to your portfolio and ensure steady returns despite market volatility. Notably, its products are sold across 200 countries. Clearly, it is a business that will never lose the sheen.

Also, it has healthier beverage options which are now meeting the changing demands of consumers. People are not going to stop drinking soft drinks, so Coca-Cola will continue to grow. Its dividend track record, brand loyalty, and profitability make it one of the top dividend stocks for 2024. This is one stock to buy and hold for the long term.

Procter & Gamble (PG)

Another globally recognized name, Procter & Gamble (NYSE:PG) enjoys longevity. Recently, the company reported impressive results which boosted its stock. It reported an EPS of $1.84 and a revenue of $21.44 billion.

For 2024, the company expects to see earnings growth of 8% to 9% and sales growth between 2% to 4%. Known for some of the biggest brands, Procter & Gamble has established itself in the industry, surviving many hills and valleys in the past 100 years.

PG had a tough year due to high inflation and low consumer spending. But it is now seeing an improvement in the numbers. A positive outlook means a boost to the stock, now up 5% in the past month and 10% in the past year. Trading at $156 today, the stock is nearing a 52-week high of $158 and could even hit a new high in the coming weeks.

It has paid dividends for the past 133 consecutive years and has also increased the payout for 67 consecutive years. This stock will bring stability to your portfolio with its dividend yield of 2.41%. Paying a quarterly dividend of $0.94, it has enough liquidity to continue rewarding shareholders. An improvement in the economy and price hikes could further help the company boost margins this year.

On the date of publication, Vandita Jadeja did not hold (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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

The post 3 Top Dividend Stock Picks for 2024 Income appeared first on InvestorPlace.

Calling all income investors to witness the magic of dividends—a powerful force in minimizing portfolio risk and volatility. These payouts not only offset stock losses but also bring a satisfying reward for having a stake in a company.

Amid the Federal Reserve’s persistent battle against inflation, any hopes for a “Fed pivot” remain distant. High-interest rates may prolong the bull market’s absence. Exploring overlooked dividend stocks presents an opportunity for market-beating returns through steady dividends and potential catalysts, given their low valuations. Let’s explore three that you don’t want to miss this quarter.

Exxon Mobil (XOM)

Once an energy giant often overlooked by Wall Street, Exxon Mobil (NYSE:XOM) faces the changing tides towards green energy. However, contrarians may find value in considering XOM, as the world’s infrastructure remains fossil-fuel-dominated, and hydrocarbon products like gasoline maintain high energy density.

Exxon Mobil yielded passive income with a 3.80% forward dividend. With 25 consecutive years of dividend growth, Exxon’s Q3 refinery throughput hit a record due to the Beaumont expansion, showcasing operational efficiency. Adding 250K barrels daily, the expansion addresses market demands. The Baytown chemical expansion which adds 750K tons yearly marks strategic entry and diversification.

XOM is considered a comeback stock with a consensus moderate buy rating from analysts, projecting a robust recovery with a $129 average price target. While the shift to cleaner emissions challenges Exxon, uncertainties surround the pace of EV adoption. Despite this, hydrocarbons’ high energy density and conveniences position XOM for a potential comeback.

Enbridge (ENB)

Toronto-based energy company, Enbridge (NYSE:ENB), is increasingly focusing on renewables. With a robust 28-year dividend track record, it’s shifting from oil to diverse revenue sources, including clean energy. 

Despite discussions of electric vehicles, the world’s reliance on oil persists. A crucial economic player, Enbridge highlights the endurance of oil-related industries. With a credible case for high-yield dividend stocks, ENB boasts a 7.5% forward yield. However, caution is warranted due to its high payout ratio of 130.52%.

Strong financials, evident in a recent cash flow increase from $2.1 billion to $3.1 billion year over year (YOY), demonstrate its ability to reward shareholders. To further its clean energy presence, the company plans to acquire three natural gas utilities in 2024. Priced at $34, it’s a compelling choice for passive income investors.

Realty Income (O)

In 2023, Realty Income (NYSE:O) faced a 9.69% price drop, trading at 1.32 times book value. This decline, though, offers an opportunity for income investors seeking long-term growth in retirement portfolios. 

However, its upcoming purchase of Spirit Realty Capital (NYSE:SRC) in early 2024 introduces risks of overvaluation and dilution, somewhat shadowing its immediate positive outlook.

Realty Income stands out among triple net REITs for its unique operational approach, transferring certain costs to tenants, reducing overall risks, and enhancing stability. With 25 consecutive years of dividend growth, its 5.3% yield, while attractive, remains moderate compared to peers. The strategic divestment of its office space portfolio in anticipation of market shifts adds to the company’s foresight.

Despite challenges, 2024 holds promise, and potential lower lending costs could drive the firm’s upward trajectory.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

The post 3 Overlooked Dividend Stocks Ready to Rally Hard in Q1 appeared first on InvestorPlace.

In early December, Barron’s published an article about a little-known Ohio-based company that had grown its annual dividend for 50 consecutive years. It got me thinking about mid-cap stocks with robust dividends. 

The featured company above is RPM International (NYSE:RPM), with great brands such as Tremco, Rust-Oleum, DAP, Varathane, and Tremclad. They are a paint and coating manufacturing company, so many do-it-yourselfers of home repair and renovations are familiar with RPM. 

RPM is a holding of ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS:REGL), a collection of 46 mid-cap stocks that have increased their annual dividend for at least 15 years.  

The traditional definition of a mid-cap is those companies with market capitalizations of $2 billion to $10 billion. While REGL’s weighted average market cap is $6.9 billion, many of the ETF’s stocks have market caps over $10 billion. 

Today, three selections encompass any market cap, regardless of whether they fit within the range. More importantly, the following three have strong business models and consistently grow dividends.

Williams-Sonoma (WSM)

Without question, Williams-Sonoma (NYSE:WSM) is one of my favorite companies in the S&P 500. Run by CEO Laura Alber since 2010, she has a history of leadership at WSM since 1995. 

Over the past five years, WSM stock has appreciated by 271%, more than three times the index. Part of its success is due to Alber’s outstanding leadership. However, it also has much to do with the specialty retailer’s business model.

For most of Alber’s tenure, Williams-Sonoma has had an omnichannel business model with online sales virtually identical to its brick-and-mortar revenue. As far back as September 2012, I was recommending its stock mainly due to the equal division of sales. 

“[The] major reason for my excitement is Williams-Sonoma’s direct-to-customer business, which delivers much higher operating margins and represents 47% of its overall revenue, up from 45% year-over-year. Some experts suggest online revenues could account for as much as 50% of the retail industry’s overall business within 20 years,” I wrote in 2012. 

In 2022, e-commerce accounted for 66% of its $8.7 billion in annual revenue. Thanks to the margins from its online sales, its return on invested capital was impressively high at 49.4%.

Despite a slowdown in its business, it continues to generate net margins above 10%, which is outstanding. This is one of those stocks you buy a little now and then add to your position whenever it trades closer to $150, instead of its current price of $199.35. So, be on the lookout.

Lincoln Electric (LECO)

Lincoln Electric (NASDAQ:LECO) hasn’t done quite as well as WSM over the past five years, up 157%. However, it has doubled the index’s return over the same period. 

It’s been a while since I last talked about the welding company, when I recommended it in May 2023. It generates excellent returns on invested capital with healthy revenue growth. 

In Q3 2023, its sales increased 10.5% to a record $1.03 billion, with a record adjusted operating margin of 17.7% ($171.4 million). Its net income increased by 18.4% to $129.3 million, a net margin of 12.5%, 80 basis points higher than a year earlier. 

Most importantly, its adjusted ROIC in the third quarter was 23.6%. Its total debt was $1.11 billion, just 9.2% of its market cap. 

In December, the company launched Velion, a line of DC fast EV chargers that leverage its welding equipment know-how to deliver a quality product to American EV owners and businesses using EVs. 

“Our DCFC charger is also the first and only American designed and American made EV charger to not only meet, but exceed, the requirements of the federal government’s National Electric Vehicle Infrastructure Formula Program,” stated Steven Sumner, Lincoln Electric’s head of innovation.

The company could have a winning product on its hands. I like its chutzpah. 

Polaris (PII)

Polaris (NASDAQ:PII) stock is down nearly 14% over the past year. The maker of ATVs, SSVs, motorcycles, and snowmobiles is facing sluggish sales due to higher interest rates, which have cut down on big-ticket discretionary spending.

Despite the cyclical nature of its business, the company has increased its annual dividend for 28 consecutive years and has made money every year since going public in 1987. Currently, it yields a reasonable 2.9%. 

In addition to its dividend payments, it took the opportunity in 2023 to repurchase $286 million of its stock over the past 12 months, buying back more than 5% of its stock over the past year. It had $204 million left on its share repurchase program as of Sept. 30, 2023.

As for the year ahead, S&P Global Ratings provided a research update for the company this past November.  

“For 2024, amid an increasingly weaker retail outlook, we expect revenue to be flat to up modestly, with any growth driven by new vehicle releases and relatively stable utility demand in the off-road vehicle segment,” stated S&P Global Ratings. “We expect good operating cash flow generation as working capital requirements for inventory abate as supply chain lead times continue to ease in 2023.”

Of the 17 analysts covering PII stock, four rate it overweight or an outright buy, with 12 hold and one sell. The target price is $98, 11% higher than it’s current trading spot. Also, its shares are trading at 8.4x the 2024 EPS estimate of $10.43. 

On the date of publication, Will Ashworth 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.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

The post Income Investing Gems: 3 Mid-Cap Stocks With Robust Dividends appeared first on InvestorPlace.

As the holiday season approaches, investors seeking gift-worthy stocks.

Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B). After all, the focus is on gifts that keep on giving. Therefore, investments can appreciate and generate dividends over time, providing long-term returns and retirement options. 

Buffett serves as a role model for long-term investors, offering insights into smart money moves in the market. His successful tech exposure and picks in sectors within his expertise make them noteworthy additions to the watchlist. So, his top picks are essentially guarantee buys. Investors would do well to keep a close watch on his market decisions, strategies, and moves. 

Let’s explore these three stocks for a thoughtful and lasting holiday stocking stuffer.

Restaurant Brands (QSR)

In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out. As sentiment improves, Restaurant Brands (NYSE:QSR) stands to benefit.

Priced at $69, QSR stock is undervalued with significant growth potential. And, it’s up 7% year to date (YTD) but below its 2019 peak of $78. Further, JP Morgan Chase raised the price target to $74, indicating a buy rating. 

On Thursday, Restaurant Brands achieved a significant technical milestone as its Relative Strength (RS) Rating improved to 82, up from 79 the previous day. The RS Rating, ranging from 1 to 99, assesses a stock’s price performance over the past 52 weeks compared to other stocks. Thus, it provides valuable insights for investors seeking strong performers.

Apple (AAPL)

After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status.

As the world’s most valuable publicly-traded company, it surpassed a $3 trillion market capitalization on December 5. Up 55% in 2023, Apple’s stock reached this milestone for the first time since August. This resurgence reflects investor confidence in Apple’s stability, strong cash flow, and robust shareholder returns. Hence, it’s positioned as a safe haven asset amid economic uncertainties.

Additionally, holiday sales provided an immediate boost to Apple’s profits. But its sustained success in Asian markets is a key driver of long-term stability. Despite a minor dip in 2023, Apple consistently expanded its market share in Asia. By holding only 16% of the total addressable market, this suggests significant growth potential.

Despite the high stock price, analysts express optimism, with 74% recommending a buy. With a consensus fair value around $200 per share, Apple still has room to extend its growth trajectory.

Berkshire Hathaway (BRK-B)

Warren Buffett’s conglomerate, Berkshire Hathaway, reported a resilient Q3. With a 40% year-over-year (YOY) surge in operating profit, it topped $10.8 billion.

Established in 1889, the company operates over 90 subsidiaries in diverse sectors. Notable entities like GEICO and General Re contributed. With a historic cash reserve of $157.2 billion representing 20% of its market cap, Berkshire Hathaway displays financial strength.

Buffett’s success stemmed from cashing in on higher short rates, securing over 5% on cash. With strategic bond yield moves, Buffett purchased short-term Treasury bills. Additionally, $1.1 billion went into share buybacks in the quarter, reaching $7 billion for the year. This solidifies BRK-B as a robust stock to retain.

Buffett’s firm strategically shed holdings, boosting cash reserves for economic resilience and future investments. Omaha-based Berkshire Hathaway faced a notable event with Vice Chairman Charlie Munger’s recent passing. Consider Berkshire as a lasting legacy beyond the Buffett-Munger era.

On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

The post 3 Stocking Stuffer Stocks to Buy for Your Loved Ones This Holiday appeared first on InvestorPlace.

For investors seeking stable, reliable stocks for retirement, it’s worth focusing on companies that offer long-term investors a secure income. The stocks on this list of retirement-worthy picks all pay out reasonable dividend yields. However, despite their stability, these companies also provide their fair share of innovation and excitement.

Building a portfolio for retirement isn’t a one-size-fits-all task. Consideration must be given to an individual’s career stage, whether approaching peak wealth or eyeing retirement after 50. Age alone doesn’t suffice; the remaining active income horizon matters. Regardless of career variations, the shared goal is to safeguard earnings.

I would grade each of these stocks a buy now and would recommend investors at least place these companies on their watch list. Let’s dive into what makes these companies worth considering as long-term holds.

Restaurant Brands (QSR)

Restaurant Brands International (NYSE:QSR) is among the leading fast food companies in the world. Yet, many investors don’t have this company on their radar.

The stock price’s upward trajectory in recent years is bolstered by a robust portfolio of banners including Burger King, Popeye’s, Firehouse Subs, and Tim Horton’s. Amid a successful multi-year rebrand of Burger King and Tim Hortons’ leading status in Canada, the company’s Q3 results revealed positive trends. 

In the pandemic and previous periods of high inflation, consumers sought affordable fast food instead of dining out. With improving sentiment, Restaurant Brands stands to benefit as people spend more on their favorite food outlets. Thus, in a positive or negative economic environment, this is a stock that can excel. And that’s the kind of stability retirees should be looking for..

Priced around $70 per share, I believe QSR stock is undervalued relative to its substantial growth potential. Despite a 7% year-to-date (YTD) increase, it remains below the 2019 all-time high of $78 per share. That’s despite JP Morgan (NYSE:JPM) raising its price target to $74 with a buy rating. 

The company’s most recent earnings report was strong. In fact, Restaurant Brands reported earnings per share of 90 cents, surpassing expectations of 86 cents. True, revenue slightly missed estimates at $1.84 billion compared to $1.87 billion. However, the company has strong growth of a 6.4% sales increase and strong 7% same-store sales growth year over year (YOY). Those indicate that Restaurant Brands’ demonstrated, long-term growth trajectory is intact. The stock has seen a near 20% rise in the past 12 months. Investors should anticipate a stronger fourth quarter with upcoming holidays and the travel season.

PepsiCo (PEP)

PepsiCo (NASDAQ:PEP) offers an above-average dividend, with a 3% yield of $1.27 per share quarterly. As a “Dividend Aristocrat,” it has increased payments for over 25 consecutive years.

Boasting strong financials and growth, PepsiCo recently reported Q3 earnings per share of $2.24 and revenue of $23.45 billion, surpassing analyst expectations. Some experts believe the company could even be poised to overtake Coca-Cola (NYSE:KO) as the largest U.S. beverage company by market value. I don’t know if I’d go that far, but Pepsi is the superior growth play among the two.

Despite a recent 6% YTD decline, PEP provides an attractive entry point for investors. PepsiCo displayed a positive shift with a 6.7% YOY revenue increase, totaling $23.45 billion. Its resilience is evident in non-GAAP earnings per share at $2.25, surpassing expectations by 10 cents. Emphasizing innovation, PepsiCo introduced Ghost Kitchens for efficient hot food delivery and adopted eco-friendly practices in its delivery trucks. 

With a recent pullback to $169, PEP stock presents a favorable buying opportunity. Additionally, the stock offers a dividend distribution that’s remained consistent or grown for over 25 years. Therefore, this makes it an attractive choice for both passive income and capital growth over a decade.

Fortis (FTS)

Fortis (NYSE:FTS), renowned for its wide reach and steady income model, resiliently navigates rising global interest rates. With a $27.6 billion market cap, its stock impressively surged over sixfold since 2000, affirming lasting market strength. Marking five decades of annual dividend hikes, Fortis prioritizes shareholder returns. FTS addresses financial challenges with a robust strategy. 

Despite a debt ratio surpassing 56%, the company safeguards against liquidity concerns with substantial liquid assets. Fortis holds nearly $5 billion dollars in cash and credit facilities.

Valued attractively with a price-earnings ratio of 18-times, Fortis remains a top-notch way for investors to play the utilities space. Indeed, while utility stocks have been beaten down, a declining rate environment could bolster this stock once again. The company is actively pursuing a five-year, $25 billion strategic investment program. Thus, it’s a company intent on growing its earnings faster than its dividends. And over the past 50 years, Fortis hasn’t missed the opportunity to do so, making it among the best dividend growth stocks in the market.

On the date of publication, Chris MacDonald has a LONG position in QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

The post Secure Your Retirement: 3 Growing Dividend Stocks for Stable Long-Term Income appeared first on InvestorPlace.

Before extolling the benefits of high-yield blue-chip stocks, it’s important to acknowledge the reality that many investors are feeling. Long-term stock investors have had to muddle through challenging macroeconomic headwinds in 2023. High inflation, rising interest rates, bank failures, two government shutdowns averted, and a new war that is fueling concerns about a broader conflict.  

Have I missed anything? Probably. 2023 has been a year many investors would like to forget.  

It’s times like these when you hear the tongue-in-cheek remarks about 401(k)’s becoming 201(k)’s. But seeing your retirement savings shrink is no laughing matter.  

That’s where high-yield blue-chip stocks come in. These stocks are known for their defensive characteristics. They won’t outperform growth stocks when the bulls are pushing the market higher. On the other hand, they tend to perform less badly when the market is in a correction. They won’t be the names that get bragged about on the golf course. But you’ll be glad you own them when it’s time to play pickle ball.  

And the real benefit to these stocks is that they pay a dividend which increases your total return. Over time, a strong total return is the key to building wealth. Here are seven high-yield blue-chip stocks to help you meet your retirement goals no matter where you are on your investment journey.  

AbbVie (ABBV) 

AbbVie (NYSE:ABBV) is first on this list of high-yield blue-chip stocks that make sense in any retirement portfolio. Biopharmaceutical stocks are consistently affected by short-term news. In the case of AbbVie, the stock is down about 14% in 2023 over concerns of a patent cliff for its flagship drug, Humira. 

A patent cliff occurs when a drug, like Humira, is subject to competition from generic (and lower cost) brands. However, the impact of that competition is not taking as big of a bite out of Humira sales as feared. Plus, the company is getting strong performance from two new drugs, Skyrizi and Rinvoq.  

The message for long-term investors is that with a company like AbbVie, it’s about the pipeline. AbbVie has a deep one that should continue to reward investors for years.  

The five-year total return on ABBV stock is 92.81%. That means $1,000 invested in 2018 would be worth 1,920,81. Part of that total return comes from the company’s dividend which currently yields 4.3% and has a $5.92 annual payout per share, for now. AbbVie is a Dividend King which means it’s increased its dividend for at least 50 consecutive years.  

Johnson & Johnson (JNJ) 

Johnson & Johnson (NYSE:JNJ) has been a tough stock for long-term investors in the last five years. The total return on JNJ stock has been just 17.7%. At a little over 3% a year, that hasn’t been keeping up with inflation.

There are reasons for that. The company has been trying to reach a settlement in its talc lawsuit. But even when it does, investors will wait to see the effect on the company’s bottom line.  

The company also completed a spinoff of its consumer health brands division that will allow it to focus on its core business. The new company, Kenvue (NYSE:KVUE), went public earlier this year.

Sure, JNJ stock hasn’t done much price wise in the last five years. But with the lawsuit issue mostly behind it and the company becoming more streamlined, it’s not hard to imagine the stock will perform much better in the next five years. That will give long-term investors a reason beyond the dividend to be glad they own the stock.  

Duke Energy (DUK) 

When you think about high-yield blue-chip stocks, utility companies often come to mind. These are names your grandparents held in their retirement accounts. And Duke Energy (NYSE:DUK) is a top name to consider. But there are reasons to believe that Duke isn’t your grandfather’s utility stock – at least not completely.

Duke owns 50,000 megawatts of power in six states including Florida. The number of people who are moving or have already moved to the Sunshine State gives you an idea of the customer base that the utility will have in coming years. 

The total return for DUK stock in the last five years is 26.3%. And when you consider that Duke’s dividend yield is 4.63%, you know that is where investors are getting most of their growth. Still, at a time when many companies are warning of a profit recession, Duke projects 5% to 7% EPS growth through 2027 that will put a floor on DUK stock.  

Williams Companies (WMB)

The world is clearly making a pivot to renewable energy. And right now, natural gas is one form of clean energy that’s abundant and rising in price. That brings us to the Williams Companies (NYSE:WMB). The midstream company is one of the leading distributors of natural gas in the country. The company’s operations span 30,000 miles in 25 states.  

And that’s just in the United States. In a recent interview with CNBC, CEO Alan Armstrong, said the company is well positioned to handle the expected surge in natural gas demand in coming years whether in the U.S. or abroad. 

Williams Companies has a five-year total return of 93.37%. That’s a 930.37 increase to a $1,000 investment. And there’s reason to believe that kind of performance is sustainable. Williams has paid a quarterly dividend for more than 50 years. That dividend currently yields 5.14%. This is a stock that’s about as steady as it gets. The company has a forward P/E of just 17x earnings.  

PepsiCo (PEP) 

Another area where you can look for defensive stocks is in consumer staples. PepsiCo (NASDAQ:PEP) may not fit the classic definition of a staples stock. But don’t tell that to shareholders. The company continues to deliver quarter after quarter.  

The main takeaway for investors is the company’s pricing power. As inflation has run hot, Pepsi has shown the ability to pass along at least a portion of its costs. That’s supported earnings growth which Pepsi is happy to return to shareholders in the form of stock buybacks and dividends.  

You can flip a coin and land on Coca-Cola (NYSE:KO) here. Or heck, just own both. But if you have to pick just one, PEP stock looks like a better choice in terms of total return. You’re getting high single-digit stock price growth over the last five years and a dividend with a yield of 3.03% and a payout of $5.06 per share annually. That works out to a 65% total return in the last five years.  

Texas Instruments (TXN) 

Texas Instruments (NASDAQ:TXN) is a conservative play among semiconductor stocks. The company won’t make investors forget about Nvidia (NASDAQ:NVDA). In fact, the company’s products aren’t widely adopted in the artificial intelligence space.

But the company’s semiconductor chips are used in a range of applications, including AI, that gives the company a broad customer base and one of the healthiest operating margins in the sector. Arguably that hasn’t done much for investors in 2023. The company’s revenue and earnings are both down year-over-year. Not surprisingly, so is TXN stock which is down over 8% in 2024. 

But this is about long-term growth, and that’s where the company shines. In the past

Public Storage (PSA) 

When it comes to high-yield blue-chip stocks, real estate investment trusts (REITs) come to mind. These companies pay regular, in many cases monthly, dividends. And because of their structure they are required to return at least 90% of their earnings to shareholders in the form of dividends.  

As its name implies, Public Storage (NYSE:PSA) is a REIT that owns, acquires, develops and operates self-storage facilities in the United States and Europe. As of October 2023, the company had properties in 40 states. PSA stock has had a total return of 61% in the last five years. 

Public Storage is agnostic to the housing market. People need to store their stuff and Public Storage owns the facilities that help them do that. There could also be a longer-term trend here of downsizing to more affordable living spaces. But on the premise that you can’t sell everything, there will be demand for storage units well into the future.  

On the date of publication, Chris Markoch 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. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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The accepted definition of the millennial generation is those individuals born between 1981 and 1996. So, selecting retirement stocks for millennials means looking at stocks that have staying power for 20 to 30 years.  

Millennials are distinctly different from the Gen-X and Boomer generations before them and the Gen-Z generation that followed. But this isn’t going to be a “this time it’s different” investing pitch. The fact is that over the long haul you want to put your money in stocks that can work hard for you. That means looking at dividend-paying stocks that allow you to get the benefit of compounding. Like texting, it’s about being efficient, right? 

But this doesn’t mean that it’s time to ignore growth. Quite the contrary with a minimum of 20 years or so until retirement, there’s ample time to build a nest egg even if you’re late to get started. And there are many quality growth stocks that will continue to grow well into the future.  

Of course, past performance doesn’t ensure future performance. For much of the last 20 years, ultra-low interest rates were a tide that lifted most stocks. Still, the economy has been through multiple wars and the financial crisis in that time. And many of the stocks below have been resilient. With that in mind, here are seven retirement stocks for millennials that are likely to be there when you need them.  

Archer-Daniels-Midland (ADM)

The investment thesis for Archer-Daniels-Midland (NYSE:ADM) is simple. They help to feed the world. But they do so by transforming ingredients found in nature into the nutrition that humans and animals need. It’s not a glamorous business model, but it’s a profitable one.

And for a generation that is increasingly concerned about the origin of their food, Archer-Daniels-Midland is one of the leaders in sustainability. The company recently introduced an agricultural biostimulant, NeoVita 43 that boosts corn yields. This is a key step to enhancing food security and improving agricultural sustainability.

Over the last 20 years, the ADM stock price has increased approximately 405%. The total return would be even larger since the company has paid a dividend in each of those 20 years. And not only has it paid a dividend, that dividend has grown in each of those 20 years – and for 30 years before that.

Microsoft (MSFT)

Any list of retirement stocks for millennials needs to include at least one tech stock. There are a lot of choices in this sector, but it’s hard to go against Microsoft (NASDAQ:MSFT). One reason is that the company has a substantial lead in artificial intelligence (AI) with its investment in OpenAI, the company that created ChatGPT.

Microsoft’s investment in generative AI is evident in its launch of its Microsoft Copilot 365 AI tool. At a time when investors are looking for revenue and earnings to support the wow factor of AI, Microsoft has a visible head start. And that’s likely just the beginning.

MSFT stock has grown over 1,300% in the last 20 years. And during that time, investors got a growing dividend. In fact, with 22 consecutive years of dividend growth, Microsoft is on the doorstep of becoming a dividend aristocrat – a distinction reserved for companies with at least 25 consecutive years of dividend growth.  

Costco (COST)

The argument for Costco (NASDAQ:COST) as one of the retirement stocks for millennials is simple math. It makes money today and will continue to do so in the future. In fact, many millennials are likely Costco shoppers. That should be your first clue. Costo is a member’s only club. The fact that members continue to pay for the privilege of shopping at Costco says more about the perceived value more than the value of its hot dog deal. 

Aside from recurring revenue from subscriptions, comparable store sales continue to rise despite the effects of inflation and interest rates. Revenue and earnings are also higher year-over-year (YoY) which shows not only resilient demand but the ability of Costco to pass along higher input costs.  

Shares trade hands at over $500 a share. This is one you may have to wade into slowly. However, the takeaway for investors is that COST stock is an example of price and value. Sure, you have to pay a high price, but the value you receive will be far greater, particularly with a dividend that has increased for the last 20 consecutive years.  

Lowe’s (LOW)

Millennials are well aware of the current state of the housing market. The last time inflation was this high, the oldest of this generation were in diapers, literally. But over the last 20 years, investors in Lowe’s (NYSE:LOW) have been rewarded with stock price growth of over 560%.  

And that doesn’t include the company’s dividend. Lowe’s is another Dividend King on this list. The company has increased its dividend for 51 consecutive years, and with the company’s history of consistent profitability, that streak is in no danger of being broken. 

While it’s true the stock does better when the housing market is strong, homeowners and renters still have to love the home they’re in. That keeps a solid floor on revenue and earnings. The company has made significant strides to improve the retail experience for millennial (and other) customers. Plus, with the nature of home improvement products gives the company a reasonable moat from e-commerce giants like Amazon.com (NASDAQ:AMZN).  

Welltower (WELL)

Generation X may be the original “sandwich” generation, but the millennials are a close second. You’re familiar with the concerns over raising young children while at the same time caring for aging parents. Welltower (NYSE:WELL) is a real estate investment trust (REIT) that is focused on healthcare properties, particularly those of the long-term care variety. Demand for these properties is only expected to increase as the aging of our population accelerates.

WELL stock has only been trading publicly since December 2017, just under six years as of this writing. Still, the stock has generated a nice 34% gain for investors, albeit without significant volatility. That volatility is likely to be smoothed out as demand for these properties grows. 

It’s important to note, however, that the primary reason to own a REIT is the income generated by its regular dividends. At this time, Welltower’s dividend is not overly impressive with a 2.84% yield. However, the company was able to maintain its dividend throughout 2020 and 2021.

Lululemon (LULU)

The last two stocks on this list of retirement stocks for millennials are not dividend payers, at least not yet. But that doesn’t mean they don’t have a place in your retirement portfolio. Both offer investors a chance for breakout growth. The first is Lululemon Athletica (NASDAQ:LULU). At a time when consumers are cutting back on discretionary spending, it’s noteworthy that LULU stock is up more than 27% in 2023. 

The company continues to post year-over-year revenue and earnings growth despite many indications of a softening economy. That may still catch up to the athleisure retailer, but over time demand for the company’s products is likely to remain strong. Not only does that bode well for future stock price growth, but it also means buy-and-hold investors may be rewarded with a dividend in the future.  

Like COST stock (listed above), LULU stock doesn’t come cheap with a forward P/E ratio of 33x. But with consistent earnings growth in the future, this is a stock that is worth its premium valuation.   

Chewy (CHWY) 

The last stock on this list is Chewy (NYSE:CHWY), the online retailer of pet supplies. After a meteoric rise in 2020 and 2021, revenue and earnings are normalizing, and the stock price is tanking. CHWY stock is down 43% in 2023 and is trading below its IPO price of 2019.

But this is about long-term investments. Millennials are acutely aware that we’re having fewer kids. And much of the love and attention that might otherwise go to a child is being poured into helping pets live their best lives.

That’s the long-term narrative for Chewy. The pet space is getting crowded. But Chewy is likely to have a first-mover advantage. And as the company expands into areas such as medicine and telehealth, it’s not hard to project strong growth in the company’s future. If that’s the case, a stock price around $21 will seem like a great value. 

On the date of publication, Chris Markoch had a LONG position in LOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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The best bargain retirement stocks are usually those that provide dividends sustained by earnings. Unlike volatile growth stocks, these dividend-paying stocks offer reassurance, signifying a firm’s commitment to returning capital to shareholders. Hence, for investors eyeing cheap retirement stocks that align with these principles, the following list will likely pique their interest. Down 10% or more on average over the past year, these stocks yield between 3% to 5%, boasting an amazing 3-year dividend growth of over 30%. While promising, it’s worth noting that these bargain retirement stocks carry a relatively higher risk, blending caution with opportunity in your retirement portfolio.

Bargain Retirement Stocks: Levi Strauss (LEVI)

The Levi Strauss (NYSE:LEVI) stock may have stumbled in the recent quarter, particularly with its wholesale unit’s lackluster performance, but don’t pack up those jeans just yet. Its slashed full-year outlook might seem like a tear in the fabric, but the negativity may have been priced in already.

Looking beyond the fray of the U.S. wholesale, results were far from tattered. The expectation of margin tailwinds into the fourth quarter, along with an anticipated increase in overall adjusted EBIT margins by nearly 100 basis points in the second half, weave a promising picture. Moreover, with thriving Direct-to-Consumer and international units, patient investors find LEVI stock an exciting bet. Additionally, it boasts a 3-year dividend growth rate of more than 15.7% while yielding a handsome 3.2%.

Bargain Retirement Stocks: Eramet (ERMAY)

Mining titan Eramet (OTCMKTS:ERMAY) is digging deep to position itself as a one-stop shop for battery metals, becoming one of the largest manganese and nickel mines and now eyeing lithium. Nevertheless, the recent quarter threw some grit in its gears, as pricing for manganese alloys and class II nickel took a nosedive. However, this setback has nothing on the firm aiming to capitalize on the robust electric vehicle (EV) market.

Additionally, by 2030, about 50% of cars sold are expected to be fully or partially electric. This green transition is creating a rich vein of opportunity for battery metals, with demand for nickel anticipated to double and lithium requirements projected to grow six-fold by 2030. Eramet boasts rock-solid profitability with double-digit gross and EBITDA margins expansion over the past five years. Moreover, with the stock yielding over 4.5%,  its strategic alignment with long-term market trends could be a gem for forward-looking investors.

Bargain Retirement Stocks: First Savings Financial (FSFG)

First Savings Financial (NASDAQ:FSFG), with its finger on the pulse of southern Indiana’s bustling economy, is poised to reap the rewards from the region’s expansion. Whether manufacturing, healthcare, or other sectors in this vibrant realm are flourishing, FSFG’s solid presence in the market complements these growing industries. Their strong earnings over recent years, attributable to factors such as impeccable customer service and an effectively managed lending portfolio, underscore the company’s winning strategy.

In a savvy move to broaden horizons, FSFG is not only spreading its wings by growing its branch network but enticing fresh customers with its innovative products and services. Moreover, the cherry on top is its commitment to shareholders which shines through dividends and share repurchases, backed by nine years of consecutive dividend growth and a 3% yield.

Ericsson (ERIC)

Telecom titan Ericsson’s (NASDAQ:ERIC) investors find themselves in a spot of bother. While 5G technology hasn’t quite sprinted out of the gate as analysts predicted, there’s no dampening the burgeoning demand for more and more connectivity. Smartphones are greedier than ever, and new technologies such as autonomous cars will only tighten the torque on the network. Despite a slowdown in new customer signups, Ericsson’s place in the future seems more than secure.

Furthermore, Ericsson’s stock is trading at just 0.6 times forward sales, a staggering 78% lower than the sector median, while its dividend yield has blossomed by more than 4.9% with three years of growth. Especially as customers turn a wary eye toward Chinese competitors, Ericsson’s role in deploying 5G networks might be one to watch without the usual tech-stock sticker shock.

Tronox (TROX)

Tronox (NYSE:TROX) has established a powerful presence in the realm of titanium dioxide production, casting a promising light on its financial horizon. After encountering turbulence towards the close of last year, Tronox’s EBITDA margin is glittering at an encouraging 20%, surpassing the sector average by roughly 13.5%. Add to this a robust cash flow from operations, 21% higher than the sector at $434 million.

However, that’s not all, as Tronox also claims an impressive dividend profile, yielding a remarkable 3.7% with a track record of three consecutive years of growth. Trading at just 4.9 times cash flows on a trailing twelve-month basis, Tronox’s stock appears poised to paint a profitable picture for discerning investors willing to block out the bearish noise.

InvenTrust Properties (IVT)

InvenTrust Properties Corp’s (NYSE:IVT)  strategic portfolio of grocery-anchored shopping centers is predominantly located in the Sunbelt. With 41% of the REIT’s rent flowing from the rapidly expanding state of Texas, the geographical focus is clearly paying dividends. The firm’s organic growth last year not only topped the charts among its peers but remains poised to repeat this year’s feat.

The dividend, yielding a moderate 3.5%, is more than a mere number with a payout ratio of more than 50% and a robust growth history; it is a testament to IVT’s financial prudence. Moreover, IVT has its portfolio concentrated in burgeoning markets, offering abundant liquidity, and minimal debt exposure, with 98% of total debt at fixed rates and only 2% maturing before 2025. Additionally, its debt to equity is at 53%, 46% lower than the sector median.

Sturm Ruger (RGR)

Sturm Ruger (NYSE:RGR) is a top firearms manufacturer in the U.S., specializing in developing rifles, pistols, and revolvers. Despite a 10% drop in first-quarter sales, it took decisive measures to realign production with demand, effectively reducing inventory efficiently. This strategic approach laid the foundation for future growth, evidenced by its balance sheet with zero debt and a healthy asset base.

The company then showcased its resilience in the second quarter, delivering a GAAP EPS of 91 cents, an improvement of 10 cents sequentially. Furthermore, revenue of $142.8 million marked a 1.5% year-over-year increase, beating expectations by $6.66 million. Such numbers speak volumes about Sturm, Ruger & Co.’s ability to navigate through choppy waters and maintain an encouraging long-term trajectory. Moreover, it yields a heartening 3.1% payout ratio of almost 40%.

On the date of publication, Muslim Farooque 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.

The post Looking for a Bargain? 7 Retirement Stocks to Buy That Are Down 10% in 2023 appeared first on InvestorPlace.

Selecting an ideal retirement stock is complex due to factors like tax structure, age, risk tolerance, and preferences. Diversified portfolios across industries with strong past performance and future potential are key. Dividends offer income and growth through reinvestment. Adjusting portfolios over time is common, but these three retirement stocks are suitable for a long-term strategy. Investing your money now could provide retirement security.

Devon Energy (DVN)

Despite potential risks from the Federal Reserve’s policy, Devon Energy (NYSE:DVN) holds promise as a high-yield dividend stock. While the energy sector faces challenges, Devon Energy remains a strong long-term investment. Despite recent share declines, the shift towards social normalization, such as the return to offices, could positively impact traffic volumes. This could benefit DVN and other hydrocarbon companies.

Devon Energy achieved record Q2 oil production at 323,000 barrels per day, with projections for Q3 reaching up to 330,000 barrels per day. The company’s stock buybacks, totaling 3.8 million shares in Q2 and 39.6 million shares since late 2021, also contributed to increased shareholder value.

Devon retired $242 million in debt after Q2, leading to a net debt-to-EBITDA ratio of 0.7-times. With a stronger balance sheet, Devon’s dividend yield is approximately 4.6%. The absence of a predicted U.S. recession by the Federal Reserve is expected to support oil and gas demand. Devon’s CEO foresees a positive outlook for 2024. The company focuses on maintaining steady activity and leveraging reduced costs to enhance free cash flow and shareholder returns.

Restaurant Brands (QSR)

Restaurant Brands (NYSE:QSR) offers a 2.8% dividend yield. I grew optimistic about QSR stock in late 2022 due to its restaurant popularity, especially after hiring Patrick Doyle from Domino’s Pizza (NYSE:DPZ). 

QSR’s strong performance continued, with a 9.7% revenue increase in Q1 compared to the previous year, along with a 10% rise in global comparable sales. Additionally, its adjusted EBITDA rose by 15.6% to $588 million.

Restaurant Brands offers the opportunity to enhance a growth investment approach, providing not only share price appreciation but also increasing dividends while demonstrating dedication to communities and environmental responsibility. Those seeking exposure to global markets and the fast-food sector can find significant potential in this company, particularly in the long run as expansion efforts and operational improvements yield results. For those looking to add to their retirement stocks, QSR is a promising one to consider.

Berkshire Hathaway (BRK-A, BRK-B)

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), often overlooked as a Warren Buffett stock pick, represents his diversified holdings. Investors seeking to mirror Buffett’s choices can do so with the more affordable B-class shares. Berkshire actively buys back its shares, with $4.4 billion repurchased in Q1. Previously limited, buybacks now occur below intrinsic value, bolstered by over $25 billion in cash reserves.

In Q1 2023, Class B’s total revenue surged by 20.5% year-over-year to $85.39 billion. The Insurance and Other segment revenue grew by 7.8% YOY to $63.46 billion. Earnings before income taxes jumped by 543.3% YOY to $44.06 billion. Net earnings for Class B shareholders increased by 536.3% YOY to $35.50 billion. 

Purchasing Berkshire stock carries risk due to Buffett’s age, 92. While he has a capable team, his expertise is unmatched. However, investing could be valuable to benefit from his wisdom while gaining access to his stock picks. You won’t want to miss out on adding this one to your retirement stocks.

On the date of publication, Chris MacDonald has a position in QSR, BRK-B. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Blue-chip dividend stocks are a great addition to an investors portfolio because they offer both secure dividends and strong growth potential. In this article I will take a look at three of the best ones to get in on before the end of July. The first stock entices investors with an impressive track record of consistent dividend growth. The second one stands tall as a healthcare behemoth. At the same time, the third one emerges as a solid opportunity for its focus on product excellence, market expansion and sustainable practices.

Lets delve into the financial prowess and strategic brilliance of these three blue-chip dividend stocks.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) remains a compelling investment opportunity for dividend-focused investors, projecting a bullish outlook for the future. The company’s dividend yield of 2.96% is attractive, offering shareholders a solid return on investment. With an annual payout of $1.84 and a sustainable payout ratio of 70.63%, Coca-Cola’s dividend payments are well supported by its earnings. As a result, it instills confidence in its ability to continue rewarding shareholders through dividends.

Moreover, Coca-Cola’s impressive dividend growth history spanning 60 years underscores its commitment to consistently returning value to its investors. This track record reflects the company’s resilience and ability to navigate various economic environments while maintaining its dividend distribution.

Notably, the company’s performance in Q1 2023 demonstrates its ability to thrive even amidst challenging macroeconomic conditions. Coca-Cola’s strategic focus on meeting consumer needs and driving innovation in various markets has resulted in positive growth. Moreover, Coke’s global presence and adaptability position the company to capitalize on diverse consumer environments and ensure sustainable long-term growth.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) stands poised for a bright, promising future with a bullish dividend outlook. The company’s strong performance in Q2 2023, with market-leading results and important advances in its innovative pharmaceutical and MedTech pipelines, has set the stage for continued growth and success.

With a forward dividend yield of 2.76%, Johnson & Johnson remains committed to rewarding its shareholders. The company’s annual payout of $4.76 and a reasonable payout ratio of 44.12% demonstrate a solid and sustainable dividend policy. Moreover, Johnson & Johnson has a 60-year history of impressive dividend growth. This highlights its consistent and reliable approach to returning value to its shareholders.

Notably, upcoming upcoming catalysts for JNJ include the separation of Kenvue (NYSE:KVUE), the launch of innovative MedTech products and significant clinical and regulatory milestones in the pharmaceutical business. Consequently, they further support the bullish sentiment. The company has strong liquidity, with approximately $29 billion in cash and marketable securities. Finally, the company has ample room for further investment in the business through dividends, strategic opportunities and share repurchases.

Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) is a robust opportunity for dividend-focused investors. The company commits to returning value to its shareholders through dividends. This is evident in its impressive track record of dividend growth spanning 66 years. The enduring commitment is further reinforced by the recent 3% dividend increase, marking the 67th consecutive annual dividend increase. With a forward dividend yield of 2.45% and an annual payout of $3.76, Procter & Gamble offers an attractive return. Also, the payout ratio of 63.64% indicates a responsible approach to distributing profits. It ensures that the company retains sufficient funds for growth and reinvestment.

Moreover, Procter & Gamble’s performance in Q3 2023 reflects the successful execution of integrated strategies. It is leading to organic sales growth across all product categories and regions. Also, the company’s emphasis on superiority in product, package, communication, go-to-market and value has proven beneficial for consumers, retail partners and shareholders alike.

On the date of publication, Yiannis Zourmpanos did not hold (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.

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Undervalued retirement stocks steal the spotlight when it comes to constructing a robust retirement portfolio. These stocks present opportunities for capital growth and offer a steady income stream through dividend payments. But what sets the best retirement stocks apart? They can sustain dividends based on long-term earnings.

Legendary value investor Ben Graham believed that a company should pay out a consistent portion of its earnings in dividends while retaining enough to support future growth. Traditionally, two-thirds of earnings were earmarked for dividends with the remaining third allocated for reinvestment. However, in today’s landscape with its high capital expenditure requirements, experts suggest a more balanced approach, limiting dividend payments to no more than 50% of earnings. This strategy ensures that companies have ample room for continued dividend growth over the years.

So, if you’re seeking retirement stocks that combine value and income potential, focusing on undervalued dividend stocks with sustainable earnings is a snazzy and unique way to secure your financial future.

Medtronic (MDT)

Medtronic (NYSE:MDT) stands tall as a medical device and therapies pioneer, famously known for inventing the pacemaker. For those searching for top-tier retirement stocks, this company is a name worth treasuring. With an impressive $31.7 billion in annual sales and remarkable profitability, this company knows how to reward its investors.

The company anticipates organic revenue growth between 4.0% and 4.5% for the upcoming fiscal year. The stock is trading at 17.08 times forward price-to-earnings as I write this.

Now, let’s talk dividends. Medtronic dishes out a generous $2.76 per share, covered by both profits and cash flow. Following its fiscal fourth-quarter earnings report in May 2023, the company demonstrated its confidence by increasing its annual dividend by 1.5%.

Here’s where it gets exciting: MDT stock boasts a dazzling 3.2% dividend yield, nearly double that of the S&P 500.

Every little bit counts, my friends. These strategic buybacks fuel Medtronic’s unwavering commitment to raising its dividend. In fact, the latest dividend hike marks an incredible 46th consecutive year of payout growth.

In a confident declaration, Medtronic’s fiscal Q4 press release underscored its commitment “to returning a minimum of 50% of its free cash flow to shareholders.” This return will be primarily accomplished through dividends with share repurchases playing a secondary role.

When you combine Medtronic’s low earnings multiple, enticing dividend yield, conservative dividend payout ratio, and unwavering commitment to buybacks and dividend hikes, you’re looking at one of the cream of the crop retirement stocks that deserves a spot in your portfolio.

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is a prominent energy stock known for its stability and profitability. It has consistently generated substantial revenue as an oil and gas company, with a remarkable $400 billion in the previous year alone. Furthermore, it has an impressive free cash flow of $62.1 billion, resulting in a 15.5% margin.

What sets Exxon apart is its unwavering commitment to creating value for shareholders. Even during challenging times like the COVID-19 pandemic, Exxon has increased its dividend payout for the past 20 consecutive years.

Exxon’s robust financial position is evident in its ability to maintain consistent dividend increases. This is reflected in the company’s payout ratio, which is a healthy 24.4%. This ratio indicates that the company can comfortably afford to continue raising its dividend, which currently offers an attractive 3.5% yield. In other words, Exxon still has room to increase its dividend payout further.

In late December, Exxon announced expanding and extending its share repurchase program. From 2023 to 2024, the company plans to buy back up to $35 billion worth of shares. This strategy allows Exxon to significantly reduce its outstanding share count, leading to a substantial increase in dividends per share.

Considering Exxon’s remarkable track record of consistently raising dividends over the past two decades, it is highly likely that these payouts will continue to increase. This reassures income-focused investors, particularly retirees who rely on dividend payments. Therefore, Exxon Mobil stands out as one of the best long-term stocks for retirement portfolios.

HP (HPQ)

HP (NYSE:HPQ) is a global powerhouse in imaging and printing products, known for its laser-sharp focus on cutting-edge technologies. This company is firing on all cylinders, with a whopping $63 billion in revenue last year and a mind-blowing $3.9 billion in free cash flow.

What makes HP even more alluring for retirement investors is its undervalued status. The company allocated a cool $1 billion of its free cash flow to dividends, resulting in a mouthwatering 3.4% yield. But hold your horses; that’s not all!

Here’s the kicker: HP’s dividend payout only accounts for a modest 31.3% of its projected earnings per share of $3.35 this fiscal year. That means the company can continue showering shareholders with its generous dividend while having ample excess cash flow.

Speaking of share buybacks, HP didn’t hold back last year. They splurged a massive $4.3 billion on buying back their shares, a hefty 14.5% of their market capitalization. This demonstrates HP’s unwavering commitment to creating value for its loyal shareholders.

This strengthens HP’s ability to hike dividends and reduces the number of outstanding shares, resulting in higher dividend-per-share rates.

Here’s the icing on the cake: HP has a jaw-dropping track record of increasing dividends for 12 consecutive years. Yes, you heard that right. It’s no wonder HP stands tall as one of the ultimate retirement stocks for the long haul.

On the publication date, Faizan Farooque did not hold (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.

The post The 3 Most Undervalued Retirement Stocks to Buy Now: June 2023 appeared first on InvestorPlace.

In the current economic climate of rising interest rates, persistent inflation, simmering geopolitical risks and looming recessionary threats, it’s crucial to prioritize quality, safety and high dividends when selecting stocks. This article explores three high dividend stocks with appealing total return potential.

With a potential recession looming, investors should prioritize quality, safety and high dividends when selecting stocks for their portfolios. These are three options that offer investors attractive long-term total return potential. They are reliable, high-yielding stocks that can provide lucrative current income streams.

W.P. Carey (WPC)

W.P. Carey (NYSE:WPC) is a real estate investment trust (REIT) that focuses on triple net lease properties, primarily single-tenant free-standing properties. This approach has proven to be a reliable method for generating wealth, as these properties have exhibited consistent performance and high occupancy rates, even during challenging macroeconomic conditions.

WPC owns a diversified portfolio of approximately 1,500 properties leased to roughly 400 tenants across Europe and North America. With a focus on industrial and warehouse real estate, WPC also has significant exposure to retail, office and personal storage real estate in both regions. One-third of WPC’s rental income originates from investment-grade tenants. Additionally, the majority of its rent is CPI-linked, a rarity in the triple net lease sector. The company strategically locates its properties to fulfill mission-critical roles for its tenants.

Moreover, WPC primarily owns recession-resistant and e-commerce-resilient assets. Despite the challenges of Covid-19 lockdowns, WPC has proven its resilience and outperformed other triple net lease REITs. Since 1998, the company has raised its dividend per share annually, making it a contender for Dividend Aristocrat distinction.

With a BBB+ credit rating and plenty of liquidity, its balance sheet further augments its low-risk profile.

Last, but not least, with a dividend yield over 5%, strong organic rent growth thanks to soaring inflation rates, and a robust growth pipeline of properties it is acquiring at attractive investment spreads, WPC could combine safe and attractive current income with lucrative total returns over the long term.

GlaxoSmithKline (GSK)

GlaxoSmithKline (NYSE:GSK) is a healthcare company that produces and markets pharmaceuticals, vaccines and consumer products. Its pharmaceutical products focus on treating central nervous system, cardiovascular, respiratory and immune-inflammatory diseases. With annual sales of approximately $35 billion, GlaxoSmithKline is headquartered in the United Kingdom. However, it offers American investors access through American Depositary Receipts (ADRs), which trade and provide dividends in U.S. dollars.

The company enjoys several competitive advantages. First of all, GlaxoSmithKline dedicates a significant portion of its sales (nearly 13%) to research and development. This — combined with its considerable scale — gives it a competitive advantage relative to smaller competitors who are unable to keep up with its considerable investments in developing market-leading products.

Second, while Advair’s underperformance has impacted recent financial results, the market acknowledges this fact. That is likely why the stock’s current valuation is relatively low. Over time, however, Advair’s importance to the company’s overall bottom line will diminish while GlaxoSmithKline’s other respiratory products demonstrate robust growth rates. The company also has several vaccines that exhibit strong growth rates, signaling potential for expansion.

Although GlaxoSmithKline sustained its earnings during the previous recession, there were periods of volatility. For instance, the company’s high earnings per share (EPS) in 2015 was largely due to a $13.7 billion pretax gain from an asset swap with Novartis (NYSE:NVS).

We anticipate a 3% earnings growth rate through 2028, driven by expected increases in the company’s new and specialty products and a resurgence in vaccine sales. The company’s dividend payment has fluctuated from year to year, making it difficult to predict future growth. Nonetheless, last year GlaxoSmithKline increased its dividend payment by over 20% in local currency for the third consecutive year. The April 6, 2022 payment was the largest.

All told, its attractive dividend and aggressive investments in future products present investors with an attractive combination of current yield and potentially rich total returns over time.

AT&T (T)

AT&T (NYSE:T) is a prominent telecommunications company that offers a broad spectrum of services, including wireless, broadband and television. The company comprises two operational segments: AT&T Communications and AT&T Latin America.

AT&T Communications provides communication and entertainment services through mobile and broadband channels. The segment serves more than 100 million U.S. customers and approximately 3 million business customers. It generated $114.7 billion in revenue in 2021.

AT&T Latin America offers mobile services to consumers and businesses in Mexico, generating $5.4 billion in revenue in 2021. However, it’s worth noting that the company sold off its Vrio video operations in mid-November 2021. This accounted for $2.7 billion of the $5.4 billion during that period.

Following a 36-year period of consistent dividend increases, AT&T held its dividend payment steady in 2021. However, this marked the end of the company’s longstanding streak of dividend increases. Subsequently, after the spinoff of its WarnerMedia business in mid-2022, AT&T reduced its dividend payment by 47%.

Following the spinoff, AT&T has become a more focused and streamlined company with the objective of becoming America’s premier broadband provider, anchored by its fiber network. The company intends to expand its fiber network to support over 30 million fiber locations by the end of 2025. In the next few years, AT&T plans to make significant capital investments in its telecom business. However, after 2024, these investments are expected to taper off as the company moves past the peak years for capital investment in 5G and fiber.

Additionally, AT&T aims to strengthen its balance sheet by reducing its net debt with free cash flow after dividends. Furthermore, AT&T is on track to achieve over $4 billion of the $6 billion run-rate cost savings target by the end of 2022, which should boost adjusted EBITDA growth in the coming years.

With a current dividend yield of nearly 6% and a share price that is well off of 52-week and all-time highs, T could deliver attractive long-term returns alongside reliable current income.

On the date of publication, Bob Ciura did not hold (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.

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A popular investment strategy for those seeking to rely on passive income from their portfolio is dividend growth investing. The value of this approach lies in the fact that it allows investors to disregard the fluctuations of the stock market and concentrate solely on their income stream.

By purchasing dividend stocks that pay distributions to shareholders each month, investors can streamline their passive income cash flow to fit their monthly expenses. As a result, monthly dividend stocks can be appealing to income investors.

Indeed, attaining a significant amount of monthly passive cash flow is a highly effective way to enhance your financial stability and quality of life. Instead of being emotionally tied to the daily volatility of the stock market, you can sit back, relax and allow the dividends to pour into your bank account.

In this article, we will discuss three of our favorites among the larger universe of monthly dividend stocks.

Realty Income Corporation (O)

With its vast size, Realty Income Corporation (NYSE:O) stands out as the top triple net lease real estate investment trust (REIT) in today’s public market. It boasts an enterprise value of nearly $60 billion and owns 11,733 properties that are rented out to 1,147 tenants.

The company’s leases are structured in a highly conservative manner, with the tenant taking on almost all of the operational and capital expenses. Furthermore, these leases frequently span more than a decade, often containing bankruptcy protections and fixed annual rent increases. The company currently holds a weighted average lease term of 8.8 years until expiration. It generates 43% of its rental income from tenants rated as investment grade.

The company’s A-credit rating reflects a strong balance sheet, which includes a 6.3-year weighted average term to maturity for its notes and bonds, a fixed charge coverage ratio of 5.5x, a leverage ratio of 5.2x, and over $2.5 billion in liquidity. Therefore, the company is unlikely to encounter financial difficulties in the foreseeable future.

Additionally, O’s dividend history is one of the most consistent and predictable in the stock market, owing to its conservative business model and balance sheet. Over the past 27 years, O has increased its dividend and outperformed the market with total returns.

Going forward, the company’s dividend appears safe and supported by strong cash-flow coverage. Analysts expect a mid-single digit annualized growth rate for its dividend per share, which — combined with its 4.5% dividend yield and the potential for valuation multiple expansion — could drive potential double-digit annualized returns. Given its very low-risk profile, O presents an attractive monthly dividend stock investment opportunity.

Global Water Resources (GWRS)

Global Water Resources (NASDAQ:GWRS) is a company engaged in the management of water resources. The firm is responsible for the ownership, operation and administration of water, wastewater and recycled water utilities located in Phoenix, Arizona. Global Water Resources has adopted a total water management approach, which involves the ownership of the complete water cycle.

This approach aims to maximize the economic value of water by conserving it through the operation of water, wastewater and recycling facilities in the same geographical area. Global Water Resources concentrates on communities in which it anticipates both population growth and a rise in demand that could surpass the available supply.

The company’s business strategy is prudent given that areas with these characteristics are likely to have increasing demand for water production assets. Global Water is also experiencing several favorable conditions that include an upswing in recycled water deliveries, substantial rate increases and robust population growth in Phoenix. Its regulated yearly revenues have exhibited steady growth over the years, averaging a 2.5% annual growth rate during the past decade.

Since water is an indispensable resource, demand for it remains stable even during the most unfavorable economic conditions. As a result, Global Water’s revenue is likely to remain resilient even in the event of a recession, as it did during the Great Recession.

We anticipate that Global Water will generate low-single-digit annual growth from rate increases as part of its organic growth contributions. As with other utility companies, Global Water is capable of passing on approved pricing adjustments to its customers, providing a consistent and long-term support to its revenue. We project that with the significant rate increases and consistent expansion, Global Water’s earnings per share (EPS) will grow at an average annual rate of 6% in the coming five years.

We believe that Global Water has a favorable earnings growth outlook. With the diverse sources of organic growth, the company is on a dependable path for revenue expansion. This makes it an intriguing recession-resistant long-term monthly dividend growth stock.

TransAlta Renewables (TRSWF)

TransAlta Renewables (OTCMKTS:TRSWF) is headquartered in Calgary, Alberta, and specializes in renewable energy infrastructure. The company holds the distinction of being Canada’s largest wind energy producer. Additionally, it is one of the country’s leading suppliers of renewable energy. Its roots in renewable power generation date back over 100 years. In 2013, TransAlta Renewables spun off from TransAlta. The parent company still holds a significant stake in the firm. TransAlta Renewables has consistently maintained or increased its dividend each year since 2014.

TransAlta Renewables aims for long-term growth by prioritizing renewable and gas-fired power generation. This approach aligns with the global trend towards cleaner energy sources and away from fossil fuels, which has accelerated since the beginning of the pandemic. The company enjoys robust internal cash generation, which enables it to invest strategically over time to expand its portfolio. These investments create an optimistic growth outlook for the company.

The company demonstrated resilience during the Covid-19 pandemic. Unlike many oil companies that experienced significant losses due to the drop in global demand for oil products, TransAlta only suffered a modest 12% decline in its funds from operations per share, from $1.13 in 2019 to 99 cents in 2020. The company has since begun to recover, increasing its funds from operations per share to $1.05 in 2021. TransAlta’s potential for growth in the long term is also promising, given the increasing demand for clean energy sources. The company’s growth prospects include organic growth as well as acquisitions.

Its attractive monthly dividend payments and high dividend yield make it an appealing investment option for income investors, particularly retirees. Our analysis indicates that the company’s dividend is secure. As a result, investors seeking a dependable monthly dividend from the renewable energy sector may find TransAlta Renewables to be a suitable investment.

On the date of publication, Bob Ciura did not hold (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.

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Most income-oriented investors focus almost exclusively on the current dividend yield of stocks to decide whether to purchase them. However, the payout ratio and the growth prospects of the company are equally important, as they are the determinants of future dividend growth.

In this article, we will discuss the prospects of three stocks with solid dividend growth records, promising growth prospects and exceptionally low payout ratios. These dividend stocks have the potential to grow their dividends quickly for several years.

Parker-Hannifin (PH)

Parker-Hannifin (NYSE:PH) is a diversified industrial manufacturer that specializes in motion and control technologies. The company was founded in 1917 and has grown to a market capitalization of $37 billion.

Parker-Hannifin has a key difference from most industrial manufacturers. Its products are obscure but critical for the operations of its customers. As a result, the demand for these products remains robust even during adverse economic periods. Therefore, the company is more resilient to recessions than most industrial manufacturers.

The strength of the business model of Parker-Hannifin is clearly reflected in its exceptional performance record. During the last nine years, the company has essentially tripled its earnings per share, from $6.26 in 2013 to $18.72 in 2022. The company has grown its bottom line in eight of the last nine years. A consistent growth record is a testament to a wide business moat.

Parker-Hannifin has exhibited such a strong performance record primarily thanks to a series of acquisitions. It has acquired smaller competitors and has achieved great synergies. The latest acquisition was the one of Meggitt for $8.8 billion in cash four months ago. Meggitt, which generates annual sales of $2.3 billion, sells technology and products on every major aircraft platform. The takeover of Meggitt is likely to prove a major growth driver for Parker-Hannifin in the upcoming years.

Like all the global industrial manufacturers, Parker-Hannifin is currently facing some strong headwinds, namely high cost inflation and the rally of the dollar to a multi-year high. Nevertheless, the business momentum of the company is intact. In its fiscal first quarter, Parker-Hannifin grew revenues 12% over the prior year’s quarter and EPS 11%, from $4.26 to $4.74, thanks to robust demand in every region. Parker-Hannifin exceeded the analysts’ consensus by an impressive 57 cents and posted record sales and EPS for a first quarter. Notably, the industrial manufacturer has exceeded the analysts’ EPS estimates for 29 consecutive quarters.

Parker-Hannifin also has an outstanding dividend growth record. It is a Dividend King, with 72 consecutive years of dividend payments and 66 consecutive years of dividend growth.

The only caveat is the lackluster dividend yield of 1.8% of the stock. However, it is important to realize that the payout ratio of the stock is only 28%. In other words, the company could afford a much higher dividend, but it prefers to preserve cash to fund future acquisitions.

Parker-Hannifin has grown its dividend by 12% per year on average over the last decade and by 14% per year on average over the last five years. Given its low payout ratio and promising growth prospects, the company can easily continue raising its dividend at a double-digit rate for many more years.

Williams-Sonoma (WSM)

Williams-Sonoma (NYSE:WSM) is a specialty retailer that operates home furnishing and houseware brands, such as Williams-Sonoma, Pottery Barn, West Elm, Rejuvenation, Mark and Graham, and others. The retailer operates traditional retail locations but also sells its products through e-commerce and direct-mail catalogs.

Williams-Sonoma has exhibited an exceptional growth record, as it has grown its EPS every single year over the last nine years at an impressive 21.7% average annual rate. The exceptional growth rate combined with the consistency are testaments to the strength of the business model of Williams-Sonoma and its perfect execution.

Williams-Sonoma is currently facing a strong headwind due to the surge of inflation to a 40-year high, which has led consumers to become more conservative in their spending habits. Excessive inflation has also increased the cost of raw materials, freight and labor.

In addition, due to the aggressive interest rate hikes implemented by the Fed, the housing market has slowed down sharply. This is certainly a negative development for Williams-Sonoma. Nevertheless, thanks to its strong business execution, Williams-Sonoma is poised to report just a 4% decrease in EPS for 2022. Notably, EPS in 2022 will still more than triple that of 2019.

Williams-Sonoma has grown its dividend for 16 consecutive years and is currently offering a 2.7% dividend yield. While the current yield is lackluster, the company has a payout ratio of only 22%. Moreover, the retailer has grown its dividend by 13% per year on average over the last decade and by 15% per year on average over the last five years. Given its rock-solid balance sheet, Williams-Sonoma can continue raising its dividend at a double-digit rate for many more years.

H.B. Fuller (FUL)

H.B. Fuller (NYSE:FUL) has a history of 135 years and is a leading global provider of adhesives, sealants and other specialty chemical products. Just like Parker-Hannifin, it operates in a highly profitable niche market thanks to the obscure but essential nature of its products.

The surge of inflation to a 40-year high exerts great pressure on most industrial manufacturers, as it has significantly increased the costs of raw materials, labor and freight. However, H.B. Fuller has proved markedly resilient to this headwind. Thanks to the critical nature of its products, the company has been able to implement material price hikes. Thus, it has passed its increased costs to its customers. As a result, H.B. Fuller is on track to report 21% EPS growth for 2022, a new all-time high.

H.B. Fuller has grown its EPS by 6.9% per year on average over the last decade and by 7.5% per year on average over the last five years. The company proved resilient to the pandemic, with just a 4% EPS decrease in 2020. Even better, it grew EPS by 22% in 2021 and by about 21% in 2022. The only caveat is the somewhat volatile performance record of H.B. Fuller.

On the other hand, H.B. Fuller has an exceptional dividend growth record. Indeed, the stock is a Dividend King, with 53 consecutive years of dividend growth. Despite this streak, the stock passes under the radar of most income-oriented investors due to its poor yield. It is currently offering a 1.1% dividend yield. It has offered a dividend yield of only 1%-1.5% throughout the last decade.

However, investors should realize that the low yield results from the exceptionally low payout ratio of the stock, which currently stands at 18%. In other words, the company prefers to invest its cash in acquisitions to grow its earnings instead of offering higher dividends. H.B. Fuller has grown its dividend by 8% per year on average over the last decade and by 4.5% per year on average over the last five years. Given its low payout ratio and its healthy balance sheet, H.B. Fuller can continue raising its dividend meaningfully for many years.

On the date of publication, Bob Ciura did not hold (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.

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During periods of market weakness, such as in 2022, healthcare stocks tend to outperform the broader market. This is owed to the group’s relative stability when it comes to revenue and earnings, which also translates to their ability to pay dividends irrespective of economic conditions.

But not all healthcare stocks are created equal. Let’s take a look at three that we like for attractive dividends today, as well as long-term growth potential. These stocks are good picks whether we have a recession in 2023 or not, as they should provide a diversifying component to an investor’s portfolio.

Pfizer (PFE)

Our first stock is Pfizer (NYSE:PFE), a global pharmaceutical company that discovers, develops, manufactures and distributes a wide variety of medicines and vaccines. The company has a long slate of pharmaceuticals that treat, among others, cardiovascular, metabolic, Covid-19, pneumococcal disease, inflammatory disease, hemophilia, and endocrine diseases.

Pfizer was founded in 1849. It should produce about $100 billion in revenue in 2022 and has a current market capitalization of $287 billion.

Pfizer’s current dividend increase streak is 13 years. That isn’t among the longest streaks by any means, but it is long enough that the company has weathered a couple of weak economic periods and continued to raise the payout.

The stock is yielding 3.2% today, which is roughly in line with its historical norms. That also puts it at about two times that of the S&P 500, so Pfizer is a true income stock.

What makes it all the more attractive is that the payout ratio is just 25% of this year’s earnings. That means the dividend is ultra-safe, even in the event of a harsh recession. Not only that, but it leaves ample room for future increases as well, as Pfizer’s research and development (R&D) needs are well covered by earnings and cash flows.

We project 5% annual earnings per share growth in the coming years, meaning not only that Pfizer should see its share price move higher over time but also that the company has additional capital for dividend raises. We believe the company will raise its dividend indefinitely.

Shares trade under eight times this year’s earnings, which is well under our estimate of fair value at 11 times. When combining the potential tailwind from the valuation, the 3.2% yield and 5% projected growth, we get a total annual return potential of about 14%. As such, we rate Pfizer a buy for both income and price appreciation.

Medtronic (MDT)

Next on our list of healthcare stocks is Medtronic (NYSE:MDT). The company develops, manufactures and distributes medical devices to hospitals, doctors, clinics and patients worldwide. Medtronic stock has declined 25% year-to-date (YTD), making it a value pick among healthcare stocks.

Medtronic produces cardiovascular products, such as pacemakers, defibrillators, monitoring systems and more. It also has a medical surgical portfolio that offers stapling devices, sealing and closure instruments, mesh implants, ventilation therapies and related products. The neuroscience business offers products for various types of surgeries, as well as imaging system robot-assisted spinal procedures and others.

Medtronic was founded in 1949. It produces about $30 billion in annual revenue and has a current market cap of $103 billion. It has an extremely impressive dividend increase streak of 45 years, putting it in elite company. That also means Medtronic has stood the test of time and economic weakness. It has raised its dividend through all kinds of market conditions.

Shares yield 3.5% today as well, which is more than double the S&P 500. It’s also very high by Medtronic’s own historical norms, which have seen the stock typically yield about 2%. That means the dividend offers exceptional value today for buyers of the stock.

Medtronic’s payout ratio is just over half of earnings this year, which is somewhat elevated against historical tendencies. The company has seen somewhat choppier earnings in the past handful of years, but the dividend is quite well covered nonetheless.

Speaking of earnings, we expect 6% growth going forward for Medtronic, which should be driven mostly by revenue improvements, as well as some margin expansion associated with it. Finally, the company is buying back a robust number of shares and boosting EPS as a result.

With the stock trades under 15 times earnings, versus a fair value estimate of 17 times earnings, Medtronic also offers potential capital appreciation from a rising valuation. When we combine this tailwind with the 3.5% yield and 6% growth, we project total annual returns of about 12%.

UnitedHealth Group (UNH)

Our final pick for this list of healthcare stocks is UnitedHealth (NYSE:UNH), a diversified healthcare company that operates in the U.S. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. Through these segments, UnitedHealth has one of the largest healthcare businesses in the world. It offers a huge variety of products. Additionally, the company offers health benefit plans and services for employers of all kinds through its UnitedHealthcare business, as well as individuals. The Optum business collectively offers health management services, software and advisory services, and pharmacy care and medication fulfillment, among others.

UnitedHealth was founded in the late 1970s. It generates about $325 billion in annual revenue and trades with a market cap of $500 billion.

Like Pfizer, UnitedHealth has a relatively modest dividend-increase streak of 13 years. However, the company has proven to be willing and able to raise its dividend at very rapid rates over time, and we find it to be one of the best dividend growth stocks available today.

The yield is modest at 1.2%, owed to the stock’s massive run it has experienced in recent years. That has made it such that the dividend has had a difficult time keeping pace with the share price. Still, the payout ratio is just 30% for this year, and we expect to see very strong dividend growth for many years to come.

Not only is the payout ratio low, but we forecast 12% EPS growth in the years to come, meaning ample capital should be available to the management team. The company’s ability to generate revenue growth year after year has turned it into not only a great dividend stock but also a great stock to own for capital appreciation.

In total, we expect to see about 9% total returns for UnitedHealth.

On the date of publication, Bob Ciura did not hold (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.

The post 3 Healthcare Stocks With Attractive Dividends appeared first on InvestorPlace.

The best retirement stocks for investors over 50 have reliability in common.

Retirement stocks come in a few flavors, but the best retirement stocks for investors over 50 provide a mix of growth, stability and income. First, you want growth because you’ve probably got more than 30 more years of life expectancy, and you can’t just rest on your portfolio’s laurels. You need to still see some growth.

Second, you need stability because you can’t afford a horrendous mistake causing you to lose a lot of your portfolio on a flighty pick.

And finally, the best retirement stocks for investors over 50 provide some income, usually in the form of dividend payments.

Dividend stocks are great because you get a monthly or quarterly reward for holding a stock. You can dump those profits back into your portfolio for quicker growth, or you can use them for income after you hit retirement age.

My Portfolio Grader is a great tool to help you pick best retirement stocks for investors over 50. Each of these names get a top rating in the Portfolio Grader, and are good names for any portfolio after you hit 50.

Eli Lilly (LLY)

Eli Lilly (NYSE:LLY) is already flying high, up 35% for the year as the calendar rolls over to 2023. But Wall Street is showing some caution as of late because the pharmaceutical company issued 2023 guidance that raised some red flags.

While analysts expected adjusted earnings per share of $9.16 (according to consensus estimates), LLY posted guidance in a range from $8.10 and $8.30.

I think Eli Lilly will have a strong 2023. It has a solid pipeline of drugs that should continue to boost profits, including diabetes drug Mounjaro. If Eli Lilly succeeds in getting federal approval for Mounjaro to be used as an anti-obesity drug, the company could see annual drug sales of $25 billion just from that medication. That makes LLY one of the best retirement stocks for investors over 50.

LLY stock shows a dividend yield of 1.2% and has an A rating in the Portfolio Grader.

Occidental Petroleum (OXY)

Eli Lilly had a great 2022, but that’s nothing compared to Occidental Petroleum (NYSE:OXY), which saw its stock jump 130% in 2022. But even if oil prices continue to fall, OXY is one of the best retirement stocks for investors over 50.

That’s because Occidental is investing billions of dollars into projects such as biofuels and carbon capture. For example, Oxy has plans to remove as much as 1 million metric tons of carbon dioxide from the atmosphere a year, which could be a huge money-maker as the globe finally catches on to the idea that global warming is a reality.

The only thing not to like about OXY stock is the meager dividend yield of less than 1%. The next dividend, of 13 cents per share, will be paid out on Jan. 17.

OXY stock gets an A rating in the Portfolio Grader.

Sociedad Quimica y Minera de Chile (SQM)

Materials stocks are always an attractive choice for retirement investors because even when the economy falters, you know that manufacturers will need to have raw materials whenever their factories get back up and running.

Sociedad Quimica y Minera de Chile (NYSE:SQM) is involved in making plant nutrients, iodine and industrial chemicals. But its best known – and has the best chance of making big profits – from lithium.

Lithium used to power electric vehicles, mobile phones, laptops and digital cameras. The demand for lithium is expected to triple from 2021 to 2025 to 1.5 million metric tons. Then it’s expected to double from that, to 3 million metric tons, by 2030.

Sociedad Quimica y Minera de Chile is in the enviable position of being the largest producer of lithium in the world. And while SQM stock is up 56% in 2022, the stock remains largely undervalued, trading for just 4.4 times estimated 2022 earnings.

SQM stock has an A rating from the Portfolio Grader.

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is up 78% in 2022 and maintained its growth even as the price of oil began to fall in the second half of the year, making it one of the best retirement stocks for investors over 50 with comeback potential.

But despite its success Exxon also has a laser-focused eye on the future, and that’s great for a retirement investor. The company says it can double its 2019 earnings by 2027 by keeping capital spending between $20 billion and $25 billion. It would use the increased earnings for share repurchases and dividends.

XOM stock has a healthy dividend yield of 3.3% right now. It has an A rating from the Portfolio Grader.

Cheniere Energy (LNG)

Cheniere Energy (NYSEAMERICAN:LNG) owns and operates two major LNG terminals in Louisiana and Texas.

It has a natural gas pipeline and is involved in LNG and natural gas marketing.

While it’s headquartered in Texas, Cheniere has a growing footprint in Europe. It’s the largest exporter of liquified natural gas in the U.S. and its finding willing customers in Europe who saw Russian supplies cut off in retaliation for Western sanctions on Moscow over the war in Ukraine.

Cheniere says it shipped 70% of its production to Europe in the first three quarters of the year, and it’s expected that to continue throughout the winter.

As long as the war in Ukraine continues and there’s instability around Russian oil and gas supplies, natural gas prices in Europe will remain high and LNG will continue to have a strong customer base.

On top of that, 2023 could see increased demand for LNG as China begins easing its Covid-19 restrictions.

LNG stock has an A rating from the Portfolio Grader.

Devon Energy (DVN)

Devon Energy (NYSE:DVN) stock is up 38% in 2022. Analysts are betting that Devon will not only hold onto those gains, but continue to build on them.

They give DVN a consensus price target of $79.48, which indicates 30% upside.

Earnings for the third quarter showed the company’s strength. Revenue of $5.43 billion and earnings per share of $2.18 beat analysts’ expectations for $4.79 billion and $2.13.

Devon has a mammoth dividend yield of 8.8%, but its not as consistent as what you might find with Exxon. Devon combines its regular dividend with a supplemental payment that is based on company performance – when the company does well, the dividend rises.

If it’s a down year, you’ll see it reflected in the dividend as well.  So you can’t count the dividend growing each year, while a stock like Exxon has 40 years of consecutive dividend growth.

DVN stock has an A rating in the Portfolio Grader.

Shockwave Medical (SWAV)

ShockWave Medical (NASDAQ:SWAV) is a medical device company that’s focused on treating calcified cardiovascular disease. The ailment can restrict the supply of blood to the heart muscle and could cause a heart attack.

ShockWave’s treatment uses sound waves to pass through soft tissue to crack calcium deposits, which is less invasive than using high-pressure balloons or catheters to remove plaque buildup.

ShockWave says that it sees a market opportunity of more than $8.5 billion for its procedure. So far, it seems to be a success. Revenue in the third quarter was $131.44 million, which was more than 101% more than a year ago. SWAV also beat analysts’ expectations for $123.79 million.

ShockWave stock is up 16% over the last year, and has an A rating in the Portfolio Grader.

On the date of publication, Louis Navellier had a long position in OXY, XOM, LNG, DVN and SQM. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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The Federal Reserve has adopted an exceptionally aggressive policy this year to restore inflation to its long-term target of 2%. To this end, it has raised interest rates at a record pace this year. Plus, it intends to raise them even further next year. Higher interest rates exert a drag on the economy, as they reduce the total amount of investments, and hence they have increased the risk of an upcoming recession.

Grocery stocks are not immune to recessions, but they have proved fairly resilient, as consumers have to visit grocery stores even under the most adverse economic conditions. In this article, we will discuss the prospects of three grocery stocks. These companies have proved fairly resilient to recessions and offer reliable dividends.

Kroger (KR)

Founded in 1883, Kroger (NYSE:KR) is one of the largest retailers in the U.S. The company has nearly 2,800 retail stores under two dozen banners, along with fuel centers, pharmacies and jewelry stores in 35 states.

Thanks to its immense network of stores, Kroger enjoys significant economies of scale. However, competition has heated more than ever in the retail sector in recent years. As a result, Kroger operates with razor-thin margins. Thus, it lacks a meaningful business moat.

On the other hand, Kroger has proved resilient during recessions. In the Great Recession, while most companies saw their earnings collapse, Kroger incurred a benign 8% decrease in its earnings per share, from 95 cents in 2008 to 87 cents in 2009. During the coronavirus pandemic, Kroger performed even better. Thanks to the lockdowns imposed in response to the pandemic, at-home consumption greatly increased. Thus, Kroger grew its EPS 58%, from $2.19 in 2019 to an all-time high of $3.47 in 2020.

Even better, the company has maintained its positive momentum, with 6% EPS growth in 2021 and 11% expected growth this year. Kroger has benefited from its “Restock Kroger” project, which has improved the efficiency of the company and enhanced its operating margins. The bottom line has also been assisted by meaningful share repurchases. As the stock of Kroger has traded at low price-to-earnings (P/E) ratios in recent years, the share repurchases have greatly enhanced shareholder value.

In mid-October, Kroger announced that it agreed to acquire Albertsons (NYSE:ACI) for $24.6 billion. As the value of the deal is 75% of the market capitalization of Kroger, it is obvious that this acquisition is major for the future prospects of the company. Regulatory authorities are concerned that this deal may result in higher prices for consumers. As a result, no one can be completely sure that the deal will materialize. Nevertheless, if the deal is approved by regulators, it will probably prove a significant growth driver for Kroger.

Kroger has a decent dividend growth record. It has raised its dividend for 17 consecutive quarters and has grown its dividend by 14% per year on average over the last five years. The stock is currently offering a 2.3% dividend, which is a nearly 10-year high for the stock. Given its healthy payout ratio of only 25%, Kroger is likely to continue raising its dividend for many more years, though it will probably have to reduce its dividend growth rate if it spends $24.6 billion on the aforementioned acquisition.

Target (TGT)

Founded in 1902, Target (NYSE:TGT) has approximately 1,850 big box stores, which offer general merchandise and food and serve as distribution points for the company’s burgeoning e-commerce business. After a failed attempt to expand into Canada, Target has operations solely in the U.S. market.

Due to intense competition and the excessive losses it incurred during its expansion attempt, Target failed to grow its EOS meaningfully between 2012 and 2017. However, thanks to its turnaround efforts, Target has returned to its long-term growth trajectory in recent years. Notably, the retailer grew its EPS by an impressive 47% in 2020, partly thanks to the tailwind from the pandemic, and by another 44% last year. During the last decade, the company has grown its EPS by 13% per year on average. It also proved fairly resilient in the Great Recession, when EPS dipped only 14%.

Unfortunately, Target has been severely hurt by the surge of inflation to a 40-year high this year. Due to excessive inflation, the company has incurred a sharp contraction in its operating margins. In addition, the surge of inflation has made consumers more conservative in their discretionary spending. As a result, Target has experienced soft demand. Thus, its inventories have greatly increased. Due to these headwinds, the company is poised to incur a nearly 60% plunge in EPS this year. This helps explain the 42% slump of the stock off its peak in April.

On the bright side, thanks to aggressive interest rate hikes, inflation is likely to subside in the upcoming years. As a result, Target is likely to enhance its margins from its current razor-thin levels. The company also has some significant growth drivers in place, namely its small-format stores and share repurchases.

Target has raised its dividend for 54 consecutive years and therefore belongs to the Dividend Kings. The company raised its dividend by 20% this year, and its payout ratio has jumped from 23% in 2021 to 79% now. However, thanks to the expected recovery of its business, Target will likely be able to keep raising its dividend for many more years. Therefore, the 2.8% yield of the stock should be considered safe. Additionally, the 20% dividend raise announced in June is a testament to the confidence of management in the company’s recovery.

SpartanNash (SPTN)

SpartanNash (NASDAQ:SPTN) is a value-added wholesale grocery distributor and retailer. It supplies 2,100 independent grocery retail locations in the U.S. and also owns itself 147 supermarkets in nine states. SpartanNash operates under retail banners such as Dan’s Supermarket, D&W Fresh Market, Econofoods, Family Fare, Forest Hill Foods and No Frills. The company is also a distributor of grocery products to U.S. military commissaries.

SpartanNash has been much less affected than Target by the surge of inflation this year. The retailer has managed to partly offset its increased supply-chain costs with improved efficiency and cost reductions. With only one quarter left, the company expects to grow its sales from $8.9 billion in 2021 to between $9.5 billion and $9.7 billion this year. This implies 8% growth at the mid-point. It also expects to grow its EPS from $1.70 in 2021 to $2.27-$2.37 this year, implying 36% growth at the mid-point.

On the other hand, SpartanNash has a remarkably volatile performance record. The company has grown its EPS by only 2.2% per year on average over the last decade, with pronounced volatility. Given that the retailer is on track to post nearly all-time high EPS this year, investors should be aware of its choppy performance record.

In the Great Recession, SpartanNash incurred a 25% decrease in its earnings per share. Therefore, it performed worse than Kroger and Target but still proved fairly resistant to recessions. The company has raised its dividend for 12 consecutive years and is currently offering a 2.7% dividend yield, with a payout ratio of 36%. Thanks to the healthy payout ratio of SpartanNash and its manageable amount of debt, its dividend should be considered safe. On the other hand, the company has grown its dividend by only 5% per year on average over the last five years. Given the volatile performance of the retailer, it is prudent not to expect greater dividend raises going forward.

On the date of publication, Bob Ciura did not hold (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.

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The current macro environment is challenging for stock market investors. The ongoing war in Ukraine, supply chain disruptions in China and rising interest rates have clouded the picture for the U.S. and global economy. The S&P 500 is currently down 19% year-to-date as a result. In an environment like this, many investors are looking for stocks that are crisis-proven and have a high likelihood of maintaining their dividends, no matter what.

Electric utilities can be a good industry to look for such stocks, as electricity demand, at least by consumers, is not very cyclical, and generally holds up well even during major economic downturns. Customers still use electricity for heating and cooling their homes, for cooking, and so on, regardless of economic conditions.

In this report, we’ll showcase three electric utilities that have not only resilient business models but have also proven that their dividends are safe during severe recessions.

Consolidated Edison (ED)

Consolidated Edison (NYSE:ED) is a major electric utility in the United States. With a market capitalization of $34 billion, it belongs to the larger players in its industry. Most of its customers are located in New York City and the surrounding areas.

Consolidated Edison has a very solid track record when it comes to being resilient versus downturns, although its growth rate has not been especially high in the past. Over the last decade, its earnings per share grew at a low-single-digit rate, but the largest drawdown was in the single digits only.

This resilience has allowed Consolidated Edison to be very consistent with its dividend payments. In fact, the company has increased its dividend an outstanding 48 years in a row, making it a Dividend Aristocrat and a soon-to-be Dividend King.

The company continued to increase its dividend during all types of macro environments, which includes the pandemic, the Great Recession, the bursting of the dot-com bubble and so on. We thus feel confident that Consolidated Edison would also keep its dividend growth track record in place if the U.S. experiences a major economic downturn next year.

Based on EPS expectations for the current year, Consolidated Edison will pay out 70% of its profits this year. It would take a large earnings pullback for its payout ratio to rise to 100%, and even if that were to happen, Consolidated Edison could keep its dividend in place until profits rise back to the current level.

Not a lot of earnings growth can be expected from Consolidated Edison, but the dividend, which yields 3.3%, is secure and will most likely continue to grow over time.

Southern Company (SO)

Southern Company (NYSE:SO) is an electric utility that is focused on markets such as Georgia, Tennessee and so on, where it sells electricity and natural gas to around nine million customers. With a market capitalization of $75 billion, Southern Company is the third-largest player in its industry in the United States.

Like Consolidated Edison, it operates with a resilient, non-cyclical business model. In fact, its earnings growth track record is even better than that of its New York-based peer, as Consolidated Edison managed to grow its EPS during every single year of the last decade, except for 2016, when it pulled back by 0.3%.

This excellent consistency has allowed Southern Company to reward shareholders with growing dividends over time. The company has increased its dividend for 21 years in a row. That does not yet make Southern Company a Dividend Aristocrat, but the company nevertheless has proven its ability to increase shareholder returns during tough times, including during the pandemic and the Great Recession.

Southern Company currently trades with a dividend yield of 4%, which is more than twice the broad market’s dividend yield. Based on expected EPS for the current year, Southern Company’s dividend payout ratio is 75%, which is not low but very reasonable for a company with resilient profits.

Investors should not expect too much EPS growth from Southern Company going forward, but a 4%-5% annual growth rate seems achievable, considering the company’s past performance. In addition with a safe dividend yield of 4%, that makes Southern Company look attractive.

Evergy (EVRG)

Evergy (NYSE:EVRG) is an electric utility as well, although a much smaller one compared to Consolidated Edison and Southern Company. The company trades with a market capitalization of $14 billion today. Evergy is active in Kansas and Missouri, where it serves around 1.5 million residential customers and 200,000 commercial customers.

Its business is seasonal, as electricity demand is higher during the summer months due to customers using more electricity for heating during those months. The third quarter thus usually is Evergy’s strongest quarter by far. On a year-to-year basis, this does not impact results, however, and Evergy has proven to be resilient when we look at its annual profits.

Over the last decade, there were some years where earnings pulled back by a little more than 10%, such as in 2015. But overall, that still makes for a pretty low-risk business model. Its somewhat more elevated EPS pullback risk, relative to ED and SO, is balanced out by a stronger earnings growth rate, as Evergy has grown its EPS at the highest rate among these three companies, looking back over the last decade.

At current prices, Evergy offers a dividend yield of 3.9%, which is quite attractive. The dividend payout ratio is a little below 70% today, which is very reasonable. Evergy has an 18-year dividend growth track record, which is not quite as pronounced compared to Southern Company and Consolidated Edison, but which still easily covers past downturns such as the Great Recession.

Evergy is slightly more cyclical compared to its larger peers, but its dividend is still safe and reliable. The above-average growth rate could be attractive for investors as well, as it has a positive impact on Evergy’s total return potential over the coming years, relative to a slower-growing electric utility such as Consolidated Edison.

On the date of publication, Bob Ciura did not hold (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.

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When investors are looking for long-term buy-and-hold investments, there are different angles to consider. Resilience during recessions, strong management, sound fundamentals, such as high margins and returns on capital, and healthy balance sheets are positives.

Another important factor to consider is the concept of economic moats. This concept was popularized by legendary investor Warren Buffett and can be explained as a form of durable competitive advantage. Some wide moat stocks are well-positioned to endure long-lasting advantages versus competitors, due to their strong brands, network effects, cost advantages, technological leadership and more.

This makes it very hard for competitors to gain market share versus these companies. In turn, this allows for above-average growth rates, as well as industry-leading profit margins. These factors make wide-moat dividend stocks like the three listed here attractive for investors.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is one of the biggest companies in the world by market capitalization and a leading software player. It produces and sells a wide range of products, but the most important ones are its operating systems (Windows) and its Microsoft Office suite that is used by businesses and consumers. In both these key business franchises, Microsoft enjoys a very wide and very durable moat.

Windows is, by far, the most-used operating system for computers in the world, which provides a powerful network effect. Programmers develop their offerings for Windows primarily, as that is the largest market. Consumers and businesses want their systems to run on Windows, as that is where the largest number of programs and applications is available. Competing operating systems have a very hard time making inroads versus Windows.

Likewise, the company’s Office suite is by far the most-used for both businesses and consumers. Switching to a different offering by another company is complicated and costly for businesses. It also poses major risks if anything goes wrong. That is why Microsoft’s massive market share in this area has not been threatened in the past. It seems likely that this will hold true in the future, too.

Overall, this makes Microsoft one of the widest-moat companies investors can put their money in. Microsoft’s excellent margins and returns on invested capital are a result of its competitive advantages, as there is no pricing pressure on the company.

Microsoft currently trades with a dividend yield of 1.1%. That’s not overly high, but the company has increased its dividend for an impressive 21 years in a row. On top of that, its dividend growth rate has been attractive, averaging 11% over the last decade. Last but not least, Microsoft’s dividend is extremely safe. Not only does the company have an AAA-rated balance sheet, one of just two publicly traded companies that have achieved this feat, but Microsoft’s dividend payout ratio is also pretty low, at less than 30%.

Overall, Microsoft is a wide-moat company with attractive dividend properties, although those investors that want a high initial yield may not deem it attractive.

Intercontinental Exchange (ICE)

Intercontinental Exchange (NYSE:ICE) is a financial exchange operator that also is active in some financial technology areas, such as trading support, pricing data and so on. It owns the famous New York Stock Exchange among others, including for derivatives, futures, soft commodities and so on.

Intercontinental Exchanges’ ownership of NYSE and the very strong brand that comes along with it serves as a major competitive advantage. Traders and investors flock to the most well-known exchanges, as these are the most liquid ones where trading spreads generally are the lowest. When it comes to financial exchanges, powerful network effects are at play. Intercontinental Exchange benefits from that. Proprietary exchange products and technologies further enhance Intercontinental Exchange’s moat versus potential competitors and new market entrants.

Thanks to these competitive advantages, Intercontinental Exchange operates very profitably. During the most recent quarter, for example, Intercontinental Exchange generated a very impressive net profit margin of 40%, as it managed to generate a net profit of $730 million with just $1.8 billion in revenue. With margins this high, each incremental dollar of revenue has a large impact on the company’s bottom line.

Based on current prices, the $1.52 per year dividend translates into a 1.4% dividend yield. With a 10-year dividend-growth track record and double-digit dividend growth, Intercontinental Exchange has valuable dividend-growth properties. The payout ratio of 28% suggests that the dividend is very safe and that there is a lot of room for further dividend growth.

Comcast (CMCSA)

Comcast (NASDAQ:CMCSA) is a leading media, entertainment and communications company. Key businesses include Cable Communications (including high-speed internet, video and wireless) and NBCUniversal, which offers cable networks, broadcast TV and other forms of entertainment.

There are high barriers to enter the markets Comcast is active in. A new emergent cable company would have to spend many billions of dollars to build out the infrastructure that Comcast already has in place, for example. Likewise, hefty marketing and technology spending would be required from new market entrants in broadcast TV and entertainment networks. Comcast thus is active in a market with just a few players. Pricing is not an issue for the company, as none of its peers are interested in pricing wars.

As a result, Comcast has been able to operate very profitably in the past. And its earnings per share and dividend have grown very meaningfully over the last decade.

The company’s dividend has risen for 14 years in a row, and the dividend growth rate was quite attractive over the last decade, averaging 13% a year. At current prices, Comcast trades with a dividend yield of 2.9%, which is considerably more than the yield the broad market offers today. It’s also the highest yield among the companies featured in this article. And yet, at around 30%, the dividend payout ratio is not high at all.

Comcast has recently seen its valuation decline, which is why we believe that shares are trading below fair value right now. In combination with the substantial moat, the compelling yield and dividend growth, and rather low payout ratio, Comcast looks like a compelling income pick at current prices.

On the date of publication, Bob Ciura did not hold (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.

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One trend that has accelerated in recent years is the focus on using environmental, social and governance (ESG) factors to make investment decisions. Many investors are now using a company’s performance on these ESG pillars to make their investment decisions.

In 2021, the number of inflows into ESG-focused funds worldwide was estimated at $596.2 billion. This is more than double the $285 billion that was poured into these funds in 2019. Net assets totaled just over $18 billion last year but could reach as high as $34 billion by 2026 and make up more than one-fifth of total assets.

Clearly, ESG investing isn’t just the latest investment fad but a trend that should grow at a high rate in the near term. Investors can profit from ESG dividend stocks is by focusing on those companies that are more environmentally friendly. This includes those companies that are increasing their renewable energy footprint, which should not only help the environment but also enable companies to grow their dividends.

Three of our favorite renewable energy dividend stocks include:

Atlantica Sustainable (AY)

The first utility name to consider is U.K.-based Atlantica Sustainable (NASDAQ:AY), a sustainable infrastructure company. Atlantica Sustainable has a wide footprint, with operations in North America; South America; and Europe, the Middle East and Africa (EMEA). The EMEA region makes up nearly half of revenue so far in 2022, with North America the next largest market. The company is valued at $3.1 billion and the generates annual revenue of just over $1 billion.

Atlantica Sustainable is highly focused on investing and operating renewable energy assets in an effort to become one of the top names in sustainable energy. The company has 41 assets, which include renewable energy sources as well as transmission and transport, efficient natural gas and water projects.

In total, Atlantica Sustainable’s assets have 2,121 megawatt (MW) of aggregate renewable energy installed generation capacity, 343 MW of efficient natural gas power generation capacity, and 55 megawatt thermal (MWt) district heating capacity. The company also has more than 1,200 miles of electric transmission lines and has the capacity to desalinate 17.5 million cubic feet per day.

The company does have a natural gas business, so Atlantica Sustainable isn’t exactly a pure play on renewable energy. That said, renewable energy contributes more than three-quarters of annual revenue, making these assets the largest business within the company. Efficient gas and heat and transmission lines each contribute slightly more than 10% of revenue, with water the remainder.

The company’s assets usually have agreements in place for revenue, with more than half of contracts linked to inflation or indexed to a fixed number of rate escalations over time. Therefore, Atlantica Sustainable is less susceptible to the impact of inflation than its peer group. The company also has a weighted average contract life of 15 years, giving Atlantica Sustainable a somewhat predictable picture of where revenue will come from over the long term.

Atlantica Sustainable has enjoyed a solid 2022. Through the end of the third-quarter, gigawatt hours (GWh) produced by renewable energy assets has increased 20% to 4,155 and by 14% for efficient natural gas and heat. Transmission lines in operation are higher by 5.4% to 1,229 miles. Operating cash flow is higher by almost 17%. With such strong results, we believe that the stock’s 6.5% yield is safe and that the seven-year dividend growth streak is very likely to continue.

NextEra Energy (NEE)

Our next pick for renewable energy is NextEra Energy (NYSE:NEE), an electric utility company based primarily in Florida. The company consists of three segments, including Florida Power & Light, Gulf Power and NextEra Energy Resources. The $167 billion company has annual revenue in excess of $17 billion.

The first two segments are rate-regulated electric utilities that have nearly 6 million customer accounts covering more than 11 million residents. These businesses are more typical in that they have more predictable revenue and earnings. They are also reliant on regulatory approval for rate increases. Florida Power & Light and Gulf Power make up more than two-thirds of revenue.

NextEra Energy Resources contributes the remainder of revenue. This business is focused on wind and solar energy. NextEra Energy is the largest generator of energy from wind and sun in the world. In addition, the company is the no. 1 name in battery storage.

NextEra Energy Resources has 64 GW of generating capacity in operation and continues to expand aggressively. As of the most recent quarter, NextEra Energy had 2,345 MW of new renewable and storage origination. Management believes that this trend will continue as it projects a total origination of 27,700 to 36,900 MW between 2022 and 2025. The company’s backlog stood at 20,000 MW as of the end of the third quarter.

Looking long term, management believes that there is immense opportunity for the company to take advantage of decarbonization. In the U.S. alone, NextEra Energy believes that the drive to reduce emissions and lower customer bills is a $2 trillion market. As the largest provider of renewable energy in the world, this has NextEra Energy well positioned to tap into what should be a major market.

Shares of the company yield just 2%, much lower than the typical utility stock. However, NextEra Energy has a much larger runway for growth given the size of its renewable business. With a dividend growth streak of 26 years, NextEra Energy is one of just three utility companies in the Dividend Aristocrat index.

Ormat Technologies (ORA)

Our final renewable pick is Ormat Technologies (NYSE:ORA), which provides geothermal and recovered energy power and products to customers. In addition to power generation and storage, the company also markets equipment to others in the renewable energy business. Ormat Technologies has operations in nearly a dozen countries, including the U.S., Turkey, New Zealand and Indonesia. The company is valued at $5.6 billion. It produced revenue of $582 million in 2021.

The majority of the company’s MW are located in the U.S. However, the remainder of its operations are closely distributed among the countries that Ormat Technologies operate in. The company is also pursuing growth opportunities throughout its portfolio. For example, Ormat Technologies signed agreements totaling $137.1 million in its most recent quarter. This is a 150% increase from the prior period.

It’s not just the U.S. that is experiencing increased demand. Much of the additional backlog in the quarter comes from a $100 million agreement with New Zealand and Indonesia.

So far in 2022, Ormat Technologies has added 73 MW to its global portfolio, bringing the total to 1,085 MW. The company has also seen a 6.6% increase in generation to 1,624 GW hours. Ormat Technologies expects to add another 100 to 110 MW by the end of next year.

The company forecast that it will be able to significantly increase it geothermal and solar capacity by the end of 2023 and become one of the leading names in the U.S. storage sector. By the end of next year, Ormat Technologies estimates that it can increase geothermal and solar energy production by 18%. Energy storage will likely to be up three times what it was in 2021.

Shares of Ormat Technologies have increased 27% over the year. This has caused the dividend yield to fall to just 0.5%. The company’s dividend growth history is more uneven than our other renewable energy picks as the dividend has been cut several times over the last decade, most recently in 2018.

On the date of publication, Bob Ciura did not hold (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.

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The end of the year is usually an excellent time to look for deals. In 2022, a bear market caused by rising interest rates in response to the highest inflation in four decades punished stock prices. A recent reversal in the downward trend has caused a slight recovery. But some stocks that were oversold during the year are still down considerably and potentially undervalued. So it’s an excellent time to review your dividend stocks portfolio tracker and research potential dividend stocks for the end of 2022.

Below we discuss four quality dividend stocks with solid yields and growth with acceptable valuations. We focus on dividend stocks with reliable safety and the potential for long-term returns.

Verizon (VZ)

Verizon (NYSE:VZ) is a stock we have discussed before. But the combination of undervaluation and high dividend yield make it attractive. The stock price has bounced back a bit in the past few weeks but is still down about 26%. Verizon is significantly undervalued based on historical metrics.

The company provides cellular and broadband services to retail and business customers. Verizon serves roughly 120 million wireless connections, 6.7 million FiOS and other broadband connections, and approximately 25 million fixed-line telecom connections. Total revenue was $136 million in the last 12 months, making the firm the second-largest telecommunication company in the United States.

Verizon is paying a 6.8% dividend yield, just below the recent peak and nearly the highest in a decade. The company reliably increases the dividend by 2% annually. It has done so for 18 years, making the stock a Dividend Contender. Moreover, the dividend safety is conservative, with a payout ratio of approximately 47%, alleviating the fear of a dividend cut.

The combination of a bear market and weak retail cellular growth has pressured the stock price while simultaneously increasing the dividend yield and lowering the valuation. Verizon is trading at an earnings multiple of about 7.4x, almost the lowest in the past 10 years. The stock is a good one for investors seeking dividend growth and income.

Procter & Gamble (PG)

Procter & Gamble (PG) is one of the most famous Dividend Kings and Dividend Aristocrats. The stock is rarely undervalued. But it is down about 12% in 2022, possibly making it a good time to acquire shares.

The firm sells consumer products globally, operating through five business segments. The five business segments are beauty; grooming; health care; fabric and home care; and baby, feminine and family care. Brands include Tide, Pampers, Charmin, Oral-B, Crest and Old Spice. Most brands are no. 1 or 2 in their market segments. Total revenue was $80.187 million in the fiscal year 2021 and $80.461 million in the past 12 months.

Procter & Gamble has one of the longest dividend streaks over 100 years. Also, it has paid a rising dividend for 66 years, one of only a few companies to achieve the 60-year mark. Additionally, the dividend growth has been slow and steady at roughly 4.9% in the past five years and around 5.2% in the past 10 years. The forward dividend yield is about 2.6%, supported by a reasonable 60% payout ratio. This is near the higher end of our target, but consistent earnings and cash flow limit risk.

Despite the lower stock price in 2022, Procter & Gamble is trading at a price-to-earnings ratio of 24.3x. This value is not a great deal, but it is within the five-year and 10-year ranges. The main interest, though, is low volatility combined with a growing dividend.

Microsoft (MSFT)

Microsoft’s (NASDAQ:MSFT) stock price was caught in the technology sector downdraft. As a result, the stock is down approximately 28% year to date (YTD). But unlike some other tech stocks, Microsoft is wildly profitable and still growing revenue. Moreover, it was not bloated with too many employees, a sign of experienced and prudent management.

Microsoft is a global leader in personal and enterprise software. Also, it sells gaming hardware and tablets. Its major brands include Windows, Outlook, Skype, LinkedIn, SharePoint, Surface, Bing and Xbox. Total revenue was $198.27 million in the fiscal year 2021 and $203.075 million in the past 12 months.

Surprisingly, Microsoft is a dividend growth stock. The company started paying one in 2012 and has raised it each year. The growth rate has been about 13% in the past decade. The modest payout ratio of roughly 29% suggests many more future increases. Microsoft is not a high-yield stock. It currently yields 1%, below the five-year average. However, the main interest is the rock-solid dividend safety supported by an AAA-rated balance sheet and double-digit dividend growth.

The stock is undervalued based on historical ranges. The forward P/E ratio is 25.9x, which seems high. But it is within the five-year and 10-year ranges.

Medtronic (MDT)

Medtronic (NYSE:MDT) is not as well-known as the three other dividend stocks in this article. But the company is one of the world’s largest medical device companies. The stock price has fallen about 21% in 2022 and is nearing the lows set at the start of the coronavirus pandemic. The company is struggling with higher inflation, a warning letter from the U.S. Food and Drug Administration (FDA) and poor results from a recent medical device trial. That said, the company is high quality.

The company has four business segments: Cardiac and Vascular group (about 36% of total revenue), Minimally Invasive Therapies Group (about 29% of total revenue), Restorative Therapies Group (about 27% of total revenue) and Diabetes Group (about 8% of total revenue). Total revenue was $30.117 million in the fiscal year 2021 and $31.597 million in the last 12 months.

Medtronic is known for its 45-year streak of dividend increases, making the company a Dividend Aristocrat and Dividend Champion. In the trailing five years, the raises have averaged about 8.1%, a respectable amount. Moreover, the forward dividend yield is 3.26%, a decade high. But it is supported by a reasonable payout ratio of about 57% indicating future increases should continue.

The stock price decreases have made Medtronic a deal. It is trading at the lowest valuation in years. The forward P/E ratio is about 15.1x, below the five-year and 10-year ranges. The market expects little from Medtronic, but the impending spinoff should streamline the company.

On the date of publication, Prakash Kolli held LONG positions in VZ, PG, MSFT and MDT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money. 

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Environmental, social, governance (ESG) investing has been a major theme in recent years, as some investors seek exposure to stocks that are actively working on their environmental and social footprint. But it can make sense to look in the opposite direction, too. So-called sin stocks have often provided attractive returns. Sin stocks are a group of companies that produce and sell products that are deemed unhealthy, such as cigarettes and other tobacco products, alcohol and so on.

Many of these product categories are very resilient during recessions. Consumers still buy cigarettes, spirits and so on during economic downturns. On top of that, since some investors do not want to invest in sin stocks, their valuations are oftentimes lower than those of other consumer goods companies, which allows for higher entry dividend yields and makes buybacks more effective.

Last but not least, a lot of regulation in these product categories means that new market entrants have a hard time, which is why many sin stocks are operating in oligopolies that allow for high margins. The combination of these factors makes sin stocks worthy of research. These tailwinds can drive compelling total returns for those that invest in sin stocks. We will showcase three such sin stocks with attractive dividend yields here.

Philip Morris (PM)

The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Philip Morris sells its products in almost all countries around the world, with the U.S. being an important exception — there, Altria (NYSE:MO) owns the rights to Marlboro and the other brands that Philip Morris controls.

Smoking is not a growth market when it comes to sales volumes. However, tobacco companies have a history of increasing the price per pack over time. Despite volumes being flat or even down, tobacco companies have been able to generate solid revenue growth over time. At the same time, price increases allow Philip Morris to grow its margins over time, which is an additional tailwind for the company’s net profits.

Since cigarette sales volumes do not grow materially, there is no need to invest heavily in new production facilities or machinery. The vast majority of the operating cash flow that Philip Morris generates is thus available as free cash that can be used for dividends or share repurchases, which is why Philip Morris has been offering an attractive income yield for many years.

Thanks to the recession-resistant business model, Philip Morris has also been able to grow its dividend very reliably, as the company has increased its dividend every year since it was spun off from Altria 15 years ago. At current prices, Philip Morris offers a dividend yield of 5.5%, which is quite attractive.

Based on this year’s expected net profits, the payout ratio is relatively high, at 90%. However, Philip Morris has always operated with a high payout ratio, and it has not stopped the company from increasing its dividend each year. The strong U.S. dollar is a headwind for Philip Morris’ earnings this year, due to its large overseas exposure, but it is likely that the dollar will not continue to strengthen forever, which is why this headwind should wane eventually. This would allow for a lower payout ratio in the future.

Molson Coors Beverage Company (TAP)

Molson Coors (NYSE:TAP) is a beer and malt beverage company that has a history dating back almost 250 years. Molson Coors owns brands such as Coors Light, Miller Light, Carling and so on. On top of the U.S., it is also active in a range of additional markets in South America, Europe, Asia and Africa. Molson Coors is not the largest beer company in the world, but it’s one with a long history and established brands.

Beer demand is not very cyclical, which is why Molson Coors has generally fared well in past recessions. During the first year of the pandemic, its EPS declined only slightly. This was a result of a decline in sales at restaurants, bars, sporting events, concerts and so on declined compared to previous years. In 2021, however, Molson Coors already saw its EPS expand again.

Based on annual dividends of $1.52, Molson Coors is currently offering a dividend yield of 3%. That’s close to twice as high as the broad market’s dividend yield. Based on the expected net profit for the current year, Molson Coors’ payout ratio is just 39%. This looks very sustainable, especially when we consider that the company does not need to invest a large amount of its cash flows for capital expenditures. Therefore, its free cash conversion is high.

Molson Coors reduced its dividend in 2020, and it remains below pre-pandemic levels for now. However, the low payout ratio should allow the company to get the dividend back up to the old $1.96-per-year level in the not-too-distant future.

Diageo (DEO)

Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. Its brands include Jonnie Walker, Smirnoff and Tanqueray. Its history dates back more than 300 years. The company remains headquartered in the U.K., where it was founded in the 17th century.

Like Philip Morris and Molson Coors, Diageo has generally been resilient versus recessions and other macro shocks. Demand for alcoholic beverages is not very cyclical. In 2020, Diageo felt a small hit to its earnings, but the company has been hitting new record EPS levels in fiscal 2022 (it is currently in fiscal 2023, which is forecasted to be another record year).

The company pays out 47% of its profits, based on this year’s expected EPS and an annual dividend of $4 per share. That makes for a dividend yield of 2.2% at current prices, which is the lowest among these three companies but still easily higher than the yield one can get from the broad market today.

Diageo has a solid dividend-growth track record, having increased its dividend reliably in recent years. The dividend growth rate is in the mid-single digits, on average. At current prices, Diageo is trading for just below 20x this year’s expected net profit, which is a low-ish valuation relative to how Diageo was valued in the past. Diageo traded at earnings multiples of more than 20 over the last five years, suggesting right now might be a better-than-average time to enter or expand a position.

On the date of publication, Bob Ciura did not hold (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.

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Income-focused investors often target the largest companies, as those with lengthy track records of dividend growth are usually the leaders within their area of the economy.

Still, investors could do well expanding their search beyond the large-cap names. While larger companies with long histories of dividend growth typically draw the attention of investors, smaller companies are no less impressive in their ability to continue to raise payments to shareholders. Indeed, smaller caps could deliver outsized capital returns as well as dividend income.

Some investors searching for income might ignore small-cap stocks due to their size, but we believe that there are high-quality, dividend-paying stocks with market capitalizations below $2 billion that could prove safe and secure income in retirement.

Three of our favorite small-cap dividend stocks for income include:

First of Long Island (FLIC)

The first small-cap name to consider is First of Long Island (NASDAQ:FLIC), which is a holding company for the First National Bank of Long Island. The $394 million company has generated revenue of $129 million over the last year.

First of Long Island has just over 60 branches, which are primarily located across two counties in Long Island. The company does have branches in Brooklyn, Manhattan and Queens. First of Long Island offers the usual lineup of financial services similar to most regional banks, including business and consumer loans, mortgages, savings accounts, payroll, investment management, mutual funds and life insurance, among others.

While these services are similar to what most peers provide, First of Long Island’s presence in a growing area leads to tailwinds to the business. The company may not attract the largest customers, but First of Long Island does provide services to both small- and medium-sized businesses in the region. Being centered near the financial capital of the world is also a plus in the company’s favor, even if First of Long Island doesn’t have the large-scale advantages that larger banks have.

Aggressive Federal Reserve action on rising interest rates is already providing a lift to results. For example, First of Long Island’s net interest margin expanded 26 basis points to 2.97% in the most recent quarter. Average loans outstanding grew 9.4%, so the company continues to see strong loan demand. Return on equity, which has traditionally been very high for First of Long Island, was 12.57% for the quarter, compared to 10.96% in the prior year.

First of Long Island’s strong business model has enabled the company to provide annual dividend increases for 45 consecutive years. The company is just five years away from entering the ranks of the Dividend Kings, which are those companies with at least 50 consecutive years of dividend growth.

Most recently, First of Long Island raised its dividend 5% for the Oct. 21, 2022 payment date. The dividend has a compound annual growth rate (CAGR) of 7% over the last decade and the projected payout ratio for this year is reasonable at 40%. Shares of First of Long Island yield 4.8%, which is nearly three times the average yield of 1.8% for the S&P 500.

PetMed Express (PETS)

Next up is PetMed Express (NASDAQ:PETS), a leading nationwide pet pharmacy. The company has annual revenue of $273 million and is valued at $452 million.

PetMed Express was founded in 1996 and was originally called 1-800-PetMeds. Today, the company is one of the largest names in the pet pharmacy industry. PetMed Express offers both prescription and non-prescription pet medications directly to the consumer through its toll-free number and website. The company focuses on dogs, cats and horses.

The company’s chief competitive advantage is that it is very well-known among pet owners. PetMed Express has cultivated a wide following over the last nearly 30 years, leading to numerous repeat customers. The tremendous growth of e-commerce has directly benefited the company as more and more consumers use online channels to find the products and goods that they need. This trend is likely to continue, especially following the increase in use during the Covid-19 pandemic.

PetMed Express also offers a wide variety of products, including more than 3,000 medicines, health products and supplies. This allows customers to use the company for all of their pet-related needs. Many people view their pets as part of their family, making it likely that they will go to great lengths to make sure they are taken care of. This occurred during the Great Recession, when EPS grew nearly 20%.

Revenue fell 11.5% in the first quarter of fiscal year 2023, largely due to a delay in the company’s seasonally sensitive flea and tick product lines. Business did begin to recover near the end of the period, suggesting momentum heading into the new quarter. PetMed Express did say that its strategic partnership with telemedicine Vetster is already aiding results. The company’s customers can now have around-the-clock access to doctors that can provide virtual care and medications for pets.

Shareholders have seen their annual dividends grow for 13 consecutive years, though the company hasn’t raised its dividend since the February 2021 payment date. The projected payout ratio of 122% for 2022 is likely the reason behind this. Still, the dividend has a CAGR of 8% over the last 10 years, and shares yield a very generous 5.5%.

York Water Company (YORW)

The final small-cap name to consider is York Water Company (NASDAQ:YORW), a water utility company that operates in Pennsylvania. The company has a market capitalization of $611 million and annual revenue of $55 million.

York Water Company’s footprint in Pennsylvania is small, as the company has operations in just Adams, Franklin and York areas. The company covers just 54 municipalities in these areas and supplies water services to more than 75,000 residential, commercial and industrial customers. Just over 210,000 customers are in the company’s service area.

That said, York Water Company has been in business since 1816. It is the oldest publicly traded water utility company in the U.S. Despite its long history of business, the company continues to grow. The customer count has increased by more than 10,000 over the last year alone. That’s a significant increase given the size of the base. Some of this growth was organic, but the purchase of wastewater company West Manheim Township in early January and the addition of Letterkenny Industrial Development Authority in August of this year also contributed new customers to the base.

Aside from new customers, York Water Company uses increases to water and wastewater rates to grow its business. Typically, rate increases are capped at 5% per year, which leads to steady and consistent revenue growth. The company is able to secure such increases because of the investment it makes in its infrastructure, including a planned $176 million investment in its water and wastewater systems through February of 2024.

York Water Company grew revenue by 9% in the third quarter, its strongest year-over-year showing in more than five years. Growth was generated through acquisitions and higher water rates.

Despite its size, York Water Company has an impressive streak of paying a continuous dividend for more than 200 years. This is one of the longest dividend-payment streaks in the market. The company paid its 607th consecutive dividend at the end of September. The dividend has a CAGR of nearly 4% since 2012, and the company has increased its dividend for 25 years. Shares yield just 1.8%, but that yield is likely safe as the expected payout ratio for 2022 is 59%.

On the date of publication, Bob Ciura did not hold (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.

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As dividend stock investors, we’re focused on finding great stocks to buy for long-term wealth accumulation. There are many ways to accumulate wealth in the stock market, but we believe the most proven method is to find great stocks with durable competitive advantages and long dividend histories. When we combine those criteria with an additional screen of high-yielding dividend stocks, we can end up with some truly great picks.

In this article, we’ll take a look at three dividend stocks we believe are good buys for investors with long-term time horizons, given their strength in dividend longevity, durability and very high dividend yields of more than 6%.

Verizon (VZ)

Our first stock is Verizon (NYSE:VZ), which is a communications and technology company that operates globally, but principally in the U.S. The company provides postpaid and prepaid wireless phone service plans, internet access for consumers and businesses, associated hardware, data security and more. Verizon has about 150 million different connections to customers through its full suite of services and products. The vast majority of those are attributed to its ubiquitous wireless service.

Verizon was founded in 1983 and generates about $137 billion in annual revenue. It trades with a market cap of $153 billion.

Verizon’s competitive advantage stems from its enormous 5G wireless network that spans the entire U.S. Together with AT&T (NYSE:T), the two companies operate what amounts to a duopoly in wireless service. Verizon is the larger of the two. The network Verizon has built out would require tens of billions of dollars of spending from a new entrant, so its market position is extremely secure. This helps protect the company’s earnings stream for the future, which, in turn, makes it a better dividend stock.

Speaking of the dividend, Verizon’s dividend has risen for the past 18 years consecutively. The company’s average increase during that time was less than 3% annually. However, given Verizon’s utility-like nature, relatively modest dividend increases should be expected.

That’s still been good enough for Verizon to sport a 7.2% yield today, which is an all-time high for the stock. Shares have been punished this year while Verizon continues to raise the dividend, so the current yield is outstanding.

In addition, we see Verizon’s dividend as highly secure given it has very predictable earnings and a payout ratio of only 50% for this year. That means Verizon could suffer sizable earnings declines, although we don’t believe that will occur under any reasonable scenario, and still pay out its dividend for years to come. This combination of factors — including the payout ratio and Verizon’s competitive advantage — means the stock is a great by for those with long time horizons.

Bank of Nova Scotia (BNS)

Our next stock is Bank of Nova Scotia (NYSE:BNS), or Scotiabank, as it is otherwise known. Scotiabank operates across a wide area of the Western Hemisphere, conducting business in Canada, the U.S., Mexico, Peru, Chile, Colombia, the Caribbean and parts of Central America. The bank offers a full suite of banking services, including traditional checking and deposit accounts, investments, credit cards, mortgages and other loan products, insurance, business banking, wealth management, and more. The bank operates about 1,000 branches in Canada and a further 1,300 outside of Canada.

Scotiabank was founded in 1832 and produces about $23 billion in annual revenue. It trades with a market value of $57 billion.

Scotiabank’s competitive advantage comes from its combination of its huge footprint in the Canadian banking market, its international growth story and its reputation that has been built over nearly 200 years. Scotiabank has a core Canadian business that doesn’t grow very quickly but generates steady earnings. Its international business is more volatile, but growth rates and potential for those markets over time is much higher. This combination of factors means we believe Scotiabank will be competitive for many years to come. That’s good news for dividend investors.

Scotiabank just hit 10 years of consecutive dividend increases, coming out of the financial crisis that saw just about every bank cut their dividends. Scotiabank has raised its payout at a rate of about 4% annually in the past decade as it has tried to maintain a payout ratio of under 50%. This year, the payout ratio is expected to be 48%. That is right in line with historical tendencies. It also means the dividend should be safe in all but the harshest of recessions going forward.

Finally, Scotiabank’s current yield is 6.3%, which is among the highest yields the bank has ever produced. The stock has traded down significantly in 2022, creating a great opportunity for long-term dividend investors to pick up a yield that is about four times that of the S&P 500.

V.F. Corporation (VFC)

Our final pick for dividend stocks to buy and hold is V.F. Corporation (NYSE:VFC), which is a company that designs, markets and distributes branded lifestyle apparel, footwear and accessories globally. V.F. operates in three segments: outdoor, active and work. Through these segments, the company offers a variety of premium products for men, women and children. Its brands include well-known favorites such as Vans, Supreme, Timberland, North Face and Dickies, among others.

V.F. was founded in 1899 and generates about $12 billion in annual revenue. It has a current market cap of $11 billion.

We like V.F. for its outstanding portfolio of premium brands that have decades of success backing them. The company has collected brands over the years with strong reputations among consumers. On the whole, this collection of products makes a consolidated company with diversified exposure across a wide variety of use cases for its products, price points and demand profiles.

V.F. has boosted its dividend for 49 consecutive years. That means it is just one more annual increase away from being a Dividend King. That alone puts V.F. in rare company, but among apparel distributors, it is in a class of its own. The dividend has also grown at about 10% annually in the past decade, a tremendous growth profile for a company with nearly half a century of increases under its belt.

VFC stock has a current yield of over 7%. That is about triple the level it generally has been over the years. That’s due to its cheap valuation and the fact that the stock has been punished in 2022.

The current payout is $2 per share annually. Earnings guidance is about $2.45 for this year, so the payout ratio is elevated. However, the company has defended the dividend during brief periods of the payout exceeding earnings before, and we believe it would again. Current earnings will cover the payout, so this is not an issue at the moment. And we don’t believe the dividend is in danger of being cut.

On the date of publication, Bob Ciura did not hold (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.

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Investors often think of the technology sector as a high-growth area. That’s for good reason, as some of the largest companies in the world reside in this area. The downside of such high growth is that investors often are willing to pay a premium multiple but often rush to the exits at the first sign of trouble. Aside from healthcare, no sector has endured a more challenging 2022 than technology stocks, which are down about 42% year to date (YTD).

The plus side of the downturn is that there are quality technology stocks now trading at much more reasonable valuations. These stocks also provide meaningful levels of income to go along with strong total return potential, which should appeal to both value and dividend growth investors alike.

This article will examine three technology stocks yielding more than 3% that could deliver double-digit annual returns.

Cisco (CSCO)

First up is Cisco (NASDAQ:CSCO), one of the largest high-performance computer networking systems in the world. The company is valued at $171 billion and has annual revenue of approximately $54 billion.

Cisco has long been the most dominant name in enterprise networking. This has been the case for so long that it is estimated that the vast majority of data transferred over the internet for the past three decades has been done so through the company’s products. As a result, Cisco’s switches and routers are very entrenched in the industry.

That said, the company has made efforts to move beyond hardware. This includes offerings such as cloud storage and security products that are very intertwined. This makes it difficult for customers to switch providers without enduring high switching costs.

Cisco has also transformed into more a software-as-a-service company, which allows for recurring revenue sources and helps to remove some cyclicality from its business. Deferred revenue has been growing at a strong rate for some time now. For example, Cisco’s deferred revenue grew 11% to $23.3 billion in the fourth quarter of fiscal year 2022.

The company also has one of the best balance sheets in the industry. Cisco ended the fiscal year with total assets of $94 billion, including almost $19 billion of cash and equivalents against total liabilities of $54 billion and long-term debt of just $8.4 billion.

Given the strength of its business and the company’s ability to offer smoother revenue results, we believe that Cisco is capable of generating earnings growth of 6%, which is close to the long-term average.

Cisco’s dividend growth streak stands at 12 years. Shares currently yield 3.6%, which is twice the average yield of 1.8% for the S&P 500. With a projected payout ratio of 43%, it is likely that the company’s dividend will continue to grow.

The final component of our projected return model is valuation. Historically, Cisco has a price-to-earnings (P/E) ratio of slightly more than 13. We have a fair value target of 14 times earnings given the positives working in the company’s favor. With shares trading at 11.9 times earnings, this implies an annual tailwind of 3.3% from multiple expansion over the next five years.

In total, we forecast that Cisco will offer annual returns of 12.4% over the next five years, stemming from a 6% earnings growth rate, a starting yield of 3.6% and a low single-digit contribution form multiple expansion.

Skyworks Solutions (SWKS)

The next technology name to consider is Skyworks Solutions (NASDAQ:SWKS), a leading semiconductor company. The company is valued at more than $13 billion and has produced revenue of just over $5 billion over the last year.

Skyworks Solutions designs and sells semiconductor products to a wide variety of customers around the world. The company’s amplifiers, antenna tuners, converters, modulators, receivers and switches are used in end markets such as automotive, connected home, defense, industrial, medical and smartphones.

Of these markets, smartphones might be the most important at the moment. This is because of the ongoing 5G rollout. Most of the major carriers have turned on 5G service, but customer upgrades to devices that can access this network is ongoing. It will take time for the majority of customers to acquire a 5G device, which should provide Skyworks Solutions with tailwinds to its business.

There will be immense competition in the 5G space, but the company’s expertise, size and scale should work to its advantage as more people switch to the service. Skyworks Solutions’ products are used by some of the largest technology names involved in 5G, such as Apple (NASDAQ:AAPL), which gives the company a partnership with some of the top makers of smartphones.

Skyworks Solutions has increased EPS at a high rate over the last decade. However, we believe 5% earnings growth going forward is more likely given the high base that the company is starting from.

The company has raised its dividend for 10 consecutive years, and the stock is currently yielding 3.1%, one of its highest yields in its history. The projected payout ratio of 21% is extremely low and leaves ample room for Skyworks Solutions to continue to raise its payments to shareholders.

Shares of the company are trading at just 7.3 times expected EPS for the year. With a fair value price-to-earnings ratio of 12, we believe that Skyworks Solutions will see multiple expansion add 10.5% to annual returns over the next five years.

In total, Skyworks Solutions is projected to return 18.1% per year for the next half-decade. This is due to 5% earnings growth, a starting yield of 3.1% and a low double-digit valuation tailwind.

Texas Instruments (TXN)

Our final technology name is Texas Instruments (NASDAQ:TXN), one of the largest semiconductor companies in the world. The $145 billion company has generated revenue approaching $20 billion over the last 12 months.

Texas Instruments has two business segments. The analog segment produces products that help in the management of power in electronic systems and that measure signals that allow information to be transferred or converted. The embedded processing segment makes semiconductor chips that can be used in a multitude of applications.

The company’s products are used in several different areas, including automotive, where the sophistication of cars and trucks has greatly increased. This will require more advanced components in order to meet the needs of manufacturers. Other important end markets include industrial applications and communication services.

Texas Instruments has also invested heavily to design more advanced chips, which has helped to solidify its place in its industry. This has led to strong margin performance over long periods of time. The company’s EPS have compounded at a double-digit rate over the last decade, but we forecast earnings growth of 7.5%, as we feel this builds in some measure of protection against what has typically been a cyclical business.

Texas Instruments yields 3.2% today. The company’s lengthy dividend growth streak of 19 years is one of the longest in the technology sector and growth rates have been robust over the long term. The projected payout ratio for 2022 is 52%.

The stock is trading with a price-to-earnings ratio of 16.9. We believe fair value is closer to 20 times earnings, which is near the historical valuation. Reverting to our target price-to-earnings ratio would add 4.3% to annual returns going forward.

Therefore, Texas Instruments is predicted to provide annual returns of 14.7% through 2027, stemming from 7.5% earnings growth, 3.2% dividend yield and a low single-digit contribution from an expanding multiple.

On the date of publication, Bob Ciura did not hold (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.

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The financial sector was one of the worst areas to invest for income during the 2007 to 2009 period, as many names were forced to cut their dividends to the minimum while companies dealt with the financial crisis. For income investors, the dividend cuts were painful and have caused many to avoid the sector for fear of more pain in the future. Even as we are more than a decade removed from the time period.

That said, many companies in the financial sector are now better equipped to handle adverse economic conditions. Their business models also make them more insulated from rising interest rates, as higher rates can actually be a tailwind for these companies. This means that the dividends should be more secure than they were just prior to the Great Recession.

This article will examine three financial stocks in the financial sector that have safe dividends yields of at least 3%.

Bank OZK (OZK)

The first name to consider is Bank OZK (NASDAQ:OZK), which was previously known as Bank of the Ozarks. The $5.4 billion company has generated annual revenue of more than $1 billion over the last year.

Bank OZK offers a variety of financial services, including checking, savings, money market, time deposit and individual retirement accounts. The bank offers real estate, consumer, commercial, industrial and agricultural loans as well as leasing services to customers.

The company has several advantages working in its favor. Despite its regional bank status and relatively small number of branches of approximately 240, Bank OZK is ideally located in some of the most populous states in the U.S. This includes California, Florida, New York, North Carolina and Texas. This provides for a rather sizeable pool of potential customers and clients.

Unlike many in its sector, Bank OZK performed well during the 2007 to 2009 period, with earnings per share (EPS) growing more than 15% during the time frame. The company reached a then-record in 2009 as well, an impressive accomplishment given the turmoil of the time for those in the financial sector.

Despite the Federal Reserve signaling that its recent aggressive interest rate hikes are likely to continue as long as inflation is high, Bank OZK may not be negatively impacted. In its second-quarter report, management noted that demand for loans was down only 1% while net interest margin expanded 27 basis points to 4.5% on a sequential basis. Net interest income was up 7% for the period.

Bank OZK has long been a shareholder friend company, as it has raised its dividend for 26 consecutive years, often aggressively. The dividend has a compound annual growth rate (CAGR) of more than 18% over the last decade. And while most companies raise their dividend once per year, Bank OZK has now raised its dividend 49 consecutive quarters.

Shares of the company yield 3.1%, 100 basis points higher than the 10-year average yield of 2.1% and well above the 1.7% average yield for the S&P 500. Bank OZK has a projected payout ratio of 31%, only slightly ahead of its long-term average of 28%.

Morgan Stanley (MS)

Next is Morgan Stanley (NYSE:MS), which is a financial giant with a market capitalization approaching $136 billion. The company had revenue of more than $61 billion in 2021.

Morgan Stanley offers financial products and services to individuals, corporations, financial institutions and governments around the world. The company operates three segments: institutional securities, wealth management and investment management.

The company has a worldwide presence, giving it a size and scale that only the largest of financial institutions can replicate. This lessens the number of major competitors that it has for its business. At the end of last year, Morgan Stanley had a total of nearly $5 trillion in assets under management, a figure only a few other wealth management firms could top.

Morgan Stanley did not perform well during the Great Recession, as EPS swung from $2.43 in 2007 to a loss of 93 cents in 2009. The company did recover the very next year but did not establish a new high for EPS until 2021.

Even so, Morgan Stanley appears better prepared to handle adverse economic conditions. For example, the company saw a materially benefit from higher interest rates in its second quarter, as net interest income grew 39% to $1.75 billion. The selloff in the markets as a result of higher inflation and higher interest rates did lead to a 55% decrease in the investment banking business, but the flight to safer securities drove a 49% gain in fixed income for the company.

Like many others, Morgan Stanley slashed its dividend in both 2009 and 2010. The dividend was held constant until 2014, when the company began raising its dividend once again. Growth has been aggressive as the dividend has a CAGR of almost 24% over the past five years. The dividend growth streak stands at nine years.

Shares of Morgan Stanley yield 3.9%, which compares very favorably to the average yield of 1.9% since 2012. It’s also more than twice what the market offers. The projected payout ratio of 48% for 2022 is elevated relative to the long-term average of 23%. However, it’s not to a level where a dividend cut appears imminent.

In addition, share buybacks have been plentiful. The company bought back $2.7 worth of stock during the most recent quarter. The share count has been reduced by more than 6% in the last year alone.

Old Republic (ORI)

The last of these financial stocks to consider is Old Republic (NYSE:ORI), which provides insurance to both individuals and institutions. The company has a market capitalization of $7.1 billion and annual revenue of close to $8 billion.

Old Republic markets, underwrites and offers risk management services for a variety of general and titles insurances. The company has three reporting segments, including general insurance, title insurance and a run-off business.

Old Republic’s products include automobile extended warranty, commercial auto, workers’ compensation, financial indemnity and title insurance. The company sees almost all of its revenue from the U.S., but some comes from Canada. This helps to reduce the impact of currency exchange on results.

Though insurance is often viewed as a boring industry, results can be volatile depending on the number of claims a company has. Old Republic is no different. EPS have fluctuated over the last 15 years. This includes during the financial crisis. Old Republic had EPS of 97 cents in 2007 followed by EPS losses of 81 cents in 2008 and 67 cents in 2009. These losses continued for several years following the Great Recession and didn’t return to growth until 2013.

Rising interest rates have already impacted mortgage refinancing activity, though Old Republic’s combined ratio of 91.4% in the second quarter was solid.

Despite unevenness in its business, Old Republic has an impressive dividend growth streak of 41 years. The last decade has seen a dividend CAGR of 2.4% as the company has a been a slow but consistent grower of its distributions to shareholders. The stock yields 4%, which is slightly below its long-term average of 4.5%. Still, this is more than twice the average yield of the market index. The projected payout ratio for this year of 36% is below the 10-year average payout ratio of 53%.

On the date of publication, Bob Ciura did not hold (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.

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The market continues its downward trend. The U.S. Federal Reserve is raising interest rates in response to high inflation. Consequently, investors are selling because they fear high interest rates will cause a recession. Adding to investors’ negative sentiment are record drought in many places in the world and Russia’s invasion of Ukraine. On the other hand, the current bear market has created some deals. Stocks overvalued for years are now undervalued or at least fairly valued. Moreover, dividend yields have risen to the highest in a decade for some stocks. Below we discuss four dividend stocks yielding 4%+ that are also undervalued.

Realty Income (O)

Realty Income (NYSE:O) is a real estate investment trust (REIT) that operates under a single-tenant, triple-net lease structure. The company develops and purchases commercial real estate and rents it to retail chains. Under the net lease agreement, the lease is responsible for the monthly base rent and real estate taxes, property insurance and maintenance. The average lease duration is about nine years and includes rent escalators. Total revenue was $2.78 million in the trailing 12 months. The current CEO is Sumit Roy.

The REIT is one of the five largest global REITs with properties in the U.S., U.K. and Spain. The company owns about 11,427 commercial properties and leases to about 1,125 clients. Realty Income’s occupancy rate median is 98.2%, much higher than its peers. The REIT also has geographic diversification, with Texas, the U.K., California, Illinois, Florida, Ohio and Georgia making up 44.8% of the rent base.

Realty Income is known as one of the monthly dividend stocks. The firm is also a Dividend Aristocrat, with 29 years of consecutive increases. The forward dividend yield is 5.19% above the five-year average of 4.35%. The dividend is growing at about a 3.4% annual rate in the past five years. The REIT has one of the most robust balance sheets compared to its peers at an A3/A- upper-medium investment grade credit rating.

Realty Income is undervalued, trading at a price-to-AFFO ratio of approximately 14.7X. This value is below its historical 10-year range.

NextEra Energy Partners LP (NEP)

NextEra Energy Partners LP (NYSE:NEP) is a clean energy limited partnership operating across the U.S. The company had an initial public offering (IPO) in 2014 and is a publicly traded subsidiary of NextEra Energy (NYSE:NEE). The company owns and manages wind, solar and storage projects. Also, it owns contracted natural gas pipelines in Texas and Pennsylvania. The partnership operates in the wholesale market, contracting out its clean energy power. Total revenue was $1.12 million in the last 12 months. The CEO is John Ketchum.

Although the company’s revenue has been growing, earnings per share (EPS) has been more volatile because NextEra Energy Partners is growing rapidly and increasing its energy base. The partnership is expanding rapidly, adding between 22 GW and 30 GW from 2021 to 2024 in its pursuit of becoming a renewable and clean energy leader.

The partnership’s units yield 4.29%, above the five-year average of 3.82%. In addition, the company is increasing the dividend at a double-digit rate of roughly 15% annually on average. Although the credit rating is only BB from S&P Global, the company is a subsidiary of NextEra Energy, which has an A-, an upper-medium investment grade credit rating.

NextEra Energy Partners has declined about 15% year-to-date, and the yield is up, making it a very attractive option among dividend stocks.

AbbVie (ABBV)

AbbVie (NYSE:ABBV) is a global research and development (R&D) pharmaceutical company spun off from Abbott Laboratories (ABT) in 2013. The company is known for its blockbuster therapeutic, Humira, which treats autoimmune diseases. Humira is the no. 2 selling therapeutic globally. In addition, AbbVie has strengths in immunology and oncology. Other primary therapies include Synthroid, Rinvoq, Skyrizi, Imbruvica and Botox. Total revenue was $40.56 million in the past 12 months. The CEO is Richard Gonzalez.

AbbVie grows organically through R&D. However, like most large pharma companies, it periodically acquires other companies for new technologies and platforms. For example, the firm acquired Allergan in 2019 for $63 billion. More recently, AbbVie has cut deals for Syndesi and Soliton, and it has partnerships with a number of other small companies.

The forward dividend yield is about 4.1%, much higher than the average dividend yield for the S&P 500. The dividend has been growing at a solid double-digit rate of 18% in the past five years but off a low base. The moderate payout ratio of roughly 41% supports future growth and provides confidence about dividend safety.

Abbvie is undervalued now, with an earnings multiple of about 10X, below the five-year and 10-year averages. As a result, investors should look at this stock now.

Kimberley-Clark (KMB)

Kimberley-Clark (NYSE:KMB) is a more than a 100-year-old company that is well-known for its packaged consumer products. The company operates in three business segments: Personal Care, Consumer Tissue and K-C Professional. Some leading brands are Huggies, Pull-Ups, Little Swimmers, Kotex, Depend, Poise, Kleenex, Scott and Cottonelle. Total revenue was $20.13 million in the past 12 months. The CEO is Michael Hsu.

Kimberley-Clark only grows slowly through organic sales increases. It does so through new products and extensions. However, the company periodically buys large and small competitors like Thinx and Softex Indonesia. That said, many of the products it sells are necessities.

The dividend yield of roughly 4.21% is the highest in the past decade and nearly an entire percentage point above the five-year average. However, the high payout ratio of roughly 73% means future dividend increases will probably be modest. Despite the high payout ratio, the dividend safety is acceptable because of the consistent earnings and cash flow streams. Furthermore, Kimberley-Clark has an A/A2 upper-medium investment grade credit rating adding to the dividend safety.

Kimberley-Clark is trading at a price-earnings (P/E) ratio of about 19.5X within its five-year and 10-year ranges. The value is the lowest since the pandemic bear market.

On the date of publication, Prakash Kolli did not hold (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. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money. 

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Income investors often allocate a sizeable portion of their portfolio to real estate investment trusts, or REITs, as these names typically pay high yields. Since REITs have to distribute at least 90% of their taxable income to shareholders via dividends, these stocks can be a good source of income.

Of course, yield shouldn’t be the sole purpose for making an investment, as the underlying company needs to have a strong business model that supports the dividend. Otherwise, the dividend could be drastically cut, which would be painful for the investors requiring income.

For those with a higher tolerance for risk, there are high yields that could be attractive. This article will examine three high-dividend REITs that might appeal to those investors with a higher tolerance for risk as the dividend payout ratios are elevated. This includes:

Broadmark Realty (BRMK)

The first name for consideration is Broadmark Realty (NYSE:BRMK). The $721 million trust formed in 2010 and has only traded in the public markets since 2019. The trust has generated revenue of $120 million over the last year.

Broadmark Realty provides short-term, first deed of trust loans secured by real estate to clients for the purposes of construction projects. While young, the trust has originated almost $3 billion of loans since its formation more than a decade ago.

The trust operates a fairly diverse business model that has experienced rapid growth in a short period of time. As of the most recent quarter, Broadmark Realty had a total portfolio loan value of $1.6 billion. For context, the trust’s loans totaled just $117 million in 2014.

The portfolio includes loans to clients in 20 different U.S. states and the District of Columbia. The portfolio is almost evenly split between residential and commercial loans. Broadmark Realty’s loans in contractual default was $91.7 million, or 5.7%, of the total loan book at the end of the second quarter. Provisions for credit losses have also ballooned from $58,000 in the second quarter of 2021 to $2.7 million in the most recent reporting period.

Broadmark Realty differs from the majority of REITs in that it has almost no long-term debt on its balance sheet. This enables the trust to make acquisitions using the cash on its balance sheet and eliminating interest expense. The trust is also not very sensitive to the increases in interest rates. Broadmark Realty also has a average loan-to-value of 61%. If a client goes into default, the trust can take possession of the property with equity already built in.

Shares of Broadmark Realty yield a staggering 15.6% at the time of writing, which is more than nine times the average yield of 1.7% for the S&P 500. The trust has a projected payout ratio of 135% for 2022. Therefore, the dividend could be at risk for reduction if the business suffers a setback.

New York Mortgage Trust (NYMT)

The next high-yield REIT to discuss is New York Mortgage Trust (NASDAQ:NYMT). The trust is valued at $873 million and generated revenue of $255 million over the last twelve months.

New York Mortgage Trust specializes in acquiring, financing and managing mortgage-related assets. Unlike many REITs, New York Mortgage Trust doesn’t own actual physical real estate properties. Instead, it owns a portfolio of assets that are related to real estate. The trust’s revenue stream comes from the net interest income and net realized capital gains from its portfolio.

New York Mortgage Trust’s uses investments in mortgage-related assets as the primary way to create interest income, though the trust does maintain some distressed financial assets in its portfolio.

The types of investments found in the portfolio include residential mortgage loans, multi-family commercial mortgage-backed securities, preferred equity, and joint venture equity. The purchase of residential mortgage loans is a relatively new activity for New York Mortgage Trust and could lead to issues in the next recession if mortgage defaults surge.

This could lead to the strong possibility of a dividend cut or suspension. This occurred during the worst of the Covid-19 pandemic as the trust suspended its dividend for part of 2020. Shares yield 17.2%, but the expected payout ratio is 133% for the year.

Sachem Capital (SACH)

The final name for consideration is Sachem Capital (NYSEMKT:SACH). With a market capitalization of just $139 million and revenue of just $41 million over the last year, the trust is one of the smaller REITs in the market place.

Sachem Capital focuses on the origination, underwriting and funding of first mortgage liens that are short-term, typically less than three years. This does protect the trust somewhat from changes in interest rates, as the term of the loan is shorter. Another positive working in the trust’s factor is that each of Sachem Capital’s loans are guaranteed by the borrower through collateral.

Sachem Capital has worked to diversify its business, with a presence in 14 U.S. states. Previously, much of the trust’s business was heavily concentrated in the state of Connecticut. However, Sachem Capital is expanding to large and growing states such as Florida and Texas. The Eastern seaboard is also a focus and could be a key area of growth given the population density of the region. This expansion will reduce the reliance on one major market for business.

Another source of future growth is that it has moved towards originating loans with medium-sized developers with good collateral. This could increase the scale of operations and provide support for the stock’s yield of 15.5%.

If the safest dividend is the one that was just raised thesis is correct, then Sachem Capital’s 17% increase in early July is a good sign for shareholders. The forecasted payout ratio of 100% for the year is the lowest on this list. But that stilll means that the payment is at risk for being reduced if a recession were to occur.

On the date of publication, Bob Ciura did not hold (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.

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The defense industry holds a number of appealing stocks for dividend growth investors. Constant geopolitical concerns and rising defense budgets around the world provide a strong backdrop for the biggest defense companies.

The major defense companies have sustainable dividends, even during recessions, due to the persistent need for global defense. In turn, investors have generated strong returns from defense stocks, as well as steady dividend growth each year.

This article will discuss three top defense stocks for dividend growth investors.

Northrop Grumman (NOC)

Northrop Grumman (NYSE:NOC) is a major defense company with four business segments: aeronautics systems (aircraft and UAVs), mission systems (radars, sensors and systems for surveillance and targeting), defense systems (sustainment and modernization, directed energy, tactical weapons), and space systems (missile defense, space systems, hyper-sonics and space launchers). The company generates over $35 billion in annual revenue.

Northrop Grumman’s revenue fell 4% in the most recent quarter, while adjusted earnings per share (EPS) declined 6%. Still, the company remained highly profitable, and future growth is likely as NOC won $13 billion billion in contracts in the second quarter. Its total backlog is at approximately $80 billion, of which $34 billion is currently funded.

For full-year 2022, management expects $36.2 billion to $36.6 billion in revenue, along with adjusted EPS of at least $24.50.

Northrop Grumman’s earnings have increased substantially over time, driven by top-line growth from contract wins, modernization and upgrades, services, and acquisitions. A significant reduction in share count has helped drive EPS gains as well.

Looking forward, the company will achieve both revenue and EPS growth through its involvement in the F-35, B-2, E2-2D, B-21, and space platforms.

Northrop Grumman has paid a growing dividend for 19 years. The payout ratio is currently low at approximately 18% so there is room for further increases. The stock currently yields 1.4%.

Lockheed Martin (LMT)

Lockheed Martin (NYSE:LMT) is the world’s largest defense company and a great pick among dividend stocks. It derives roughly 60% of its revenue from the U.S. Department of Defense. Other U.S. government agencies represent 10% of revenue, with 30% from international clients. The company consists of four business segments. Aeronautics, which produces military aircraft like the F-35, F-22, F-16 and C-130, is the biggest segment at 40% of sales. The rotary and mission systems represents 26% of sales and produces combat ships, naval electronics and helicopters. The company also operates a missiles and fire control business and a space systems segment.

In the second quarter, net sales fell 9%. The quarter was impacted by lower sales in all segments. Still, Lockheed Martin expects annual revenue of $65.25 billion and EPS of $21.55 for the full year.

We expect the company to generate 6% annual EPS growth over the next five years. Lockheed Martin’s backlog is approximately $134.6 billion with an increase in missiles and fire controls, space and rotary, and mission systems. EPS have grown in recent years on the strength of the F-35, tactical and strike missiles, satellite and missile defense programs, and the Sikorsky acquisition. The F-35 is one of the most advanced stealth military aircraft in the world and will likely drive growth for the long term. The Pentagon plans to buy 2,456 F-35s, and this does not include sales to allies.

Lockheed Martin is an entrenched military prime contractor. It produces aircraft and other platforms that serve as the backbone for the U.S. military and other militaries around the world. This leads to a competitive advantage as any new technologies would have to significantly outperform extant platforms. These platforms have decades-long life cycles. Additionally, Lockheed Martin has the expertise and experience to perform sustainment and modernization. These characteristics lead to a good degree of recession resistance.

The company has increased its dividend for 20 consecutive years. The stock currently yields 2.9%.

Raytheon Technologies (RTX)

Raytheon Technologies (NYSE:RTX) was formed after the merger of two previously independent industrial giants, Raytheon and United Technologies. The combined company then spun off Carrier (CARR) and Otis (OTIS), which now trade on their own. Raytheon Technologies is one the largest aerospace and defense companies in the world with $64 billion in 2021 sales.

The company has four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. Raytheon has performed relatively well over the course of 2022 compared to its peers, with steady growth in revenue. For example, last quarter, revenue grew 2.7% to $16.3 billion. Adjusted EPS of $1.16 rose 12.6% year-over-year. Revenue grew 10% and 16% in the Collins Aerospace and Pratt & Whitney segments, respectively.

We expect Raytheon Technologies to grow its EPS by 7% per year over the next five years. The company backlog at the end of the quarter was $161 billion, compared to $154 billion in the 2022 first quarter, of which $96 billion was from commercial aerospace and $65 billion was from defense. Raytheon Technologies reaffirmed prior guidance for 2022, with the company still expecting sales of $67.75 billion to $68.75 billion and adjusted EPS of $4.60 to $4.80.

The company continues to generate growth, which, in turn, means rising dividends for shareholders. In April 2022, Raytheon Technologies increased its quarterly dividend by 8% to 55 cents per share. Both United Technologies and Raytheon have put together solid operating records. In the last decade United Technologies grew EPS by an average rate of 7.2%, while increasing its dividend for 28 years prior to the merger. The stock has a current dividend yield of 2.7%.

On the date of publication, Bob Ciura did not hold (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.

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The stock market has shown elevated volatility over the past year. With the S&P 500 currently down 23% year-to-date (YTD), investors need to be aware of the volatility of their stocks. Owning too many high-volatility positions can create a scenario where your portfolio loses more than the S&P 500 index during bear markets.

To help prevent this, we suggest that investors consider a stock’s beta value (a common measure of stock volatility) when purchasing a stock. The higher the beta, the more volatile it can be relative to the S&P 500 index, which means greater losses in a market downturn. On the other hand, low-beta stocks generally decline less than the broader market in a downturn.

This article will examine three of our top-ranked low-beta dividend stocks that have relatively low volatility compared to the broader market.

Low-Volatility Dividend Stocks: McDonald’s (MCD)

McDonald’s (NYSE:MCD) is the world’s leading restaurant chain with over 40,000 locations in about 119 countries at the end of 2021. Over 90% of the stores are franchised, and the rest are company-owned. However, the company owns about 55% of the real estate and 80% of the buildings in its network. Total system sales were approximately $112 billion and total company revenue was around $23.2 billion in 2021.

The company has performed relatively well in a challenging macro environment. In the most recent quarter, total revenue came in at $5.7 billion, a 3% decrease from $5.8 million compared to Q1 2021 on 4% rise in systemwide sales offset by currency headwinds. Revenue fell 15% at company-owned stores, while revenue increased 7% at franchised restaurants. Earnings declined 46% to $1.60 per share compared to $2.95 per share in comparable periods because of higher input costs, despite price hikes.

McDonald’s competitive advantage lies in its global scale, cost advantages, immense network of restaurants, well-known brand and real estate assets. The company has one of the most well-known brands in the world and has successfully replicated its business model globally.

Next, McDonald’s often owns prime real estate, making it difficult for competitors to gain traction. That said, barriers to entry are non-existent and competition in the market space is intense. However, the company’s superior track record against numerous competitors has illustrated why it is the industry leader.

During the Great Recession, McDonald’s posted excellent results, with earnings per share (EPS) of $2.91, $3.67, $3.98 and $4.60 over the 2007 through 2010 stretch, while the dividend kept on increasing to boot. Results bounced back in 2021 as well.

McDonald’s stock has a five-year beta value of 0.57. This means that for every 1% decline in the S&P 500, McDonald’s stock can be expected to decline by 0.57%. MCD is a low-beta stock with reduced volatility.

Walmart (WMT)

Walmart (NYSE:WMT) is the largest retailer in the world, serving more than 230 million customers each week. Revenue should be around $595 billion this year. Walmart posted second-quarter earnings on Aug. 16, 2022, and results were better than expected on both revenue and profits by wide margins. Adjusted EPS came to $1.77, which was 17 cents better than expected. Revenue was up more than 8% from the year-ago period, rising to $153 billion. That beating expectations by more than $2.6 billion. Comparable sales in the U.S. grew 6.5% year-over-year (YOY), and were up 11.7% on a two-year stack basis. Ecommerce growth continues to lead the way as that metric came in up 12% for this year’s Q2 and up 18% on a two-year stack basis.

Walmart also noted it continues to gain share in grocery sales. Sam’s Club’s comparable sales rose sharply, adding 9.5% YOY and 17.2% on a two-year stack basis. Membership income was up 8.9% as the chain’s member count hit another all-time high. Walmart International sales were $24.4 billion, up 5.7% YOY, including a $1 billion impact from currency fluctuations. The company noted its three largest markets all saw double-digit comparable sales gains. The company sees revenue growth at 4.5% for this year, or 5.5% on an adjusted basis.

Walmart is a low-volatility stock, as it has a five-year beta value of 0.53. Walmart’s competitive advantage is in its enormous size as it can buy and ship product at a scale no other company can rival. This allows it to operate with low prices to consumers and as more than half of its revenue comes from groceries, its recession performance is excellent. The company managed to increase earnings steadily during and after the Great Recession. Hard economic conditions tend to send consumers on the margins to Walmart, which is also an advantage.

Low-Volatility Dividend Stocks: Verizon (VZ)

Verizon (NYSE:VZ) has a five-year beta value of just 0.34. Verizon is one of the largest telecom companies in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers about 300 million people and 98% of the U.S. Verizon has now launched 5G Ultra-Wideband in several cities as it continues its rollout of 5G service.

In the most recent quarter, revenue of $33.8 billion was flat compared to the prior year and in line with estimates. Adjusted EPS of $1.31 compared unfavorably to $1.37 in the prior year and was 1 cent below estimates. Verizon had 12,000 net new postpaid phone customers during the quarter, far below estimates of 167,000 net adds. Revenue for the consumer segment grew 9.1% to $25.6 billion, again driven by the addition of TracFone, higher equipment sales and wireless revenue growth. Average revenue per account also increased 2.4%. Wireless revenue grew 9.1%. Retail connections totaled 142.8 million and retail postpaid phone churn remains low at 0.81%.

One of Verizon’s key competitive advantages is that it is often considered the best wireless carrier in the U.S. This is evidenced by the company’s wireless net additions and very low churn rate. This reliable service allows Verizon to maintain its customer base as well as give the company an opportunity to move customers to higher-priced plans. Verizon is also in the midst of rolling out 5G service, which will give it an advantage over other carriers. Another advantage for Verizon is the stock’s ability to withstand a downturn in the market.

With a very low beta value and a high dividend yield above 5%, Verizon is a particularly appealing dividend stock for risk-averse income investors looking to reduce volatility.

On the date of publication, Bob Ciura did not hold (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.

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The goal of many stock investors is to build a portfolio to generate a passive income stream so they can live off the dividends or at least add to their retirement distributions and Social Security benefits. One possible way to accomplish this goal is to follow a dividend growth investing strategy, buying stocks that pay an ever-increasing dividend each year and reinvesting the dividends. It’s a long-term approach, but start early enough, and the passive income stream snowballs.

The most prominent of the dividend growth stocks are the dividend kings. They have increased their dividends for a minimum of 50 consecutive years. Many well-known dividend kings exist, like Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO). However, some companies are not as famous but still worth buying. Below we discuss five little-known dividend kings.

Computer Services (CSVI)

Computer Services (OTCMKTS:CSVI) is one of the smaller and lesser-known dividend kings. The company only has a market capitalization of about $1.56 billion and was founded in 1965. Computer Services provides payment processing, digital banking, regulatory compliance and so on, to community and regional banks in the U.S. Total revenue was about $321 million in the past 12 months.

Computer Services has a dividend yield of approximately 2%. The dividend has increased for 51 consecutive years, and the most recent quarterly increase of 7.4% to 29 cents per share was on July 21. A 51% payout ratio supports the dividend rate of $1.16 per share. This value is reasonable and ensures both dividend safety and future growth. Furthermore, the balance sheet has a net cash position adding to the dividend safety.

The company was undervalued and had a 3%+ dividend yield until a recent acquisition announcement. The firm will be acquired for $58 per share in an all-cash transaction. The stock is trading at $56.24, so there is little upside now, but it may interest those who engage in merger arbitrage.

Farmers & Merchants Bancorp (FMCB)

Farmers & Merchants Bancorp (OTCMKTS:FMCB) is another little-known dividend king with a market cap of roughly $740 million. The firm was founded in 1916. Today, it is a community bank offering personal and business banking in mid-Central California. The bank has about 29 branches. Total revenue was $171.3 million in the last 12 months.

Farmers & Merchants is paying a 1.64% dividend yield and is not a high-yield stock. But it has a 57-year streak of annual dividend increases that few other companies can match. The dividend safety is high, with a payout ratio of about 18%. Unlike most U.S. companies, the bank pays its dividend semi-annually.

The stock has performed well in 2022 and is flat for the year. It is up about 6.6% in the past year. The trailing price-earnings (P/E) ratio is about 10X to 11X. The stock is slightly undervalued, assuming an earnings multiple of 12X, lower than the 10-year average. Investors seeking stability and dividend growth may be interested in this bank stock.

Northwest Natural Holding Company (NWN)

Northwest Natural Holding Company (NYSE:NWN) is one of the smaller natural gas utilities. The company was founded in 1859. It has a market cap of $1.69 billion. Besides natural gas, Northwest Natural has a minor water and wastewater segment. The utility serves about 786,000 natural gas customers in Oregon and southwest Washington and roughly 80,000 water services customers in the Pacific Northwest and Texas. Total revenue was approximately $941 million in the past 12 months.

The utility has a solid dividend yield of 3.9%, among the highest of the dividend kings. The firm has raised the dividend for an astounding 66 years giving it one of the longest active streaks. However, the growth rate is meager at 0.94% in the past decade and 0.53% in the trailing five years. As a utility, the payout ratio is on the higher end at roughly 75%.

The stock has performed well during the bear market and is down about 1% in one-year and 6% year-to-date (YTD). The forward P/E ratio is about 19.8X, below the five-year range and at the lower end of the past 10 years. Although the dividend growth rate is low, investors are getting an undervalued stock with a nearly 4% dividend yield.

Tootsie Roll Industries (TR)

Tootsie Roll Industries (NYSE:TR) is probably the most well-known company on this list because many of us have eaten its candy. However, investors tend to ignore the stock, and it is a little-known dividend king. The company produces and sells Tootsie Roll, Charms, Blow-Pops, Dots, Junior Mints, Sugar Daddy, Charleston Chew, Dubble Bubble and more. The Chairwoman and CEO, Ellen R. Gordon, owns approximately 53.9% of common stock and 82.8% of Class B shares, effectively giving her company control. Total revenue in the trailing 12 months was about $636.2 million.

Tootsie Roll has a forward dividend yield of about 1% — not high. However, the company pays a 3% stock dividend that investors can sell, giving an effective yield of 4%. The company has a 56-year streak of dividend increases based on the increasing cash returned to investors. The earnings payout ratio is usually modest, ranging from 35% to 45%. Moreover, the company has a rock-solid balance sheet with a net cash position adding to the dividend safety.

The candy manufacturer is rarely undervalued because of the limited float and family control. As a result, the stock usually trades at an elevated earnings multiple. The P/E ratio is now 35.7X within the five-year and 10-year range. The stock has performed well in 2022 and is down only about 3%, but it is up about 15% in the past year. Investors desiring a low-volatility stock with a 4% yield should look at Tootsie Roll.

Stepan Company (SCL)

Stepan Company (NYSE:SCL) is the last stock on this list of little-known dividend kings. The company was founded in 1932. It produces and sells chemicals globally. It operates through three business segments: surfactants, polymers and specialty products. Total revenue was $2,639.6 million in the trailing 12 months.

Stepan is not an income stock, with a dividend yield of only 1.3%. But this value is at the higher end of its range in the past decade. The company has increased the dividend for 54 years in a row and is currently doing so at about a 10% compound annual growth rate (CAGR) in the past five years. The earnings payout ratio is minimal at 20.3%, supporting future increases with excellent dividend safety. The balance sheet has relatively low leverage and high-interest coverage, adding to the dividend’s security.

The valuation is low at a P/E ratio of about 15.1X, below the market average and less than the five-year and 10-year averages. The stock price is down about 24% YTD because investors fear a recession will trigger lower demand for chemicals. Despite the low dividend yield, the good dividend safety, high dividend growth rate and low valuation make Stepan an excellent stock to consider for total return.

On the date of publication, Prakash Kolli did not hold (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. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money. 

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Income investors sometimes take the route of finding the best income stocks to meet their needs based upon criteria like dividend safety, dividend growth potential or historical dividend streak. These can help investors find great dividend champions that will provide them with years of income.

Along with dividends, investors should also keep in mind capital appreciation potential to go along with the dividend income. This can be done by selecting great dividend stocks that also represent deep value. These stocks, in our view, provide a one-two punch of not only a strong income stream but the potential for a significant amount of capital appreciation as well.

The following three dividend champions are undervalued, and also have high dividend yields leading to high total return potential.

Stryker (SYK)

Stryker (NYSE:SYK) is a global leader in the medical device sector. The company’s product lines include surgical equipment, neurovascular products and orthopedic implants.

The company has continued to generate growth in 2022, even in a difficult macroeconomic environment. In the most recent quarter, Stryker’s revenue grew 4.6% to $4.49 billion. Adjusted earnings per share (EPS) of $2.25 was flat year-over-year (YOY). Organic revenue was up 6.1% from the prior year. MedSurg and neurotechnology had 7.9% organic growth. Mako continues to have a growing install base as installations grew 19%. Orthopedics and spine grew 3.9% due to gains in procedure volumes in Europe, Canada, India and Japan.

Stryker provided updated guidance for 2022 as well. The company now expects organic revenue growth of 8% to 9%, up from 6% to 8% previously. Stryker now projects adjusted EPS will be in a range of $9.30 to $9.50 for the year.

Stryker has grown EPS at a rate of 11.6% per year in the past 10 years. It is likely the company can continue 10%+ annual earnings growth due to increased demand for Stryker’s products during the recovery from the pandemic.

Stryker has increased its dividend at an average rate of almost 12% per year over the past 10 years, though that growth has slowed somewhat in the medium term. The company raised its dividend by 10.3% for the Jan. 31, 2022 payment. It has now increased its dividend for 28 consecutive years. Shares currently yield 1.3%.

Based off of estimates for 2022, shares trades at 22.1 times earnings. We reaffirm our 2027 target price-earnings (P/E) of 24.5 to be more in line with the average valuation since 2012. If shares reverted to our target price-earnings ratio by 2027, then valuation would be an approximately 2% tailwind to annual returns over this time period. Overall, total returns could exceed 13% from EPS growth, dividends and an expanding P/E multiple.

Dover Corporation (DOV)

Dover Corporation (NYSE:DOV) is a diversified global industrial manufacturer with annual revenues of nearly $9 billion. Dover is composed of five reporting segments: engineered systems, clean energy and fueling, pumps and process solutions, imaging and identification, and climate and sustainability technologies. Slightly more than half of revenues come from the U.S., with the remainder coming from international markets.

On Aug. 5, 2021, Dover announced that it was raising its dividend 1% for the Sept. 15, 2021 payment, marking 66 consecutive years of dividend growth. This is the second-longest dividend growth streak among U.S. companies. Shares currently yield 1.6%.

The company is effectively managing inflation, while continuing to grow revenue. In the most recent quarter, revenue grew 6.4% to $2.16 billion, while adjusted EPS grew 3.9% year-over-year (YOY) to $2.14. Organic revenue remains high, with the company seeing a 7% increase in the second quarter. Engineered products increased 19% organically, as waste handling, vehicle services, and industrial winches and automation continue to see high demand. Dover’s backlog grew 30% YOY to $3.3 billion, implying continued growth in the coming quarters.

Dover reaffirmed guidance for 2022. Adjusted EPS are expected in a range of $8.45 to $8.65 with revenue projected to grow 8% to 10%. Dover also raised its organic growth forecast to 8% to 10% from 7% to 9% previously, indicating positive momentum to close out the year.

Dover’s EPS have compounded at 6% annually over the last decade. Growth has accelerated in the medium term, at an annual rate of more than 14% over the five years. Dover did suffer some setbacks during the worst of the Covid-19 pandemic, but the company has quickly rebounded. We maintain our expected earnings growth rate of 8% per year through 2027. The stock also appears to be undervalued, leading to total estimated returns above 13% per year over the next five years.

Polaris (PII)

Polaris (NYSE:PII) designs, engineers and manufactures snowmobiles, all-terrain vehicles (ATVs) and motorcycles. In addition, related accessories and replacement parts are sold with these vehicles through dealers located throughout the U.S. The company operates under 30+ brands including Polaris, Ranger, RZR, Sportsman, Indian Motorcycle, Slingshot and Transamerican Auto Parts. The global powersports maker, serving over 100 countries, generated $8.2 billion in sales in 2021.

Like many global manufacturers, Polaris is seeing elevated costs due to inflation, which is crimping margins. Fortunately, revenue continues to grow. In the most recent quarter, revenue grew 8% to $2.06 billion, while adjusted EPS declined 10% YOY. Still, the adjusted EPS figure of $2.42 for the quarter was 30 cents ahead of expectations. Marine and off-road segments grew 38% and 7%, respectively, to lead the way last quarter.

Supply chain constraints and inflationary pressures impacted results are being offset by higher prices. Polaris also provided revised guidance for 2022. For this year, the company now expects revenue to grow 13% to 16%. Adjusted EPS is now projected in a range of $10.10 to $10.30. This should easily cover the dividend and allow for continued dividend growth even while EPS stagnates.

Polaris has increased its dividend for 26 consecutive years. With a projected dividend payout ratio of 25% for 2022, the dividend payout seems secure. Polaris enjoys a competitive advantage through its brand names, low-cost production, and long history in its various industries, allowing the company to be the leader in ATVs and number two in snowmobiles and domestic motorcycles. This means Polaris can remain profitable, even during difficult operating environments.

The combination of 4% annual expected EPS growth, the 2.3% dividend yield and a significant boost from an expanding P/E multiple could fuel 13% expected annual returns over the next five years.

On the date of publication, Bob Ciura did not hold (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.

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When looking for the best dividend stocks, one can start with the Dividend Kings, a group of just 45 stocks that have all increased their dividends for at least 50 consecutive years. That level of dividend longevity makes these high-yield stocks highly appealing for dividend growth investors.

The Dividend Kings are also appealing for retirees because of their ability to withstand recessions. Only companies that can continue to raise their dividends through even the worst recessions become Dividend Kings.

This article will discuss three high-yield stocks that can raise dividends even in a recession and also have high yields above 4%.

Federal Realty Investment Trust (FRT)

Federal Realty (NYSE:FRT) is a real estate investment trust (REIT) — the only one on the Dividend Kings list. The trust owns and operates a portfolio of high-quality retail-based properties that are based in coastal communities in the U.S. Federal Realty seeks out markets with dense populations and high incomes that have limited building space, the combination of which tends to keep demand — and rental prices — high over time.

The trust operates just over 100 properties that collectively have 25 million rentable square feet, about 3,200 residential units and more than 3,000 tenants.

In the 2022 second quarter, funds from operations (FFO) per share came in at $1.65, up from $1.41 in the year-ago quarter. Total revenue increased 14% to $264.1 million year-over-year (YOY). Net income available for common shareholders stood at 75 cents, up from 57 cents in the year-ago period. During the quarter, Federal Realty continued record levels of leasing with 132 signed leases for 562,111 square feet of comparable space. The trust’s portfolio, during the quarter, was 92% occupied and 94.1% leased, up by 240 basis points and 140 basis points, respectively, YOY. Federal Realty also reported Q2 comparable property operating income growth of 8.2%.

Meanwhile, the company raised its 2022 earnings per share guidance to $2.50-$2.65 from $2.36-$2.56 and FFO per diluted share guidance to $6.10-$6.25 from $5.85-$6.05. The company also expects comparable property income growth to be in the range of 5.5% to 7%.

The stock yields 4.3%, and the company has also raised its dividend for 54 consecutive years, easily the best among publicly traded REITs.

Federal Realty’s expected dividend payout ratio for this year is just above 70%, which is fairly low for a REIT. It gives the dividend sufficient coverage even if funds from operation decline temporarily during a recession. The earnings stability Federal Realty has shown over the years — in good times and bad — is why the dividend payout should continue to rise during recessions.

Northwest Natural (NWN)

NW Natural (NYSE:NWN) was founded in 1859 and has grown from just a handful of customers to serving more than 760,000 today. The utility’s mission is to deliver natural gas to its customers in the Pacific Northwest and it has done that well, affording it the ability to raise its dividend for 66 consecutive years.

In the most recent quarter, the company reported net income of 5 cents compared to a net loss of 2 cents in the year-ago period. Revenue increased 30.9% to $194.96 million YOY. NW Natural added 10,200 natural gas meters over the past 12 months, equating to a 1.3% growth rate. Meanwhile, management reaffirmed its guidance for 2022. Earnings per share (EPS) is expected to come in between $2.45 and $2.65. The long-term EPS growth rate target is between 4% and 6%.

We are forecasting an average growth rate in the low-single-digits for the next five years as NW Natural pushes through approved pricing increases and continues to acquire customers at low-single-digit rates, as it did with the new Oregon rate case. NW Natural also has its water utilities business that will provide a small amount of growth. However, higher earnings will primarily come from customer and pricing growth while the company invests in its water business for longer-term growth.

NW Natural’s quality metrics have been very steady in the past decade. Indeed, 76% percent of its total assets are encumbered by debt, which is completely acceptable for a utility. Its interest coverage is fairly strong at 3.6x, so there are certainly no financing concerns moving forward. The payout ratio is around three-quarters of earnings, which is much-improved from previous years. Its obvious competitive advantage is in its monopoly in its service areas. This allowed it to perform extremely well during the Great Recession, as discretionary use of natural gas and water is very low.

The company has increased its dividend for 66 consecutive years. Shares currently yield 4%.

Canadian Utilities (CDUAF)

Canadian Utilities (OTCMKTS:CDUAF) has a market cap of $8 billion and is based in Canada. It is a diversified global energy infrastructure corporation delivering solutions in electricity, pipelines and liquid, and retail energy. The company prides itself on having Canada’s longest consecutive years of dividend increases, with a 50-year streak.

As a utility, the company has been sufficiently insulated from the economic slowdown over the course of the year. On July 28, 2022, Canadian Utilities reported its Q2 2022 results for the period ending June 30, 2022. Revenues for the quarter amounted to $726 million, 18.1% higher year-over-year. Meanwhile, EPS came in at 39 cents compared to a loss of 3 cents in Q1 2022. Higher revenues were mainly the result of rate relief provided to customers in 2021 in light of the Covid-19 global pandemic and, subsequently, the decision to maximize the collection of 2021 deferred revenues in 2022.

The growth in EPS was mainly due to inflation indexing on the rate base in Australia, the impact of the 2018-2019 General Tariff Application Compliance Filing decision, and the timing of operating costs in the Natural Gas Distribution business.

By benefiting from a stable business model, Canadian Utilities can slowly but progressively grow its earnings. The company consistently invests in new projects. And it benefits from the base rate increases, which grow around 3% to 4% annually. Last year, management had filed an application with the Alberta Utilities Commission to postpone Canadian Utilities’ electricity and natural gas distribution rate increases. The company expects to receive the deferred revenues in early 2022.

The appeal of investing in dividend stocks is their stability of earnings and dividends, even during recessions. The company’s current dividend yield is high at 4.4%.

On the date of publication, Bob Ciura did not hold (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.

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AThe tobacco sector has long been favored by income investors. And, there is good reason why income investors seek out tobacco stocks in particular. Tobacco stocks typically have had highdividend yields, frequently well above 5%. They routinely offer dividend yields that far exceed the average yield of the broader stock market.

Many tobacco stocks have the added ability of raising their dividends on a regular basis, which has allowed investors to generate even greater dividend income over time. The combination of high dividend yields plus dividend growth are why tobacco stocks are held in such high regard among income investors.

This article will discuss three of our top tobacco stocks today that are particularly appealing for investors looking for high yields, plus long histories of dividend growth.

Altria Group (MO)

Altria (NYSE:MO) is the industry leader due to its flagship Marlboro brand, which controls over 40% of U.S. retail market share. Altria is a more diversified company with recent expansions into smokeless tobacco, wine and a roughly 10% ownership stake in Anheuser-Busch InBev (NYSE:BUD). That said, Altria still derives most of its revenue and profit from traditional cigarettes.

In the second-quarter earnings report, adjusted diluted earnings per share (EPS) increased 2.4% to $1.26 year-over-year (YOY). Net revenue stood at $6.5 billion, down 5.7% YOY. Reported diluted EPS stood at 49 cents, down 57.8% YOY. Revenue decreased 4.1% to $5.37 billion YOY.

Meanwhile, Altria reported approximately $750 million remaining under the company’s existing $3.5 billion share repurchase program, which it is expected to complete by Dec. 31, 2022. Additionally, the company reaffirmed full-year 2022 adjusted diluted EPS guidance of $4.79-$4.93. That represents an adjusted diluted EPS growth rate of 4% to 7%.

Altria is a Dividend King, an exclusive group of just 45 stocks that have each increased their dividend for at least 50 consecutive years. Altria has a high dividend yield above 8%. With a target dividend payout ratio of 80%, Altria’s dividend payout appears secure. The company has proven the ability to raise its dividend each year, even during recessions, thanks to its consistent profitability.

We expect Altria to continue growing future earnings, which will in turn fuel continued dividend increases. The company has invested in new categories, such as cannabis and vaping, with investments in Cronos Group (NASDAQ:CRON) and Juul Labs.

Philip Morris International (PM)

Philip Morris International (NYSE:PM) was spun off from Altria in 2008. It owns and operates production and distribution of Marlboro, as well as a collection of other brands, outside the United States. In all, PM owns six of the world’s top 15 international cigarette brands — Marlboro, L&M, Chesterfield, Philip Morris, Parliament and Bond Street.

The company continues to generate steady growth. In the most recent quarter, PM’s revenue increased 3% YOY as shipment volumes rose 3% (excluding PM’s operations in Ukraine and Russia). Adjusted EPS rose 4% in constant currency.

Management revised its fiscal 2022 guidance, expecting adjusted EPS from $5.23 to $5.34 (previously $5.45 to $5.56). Excluding currency effects, management expects adjusted EPS to range from $6.09 to $6.20.

And like Altria, PM is betting its future on new products, although it is taking a slightly different route. PM has invested heavily in development of its heated tobacco product iQOS. Heated tobacco units (HTUs) are increasingly important for PM, as they now constitute over 10% of the company’s total volume. PM’s heated tobacco revenue was up 7.4% last quarter, more than double the revenue growth rate of the overall company.

PM understands the likelihood of a post-cigarette future, which is why the company’s core strategy is to switch smokers from cigarettes to its own iQOS product. The company has reported a high conversion rate of 70% for iQOS, which bodes well for the future.

PM is an attractive income stock due to its 5.2% dividend yield. The company has increased its dividend annually since the spinoff.

Universal Corporation (UVV)

Universal Corporation (NYSE:UVV) is also an appealing stock for income investors, primarily because it has maintained a very long history of annual dividend increases. Like Altria, Universal has increased its dividend for over 50 consecutive years, placing it on the exclusive Dividend Kings list. Universal also has a high dividend yield of 6.2%.

The company has a slightly different business model than most tobacco companies like Altria and Philip Morris International. Universal is the world’s largest leaf tobacco exporter and importer. It is a wholesale purchaser and processor of tobacco that operates between farms and the companies that manufacture cigarettes, pipe tobacco and cigars. Therefore, its financial results are subject to different variables than a manufacturer and distributor such as Altria and PM.

Nevertheless, Universal has maintained a very long history of dividend increases. And the company has maintained profitable even in a challenging industry.

Universal reported strong quarterly earnings on Aug. 3. Revenue was up 23% YOY, while cost of goods rose 22%. That meant gross margins rose 70 basis points to 18.5% of revenue, and adjusted operating income was up 5% to $13.3 million. Ingredients revenue soared 46% higher YOY due mostly to the company’s 2021 acquisition of Shank’s Extracts.

Universal faces a slightly more uncertain outlook. That’s largely because it is fully reliant on traditional tobacco products such as cigarettes and cigars. Whereas other tobacco companies like Altria and PM have diversified into other product areas, this will be much more difficult for Universal. It is not a manufacturer. Universal is attempting to diversify into adjacent agricultural categories, such as with the 2019 acquisition of FruitSmart, an independent specialty fruit and vegetable ingredient processor.

It also acquired Silva International, a privately held dehydrated vegetable, fruit and herb processing company. Silva procures over 60 types of dehydrated vegetables, fruits and herbs from over 20 countries around the world. And as mentioned, the company most recently acquired Shank’s in order to diversify away from tobacco.

On the date of publication, Bob Ciura did not hold (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.

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When searching for great dividend stocks to buy, there are many places one could start. However, we prefer the strategy of buying those that have demonstrated histories of raising their dividends. Stocks that have longevity have stood the test of time, competitive threats, recessions and technological changes to continue raising their cash distributions to shareholders every year.

One of the best places to find stocks with dividend longevity is within the list of Dividend Aristocrats. This is a group of just 65 stocks that are S&P 500 components and have raised their dividends for at least 25 consecutive years. Better still, we can narrow this list of excellent dividend stocks to just those with yields above 4%.

In this article, we’ll take a look at three of the highest-yielding Dividend Aristocrats with safe dividends.

Dividend Aristocrats: V.F. Corporation (VFC)

Our first stock is V.F. Corporation (NYSE:VFC), which is a fully integrated maker and distributor of apparel and accessories. The company designs, markets and sells branded lifestyle apparel, footwear and other products for men, women and children across the world. V.F. has three segments: outdoor, active and work. Through these segments it offers a wide variety of brands that fit every budget, including popular brands like Vans, Dickies, Supreme, Timberland and The North Face.

V.F. was founded in 1899 and produces about $12 billion in annual revenue. It trades with a market capitalization of just under $17 billion.

V.F. has an exemplary dividend increase streak of 49 years, nearly doubling the requirement to be a Dividend Aristocrat. This streak is impressive in its own right. But it’s even more impressive considering that consumer discretionary retail stocks tend to struggle during recessions. That means long dividend increase streaks can be hard to come by, but V.F. stands above the rest of the pack on this measure.

Despite the company’s tremendously long history of increasing dividends, it has also been an outstanding dividend growth stock. In the past decade, its average increase has been just over 10%, meaning that investors get not only a nearly half-century of consecutive increases, but double-digit annual growth as well.

We see more muted 4% growth ahead given that the company’s payout ratio has risen to almost 78%, which is elevated by its own historical standards. However, we see 7% earnings growth annually, so this below-trend dividend growth may be temporary until the payout ratio resets lower.

Finally, investors get a 4.6% yield today with V.F., which is roughly triple that of the S&P 500. We like V.F. for its combination of its very long dividend increase streak, its high yield and its dividend growth potential.

Franklin Resources (BEN)

Our next Dividend Aristocrat is Franklin Resources (NYSE:BEN), which is a publicly owned asset management holding company. The firm provides investment services to individuals, institutions, pension plans, trust and partnerships worldwide. The company invests in public equities, fixed income and alternative markets to achieve its investment goals.

Franklin was founded in 1947, generates about $8.2 billion in annual revenue, and trades today with a market cap of $13.5 billion.

Franklin has a dividend increase streak that is nearly as impressive as V.F. Corp, as it stands at 42 years. Like V.F., Franklin operates in a cyclical industry that sees sizable ebbs and flows in profits, as Franklin is highly reliant upon equity market strength for both investor inflows and market appreciation to generate fees. That makes its four decades-plus of dividend increases even more remarkable.

Franklin’s average increase in the past decade has been in excess of 12%, so it has also been quite the dividend growth story in recent years. We’re looking for about 4% growth in the years ahead, as we see 3% earnings growth from today’s elevated levels.

Franklin has typically operated with an extremely low payout ratio of under 15%, but in recent years, has returned more of its earnings to shareholders. Today, the payout ratio stands at just over 34% of earnings, so its dividend is extremely safe.

Finally, Franklin’s yield is 4.2% today, putting it firmly in the high-yield category in today’s low-rate environment.

Dividend Aristocrats: International Business Machines (IBM)

Our final Dividend Aristocrat is IBM (NYSE:IBM), which is a provider of integrated software and consulting solutions globally. The company offers various products such as cloud and hybrid could platforms, business automation software, data and artificial intelligence solutions, security software, cloud infrastructure, and financing.

IBM was founded in 1911 and generates roughly $60 billion in annual revenue. It trades with a market cap of $120 billion. IBM recently spun off its former hardware and infrastructure business into a publicly traded, independent company called Kyndryl Holdings, Inc. (NYSE:KD).

IBM’s dividend streak is 27 years today, and while that’s not as long as the other two stocks on this list, it is very long in the technology sector. IBM is a rare technology company with a very long dividend increase streak. We see many more years of increases ahead.

The company’s dividend has doubled in the past decade, for a 7%-plus average annual increase in that timeframe. We don’t believe that kind of boost is sustainable given 4% forecasted earnings growth, but we do think the company can raised the dividend indefinitely.

The payout ratio this year is about two-thirds of earnings, and we think it will fall in the coming years as earnings growth outstrips dividend growth. Finally, IBM yields a very robust 5% today, putting it in rare company on the yield alone, irrespective of its long dividend increase streak and decades of strong dividend growth.

Final Thoughts

Investors faced with the choice of what dividend stocks to buy have many potential strategies to employ. However, we believe keeping it simple and sticking with proven winners is the best path to long-term wealth creation. Furthermore, we see the highest-yielding Dividend Aristocrats as a terrific place to start.

V.F. Corp, Franklin Resources, and IBM all have very long dividend increase streaks, yields well in excess of 4%, and what we believe are safe dividends. These stocks should continue to grow their payouts for many years to come, while offering investors a high yield right now.

On the date of publication, Bob Ciura did not hold (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.

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When most people reach the age of 50, they start thinking about retirement. At this age, you need a strategy in place about housing, working and income before retiring. For instance, should you pay off the mortgage, or sell your house and downsize to a smaller home? Similarly, income during retirement is a vital consideration, because Social Security will probably not cover all your needs. Even $1 million may not be enough in a retirement account, assuming you follow the 4% withdrawal rule. If you are used to living on more income, then it may be time to look at dividend stocks for income. Below we discuss five income stocks for retirees.

To obtain our list, we screen for stocks increasing their dividend for at least 10 years combined with a 4%-plus dividend yield. At this level, dividends are important because they become a major component of total return. In addition, we add criteria for dividend safety and require an earnings payout ratio of less than 65%. We don’t want to overpay for income, so we also need a price-to-earnings (P/E) ratio under 15X.

Income Stocks: Western Union (WU)

Western Union (NYSE:WU) is the first income stock for retirees. The company was founded in 1851 as a telegraph company but added services with time. Today, the corporation is the world’s largest money movement and payment services business. Western Union operates globally with more than 550,000 retail agents and a digital business. Total revenue was about $4.865 million in the past 12 months.

The company’s yield is outstanding at approximately 6%. Few companies, besides real estate investment trusts (REITs) and master limited partnerships (MLPs), offer a dividend yield this high. Moreover, the dividend is well covered, with a payout ratio of roughly 42%.

One risk is that competition is increasing for money transfer services. Thus, the stock price has been down about 29% in the past year. However, Western Union is undervalued, trading at an earnings multiple of 8.7X, below the 10-year range and near the lower end of the five-year range. Therefore, investors should look strongly at this stock when combined with dividend safety.

Verizon Communications (VZ)

Verizon Communications (NYSE:VZ) is the second income stock for retirees. The company is a well-known telecommunications giant focused on cellular and broadband services for consumers and businesses. The company has roughly 115 retail cellular customers; 7.3 million broadband connections, of which about 6.6 million are FiOS; and 28 million business connections. Total revenue was around $134.325 million in the last 12 months.

Verizon is paying a roughly 5.8% dividend yield, the highest in a decade. Verizon only slowly raises the dividend at about a 2% compound annual growth rate (CAGR), but the dividend safety is strong, with a payout ratio of approximately 51%.

The stock is ridiculously cheap because of recession fears, competition and worries about subscriber growth. Verizon is trading at a P/E ratio of about 8.4X, well below the five-year and 10-year ranges. I view Verizon as a convincing addition to income portfolios.

Income Stocks: M.D.C. Holdings (MDC)

M.D.C. Holdings (NYSE:MDC) is a homebuilding and financial services company founded in 1972. The company builds new homes under its Richmond American brand, mainly in Colorado, California, Arizona, Nevada and Florida. In addition, the company has smaller operations in other states. Total revenue was $5.523 million in the past 12 months.

The homebuilder’s stock is now yielding 5.8%, the highest since the COVID-19 pandemic bear market. Furthermore, the dividend is snowballing at an approximately 17% compound rate in the trailing five years. Finally, the dividend is supported by a conservative payout ratio of only around 21%, lowering the possibility of a cut or omission.

M.D.C. Holdings’ stock price has been battered in 2022 and is down nearly 38%. Investors fear rising mortgage rates and a recession will cause contraction in the housing market, impacting revenue and profitability. That said, mortgage rates are off their peak, and the unemployment rate is near a record low. Moreover, at a forward P/E ratio of roughly 3.4X, the stock is inexpensive and trading well below its five-year and 10-year P/E ranges, making it worthwhile.

Walgreens Boots Alliance (WBA)

The fourth income stock for retirees is Walgreens Boots Alliance (NASDAQ:WBA). The company is one of two large pharmacy retail chains in the U.S. Walgreens also has international operations. The total store count is more than 9,000 in the U.S. and 4,000 internationally. Walgreens also owns an e-commerce site. Total revenue was $134.516 million in the last 12 months.

Walgreens Boots has a dividend yield of about 5.2%, the highest since the market decline during the worst months of the COVID-19 pandemic. Despite the high yield, the earnings payout ratio is modest at approximately 36%, making the dividend relatively safe. It has also allowed Walgreens Boots to increase the dividend at a 5.1% compound rate in the past five years. Furthermore, the company is a Dividend Aristocrat with 47 years of increases.

The pharmacy retailer is undervalued, too, trading at a low valuation of 7.8X earnings. In addition, the company is facing more competition and an overhang from opioid lawsuits resulting in a 30% decline in the stock price. That said, Walgreens Boots is cheap, and trading below is five-year and 10-year valuation ranges.

Income Stocks: Fidelity National Financial (FNF)

Fidelity National Financial (NYSE:FNF) is the final income stock for retirees. The firm was founded in 1847 and sells insurance products, including title, escrow, trust, home warranty, life and annuities. Total revenue was $14.495 million over the trailing 12 months.

Fidelity National is paying a dividend yield of 4.4%, a little lower than the other stocks on this list. The value is again the highest since the pandemic bear market. However, the dividend has a payout ratio of about 20%, providing some confidence in its safety and leaving room for future growth. The company has grown the dividend at a roughly 12% compound rate in the past five years and decade.

The valuation is low, too, at a P/E ratio of about 6.8X, below the market average and less than the five-year and 10-year averages. The stock price is down about 23% year-to-date because investors fear a housing downturn and a recession will trigger lower demand for insurance products. However, the low valuation, high dividend yield and dividend safety make Fidelity National a worthy stock to consider.

On the date of publication, Prakash Kolli held a long position in VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money. 

Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor and blogger on dividend growth stocks and financial independence. Some of his writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial blogs. He also works as a part-time freelance equity analyst with a leading newsletter on dividend stocks. He was recently in the top 1.0% and 100 (73 out of over 13,450) of financial bloggers as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

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It seems that investors are always on the hunt for the next 10x stocks, relying on long time horizons to deliver massive results. But if time isn’t on your side, these speculative bets may not be worth it. For older market participants, safety is much more important. That’s where safe investments for seniors to consider comes into focus.

During an investor’s younger years, financial advisors typically recommend gearing portfolios toward higher-risk, higher-reward profiles. Should circumstances not pan out favorably, the younger investor has time as an asset. Unfortunately, the same cannot be said of older demographics.

Here, the narrative zeroes in on safety and stability. Rather than attempting to acquire moonshots, retirees prefer to have money coming in with the occasional chance for capital gains. Therefore, safe investments for seniors to consider usually revolve around ideas with proven track records.

For this list, I’ve compiled an eclectic series of publicly tradable assets. From individual stocks to mutual funds, these ideas could help foster a less-eventful retirement. So, without further delay, here are the safe investments for seniors to consider in 2022.

Duke Energy (DUK)

When people think about safe investments for seniors, more often than not, utilities come to mind. Fundamentally, utilities represent the stagehands of the rapidly evolving technology-centric economy. From cloud computing to electric vehicles to even the blockchain, none of these innovations will go anywhere without power.

Therefore, I’m a big fan of Duke Energy (NYSE:DUK). At a time when the benchmark S&P 500 index is still down 10% for the year, DUK is up more than 8%.

Most importantly under the context of safe investments for seniors, Duke operates where people are moving to. For instance, the company’s coverage map includes the Carolinas. Sure enough, this region represents a popular destination spot for millennials. Therefore, you can easily bank on Duke’s ties to powerful demographic trends.

Costco (COST)

What this year has clearly demonstrated to investors is that few equity ideas offer safety and stability. For instance, one of the titans of retail, Target (NYSE:TGT), suffered immensely this year. While I can’t quite say that Costco (NASDAQ:COST) is in positive territory for the year so far, at a 5% loss, it’s not performing badly under a broader context.

Over time, however, COST is a name that belongs on a list of safe investments for seniors to consider. Mainly, it’s one of the few businesses that will likely suffer the least should a recession materialize. To be clear, extended downturns invariably affect all businesses. Nevertheless, just like in warfare, the grunts tend to suffer the first and most voluminous casualties.

Continuing the military example, Costco is a two-star general.

Further, given that the company aligns with a high-income customer base, COST offers a dependable profile. You’re not going to get rich with Costco. However, it will likely keep your head above water.

Vanguard 500 Index Fund (VOO)

Moving over into the world of exchange-traded funds, the Vanguard 500 Index Fund (NYSEARCA:VOO) offers an excellent idea for safe investments for seniors. Designed to track the performance of the S&P 500, the VOO ETF comes off as rather vanilla. Still, when you’re talking about your golden years, vanilla isn’t a bad hue for your portfolio.

Of course, let me address the giant pink gorilla in the room. Because the VOO tracks the S&P 500, this ETF is down double digits for the year. Nevertheless, investors should take to heart the Oracle of Omaha Warren Buffett’s words: Never bet against America.

Through ownership of the VOO, investors get the best this country has to offer. Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Further, setting aside its most dominant weighting to technology at 25.3%, the Vanguard 500 is well balanced among the other sectors.

Schwab U.S. Dividend Equity ETF (SCHD)

With capital returns hard to come by during these strange times, many folks have turned to passive-income-generating assets. What makes the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) an interesting idea among safe investments for seniors is its simplicity. As an ETF, all one needs is a trading account and you can start picking up shares right away.

Further, the objective behind the SCHD fund is extremely straightforward. Tracking the performance of the Dow Jones U.S. Dividend 100 Index, this ETF focuses on fundamentally strong companies with a history of consistent dividend payouts.

The fund’s top holdings include Texas Instruments (NASDAQ:TXN), PepsiCo (NASDAQ:PEP) and Home Depot (NYSE:HD). In terms of weighting, financial services dominate the SCHD at 20.8%. Industrials and technology round out the top three at 16.7% and 16.4%, respectively.

Finally, the SCHD presents an excellent cost profile for retirees with an expense ratio of 0.06%. This metric compares very favorably to the category average of 0.38%.

Dodge & Cox Income Fund (DODIX)

Pivoting over to the mutual fund side of things, an ideal choice for safe investments for seniors is Dodge & Cox Income Fund (MUTF:DODIX). Usually, one of the key differences between mutual funds and ETFs is that the former tends to be actively managed. That’s the case with the DODIX fund, allowing stakeholders to enjoy the benefits of the brightest analytical minds.

Further, per U.S. News & World Report, “Morningstar calls the fund ‘one of the best,’ saying the fund’s experienced management team brings a ‘thoughtful’ approach to investing and reasonable expenses in support of this.”

In terms of asset allocation, the DODIX concentrates mostly on domestic bonds at 75.3%. Next is foreign bonds, which represent a 15.6% allocation. As well, cash represents 6.2% of the portfolio, reflecting this mutual fund’s focus on stability.

Finally, the DODIX’s net expense ratio amounts to 42 basis points. While higher than many ETFs, the DODIX comes in well below the category average of 75 basis points. Its management fee is 0.4%, right on the category average.

Vanguard Treasury Inflation-Protected Securities Investor (VIPSX)

With rising inflation continuing to take a bite out of household earnings, it’s no wonder investors are looking to mitigate the pain. For this, one of the best ideas for safe investments for seniors is the Vanguard Treasury Inflation-Protected Securities Investor (MUTF:VIPSX). The bottom line here is that this mutual fund holds TIPS, bonds indexed to inflation.

Essentially, as inflation increases, the principal value of TIPS does as well. Among publicly traded assets, VIPSX offers a very straightforward mitigation tool.

Further, I included the mutual fund on this list of safe investments for seniors because inflation could linger. Keep in mind that our economy incurred an unprecedented acceleration of money stock volume. Therefore, it may take years for the Federal Reserve to work down this excess. Plus, the unexpectedly strong jobs report suggests that the Fed will be wrestling with inflation for a long time.

The VIPSX features a net expense ratio of 20 basis points, well below the category average of 0.62%. Also, management fees come out to 19 basis points, again below the category average of 0.32%.

Ventas (VTR)

Finally, to conclude this list of safe investments for seniors, we’re going back to the equities sector with Ventas (NYSE:VTR). Structured as a real estate investment trust (or REIT), Ventas focuses on the healthcare and senior living industries. According to Kiplinger, VTR is one of the best such REITs, commanding more than 1,200 separate properties. About 53% of its portfolio centers on senior housing while the entity earmarks 20% for medical office buildings.

Fundamentally, Ventas benefits from one of the profoundest demographic trends in history. Following World War II, the baby boomers represented a massive increase in the U.S. population. They were the largest adult population until millennials surpassed them in July 2019. Now, the narrative concentrates on taking care of the boomers in their golden years.

Basically, Ventas is a full-circle idea for safe investments for seniors. It’s for retirees, by retirees. With a comparatively solid performance in the open market and a 3.74% forward yield, VTR is certainly something to consider.

On the date of publication, Josh Enomoto 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.

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When it comes to investing in dividend stocks, there are many ways to find high-quality companies to buy. We like to focus on those companies that have long track records of dividend increases, as such companies have already passed the test when it comes to sustainable, growing income for shareholders.

One such list of long-lived dividend stocks is the blue chips, a group of more than 350 stocks that have all raised their dividends for at least 10 consecutive years.

These companies generally have shareholder-friendly management teams that are willing to boost the amount of capital returned each year, while also having the ability to raise their payouts through thick and thin from an economic perspective. However, not all blue-chip stocks are created equal. In this article, we’ll focus on three blue chips that have above-average yields and dividends we believe would be safe during a recession.

Blue-Chip Stocks: Target (TGT)

Target (NYSE:TGT) is a general merchandise retailer that operates in the U.S. The company offers a huge assortment of food products, including dry groceries, dairy, frozen items and perishables. In addition, Target has a large apparel business, including many of its own private labels. The company has a long list of electronics, toys, animal care, home décor and much more.

Target was founded in 1902, and today, it has about 2,000 stores across the U.S. The company produces about $110 billion in annual revenue and trades with a market capitalization of $75 billion.

Target’s current yield of 2.1% compares quite favorably to the 1.4% yield of the S&P 500, implying shareholders of the retailer achieve 50% greater income each year by holding Target shares over the broad market. While there are certainly stocks with higher absolute yields, with Target’s relative outperformance against the broad market on a yield basis and its impressive streak of dividend growth, it stands above the pack.

Target has raised its dividend for an extremely impressive 54 consecutive years, putting it in very rare company. This makes Target among the best-of-the best in the market today on dividend increase streaks. It also means that it has proven it can withstand any economic condition.

The last 54 years have contained several recessions — some of them severe — and Target has withstood them all, raising its dividend regardless. We see Target’s mix of non-discretionary products — such as groceries and healthcare products — as supporting earnings during future recessions sufficiently for the dividend to continue to be raised indefinitely.

Indeed, even with the ultra-impressive streak of dividend growth, Target’s payout ratio for this year is still only about one-third of earnings. So the company could withstand a huge hit to earnings and still raise its dividend for years to come.

With these factors in mind, we see Target as offering shareholders a strong yield and recession resistance to go along with its half-century of dividend increases.

T. Rowe Price Group (TROW)

Next on our list of blue-chip stocks is T. Rowe Price Group (NASDAQ:TROW), a publicly-owned investment manager based in the U.S. The company provides investment services to individuals, institutions, retirement plans, intermediaries and institutional investors. T. Rowe invests in public equity and fixed-income markets globally, utilizing a variety of investment strategies. It also has a small venture capital business where it makes investments of less than $5 million in early-stage companies.

T. Rowe was founded in 1937. Since then, it has grown to almost 8,000 employees, $7 billion in revenue and a $28 billion market cap.

TROW shares yield a robust 3.5% today, which is about 2.5X that of the S&P 500. On that measure, T. Rowe offers a sizable benefit to income-focused shareholders. In addition, the current yield is meaningfully higher than it typically has been for the company. Thus, the yield not only offers higher income to shareholders but also indicates the stock is likely undervalued.

The company also has an impressive dividend increase streak of 36 years. This is all the more impressive given the inherent cyclicality of investment firms. Indeed, firms such as T. Rowe and its competitors tend to see assets under management ebb and flow based upon market conditions, which are, in turn, often based upon prevailing economic conditions. The fact that T. Rowe has managed to boost its dividend for nearly four decades means it has found ways to operate quite profitably during recessions. This is key for income-focused investors.

The firm’s payout ratio is higher than it typically is, coming in at nearly 60% for this year. That is due primarily to huge amounts of payout growth in the past few years, however, as the company has returned more and more cash to shareholders. We don’t believe the payout would be at risk during a recession given the company’s track record in prior recessions.

Blue-Chip Stocks: Medtronic (MDT)

Our final pick is Medtronic (NYSE:MDT), a company that manufactures and sells a wide variety of medical devices worldwide. It operates through cardiovascular, medical surgical, neuroscience and diabetes operating unit segments, producing a huge variety of medical devices for dozens of applications. Medtronic was founded in 1949. It produces about $32 billion in annual revenue and trades with a market cap of $125 billion.

Medtronic yields 2.7% today, roughly double that of the S&P 500. So, like the others, it offers a significant advantage from a pure income perspective. The current yield is also quite high compared to the company’s historical yield, which is closer to 2%.

Medtronic’s dividend increase streak stands at 45 years. Like the other two stocks on this list, it has proven its ability to weather all economic storms when it comes to returning cash to shareholders. Medical devices tend to hold up well during recessions given most of them are non-discretionary. In other words, most of what Medtronic makes are products that are required for health reasons. Therefore, economic conditions don’t necessarily play a part in the decision for the patient to buy or not.

Medtronic is set to pay out half of its earnings this year. Given this and the inherent recession resistance, we see no scenario that would cause the company to need to cut its dividend in the coming years.

Final Thoughts

When searching for companies with sustainable dividends, the best place to start is with a list of great dividend stocks, such as blue-chip stocks. These companies have at least 10 years of consecutive dividend increases, and in the cases of Target, T. Rowe and Medtronic, many years more than that. These three companies have many years of dividend increases ahead of them, but also current yields that are well above average.

On the date of publication, Bob Ciura did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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Investors typically buy utility stocks for safety and dividends. Indeed, utility stocks have often been referred to as “widow and orphan” stocks due to their consistency and reliable dividend payouts year after year.

With the ongoing war in Ukraine, rising inflation and the prospect of a U.S. recession, it’s an opportune time for risk-averse income investors to consider adding utilities to their portfolios.

These three utility stocks have dividend yields above the S&P 500 average, as well as the ability to maintain their dividends even during recessions.

Utility Stocks to Buy: WEC Energy Group (WEC)

WEC Energy Group (NYSE:WEC) provides electric, gas and steam service to customers in Wisconsin and gas service to customers in Illinois, Minnesota and Michigan. In total, WEC Energy Group provides services to 1.6 million customers. The company has also invested nearly $600 million into nonutility wind projects over the past two years.

WEC Energy Group has a five-year capital plan that includes investment of 1,800 megawatts of wind, solar and battery storage that will be added to the company’s regulated asset base in Wisconsin. The company has annual revenues of just over $8 billion.

In the 2022 second quarter, the company reported revenue of $2.13 billion, up 27% year-over-year (YOY) and better than estimates by $370 million. Earnings per share (EPS) of 91 cents also beat by 6 cents per share. In addition, WEC increased its full-year earnings guidance, now expecting EPS in a range of $4.36 to $4.40 (compared to original guidance of $4.29 to $4.33).

As a utility company, WEC Energy Group is likely to remain profitable during recessions, as customers usually prioritize their gas and electric bills. EPS increased during the last recession, growing nearly 13% from 2007 to 2009. The company is able to recover spending to update infrastructure through the customers it serves. WEC Energy Group’s expansion into renewable energy, like wind farms, could help it grow due to the potential of higher return on investments.

WEC Energy Group compounded EPS by a rate of 6.4% per year from 2012 to 2021. Investors can continue to expect that the company will be able to increase EPS by mid-single-digits on a percentage basis each year, primarily attributable to increases in revenue and returns from nonutility investments. The dividend has compounded at a rate of 5.3% over the last five years.

WEC has increased its dividend for 19 consecutive years. The most recent raise was a 7.4% hike in December 2021. The expected dividend payout ratio for 2022 is 67%, which is relatively low for a utility company. WEC Energy Group has a targeted payout ratio of 65% to 70%. WEC stock currently yields 2.7%.

Black Hills Corp (BKH)

Black Hills Corp (NYSE:BKH) is an electric utility company that provides electricity and natural gas to customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Black Hills was founded in 1941, and the company is headquartered in Rapid City, South Dakota.

In the 2022 second quarter, Black Hills reported quarterly revenue of $474 million, up 27% year-over-year and ahead of analyst estimates by $79 million. EPS of 52 cents beat estimates by 12 cents per share. The company reaffirmed its full-year guidance, expecting EPS in a range of $3.95 to $4.15 for 2022.

Black Hills’ growth over the coming years will be due largely to rate reviews, which drive revenues and profits per kilowatt hour (kWh). Another factor is the expansion of the company’s existing assets via new utility infrastructure. Black Hills regularly adds new projects to its growth investment backlog, which currently stands at $2.7 billion for the 2020-2024 timeframe.

Black Hills’ planned growth investments include new electric transmission lines and new natural gas pipelines to service its customers. Rate reviews will allow Black Hills to recover investments into its existing systems, thereby more or less guaranteeing increasing revenues, which should lead to rising profits going forward.

The company pays out roughly 60% of its net profits in the form of dividends. Its five-decades-long dividend growth track record gives investors assurance that a dividend cut is unlikely from this utility company. Demand for electricity and gas is not very cyclical, although it is dependent upon weather conditions to some degree.

Black Hills should remain profitable under most circumstances. The fact that customers tend to stick with their provider means that Black Hills operates a relatively stable business model. The company should also be able to weather future recessions well. This creates appeal for more conservative investors.

Black Hills has increased its dividend for 50 consecutive years, placing it on the exclusive Dividend Kings list. BKH stock currently yields 3.1%.

Utility Stocks to Buy: NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) is an electric utility company with three operating segments, Florida Power and Light, NextEra Energy Resources and Gulf Power. FPL and Gulf Power are rate-regulated electric utilities that together serve more than 5.7 million customer accounts, supporting more than 11 million residents in Florida, while NEER is the largest generator of wind and solar energy in the world.

NEE generates roughly 70% of its revenues from its electric utilities, whereas the remainder comes from NEER. NextEra Energy reported its Q2 2022 financial results on July 22. For the quarter, the company reported revenues of $5.18 million, translating to adjusted earnings $1.59 million (up 14.2% YOY).

On a per-share basis, adjusted earnings climbed 14.1% to 81 cents. Driven primarily by continued investment, FPL saw an 11% increase in EPS. Furthermore, strength continued at NEER’s existing renewables and storage portfolio — adjusted EPS increased more than 20%. It also added about 2,035 net milliwatt (MW) of renewables to its backlog. The backlog now stands at about 19,600 MW.

For the first half of the year, revenue grew 5.5% to $8.07 million, and adjusted EPS grew 11.6% to $1.54. Management boosted its 2022 adjusted EPS guidance range to $2.80-$2.90.

Between 2012 and 2021, NextEra Energy grew its EPS by 9.3% a year on average. The company’s future growth will be generated through organic investments and acquisitions. Its renewable projects should drive the segment’s profits going forward. NEE forecasts that its adjusted EPS will rise 6%-8% a year through 2025.

NextEra Energy has increased its dividend for 26 consecutive years, making the stock a Dividend Aristocrat. NEE stock yields 1.8%.

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

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The bear market in 2022 has provided opportunities to buy solid companies at a discount. Fears about a recession and rising interest rates have punished equities. Although this is painful for existing buy-and-hold shareholders, investors can take this opportunity to add to holdings or start new positions.

Some investors are taking this opportunity to purchase growth stocks, but many people are already overweight on these stocks. Additionally, those seeking income must look elsewhere; stocks like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), parent company of Google, do not pay dividends yet.

Consequently, I screened for stocks in bear market territory with a yield of more than 3.5%, a payout ratio of less than 65%, and that have increased the dividend for 10-plus years. I further narrowed the list by requiring a price-to-earnings (P/E) ratio of less than 18X.

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Below, we will discuss these three beaten-down dividend growers:

Beaten-Down Dividend Growers: Whirlpool (WHR)

Whirlpool (NYSE:WHR) was founded in 1911. It is one of the largest appliance designers and manufacturers in the world. Whirlpool sells washing machines, dryers, refrigerators, ice makers, ovens, cooktops, microwaves, ranges, garbage disposals, and more. The leading brands of these appliances are Whirlpool, Maytag, KitchenAid, and Speed Queen, among others.

Whirlpool has grown organically and through acquisitions, acting as a consolidator in the industry. Today, some of its main competitors are AB Electrolux of Sweden, Haier of China, LG of South Korea, and Bosch-Siemens of Germany.

The company had revenue of $21.98 billion in 2021. Over the past 12 months, gross margins were in the high teens and operating margins were about 10%. Whirlpool is sensitive to the economic cycle, particularly the housing market. Many of its products are bought for new homes, during a sale of an older home, or for renovations. Hence, Whirlpool’s stock price is sensitive to higher interest rates and lower home sales.

Whirlpool has one of the highest dividend yields of the Dividend Contenders at 4.14%, more than triple the average of the S&P 500 Index. The company has increased the dividend for 12 consecutive years. The growth rate has been 6.9% in the past five years and 10.9% in the trailing ten years. The forward payout ratio is low at around 24%, indicating that it is safe and pointing to future increases.

Whirlpool’s stock price has declined by about 22% year-to-date (YTD), lowering the P/E ratio to about 6.9X, which is below the five-year and 10-year range. As a result, investors are getting a market leader with a 4%-plus yield and a low valuation.

T. Rowe Price (TROW)

T. Rowe Price (NASDAQ:TROW) is a primary player in retirement plans in the U.S. The company is known for its active mutual funds, mainly its stock and target date funds. The firm is one of the few that people can invest in for asset managers. Many others are not publicly traded or have been acquired in a consolidating industry. In addition, T. Rowe Price offers mutual funds to retail and institutional investors and sub-advisor services to other managers.

Total revenue was $7.67 billion in 2021 and $7.7 billion for the past 12 months ending Mar. 31, 2022. T. Rowe Price’s revenue and earnings depend on its fees because the company earns a percentage of assets under management, or AUM. At the end of June 2022, the asset manager had about $1.31 trillion in AUM, down from the high earlier in the year due to market action and net outflows.

T. Rowe Price is a popular Dividend Champion and Dividend Aristocrat because of its 36 annual dividend increases. The firm has sustained a double-digit dividend increase rate with the trailing 10-year growth rate at about 13.3% and the five-year growth rate at around 14.9%. Furthermore, the dividend is safe with a payout ratio of roughly 34%. Importantly, T. Rowe Price did not cut or suspend its dividend during the dot-com crash or the sub-prime mortgage crisis because it usually maintains a net cash position on the balance sheet.

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The stock price is down around 38% YTD because of fears of the bear market. Consequently, the valuation has fallen to about 13X after accounting for lower earnings estimates. This value is below the range in the past five years and 10 years. Hence, investors are getting an undervalued stock with a dividend yield of 3.99%.

Beaten-Down Dividend Growers: Walgreens Boots Alliance (WBA)

Walgreens Boots Alliance (NASDAQ:WBA) is a pharmacy retailer founded in 1901. The company operates globally in nine countries through the Walgreens, Duane Reade, Boots, Benavides, and Ahumada brands. Walgreens has over 9,000 stores in the U.S. and 4,031 stores internationally. Walgreens sells prescription and over-the-counter drugs, as well as beauty, health, personal care, and food products.

Total revenue was $134.5 billion in the last twelve months through the U.S. Pharmacy, U.S. Prescriptions, U.S. Retail, International, and Walgreens Health businesses. The retailer grows organically by selling more items from its stores. Walgreens also expands by adding stores to its network. However, both growth avenues are relatively mature. VillageMD, Shields Health Solutions, and Walgreens Health Corners are its recent growth initiatives.

Walgreens is a long-time dividend growth stock. It has paid an increasing dividend for 47 years, making the company a Dividend Aristocrat and Dividend Champion. The lack of growth and difficulty executing after the merger with Boots caused the dividend yield to rise to 4.87%. However, the payout ratio is still relatively conservative at 36%. The dividend growth rate has been 5.2% in the past five years and 9% in the past decade, but is slowing.

That said, Walgreens is trading at a P/E of about 7.76X, below the five-year and 10-year averages. As a result, investors are getting a high-yield stock at a bargain valuation.

On the date of publication, Prakash Kolli held a long position in TROW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money. 

Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor and blogger on dividend growth stocks and financial independence. Some of his writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial blogs. He also works as a part-time freelance equity analyst with a leading newsletter on dividend stocks. He was recently in the top 1.0% and 100 (81 out of over 9,459) of financial bloggers as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

The post 3 Beaten-Down Dividend Growers for Income Investors appeared first on InvestorPlace.

Master limited partnerships, otherwise known as MLPs, are appealing for income investors. MLPs widely offer high distribution yields above 5%. A select few MLPs even have yields above 10%.

Of course, investors should always do their due diligence to make sure the underlying distribution is secure. Many high yield stocks have a tendency to cut or suspend their payouts, particularly during recessions.

As a result, investors should seek a balance between yield and safety when it comes to dividend investments. The following three master limited partnerships have high yields above 5%, but also should be able to maintain their distributions if a recession occurs.

MLPs: Holly Energy Partners (HEP)

Holly Energy Partners (NYSE:HEP) is a midstream MLP, meaning it operates transportation and storage facilities for crude oil and petroleum. It operates in 10 states, including Texas, Nevada and Washington. HEP also has refinery facilities in Utah and Kansas.

HEP was founded in 2004 by HF Sinclair (NYSE:DINO) and generates revenue by charging customers a fee for transporting and storing petroleum products.

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One advantage of this business model is that nearly all the revenues of HEP are fee-based. As a result, these revenues are hardly affected by prevailing commodity prices. Instead, they are proportional to the volumes transported and stored by the MLP. These volumes are reliable because they are determined by long-term contracts, which pose strict minimums to the customers of the MLP.

In addition to organic volume growth, acquisitions are a future growth catalyst for Holly Energy. On March 14, 2022, HEP completed the acquisition of the pipelines and terminal assets of Sinclair Transportation. The deal includes 1,200 miles of pipelines of crude oil and products, eight product terminals and two crude terminals. HEP paid $325 million and issued 21 million of common units to pay for the deal, which is valued at $758 million.

HEP achieves growth thanks to contractual tariff escalators, which raise the fees it charges to its customers over time, and the addition of new pipelines. HEP has more than 800 miles of crude oil gathering facilities in the Permian Basin and can continue leveraging its footprint in this area for years.

As HEP currently has a distribution coverage ratio of 1.7, we consider the new distribution as safe. Units currently have a distribution yield of 8%.

MPLX (MPLX)

Next on our list of MLPs is MPLX (NYSE:MPLX) is another midstream MLP that operates in two segments. Its first segment is logistics and storage, which relates to crude oil and refined petroleum products. The second segment is gathering and processing, which stores and transports natural gas and natural gas liquids.

MPLX has generated steady financial results in 2022. In the first quarter, net income and distributable cash flow per share grew 12% and 8%, respectively, over the prior year’s quarter. The strong performance resulted from 4% volume growth in logistics and storage, higher prices and higher volumes in gathering and processing.

Pipelines tend to have a stronghold in terms of extracting economic rents. Building pipelines requires years of approvals and ongoing regulation. As such, the incumbent positions enjoy toll booth-type business models, with a good portion of their revenue fixed via fee-based and take-or pay-agreements. MPLX in particular has a strong position in the Marcellus-Utica region, with long-term contracts from Marathon.

MPLX maintained a healthy consolidated debt to adjusted EBITDA ratio of 3.7x and a solid distribution coverage ratio of 1.65. These metrics represent healthy levels of debt on the balance sheet and a sustainable distribution payout. MPLX currently yields 8.7%.

MLPs: Plains All American (PAA)

Plains All American Pipeline (NASDAQ:PAA) is a midstream energy infrastructure provider. The company owns an extensive network of pipeline transportation, terminals, storage and gathering assets in key crude oil and natural gas liquids-producing basins at major market hubs in the United States and Canada.

On average, the company handles more than 7 million barrels per day of crude oil and NGL through 18,370 miles of active pipelines and gathering systems. Plains All American generates around $40 billion in annual revenues.

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The company rebounded from the coronavirus pandemic very well. In April, Plains All American hiked its distribution by 21% to a little more than 21 cents.

In the 2022 first quarter, revenue of $13.7 billion rose 63% year-over-year. Growth was driven by rising demand, as global oil and gas demand is finally back to pre-Covid levels. Higher global oil prices were also a positive contributor, as they nearly doubled year-over-year, with WTI and Brent trading over $100 a barrel.

Finally, increased production in the Permian Basin significantly boosted results, ending the quarter at roughly 5.2 million barrels a day, compared to 3.7 million barrels in the prior-year period.

Distributable cash flows grew 11.7% to 56 cents on a per-unit basis. During the quarter, the company repaid $750 million of senior notes and repurchased 2.4 million common units for $25 million, leaving up to $75 million available for potential discretionary repurchases over the balance of the year. This brought its cumulative repurchases to around $250 million since November 2020.

Following better than expected results, management increased its full-year 2022 adjusted EBITDA guidance by $75 million to plus or minus $2.275 billion. PAA’s payout ratio is currently sitting at relatively comfortable levels, expected at ~40% for 2022.

The company enjoys some competitive strengths, including a geographically diverse and interconnected asset base that provides operational flexibility, a high-quality customer base that supports sustainable fee-based cash flow generation (Marathon Petroleum, Phillips 66, etc.), and a highly experienced management team.

Final Thoughts

The recovery of the energy sector from the coronavirus pandemic of the past two years is clear. Oil and gas prices have spiked, while demand is back to pre-pandemic territory. This has led to a meaningful improvement for the midstream MLPs.

These three midstream giants have strong business models, quality assets and high distribution yields above 5%. In addition, their distributions should be sufficiently covered by distributable cash flow. This makes these MLPs attractive options for income investors.

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

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These are the six best dividend stocks for retirement purposes. They have consistent and high yields and their dividends are well-covered by earnings.

Moreover, more often than not, these stocks have higher yields than their average dividend yield over the past several years. That makes them more valuable.

Click to Enlarge

For example, if the stock rises from here, its yields will fall toward the average historical yield. So their high yields act are tethered to their historical average.

The average price-to-earnings (P/E) multiple of this group is 7.8x earnings. Moreover, their average dividend yield is 6.70%.

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Let’s dive in and look at these now.

Oaktree Specialty Lending Corp (OCSC)

Oaktree Specialty Lending Corp (NASDAQ:OCSL) is a business development company that lends out money to middle-market companies. It focuses on deal lending, such as bridge financing and mezzanine debt.

This lucrative type of lending helps fund expansions, acquisitions and/or management-led buyouts. Oaktree is a large private equity firm that feeds these clients to OCSL as a sort of captive lender.

As a result, OSCL has solid and consistent earnings. It pays a generous dividend of 66 cents annually. That puts its dividend yield at 9.69%.

This is well covered by the forecast 2022 earnings of 71 cents per share for this year. Moreover, the stock trades for just 9.5x 2022 forecast earnings, according to Seeking Alpha.

Moreover, the average yield for the last four years has been 7.70%. This is higher than today’s 9.69% rate.

If OCSL were to have a 7.70% dividend yield now, its price would be higher at $8.57 per share. That implies that the stock could rise 25.9% over today’s price.

These factors make it one of the best dividend stocks for retirement.

NRG Energy (NRG)

NRG Energy Corp (NYSE:NRG) is an integrated, Houston-based electric power generator. Analysts expect earnings will grow 17% in 2022 to $3.86 in 2022 and 30% in 2023 to $ $5.01 per share. That puts the stock, at $36.36 as of July 26, at just 9.4x 2022 earnings and 7.4x 2023 earnings-per-share forecasts. This is very cheap for an electric utility.

Moreover, it has an attractive dividend yield of 3.85%, given its dividend of $1.40 per share. This also means its dividends are just 36% of 2022 earnings forecasts. It has raised its dividend each year for the past three years.

In addition, NRG produces a huge amount of FCF. For example, in Q1 it made over $1.67 billion in cash flow from operations. It used just $85 million of that for dividends and spent $188 million on buybacks. That works out to $752 million on a run rate basis.

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This means that buybacks represent 8.8% of its $8.53 billion market value. So, with its 3.85% dividend yield, NRG delivers a total yield of 12.65% to its shareholders. That makes it one of the best dividend stocks for retirement.

LyondellBasell Industries (LYB)

LyondellBasell Industries NV (NYSE:LYB) is a Houston-based global chemicals and plastics manufacturer. The stock is now very cheap, as we are in the middle of a recession and this is a cyclical stock.

Interestingly, though, LYB stock is down by just 5% year-to-date. But it’s still cheap. At $87.18 on July 26, the stock trades for only 5.4x analysts’ forecasts of $16.50 per share in earnings for this year.

Moreover, its 2023 multiple is only slightly higher at 5.5x earnings. Meanwhile, it pays a $4.76 per share dividend, giving the stock a 5.46% dividend yield.

That dividend is higher than its four-year historical average of 5.11%. That implies the stock could still rise 6.8% to $93.15.

Ford (F)

Ford (NYSE:F) is slowly transforming itself into an all-electric car manufacturer. It plans on on splitting off its electric car holdings into a separate company.

F stock is down over 41% YTD and is now very cheap. The price-to-earnings multiple for 2022 is 6.5x, based on analyst estimates taken by Seeking Alpha.

Its 2023 forward P/E multiple is just 6.2x. This is based on earnings growth forecasts of 5.7% for 2023.

Ford now pays a quarterly dividend of 10 cents or 40 cents annually. So, at $12.54 on July 26, the stock has a 3.19% dividend yield. In the last 12 months, the stock has had an average yield of 2.34%. If Ford stock trades at that yield now it could rise 36% to $17.09 per share.

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Moreover, Ford can clearly afford the dividend. It is just 20.8% of analysts’ 2022 forecast of $1.92 EPS, and 19.7% of 2023 $2.03 forecasts.

Prospect Capital (PSEC)

Prospect Capital Corp (NASDAQ:PSEC) is a business development company that invests in the debt securities of middle market companies (sized between $10 million and $500 million in revenue). Much of this debt is used to help the companies make acquisitions, expand operations and do leveraged buyouts.

Right now the BDC pays a monthly dividend of 6 cents per share. That works out to 72 cents annually, and at $7.39 per share, the stock yields 9.74%.

This is slightly higher than the 9.61% yield the stock has traded at over the last 12 months. That implies it could rise by 1.4%. But that is not the main reason to own the stock. The main reason is its monthly dividend.

This dividend is reasonably secure. For example, analysts project the company will make 80 cents for the year ending June 30. And for next year ending June 30, 2023, they project 81 cents. That more than covers the 72 cents annual dividend paid monthly.

Including this stock in the list raises the average dividend yield of the group. It makes it one of the best dividend stocks for retirement.

Brandywine Realty Trust (BDN)

Brandywine Realty Trust (NYSE:BDN) is a major real estate investment trust with a $1.62 billion market cap focused on buying properties in the Philadelphia, Austin and Washington, D.C. markets. It has done this for 25 years and is very profitable.

It now has an 8.29% dividend yield, which is attractive to dividend investors. This is higher than its historical 5.83% average for the last four years. With the same yield today, the stock would trade at $13.04 per share, over 42% higher.

Moreover, analysts forecast its funds from operations, a commonly used cash measure in the REIT industry, will grow 1.4% to $1.41 per share. That puts it on a cheap P/FFO multiple of just 6.5x for next year.

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As a result, this is one of the best dividend stocks for retirement.

On the date of publication, Mark Hake did not hold (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.

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Income investors looking for high-yield stocks with growth potential should consider investing in real estate investment trusts, or REITs for short.

The appeal of REITs is straightforward: REITs allow anyone the opportunity to profit from real estate properties, without actually having to own property. REITs operate across a number of sectors, including industrial, healthcare and retail.

REITs are required to distribute the vast majority of their taxable income to shareholders, in exchange for a favorable tax status. As a result, investors can find high dividend yields across the REIT universe. In addition, investors should focus on REITs with quality business models and sustainable dividend payouts. These 3 REITs have safe dividends, even in a recession, along with their high yields.

Realty Income (O)

Realty Income (NYSE:O) is a retail focused REIT that owns more than 4,000 properties. Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services and entertainment.

In the 2022 first quarter, Realty Income reported 82% year-over-year revenue growth, due in large part to the previous acquisition of VEREIT. On an adjusted basis, AFFO-per-share came to 98 cents for the quarter. The company continues to expect record results for 2022, forecasting AFFO of approximately $3.97 per share.

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Realty Income generates its growth through growing rents at existing locations, via contracted rent increases or by leasing properties to new tenants at higher rates, but also by acquiring new properties.

Management invested about $2.1 billion in new properties during 2020, and another $6.4 billion during 2021. Realty Income expects to increase its investments in international markets during the next couple of years. It made a first deal in the UK in 2019 and plans to do more such deals in the future when it finds attractive targets. These acquisitions will help drive profits in the long run.

Realty Income is well-known for its monthly dividend payments. Indeed, the company has now declared 625 consecutive monthly dividends, a track record that goes back more than 50 years. Realty Income has also increased its dividend for over 25 consecutive years, placing it on the exclusive list of Dividend Aristocrats. In fact, Realty Income is only one of three REITs on the Dividend Aristocrats list. Shares currently yield 4.1%.

Federal Realty Investment Trust (FRT)

Federal Realty (NYSE:FRT) was founded in 1962 and concentrates in high-income, densely populated coastal markets in the US, allowing it to charge more per square foot than its competition.

Federal Realty was one of the harder-hit REITs from the coronavirus pandemic, but the recovery has been even stronger in turn. In the 2022 first quarter, FFO per share came in at $1.50, up 28% from $1.17 in the year-ago quarter. Total revenue increased 17.7% to $257 million.

Future growth is anticipated due to acquisitions. During the first quarter, Federal Realty continued record levels of leasing with 119 signed leases for 444,398 square feet of comparable space. The trust’s portfolio, during the quarter, was 91.2% occupied and 93.7% leased, up by 170 basis points and 190 basis points, respectively, year-over-year. Moreover, small shop leased rate was 88.7%, up by 130 basis points quarter-over-quarter.

Federal Realty also reported Q1 comparable property operating income growth of 14.5%. Meanwhile, the company raised its 2022 earnings per share guidance to $2.36-$2.56 from $2.30-$2.50 and FFO per diluted share guidance to $5.85-$6.05 from $5.75-$5.95.

Federal Realty’s growth moving forward will be comprised of a continuation of higher rent rates on new leases and its impressive development pipeline fueling asset base expansion. Margins are expected to continue to rise slightly as it redevelops pieces of its portfolio and same-center revenue continues to move higher.

As the economy emerges from the Covid-19 crisis, we expect results to support the long-term thesis for Federal Realty as same-store net operating income continues to grow and occupancy remains robust.

Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas and its decades of experience in running a world-class REIT. The company has increased its dividend for over 50 years in a row, placing it on the Dividend Kings list. FRT is the only REIT on the Dividend Kings list. Shares currently yield 4.2%.

Safehold (SAFE)

Safehold (NYSE:SAFE) issued its initial public offering on June 22, 2017 with iStar as its manager and primary investor. Safehold is a ground lease REIT that provides a more capital-efficient way for businesses to own buildings. The trust engages in long-term sale and leasebacks of land underneath commercial properties across the United States and is the only REIT focused entirely on ground leases to support real estate investment and development.

The strategy has worked, as the company is generating strong growth. In the 2022 first quarter, earnings-per-share increased 35% to 43 cents year-over-year. Revenue increased 39% to $60.4 million. During the quarter, Safehold closed $677 million of new originations, making the total portfolio to $5.5 billion. The company’s portfolio generated annualized in-place cash rent of $164 million with an annualized yield of 5.1% and an inflation-adjusted yield of 5.7%.

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With an annualized yield of 5.4% and weighted average rent coverage of 3.3x on its investments, the REIT generates an attractive combination of profitability and safety. In 2022, the analyst consensus is for revenue to grow by 27.9%. Over the next five years, we forecast an annualized net asset value per share growth rate of 6.8% given that Safehold is the leader in a massive total addressable market estimated to be $7 trillion.

Ground leases are appealing for long-term investment. The terms are extremely long (sometimes up to 99 years long), rent coverage is over 3x, and the loan to value is at a conservative level. As a result, Safehold is very recession resistant, and we fully expect its cash flows to remain very stable through all economic environments.

The dividend is also quite safe as the payout ratio is just 36% expected for 2022. The dividend should grow over time as Safehold continues to scale and reduces its payout ratio even further. Shares currently yield 1.7%, which is fairly low for a REIT, but growth makes up for the low yield. The company recently hiked its dividend by 4%.

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

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Mention retirement stocks and your mind probably goes to more conservative, relatively defensive equities. The tried and true method of seeking investments that withstand market cyclicality while steadily growing is a wise one. In other words, it isn’t one from which to deviate. 

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And given the bear market we’re currently in, there are opportunities to be had. That means there’s a reasonable chance to benefit from the overall market slump, buy cheap, reliable retirement stocks and watch their value increase over the long term. Not particularly exciting, but that’s exactly why investors should do it. The patience required pays dividends literally and figuratively. 

Johnson & Johnson (JNJ)

Based on its current price and target price, Johnson & Johnson (NYSE:JNJ) stock is only underpriced by roughly 5%. Factor in its dividend, which will likely amount to $4.45 in 2022, and it’s then underpriced by about 7.5%. That still isn’t massively underpriced by most investors’ subjective standards I’d guess. 

But the compounding power of time is what really matters when we’re talking about retirement stocks. Most signs point to Johnson & Johnson having staying power. One, the company has existed since 1886. Two, it has provided annual returns of 13.04% over the last decade. It should be noted that those returns do not include the dividends that JNJ stock has paid, without fail and without reduction, dating back to 1982. 

Factor those in and the returns become even greater. Or use them as an income source in retirement. Either way, JNJ stock makes sense. 

Prudential Financial (PRU)

Prudential Financial (NYSE:PRU) stock almost has to be a sure-fire pick-up. The Newark, New Jersey firm is best known for life insurance, so it’s bound to at least cross the minds of retirees and retirement investors. 

That’s good because it remains relatively underappreciated. The same argument that applies to JNJ stock applies here. PRU stock has roughly 12% upside baked into prices based on analyst expectations. Add in its relatively strong dividend yielding 4.98% and that potential upside reaches 16.9%. In my book that’s an objectively strong return. 

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The reason to assume Prudential Financial is undervalued right now is that the company has significantly outstripped earnings expectations in each of the last four quarters. PRU stock has spent lots of time in the $120 range in 2022 suggesting that it could quickly bounce upward. 

Caterpillar (CAT)

Caterpillar (NYSE:CAT) stock has been nothing if not a steady outperformer. That is evidenced by the fact that it too has exceeded earnings expectations in each of the last 4 quarters. 

Perhaps then, it should be surprising that it is nowhere near overbought currently. But it isn’t and has 30% upside based on its average target price. That’s without factoring in the $1.20 dividend it pays on a quarterly basis. 

Add to that secular trends, and a clearer picture emerges: Caterpillar is very likely to remain relevant as infrastructure spending becomes increasingly important. More and more contracting companies are going to be purchasing Caterpillar equipment in order to realize that ambition. 

The other positive sign is that infrastructure is one of the very few issues that Democrats and Republicans can agree on. In other words, CAT stock is not controversial. 

Leggett & Platt (LEG)

Leggett & Platt (NYSE:LEG) stock is a company with a history dating back to its 1883 founding. The company operates in decidedly unsexy markets, including bedding, car seating, some aerospace and textiles. 

It’s the kind of boring, steady business investors are likely to disregard and pass over in favor of flashier names engaged in flashier business. But inventors who do so should know this: Leggett & Platt has outperformed the NYSE composite by 53% over the past decade. 

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That’s the kind of performance that retirement investors should truly appreciate. LEG stock is underpinned by strong market positions in traditional businesses. It has a strong balance sheet with strong cash flow and a history of 50 consecutive dividend increases on an annual basis. 

Global Partners LP (GLP)

Investors who believe petroleum and oil continue to have a strong future should consider Global Partners LP (NYSE:GLP) stock. The Waltham, Massachusetts firm buys, sells, stores and transports petroleum products to wholesalers and station operators. 

The company is fairly stable, having met or exceeded earnings over the past three quarters. But what it lacks in stability relative to other names on this list, it makes up for with its dividend. That dividend currently yields a massive 10%. 

It too has outperformed the NYSE composite by a wide margin, 71%, in the past decade. That’s one of the most obvious aspects of investing in relatively unheralded but steady stock names: There are often very strong finds outside of headline names. GLP stock is one of them. 

Verizon (VZ)

Verizon (NYSE:VZ) stock is interesting because it provides stability and inherent growth opportunity. Consumers are going to continue to require telecommunications services in any market environment after all. That is very well reflected in VZ stock’s 0.38 beta. 

In terms of being undervalued, Verizon is currently about 14% lower than its consensus target price exclusive of its 5% dividend. So, there’s a good chance it can rise on simple recession worries alone. Those are likely to increase as the year wears on and its low beta implies investors will flock to its relative security if and when turmoil heats up again. 

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But it also possesses inherent growth with its position as a 5G player. Buying VZ stock is not risky but does have strong upside. That’s a good combination for retirement investors.

Charter Communications (CHTR)

My colleague Josh Enomoto made a strong point about Charter Communications (NASDAQ:CHTR) stock when he was discussing Warren Buffett stocks a few months ago: Not only does its Spectrum brand cover 44 states, but it dominates in California, Texas and New York. 

Those are the three biggest state economies and contribute to the overall economy in an outsized manner. So, Charter Communications’ dominance there is a strong tailwind. 

Charter Communications doesn’t pay a dividend but there is plenty of upside nonetheless. In fact, there’s roughly 30% upside baked into target prices. Telecommunications is a steady industry that fits in well with retirement strategies and CHTR stock is seriously undervalued at present. 

On the date of publication, Alex Sirois 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.

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Investors are thirsting for income to compensate for declining stock values. Those of you with more than five years until retirement might be tempted to find the best high-yield retirement stocks to plump up your nest egg and call it a day. 

Of course, everyone’s version of what constitutes high yield is different. The current dividend yield of the S&P 500 is 1.62%. Some might consider double that to be the criterion for high yield. For the sake of this article, I’m going to use 5%. 

A quick screen of U.S.-listed stocks shows that 1,172 meet this standard. To weed out some of the companies, I’ll look for companies expected to grow their annual dividend per share by 10% over the next two years. That brings the number down to 61, a more manageable number. I’ll then pick those companies who’ve repurchased shares in recent years. This leaves me with 38 choices. 

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Here are my seven best high-yield retirement stocks to buy. Like all of my galleries, I’ll also try to provide sector diversification. 

Cogent Communications (CCOI)

Cogent Communications (NASDAQ:CCOI) is a Washington D.C.-based internet service provider. It currently provides internet access for corporate use and netcentric system of systems. It operates in more than 216 markets in 50 countries. 

A big market for the company is multi-tenant residential buildings. The potential market is more than 93,000 multi-tenant residential buildings in North America. Its Q1 2022 presentation showed that it has 45,393 corporate customers and 49,491 netcentric customers. Its revenue in the first quarter was $149.2 million, 2.9% higher than a year earlier, excluding currency. 

When the company announced its Q1 2022 results at the end of April, it increased its quarterly dividend by 12.8% annually to 88 cents. That was the company’s 39th consecutive quarterly increase of its dividend. Since its initial public offering in 2006, it’s returned more than $1 billion to shareholders for dividends and share repurchases. 

Cogent’s annual payment of $3.52 yields 5.7%. 

Diamondback Energy (FANG)

When you enter Diamondback Energy’s (NASDAQ:FANG) stock symbol into Google Finance, you see that its dividend yield is 2.5% — half of the criterion I’d set for qualification. However, that would be the base dividend. The Permian Basin operator also pays a variable dividend. 

Its June 21 announcement about its capital return program announced it would increase the quarterly base dividend by five cents to 75 cents, or $3 annually. So, the base dividend was increased by 7.1%. Its second-quarter base-plus-variable payout is $3.05 a share — 75 cents for the base and $2.30 for variable — yielding 11.3%.   

However, starting in the third quarter, it plans to return 75% of its quarterly free cash flow to shareholders, up from 50%. It will use its base dividend as its primary way to return capital to shareholders with secondary mechanisms, including variable dividends and share repurchases. 

In the second quarter, it repurchased $253 million of its stock. It currently has approximately $1.3 billion left on its September 2021 share repurchase authorization.

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With the company’s change to 75% of free cash flow, it has one of the best shareholder payouts in the energy industry.

Moelis & Company (MC)

Moelis & Company (NYSE:MC) stock has lost more than 32% of its value in 2022. As a result, the global investment bank’s stock is yielding a juicy 5.8%.

The investment bank reported Q1 2022 results at the end of April, including a 13% increase in adjusted net revenue to $298.2 million with adjusted net income per share of 95 cents, 7% lower than Q1 2021. It finished the quarter with $301.5 million in cash and no debt on its balance sheet. 

Moelis last increased its quarterly dividend by five cents to 60 cents a share with the September 2021 payment. However, it also paid out two special dividends in 2021: one in June ($2) and another in November ($2.50). If it were to pay out all of the dividends it paid out in 2021 again in 2022, it would currently yield 17.2%. 

How cheap is MC stock right now? Its trailing-12-month free cash flow is $672.1 million, good for an FCF yield of 26%. Now, it probably can’t keep this pace up. In 2021, it generated almost $1 billion in free cash, but even at half that, we’re still talking about an FCF yield higher than 19%.

With no debt, it’s an asset-light no-brainer.  

Genco Shipping & Trading (GNK)

Genco Shipping & Trading (NYSE:GNK) provides dry bulk transportation services for shipping iron ore, coal, grain, and other commodities and owns a fleet of 44 Capesize, Ultramax and Supramax ships. 

In May, it reported its Q1 2022 results. Its revenues were $136.2 million, 55.5% higher than a year earlier. Further down the income statement, its operating income increased 568% to $42.1 million. It finished the quarter with long-term debt of $189.9 million, down considerably from $238.2 million at the end of December. 

It finished the first quarter with $107 million in free cash flow over the past 12 months. That’s an FCF yield of 15.4%. I consider anything over 8% to be value territory.  

As the company stated in its Q1 2022 press release, most of its ships would be rented out at more than $27,500 daily. As a result of this strong cash flow, it’s been able to pay dividends for 11 straight quarters (almost three years). 

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Its annual dividend payment amounts to $3.16 a share, a dividend yield of 16.9%. It won’t always yield this high, but while it does, it makes sense to own some as a part of a diversified portfolio. 

Himax Technologies (HIMX)

I have to admit that semiconductor stocks aren’t my cup of tea. I like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), and that’s about it. And those two caught my fancy because their CEOs are so darn good.

But Himax Technologies (NASDAQ:HIMX) recently revised its guidance lower on reduced tech spending, sending its stock down 20% in a week. It expects its Q2 2022 revenue to be 24.5% lower than Q1 2022, 650 basis points higher than its previous guidance. That works out to $312 million, 14.7% lower than Q2 2021. 

There’s no question its business isn’t perfect — its processing chips for TVs and smartphones are very basic and commoditized — but it expects gross margins to remain the same, which suggests it still has some pricing power left despite the consumer’s uneasiness to spend right now. 

By every valuation metric, HIMX stock is cheaper than it has been in more than 24 months. Plus, even though it only will pay out $1.25 per American Depositary Share (or ADS) with its July 2022 dividend, it still yields 18% because its stock’s lost 58% of its value over the past year. 

Himax’s balance sheet is excellent. Its cash and equivalents as of March 31 was $378 million. It can more than handle a consumer slowdown in demand.   

EPR Properties (EPR)

InvestorPlace contributor Charles Sizemore picked EPR Properties (NYSE:EPR) as his best stock for 2022. If you’re looking for a stock that got pummeled by Covid-19, the entertainment real estate investment trust is a prime candidate. 

“For the two decades leading into the pandemic, dollars spent on leisure experiences rose consistently year after year with only very modest pauses during recessions. Of course, spending fell off a cliff in 2020 and has yet to fully recover,” Sizemore wrote on July 6. 

“This means that EPR Properties and its experience-based tenants still have a long runway of growth in front of them.”

It sure does. I first recommended EPR in 2012. 

At the time, it went by Entertainment Properties Trust. It owned many of the theaters AMC Entertainment (NYSE:AMC) leased and operated. Flash forward a decade, and it still does. AMC accounted for almost 18% of the REIT’s revenue in 2021. The second highest revenue contributor was TopGolf. The locations EPR owns generated 16.3% of its overall revenue last year. Two other cinema chains rounded out the top four.

I believe this REIT is a better investment than AMC stock. That’s especially true if you’re interested in dividend-paying investments. EPR yields 6.3%. AMC doesn’t pay one at all.

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I agree with my colleague. EPR is ready to take off. 

PetMed Express (PETS)

PetMed Express (NASDAQ:PETS) is an online pet pharmacy selling prescription medication to owners across all 50 states. It has more than 11 million customers.

As a pet owner and investor, I’ve followed the company’s history for a long time. Back in the early 2000s, it was an up-and-comer. BusinessWeek named it one of the Top 100 Hot Growth Companies for 2006. Unfortunately, it’s never quite lived up to its potential.

In May 2021, after 20 years as CEO, PetMed’s board let Menderes Akdag go after his employment contract expired. On Aug. 31, 2021, the company hired former Rosetta Stone President Marc Hulett as its new CEO. 

In early January, Hulett made his first executive hires as part of the company’s digital transformation. Hires included a chief technology and information officer, a vice president of people, and a chief marketing officer. Most recently, Hulett hired a Petco (NASDAQ:WOOF) veteran as vice president of product management. 

Hulett’s transformation plan focuses on positioning PetMeds as a broader pet health brand and not just an e-commerce provider of prescriptions. While it’s early, its Q4 2022 results showed its digital transformation is gaining traction. 

However, it’s still very profitable, which enables it to pay an excellent quarterly dividend of 30 cents. The annual payment of $1.20 yields a healthy 5.6%.

Down 15% YTD, it’s a potential diamond in the rough.    

On the date of publication, Will Ashworth 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.

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If it feels like you’re working harder than ever, saving more… AND GETTING LESS.

If you feel like there’s no end in sight, I’ve got some news for you…

You’re absolutely right. And it’s about to get worse.

Which is why Wall Street icon Louis Navellier is urging all Americans to get ready for THIS FRIDAY.

Most Americans don’t know the REAL REASON things have gotten so warped in America…

They don’t know why the system is working great for a select few. But is a complete disaster for everyone else.

Mr. Navellier is in a unique position to know why…

Forty-two years ago he was a federal banking regulator. He saw from the inside how the government corrupted the value of our money. How it destroyed the little guy… and made the rich richer.

He learned why his blue-collar parents worked so hard in the 1970s, but never got ahead. So Navellier did what any self-respecting, hardworking American would do…

He quit.

With some saved-up cash — and an idea about how the markets really worked — he started his own investment firm.

Today, Navellier manages over $2 billion in assets. Some 200 pension and institutional money managers have entrusted him with their money.

Now, he’s stepping forward with an urgent message for anyone at or near retirement age…

Mr. Navellier says:

“I definitely DO NOT believe America’s best days are behind us. That said… as a family man who’s spent more than 40 years at the apex of Wall Street, I definitely DO believe you are 100% responsible for understanding the incredible force creating the large and expanding chasm between the Haves and the Have Nots…

“Most Americans are completely unprepared for a new financial event about to make it even worse. I definitely believe you are 100% responsible for protecting your own family and taking a few simple preparations, especially when they are so cheap and easy to do…”

The first step you need to take, according to the former Fed insider, is to mark your calendar for this Friday.

Everything you need to know is in his new video, linked here, free for public view.

Watch Now to Get the Full Story

About Growth Investor

In Growth Investor, we focus on today’s best mid- to large-cap stocks from a variety of sectors. The Buy List contains specific Buy Below prices and is always sorted into 3 categories of portfolio risk — Conservative, Moderately Aggressive or Aggressive — so you can buy according to your personal risk tolerance. Louis Navellier has been involved in the investing world for over 30 years. Since founding their research firm 45 years ago, their elite group has been responsible for accurately forecasting many of the world’s most innovative technological trends and breakthroughs long before they achieved mainstream acceptance.

*All investing includes risk of loss*

The post Ex-Fed Banking Regulator: Cash Holders in for a Big Surprise… Pay Attention to THIS FRIDAY appeared first on InvestorPlace.

Great dividend stocks are sporting higher yields than they have in years thanks to the market selloff in 2022. That has pushed the number of high-dividend stocks ever higher, and for income-focused investors, this is a great opportunity to pick up strong dividend stocks at a discount.

However, not all dividend stocks are created equal, and we tend to favor those with demonstrated histories of raising payouts through good times and bad. This signifies recession resistance, but also the willingness of management to commit to rising shareholder returns over time.

In this article, we’ll take a look at three high-yield dividend stocks we like that have all boosted their payouts for at least 10 years.

Dividend Stocks: Verizon Communications (VZ)

Our first high-dividend stock is Verizon (NYSE:VZ), which is a telecommunications and wireless service conglomerate based in the U.S. The company offers prepaid and postpaid wireless plans to consumers and businesses, broadband internet access, hardware sales – such as tablets, phones, and notebooks – and more.

The company was founded in 1983 and has gone through mergers and divestitures through the years, and today it produces about $137 billion in annual revenue. It also trades with a substantial $212 billion market cap.

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Verizon is currently sporting a 17-year history of consecutive dividend increases, a period which encompasses the global financial crisis and the Covid-19 recession. Despite Verizon being a consumer-facing company with its core wireless business, it has managed to continue to raise the payout through difficult economic periods.

The reason is because the company operates essentially like a utility, meaning demand is fairly predictable, and thus, revenue and earnings are as well. We see modest 4% annual growth in earnings ahead, but that should be plenty to continue the company’s streak of dividend increases.

We’re expecting 2% annual dividend growth in the years to come, as the company’s limited growth potential means increases are generally small.

The good news is that the current payout ratio is under half of earnings, so even in the event of an earnings decline for Verizon, we believe the payout would not only be safe, but could continue to grow as well. The modest increases the company has put through in recent years have kept a lid on the payout ratio, which has improved dividend safety.

Despite these modest increases, Verizon still yields 5% today, roughly tripling that of the S&P 500. Verizon has long been a high-yield, income-focused stock, and it is firmly in that camp today.

W.P. Carey (WPC)

Our next dividend stock is W.P. Carey (NYSE:WPC), which is one of the largest net lease REITs in the U.S. The real estate investment trust has a diversified portfolio of commercial real estate that includes more than 1,200 net lease properties covering 142 million square feet. Carey has an operating history of half a century, and has refined its process for investing in high-quality single-tenant industrial, warehouse, office, self-storage and retail space with built-in rent escalations.

The trust produces about $1.4 billion in annual revenue, and trades with a market cap of $16 billion, making it a sizable player in what is a highly fragmented REIT market.

Carey’s dividend streak stands at a very impressive 25 consecutive years, which is strong on an absolute basis. However, when we consider how cyclical REITs tend to be, Carey stands out above the crowd in terms of dividend longevity. We see this as an extremely attractive trait in a sector of the market that tends to see high yields, but relatively poor dividend safety.

We expect Carey to grow at 3.5% annually in the years to come, which should provide enough capital to continue the dividend increase streak indefinitely. Like Verizon, we’re expecting just 2% dividend growth in the years to come, which is typical for REITs that have very high payout ratios.

Carey’s payout ratio is in excess of 80% for this year, which is high by any measure. However, REITs must return substantially all of their earnings to shareholders via dividends by law, so high payout ratios are the norm. We don’t see any risk to the payout given the trust’s current earnings trajectory, but it is something to keep in mind.

Carey’s yield is similar to Verizon’s at 5.1%, again triple that of the S&P 500 for income-focused investors.

Dividend Stocks: LyondellBasell Industries N.V. (LYB)

Our final stock is LyondellBasell (NYSE:LYB), a chemical company that is based in the U.S., but operates globally. The company produces a wide variety of differing types of chemicals, for a long list of uses. It also refines crude oil into various types of gasoline and distillates, in addition to its chemicals business.

The company’s history can be traced to 1955, and today, it generates $52 billion in annual revenue, and trades with a market cap of $28 billion.

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LyondellBasell’s dividend increase streak currently stands at 11 years, corresponding to when the chemicals giant began paying dividends to shareholders. Thus, we don’t see this relatively shorter streak as a sign of dividend weakness.

LyondellBasell is seeing massive, unsustainable earnings this year, building upon last year’s bumper earnings. As a result, we are expecting 0% annual growth, simply because the base of earnings this year is so high. We believe in the company’s long-term prospects, but earnings nearly quadrupled from 2020 to 2021, so there was significant demand pulled forward.

On the plus side, we see 6% dividend growth from here, so the stock offers not only a strong yield, but terrific dividend growth prospects as well.

Because of the surplus earnings, the payout ratio is currently very low at just 27% of earnings. We expect that number to rise as the dividend grows more quickly than earnings, but we see the dividend as extremely safe today, and for the foreseeable future.

LyondellBasell also offers the best yield of the group, coming in at 5.3%. Thus, for dividend safety and a high yield, this one is tough to beat.

Final Thoughts

While the selling of 2022 has been tough to handle for many investors, for those looking to pick up high-quality dividend stocks, it has presented great opportunities to buy. We like stocks with strong dividend longevity, and we see Verizon, W.P. Carey, and LyondellBasell as having demonstrated this longevity, while also offering yields in excess of 5%.

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

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Inflation continues to roar in the United States, and interest rates are rising as a direct result. Because of these challenges, the U.S. economy could tip into a recession. As investors likely recall from previous recessions, many high-yielding dividend stocks are likely to cut or suspend their dividends if the U.S. economy enters a downturn.

Investors can take steps now to protect their income. For starters, investors could consider high-quality dividend stocks such as the Dividend Aristocrats.

These are a group of 65 stocks in the S&P 500 that have raised their dividends for at least 25 consecutive years, among a number of other criteria. Specifically, the following Dividend Aristocrats have market-beating dividend yields, and safe dividend payouts even if a recession occurs.

Dividend Aristocrats: McDonald’s (MCD)

Leading today’s list of Dividend Aristocrats is McDonald’s, the leading global fast-food restaurant with more than 40,000 locations in over 100 countries. Approximately 93% of the stores are independently owned and operated. The company has raised its dividend every year since paying its first dividend in 1976.

McDonald’s generates steady profits each year, even during a recession, because consumers tend to scale down their dining budgets during recessions. McDonald’s is a beneficiary of consumers trading down from more upscale restaurants to fast food when times are tough. This is a key reason why the company has been able to increase its dividend each year for more than 40 years.

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During the Great Recession, McDonald’s posted excellent results, with earnings-per-share of $2.91, $3.67, $3.98, and $4.60 over the 2007 through 2010 stretch, while the dividend kept on increasing during this time.

The company has continued to generate strong earnings in 2022. In the most recent quarter, total revenue came in at $5.67 billion, a 10.6% increase compared to Q1 2021. Revenue grew 6.5% at company-owned stores, while revenue increased 13.4% at franchised restaurants. Net income equaled $1.10 billion or $1.48 per share for the quarter.

McDonald’s dividend payout ratio has been oscillating in a range of ~50% to ~60% throughout the last decade. Due to the stability of McDonald’s during past recessions, coupled with a payout ratio that is not overly high, we view McDonald’s dividend as highly secure. Shares currently yield 2.2%.

Walmart (WMT)

Next is Walmart, a recession-proof discount retailer. Walmart is the largest retailer in the world, serving more than 230 million customers each week. Annual revenue now approaches $600 billion for this industry giant.

Like McDonald’s, it could be argued that Walmart actually benefits from economic downturn. When a recession hits, consumers typically bargain-hunt, and everyday low prices are Walmart’s core strategy. Walmart managed to increase earnings steadily during and after the Great Recession of 2007-2010. As a result, this member of the Dividend Aristocrats has raised its dividend for nearly 50 years in a row.

Inflation is taking a bite out of Walmart’s margins to begin 2022. In the most recent quarter, adjusted earnings-per-share came to $1.30, which were 18 cents below analyst estimates. However, revenue grew 2.4% for the quarter to $141.6 billion, which was $3.55 billion better than expected. Comparable sales were up 3% year-over-year in the U.S., and up 9% on a two-year stacked basis. E-commerce growth was 1% year-over-year, but up 38% on a two-year stacked basis. Sam’s Club comparable sales rose 10.2% year-over-year.

Walmart should be able to sufficiently protect its margins even in an inflationary environment. One of its biggest competitive advantages is its massive size provides it with leverage over suppliers. It is likely that Walmart will be able to pressure its suppliers to lower prices.

Over the long-term, Walmart should continue to grow its earnings at a mid-single-digit pace over full economic cycles. In addition to revenue growth, earnings will be boosted by stock buybacks as well. Its e-commerce business should be the primary driver of top-line growth.

Walmart stock currently yields 1.8%. The company’s payout ratio is quite low at 35% of earnings, making for a conservative dividend policy. The dividend should be very safe, even if earnings decline, and should still be raised each year.

Dividend Aristocrats: Procter & Gamble (PG)

Finally, Procter & Gamble is a longtime member of the Dividend Arisocrats club. This company manufactures consumer staples products such as toothpaste, diapers, personal care and home care. Procter & Gamble is a consumer products giant that sells its products in over 180 countries. Some of its notable brands include Pampers, Luvs, Tide, Gain, Bounty, Charmin, Puffs, Gillette, Head & Shoulders, Old Spice, Dawn, Febreze, Swiffer, Crest, Oral-B, Scope, Olay and many more. In all, the company generated $76 billion in sales in fiscal 2021.

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P&G’s dividend history is extremely long. The company has paid a dividend for more than 130 years, and has grown its dividend for 66 consecutive years. During the Great Recession, the company posted earnings-per-share of $3.04, $3.64, $3.58, $3.53, and $3.93 in the 2007 through 2011 stretch, while the dividend kept on rising during these years.

Due to its industry-leading brands, the company can pass along higher costs to consumers by raising prices. This is how the company can protect its earnings, to continue to grow the dividend each year. For example, last quarter P&G generated organic sales growth of 10% year-over-year. Half of its growth was due to price hikes, with the remainder a result of higher volumes and more favorable product mix. Adjusted earnings-per-share grew 6% for the quarter.

It is highly impressive that P&G can grow its earnings-per-share in the current inflationary environment. Along with its financial results, the company raised its fiscal 2022 guidance for a second quarter in a row, anticipating 4% to 5% sales growth (from 3%-4%). It expects earnings-per-share growth at the low end of its 3% to 6% guidance.

Still, growing earnings will allow P&G to continue raising its dividend. Procter & Gamble’s dividend payout ratio has oscillated between 50% and 75% in the last decade, with the expected payout ratio for this fiscal year at around 60%. The company should be able to keep growing its dividend at a rate roughly in line with earnings-per-share growth going forward. P&G stock yields 2.5%.

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

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So far, 2022 has not been a good one for many stocks. The growth, technology and consumer discretionary categories did well during the pandemic. However, inflation, rising interest rates, and a return to normal caused investors to become more risk-averse. As a result, the major indices are either in correction or bear market territory.

However, one group of stocks has performed well as a group. The 2022 Dogs of the Dow are up 1.1% year-to-date, far better than the S&P 500 or Nasdaq. However, several of them still have high dividend yields and are at desirable levels for investors seeking income to live off dividends.

Below, we discuss three Dow stocks for income.

Dow Stocks for Income: Dow (DOW)

Dow Inc. (NYSE:DOW) traces its history to more than 125 years ago. The company has grown into one of the largest global chemical companies through acquisitions and reorganization. The company acquired Union Carbide in 2001 and Rohm & Hass in 2008.

Next, in 2015, Dow merged with DuPont forming DowDuPont, followed by the acquisition of the remaining interest in DowCorning. In 2019, the company de-merged, forming Corteva, Dow, and DuPont du Nemours.

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Today, Dow is a maker of commodity chemicals with three operating segments: packaging and specialty plastics, industrial intermediates and infrastructure, plus performance materials and coatings.

The company generated $58,350 million of revenue in the last 12 months, with gross margins in the high teens. Demand collapsed during 2020, but the rapid recovery in 2021 gave Dow pricing power and led to solid revenue growth. Although the company grows organically as a commodity chemical producer, it is sensitive to the economic cycle. Additionally, high oil and other input prices affect margins and thus profitability.

The current Dow only has a short operating history. The dividend increased once since the de-merger but has remained constant since 2020. But the company is the highest yielding Dog of the Dow with a dividend yield of approximately 5.4%, three times the average for the S&P 500. In addition, the dividend is safe with a conservative payout ratio of about 28%.

Dow’s stock price declined since the fear of recession increased, and commodity chemical demand may decrease. The stock has fallen ~23% in the past month, pushing the forward price-to-earnings ratio (P/E ratio) to about 6.6x. Investors are getting a high-yield stock at a relatively low valuation.

Verizon Communications (VZ)

Next on our list of Dow stocks to buy for income, Verizon (NYSE:VZ) is one of the successor companies of the original AT&T breakup. The company started as Bell Atlantic, but after the merger with GTE, it changed its name to Verizon. Today, the telecommunications giant is one of three market leaders in wireless in the U.S.

Verizon’s business is vast with about 115 million retail wireless connections, of which ~91.4 million are postpaid, and the remainder are prepaid. Verizon’s scale makes it an oligopoly with AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS), which combined have 90%+ of the prepaid market. In addition, it has 7 million broadband connections, including ~6.6 million FiOS connections. The company has exited the fixed wireline market except in the Northeast.

Verizon earned $134,300 million in the last 12 months, of which about 75% to 80% is from the wireless business. Much of the company’s revenue is recurring and arguably inflation and recession-resistant. Consumers and businesses are less likely to give up cell phone service, which is a necessity.

Although Verizon has a stable revenue stream, it does not see much organic growth. Revenue growth averages about 1% to 2% annually. In addition, a significant acquisition or merger is unlikely based on the risk of reduced competition. However, Verizon has grown through bolt-on acquisitions like Tracfone and XO Communications.

The main argument for owning Verizon is the 5%+ dividend yield combined with consistent dividend growth and solid dividend safety. Verizon is a Dividend Contender with 18 consecutive years of increases. The dividend growth rate is remarkably steady at about 2% annually. In addition, the relatively low payout ratio of ~47% means the yield is safe.

The stock price is down only about 2.8% year to date and down 9.3% in the trailing 1-year. Furthermore, the valuation is only about 9.5X, below the 5-year and 10-year range. As a result, investors are getting an undervalued blue-chip Dow Jones stock yielding more than 5%.

Dow Stocks for Income: IBM (IBM)

The final entry for today’s Dow stocks for income, IBM (NYSE:IBM) is one of the largest global IT services companies. It has recently gone through significant changes by acquiring Red Hat and divesting its managed infrastructure services business. Today, IBM focuses on hybrid cloud, software, consulting, and mainframes. The company is the leader in mainframes with 90%+ market share.

Total revenue was $57,637 million in the last 12 months after accounting for the divesture of Kyndryl. Revenue is divided approximately into software (~42%), consulting (~29%), infrastructure (~26%), with the rest from financing and other.

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The company grows organically by selling more services and software to its large customer base. Additionally, IBM is conducting many tuck-in acquisitions for AI, security, cloud and consulting, adding revenue and talent. Some recent additions include Rego Consulting, 7Summits, Bluetab, BoxBoat, Waeg, Turbonomic, SXiQ, and Envizi.

IBM is not the first company that comes to mind as an income or dividend growth stock. However, the dividend yield is ~4.6%, and the company is now a Dividend Aristocrat with 27 years of increases. The payout ratio had risen but is now a more acceptable 68%. However, dividend growth has slowed to less than 1% annually as IBM focuses on deleveraging and growth.

Despite the bear market, IBM’s stock price is up about 5% for the year and 2.9% in the past year. Moreover, the valuation has ticked up to about 14.6x at the higher end of the 5-year range, but IBM is not overvalued.

On the date of publication, Prakash Kolli held a long position in IBM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.

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The S&P 500 recently fell into a bear market, defined as a 20% year-to-date drop, which has ramifications for dividend stocks.

The good news for investors is that the stock market decline has created buying opportunities for long-term investors. Valuations have come down, while dividend yields are relatively higher as share prices continue to fall.

Investors looking for cheap dividend stocks have more options to choose from. The following three dividend stocks have high potential long-term returns due to their future growth, low valuations and solid dividend yields.

Dividend Stocks: Skyworks Solutions (SWKS)

First on our list of undervalued dividend stocks, Skyworks Solutions is a semiconductor company that designs, develops and markets proprietary semiconductor products worldwide. Its products include antenna tuners, amplifiers, converters, modulators, receivers and switches. Skyworks’ products are used in diverse industries, including automotive, connected home, industrial, medical, smartphones and defense.

Revenue grew 14% for the second quarter to $1.336 billion. For the first six months of the fiscal year, total revenue rose 6% while earnings-per-share increased 11% versus the same six-month period last fiscal year.

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Going forward, Skyworks Solutions is expected to generate growth from a number of potential catalysts. Demand for connectivity to start rapidly expanding across multiple essential wireless protocols, including 5G, advanced Wi-Fi and precision GPS.

Skyworks’ management team provided an outlook for the third quarter of the fiscal year 2022. They anticipate revenue between $1.200 billion and $1.260 billion, with non-GAAP diluted earnings per share of $2.36 at the midpoint. We expect 8% annual EPS growth over the next five years.

Skyworks has enjoyed tremendous growth over the past decade thanks to smartphones’ proliferation that use its chips. The company increased EPS by double-digit percentages each year in the past five and 10-year periods. These past two years of 2020 and 2021 saw a significant upturn for many semiconductor companies, including Skyworks.

Skyworks stock trades for a 2022 P/E ratio of 8.4. Our fair value P/E is 15 for Skyworks, which implies significant upside for the stock. Shares also have a dividend yield of 2.4%. Total returns could reach 22% per year over the next five years.

Lennox International (LII)

Next among dividend stocks is Lennox International, a company that manufactures and sells HVAC products (heating, ventilation, and air conditioning). About 94% of sales come from North America (particularly the U.S. and Canada), and about 6% of sales are international.

The company operates through three segments: residential heating and cooling, commercial heating and cooling, and refrigeration, which made up 66%, 21%, and 13% of 2021 sales, respectively. To preface this business, 75% of sales come from replacements, and only 25% of sales come from new construction – which means that this business’s performance isn’t directly tied to new home sales.

On the residential side, the company is focused on geographic expansion of their store footprint, so they can serve more households. At the end of 2021, the business had 232 stores, and the company expects to add 30 stores in 2022 to bring the store total to 262. The business wants to have 350 stores by 2026.

In the 2022 first quarter, Lennox generated $2.36 in adjusted earnings-per-share, up 4% year-over-year, and revenue increased 9% year-over-year to $1.01 billion. Revenue and profits grew in the residential and refrigeration segments. Overall, the strong performance on the residential side masked underperformance on the commercial side.

The company has a strong track record of growth. In the past five years the company grew its earnings-per-share by 12% annually. Dividends rose 18% per year in the same period. Lennox International has grown dividend payments for 14 consecutive years.

Lennox stock trades for a 2022 P/E of 14.2, which is significantly below its 10-year average around 21. Lennox recently hiked its dividend by 15% and the stock now yields 2.1%. We also expect the company to grow earnings-per-share by 10% per year. As a result, total returns could exceed 20% per year over the next five years.

Dividend Stocks: Ally Financial (ALLY)

Ally Financial, our last dividend stocks entry, provides financial services to consumers, businesses, automotive dealers and corporate clients. Its segments include automotive finance, insurance, mortgage finance and corporate finance. Its services include term loans, lines of credit, fleet financing, vehicle financing, commercial insurance products, etc.

Ally also has a held-for-investment consumer mortgage finance loan portfolio with mortgages that were originated by third parties.

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Ally reported first-quarter earnings results on April 14. The company reported revenues totaled $2.1 billion during the quarter, which was 11% more than its revenues during the same quarter a year ago.

Ally originated $12 billion in new consumer auto loans during the quarter and managed to grow deposits by $1.3 billion during the quarter. At the end of the quarter, retail deposits totaled $136 billion. Due to lower provisions and higher revenues, Ally’s bottom-line performance improved markedly on a year-over-year basis, and the company managed to hit net earnings of more than $700 million during the quarter.

ALLY stock earnings-per-share during the first quarter were strong, as the company generated profits of $2.03 per share. Earnings-per-share showed a strong recovery in 2021, as earnings-per-share hit a new record level of $8.60. It is expected that Ally Financial’s earnings-per-share will decline in 2022 due to lower reserve releases, but profits should nevertheless remain well above pre-pandemic levels this year. We expect 3% annual EPS growth over the next five years.

Ally is a shareholder-friendly company that returns cash aggressively through buybacks and dividends. On Jan. 11, the company simultaneously announced a 20% dividend increase and $2 billion share buyback authorization, which represents approximately 18% of the stock’s current market cap. Shares currently have a dividend yield of 3.5%.

The company has increased its dividend for six consecutive years. Ally will pay around 15% of its earnings in the form of dividends this year. This low of a payout ratio leaves plenty of room for future dividend increases.

The stock trades for a 2022 P/E ratio of just 4.3; our fair value P/E is 7.5 which leaves potential returns above 17% per year over the next five years.

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

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Another market downturn is upon us, threatening to disrupt individual investment and retirement portfolios — and financial lives. However, as is usually the case, bear markets come and go, and economies and markets recover to print new record highs. As the market benchmark, the S&P 500 index, fell more than 20% year-to-date and into a technical bear market, now could be one of the best times to check out beaten-down growth stocks to buy for a rich retirement in the long term.

Honestly, the irritating and depressing losses in your stock portfolios hurt emotionally, but they remain just paper or electronic losses — unless you sell. History tells us to remain faithful and invested in the stock market during such tumultuous times. Actually, for someone building a retirement nest egg, new contributions deployed during market downturns may produce better capital growth and better dividend-adjusted returns than the capital invested at all-time highs in 2021.

In his letter to Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) shareholders back in 1990, investing legend Warren Buffett wrote that “the most common cause of low prices is pessimism — some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.”

Pessimism and fear have grown in abundance in the U.S. stock market this year. Some growth stocks with very high capital gains potential lie beaten down today. Growth names have been substantially punished. The iShares Russell 1000 Growth ETF (NYSEARCA:IWF) is down more than 25% year-to-date. However, some of the beaten-down growth stocks do have very solid fundamentals. They have a higher capacity to survive any prolonged economic downturn and emerge much stronger businesses once the troubles of this low sentiment season are over.

If the U.S. manages to avoid a recession this year (by chance) or the economy bounces back from one relatively quickly, the growth stocks on my top-buy list could report above-average earnings growth rates and make investors enjoy a richer retirement over the next decade. Perhaps it’s time to start getting greedy while everyone else is getting fearful.

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Let’s have a closer look at my current favorite growth stocks to buy for a richer retirement.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Solid Power is one of the electric vehicle (EV) battery stocks that retain the element of surprise and could disrupt a fast-growing $560 billion global EV battery market. It kickstarted a pilot production line recently and could be a favorite candidate to fit the next-gen breakthrough battery tech in a road-driven car ahead of popular favorite QuantumScape (NYSE:QS).

Solid Power stands to gain market traction if its pilot production project registers success. The company made a significant step toward producing its first EV battery to deliver to partners after the installation of a pilot production line. In a March update, all required equipment for the larger 100 amp-hour battery production line has been delivered — management claims.

The company believes its battery design won’t require re-tooling and redesigns of existing battery manufacturing plants (as opposed to QuantumScape’s design). Thus, once proven successful, the company’s battery design could be licensed to any of the battery manufacturing giants leading the global lithium-ion battery market today.

SLDP stock stands to rally if the company were to scale-up operations quickly and grow sales at a fast clip within the next two or three years. The company won’t need the significantly dilutive capitalization to build new factories as its most popular competitor currently does.

The lithium-ion battery market may get disrupted soon, and the era of new solid-state battery technology with higher power density, fast charging capacity and cheaper battery packs with low fire hazards is on the horizon. Solid Power could be a growth stock to buy for its potentially high upside over the long term if it leads in the new transformative mobility-enhancing solution.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is a semiconductor chip designer that has executed a growth strategy well over the past decade. The company achieved a 56% compound annual growth rate (CAGR) in revenue from $6.7 billion in 2019 to $16.4 billion in 2021. It significantly expanded its operating profit margins during the three-year period from 9% in 2019 to 22% by 2021. AMD is a promising growth stock to buy after its significant drop so far this year. Shares could be a great performing retirement asset as the company plans to return 40% of free cash flow to shareholders.

In a recent corporate presentation, AMD’s acquisition of Xilinx in 2021 increases the revenue contribution of the high-margin data center and embedded segment in the revenue mix from 25% of total sales to 40%, leading to a non-GAAP margin expansion for 2022. Market worries of a potentially weak PC market are thus drowned as AMD’s total addressable market (TAM) grows to a staggering $300 billion.

AMD stock is down 40% year-to-date as tech sector valuations shrunk in 2022. However, investors who buy AMD stock during the current market correction could lock in hefty returns if the company’s projected 20% per annum growth rate in diversified revenues gets realized over the next three to four years.

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Actually, AMD could be a cheap growth stock to buy right now as shares trade cheaply today.  Its low forward price-to-earnings ratio of 19.9 and a very low price-to-earnings growth ratio of 0.5 imply that AMD stock is undervalued relative to its future earnings growth potential.

Roblox (RBLX)

Online gaming platform provider and videogame publisher Roblox (NYSE:RBLX) is a typical youth-focused growth stock to buy on the dip during the 2022 market decline. Although Roblox stock has declined by 66% so far this year to trade below its IPO price, chances of a strong long-term recovery seem very strong.

According to a recent report, Roblox’s average active users increased by 17% year-over-year to 50.4 million in May, and revenue for the month could be up 30% from comparable numbers last year. Revenue and cash flow are growing in leaps and bounds.

The company may not be profitable today. But it’s generating massive amounts of positive free cash flow every quarter — for five consecutive quarters now. Positive free cash flow cushions the business from the vagaries of trying to borrow or raise new capital during a recession or a period marked by depressed capital market enthusiasm.

Roblox is a growth stock to buy right now for its growing closed garden ecosystem that keeps business within its walls. An in-house game engine, publishing platform, online hosting services, marketplace payment processing and a buzzing social network give the company multiple revenue sources and unparalleled business development insights.

Autodesk (ADSK)

Autodesk (NASDAQ:ADSK) has revolutionized how architectural design, engineering and construction teams go about their work since 1982. The design software company’s growth into media and entertainment in the 1990s opened new growth frontiers, and its visual effects software was used in award-winning productions, including the 2009 film Avatar. Autodesk’s stock price has risen as the business has grown, and there could still be massive growth ahead.

Wall Street sees Autodesk growing its revenue by 14.3% this calendar year and by another 14.2% in the next year, but earnings per share could grow at a faster clip (29.1% for 2022 and 20.5% for 2023). Autodesk reported $1.46 billion free cash flow in 2021, and the company could generate a record $2 billion free cash flow this calendar year according to its management’s latest financial outlook.

Autodesk’s billings may grow at 18% to 21% for fiscal year 2023, which ends in January next year, while revenue grows at 13% to 15% during the period. Hence, the company is winning more subscription customers — a huge source of high quality, recurring earnings and growing cash flow.

Cash flow is the lifeblood of any enterprise, and growing free cash flow could allow Autodesk to reinvest in growing its operations, acquiring new customers and even scooping up good and promising businesses through acquisitions during a down market.

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Autodesk is a good growth stock to buy for its growing earnings, robust and sticky customer base and strong future cash flow generating capacity which opens up new possibilities.

Datadog (DDOG)

Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model. Its enterprise software platform could prove mission-critical and attract sticky demand — even in a recession. The company broke into profitability two quarters ago, and Datadog’s revenue and earnings performance could attract more investors back to the high-growth tech stock.

After a 41% decline that saw it print new 52-week lows before recovering somewhat, DDOG stock is back to its 2020 trading levels. However, the company generated more than four times its ($83 million) 2020 free cash flow over the past twelve months ($336 million) and could grow earnings at increasing rates over the next few years.

Datadog’s earnings per share (EPS) are estimated to grow to 74 cents in 2022. Analysts have increased Datadog EPS projections for this year by 45% over the past 90 days. Wall Street sees DDOG profits rising 42% year-over-year in 2023 and projects a strong 48% compound annual earnings growth rate for Datadog over the next five years.

It’s highly likely that DDOG stock could generate significant capital gains in the long term and enable investors to enjoy a rich retirement.

DigitalOcean Holdings (DOCN)

DigitalOcean Holdings (NYSE:DOCN) is another cloud computing growth stock investors could buy and add to a retirement-focused portfolio today. The company offers on-demand platform tools for developers, start-ups and small and medium businesses — a growing market that usually lacks in-house IT support staff.

Critical to the DigitalOcean business model is its simplified cloud computing interface that users without formal training can practically use to create and develop tools, and the company offers full-time customer and technical support.

The company became free cash flow positive in 2021 after producing $133 million in cash from operations and spending less on capital investments. Wall Street expects DigitalOcean to double its free cash flow to $52 million in 2022 and report another 80% cash flow growth in 2023 as it reports its first positive GAAP EPS next year.

Cash flow growth and its graduation into positive profitability in 2023 could put DOCN stock price on a strong recovery path over the next few years.

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Wall Street rates DigitalOcean Holdings stock a strong buy today. The average analyst price target on DOCN stock, at $59.20 per share, could represent a 27% potential upside over the next twelve months. However, a full recovery to its 52-week high of $133.40 could mean a strong 186% capital gain if the company’s management continues to execute as well as it has been doing lately.

Nvidia (NVDA)

Last on our list of growth stocks to buy now for a richer retirement is Nvidia (NASDAQ:NVDA). Nvidia is a leading designer of graphics processing chips globally, and its moves into artificial intelligence (AI) and the automotive segment opened up new market verticals that could power strong growth over the next decade or two.

Nvidia’s market dominance in the global gaming graphics market and AI and its clout in the supercomputing market make it an ideal growth stock to buy and hold for the long term. That’s more true if you believe the global supercomputing market, powered by AI and spurred by emerging Web 3.0 applications, is headed for phenomenal growth.

Management sees a $1 trillion total addressable market for Nvidia’s products right now.

Its shares seem expensive with a trailing P/E multiple of 45 times. However, since our discussion is forward-looking, Nvidia’s forward P/E is a respectable 29.6. Wall Street expects the company’s five-year earnings growth rate to exceed 18% per annum. High valuation multiples for NVDA stock may be justifiable.

Shares are down 42% in a market sell-off so far this year. The company’s sustainable profitability, positive cash flow generating capacity and proven leadership capacity in key growth markets in the supercomputing age make NVDA stock a promising growth machine in a retirement portfolio.

On the date of publication, Brian Paradza held Advanced Micro Devices’ (AMD) common stock. He did not hold (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Consider this column a twist on all those “30 Under 30” lists that business news outlets are so fond of publishing. In short, this is “7 Over 30″ but in this case, we’re looking at stocks to buy for those born before 1992.

When looking for buy-and-hold stocks that can fund a comfortable retirement, you want to focus on a few characteristics. You want companies that dominate their industries.

Companies with strong profit margins. Ones which pay rising dividends and have capital allocation policies that reward their shareholders. And you want these companies to have an enduring competitive moat that will last for decades.

As we’ve seen over the past two years, there are a lot of hot ideas that are popular for a minute or two. Cryptocurrencies, SPACs, electric vehicles, FinTech, and the list goes on. However, these have all crashed and burned because they failed to have several of the key traits mentioned above.

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To be sure, there is nothing wrong with speculating in riskier ideas. However, for building a solid retirement portfolio that can withstand any economic shock, you need to aim higher. These seven retirement stocks to buy after age 30 fit the bill.

Visa (V)

Visa (NYSE:V) is the world’s largest credit card network. In some ways, it’s the perfect financial business. Visa takes no credit risk. All the downside around credit goes to the backing bank or credit union behind a card. Rather, Visa is simply there to collect a small fee on each and every transaction.

Visa earns a much higher transaction fee on cross-border purchases involving foreign currencies. As a result, Visa has seen muted profits since the onset of the pandemic. Throw in uncertainties around the economy now, and V stock is near its lowest point in several years.

That makes it a bargain now. Over the longer-term, the trend from cash to plastic will only gain strength, particularly in emerging markets. Visa has plenty of robust growth years ahead of it, and shares will pick back up as soon as global travel normalizes.

Diageo (DEO)

Diageo (NYSE:DEO) is the world’s second-largest spirits company. It is known around the globe for leading brands including Smirnoff, Captain Morgan, Baileys, Don Julio, Crown Royal and Aviation Gin among many others.

In some ways, alcoholic beverages are the perfect industry. It’s always 5 o’clock somewhere. Even during the pandemic, the alcohol industry saw sales rise slightly. With bars closed, consumption simply picked up at home to offset the loss of on-premise sales.

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And spirits are attractive, in particular. They are far less susceptible to craft competition than beer. Unlike wine, there’s little weather concern; the inputs for spirits tend to be much less finicky than grapes. With huge profit margins, brands that last for generations, and a healthy generous dividend policy, Diageo is a perfect centerpiece of a retirement portfolio.

Ecolab (ECL)

Ecolab (NYSE:ECL) is the world’s largest provider of hygiene and sanitation services. It provides these across a number of channels. Think about hotels, cruise ships, fast food restaurants and other such places that need spotless working conditions to keep food safe. Ecolab is the leading supplier there.

It also does pest control, water and chemical treatment for factories and data centers, and a variety of other such fields.

Ecolab is four times as large as its next biggest peer, Diversey Holdings (NASDAQ:DSEY). And, since this field remains fragmented around the world, Ecolab has a long growth trajectory ahead of it in buying up local and regional sanitation and hygiene companies.

ECL stock has had a rough go of it since the onset of Covid-19. Large customers such as hotels have downsized operations due to the virus. This makes Ecolab an interesting economic reopening play as the global travel industry picks back up.

Ecolab, like others on this list, has a long history of generating increasing free cash flow and using that to pay increasing dividend payments to shareholders. With ECL stock down 36% year-to-date, shares are a strong buy here.

American Tower (AMT)

American Tower Corporation (NYSE:AMT) is the leading private sector owner of telecommunications infrastructure sites around the world. American Tower, in fact, now owns more than 200,000 such facilities.

This is a great business model. American Tower can rent each location to multiple telecom carriers, thus engineering significant economies of scale. And the business has low recurring cost. Once the land is acquired and the tower is built, the amount of ongoing capital to run the business is minimal.

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This is wonderful in inflationary conditions such as now. American Tower is protected from inflation with built-in rent adjustments in its contracts. And the value of its debt obligations diminishes as inflation weakens the value of the dollar.

REITs tends to fare alright during inflation, and American Tower is among the best positioned. Throw in a dividend — now yielding 2.32% — that historically has increased at a rapid rate, and this is a great growth and income pick today.

Nike (NKE)

These are rough times for consumer products companies with significant exposure to China. And Nike (NYSE:NKE) isn’t completely immune.

As China has re-entered Covid-19 lockdowns, demand has dried up. More broadly, there are serious questions around the health of China’s economy and real estate market.

This has contributed, to a major degree, to the stunning slump in Nike shares. The worldwide footwear and apparel giant has seen shares plummet 35% year-to-date. And yes, Nike faces major obstacles in Asia. U.S. sales could also see declining profitability amid high inflation and persistent supply chain issues.

Stock watchers are bracing for less-than-stellar results next week when the shoemaker reports fourth-quarter earnings on June 27.

However, this is Nike we’re talking about. A company that has grown earnings at 13% per year and free cash flow at 16% a year compounded over the past decade. And it’s a company that can use those robust cash flows to support share buybacks and a rapidly increasing dividend. Thinking about investing in Nike now? As the motto goes, “Just do it.”

3M (MMM)

3M (NYSE:MMM) is a diversified industrials company with product lines covering safety and industrial, transportation and electronics, healthcare and consumer products. The company sells everything from Post-It Notes to safety helmets, airplane tray tables, dental adhesives and thousands of other such niche products. And, no doubt the company’s N95 masks saved countless lives over the past two years.

MMM stock has fallen from a peak of $250 a few years back to just $130 today. That has come amid supply chain and inflationary issues, some product liability concerns, and also general fears around an impending recession.

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However, for investors concentrating on building their retirement assets, this is a great opportunity. Incredibly enough, shares are now going for just 13 times earnings for this industrial powerhouse, and that’s with earnings still expected to grow nicely over the next two years.

Meanwhile, shares are paying a mouth-watering 4.6% dividend yield. And, 3M has increased that dividend payment every single year dating back to 1959. Now that’s consistency right there.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) has long been a one-stop shop for healthcare. The company has dominant franchises across pharmaceutical drugs, medical devices, OTC treatments and consumer products. J&J takes a holding company approach to its product portfolio, with individual operations having a great deal of autonomy.

This has allowed J&J to ride the healthcare waves for more than a century now. When one business — such as medical devices during the pandemic — struggles, another tends to see results pick up.

In any case, Johnson & Johnson has managed to increase its dividend an admirable 59 years in a row. This makes the company a bedrock of any future retiree’s growth and income portfolio. And with shares selling for less than 17 times forward earnings, JNJ stock is currently on offer at an attractive price.

On the date of publication, Ian Bezek held long positions in V, DEO, ECL, AMT, NKE, MMM, and JNJ stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Mega-cap stocks are defined as stocks with market capitalizations above $200 billion. These represent the largest businesses in the world. Mega-cap stocks have built-in competitive advantages such as strong brands and global scale.

Since they are larger and generally more stable businesses, mega-cap stocks could outperform small-caps or mid-caps in a bear market. As a result, investors looking for quality stocks with reliable dividends in a recession should consider the following 3 mega-cap stocks.

Mega-Cap Stock: Apple (AAPL)

Apple (NASDAQ:AAPL) is a technology giant that manufactures devices such as iPhones, iPads, Mac, Apple Watch and Apple TV. Apple also has a services business that sells music, apps and subscriptions. Apple’s market cap exceeds $2 trillion.

The tech sector is usually notorious for volatility during recessions. But Apple stock is a very stable company, even for a tech stock. In the most recent quarter Apple generated revenue of $97.278 billion, an 8.6% increase compared to Q2 2021. Product sales were up 6.6%, led by a 5.5% increase in iPhones (52% of total sales). Service sales increased 17.3% to $19.8 billion and made up 20% of all sales in the quarter. Earnings-per-share of $1.52 per share rose 8.6% year-over-year.

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Going forward Apple’s earnings growth will be driven by several factors. One of these is the ongoing cycle of iPhone releases. In the long run Apple should be able to grow its iPhone sales. Moreover, in emerging countries where consumers have rising disposable incomes, Apple should be able to increase the number of smartphones it is selling in the coming years.

In addition, Apple’s Services unit which consists of iTunes, Apple Music, the App Store, iCloud, Apple Pay, etc., has recorded a significant revenue growth rate in recent years. Services revenues grow at a fast rate and produce high-margin, recurring revenues.

Apple is arguably the safest tech stock, not just because of its huge size and stable business model, but also because of its tremendous balance sheet.

As of the most recent report Apple held $51.5 billion in cash and securities, $118.2 billion in current assets and $350.7 billion in total assets (of which an additional $141.2 billion are non-current securities) against $127.5 billion in current liabilities and $283.3 billion in total liabilities.

Shares currently yield 0.7%, which is a fairly low yield. However, Apple is a strong dividend growth stock. The company has come through with 10 years of consecutive dividend increases since initiating its dividend a decade ago. In April, the company increased its dividend by 4.5%. And with a 2022 expected dividend payout ratio of just 15%, Apple has plenty of financial cushion to continue increasing its dividend each year, even in a recession.

Walmart (WMT)

Walmart (NYSE:WMT) is a discount retailer and dominates the industry. It is the largest retailer in the world, serving more than 230 million customers each week. Annual sales reach nearly $600 billion for Walmart, and the stock has a market cap above $300 billion.

In the 2022 first quarter, revenue grew 2.4% to $141.6 billion. Adjusted earnings-per-share came to $1.30 for the quarter. Comparable sales were up 3% year-over-year in the U.S., and up 9% on a two-year stacked basis. eCommerce growth was 1% year-over-year, but up 38% on a two-year stacked basis as demand for online shopping continues to grow.

Sam’s Club comparable sales rose 10.2% year-over-year, and the two-year value was +17.4%. Membership income at Sam’s Club was up 10.5% year-over-year.

We have a positive long-term outlook for Walmart’s earnings growth, even with the near-term challenges of inflation. The company continues to buy back stock as well, which is a tailwind for earnings-per-share growth. We see low single-digit sales growth each year, with its e-commerce business being the primary driver of top line growth. That combination should be good enough to create mid-single-digit growth without the benefit of margin expansion.

Walmart is one of the most recession-proof business models in the entire stock market. During recessions, consumers usually shift their spending habits, seeking out lower prices. It could actually be argued that Walmart benefits from recessions.

To that end, consider that Walmart managed to increase earnings steadily during and after the Great Recession of 2007-2010. Hard economic conditions tend to send consumers on the margins to Walmart, which is also an advantage. A similar dynamic played out during the coronavirus pandemic, when Walmart remained highly profitable.

Walmart has increased its dividend for over 40 years, making it a Dividend Aristocrat. Shares currently yield 1.8%. The stock has a 2022 dividend payout ratio of 35%, indicating a safe dividend.

Mega-Cap Stock: Pfizer (PFE)

Pfizer (NYSE:PFE) is a global pharmaceutical company that focuses on prescription drugs and vaccines and has a market cap above $270 billion. Pfizer’s new CEO completed a series of transactions significantly altering the company structure and strategy. Pfizer formed the GSK Consumer Healthcare Joint Venture in 2019 with GlaxoSmithKline plc, which includes Pfizer’s over-the-counter business. Pfizer owns 32% of the JV. Pfizer spun off its Upjohn segment and merged it with Mylan forming Viatris for its off patent, branded and generic medicines in 2020.

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The company is seeing strong growth right now from several factors, such as new products as well as its Covid-19 therapies. In the first quarter, revenue rose 77% to $25.66 billion. Adjusted earnings-per-share soared 72% year-over-year.

Pfizer generated nearly $15 billion in revenue last quarter just from its Covid-19 vaccine and anti-viral drug. While this boost is likely to fade over time as the pandemic subsides, the mRNA vaccine technology will be tried in two protease inhibitor antiviral compounds, a flu vaccine, a shingles vaccine, a breast cancer therapy, hemophilia gene therapy, a Lyme vaccine, RSV Adult vaccine, and others.

Therefore, this could be a longer-lasting tailwind than the market realizes. Pfizer completed its acquisition of Arena Pharmaceuticals for etrasimod and announced the acquisition of ReViral for its RSV programs.

Overall, Pfizer has a strong pipeline in oncology, inflammation & immunology, rare diseases, and vaccines. We are expecting 5% earnings per share growth out to 2027 (beside the COVID-19 vaccine and anti-viral). This should be enough growth to continue raising the dividend over time, which currently yields 3.3%.

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

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We believe the best way to accrue wealth over the long-term is to find high-quality dividend stocks, hold for long periods, and reinvest dividends in additional shares over time. This strategy is simple, but very effective when it comes to investors gradually building wealth over their lifetime.

However, if the investor selects poor stocks, the buy-and-hold strategy for the long-term doesn’t work; we need companies that have sustainable advantages, and therefore, the ability to continue to raise their dividends to shareholders over time.

One place to start when looking for such stocks is the list of blue-chip stocks, which is a group of high quality dividend stocks that have raised their dividends for at least 10 consecutive years. This would include stocks that only began paying dividends fairly recently – such as technology stocks, for instance – and companies with much longer histories in traditional dividend sectors like utilities and consumer staples.

The list is diverse, and in this article, we’ll highlight three we think can continue to pay their dividends through a recession.

Blue-Chip Stocks: Qualcomm (QCOM)

First on our list of dividend blue-chip stocks is Qualcomm, a technology company focused on the development and distribution of components mainly used in wireless communications. This includes integrated circuits, system software, global positioning systems, and of course, components used in smartphones around the world. Qualcomm is a pioneer in 5G wireless technology, and has been a leader in that space for many years, helping to drive technological advancement over time.

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The company was founded in 1985, generates about $45 billion in annual revenue, and its market cap is $149 billion.

We see growth at 7% annually for Qualcomm, which is roughly congruent with its history in the past decade. The company is somewhat beholden to smartphone upgrade cycles given its 5G-related sales, but it is diversified enough that we don’t see a recession being a significant problem. Earnings declined in the mid-teens during the last recession, but nowhere near enough to put the dividend at risk.

Revenue gains should drive earnings growth in the years to come, along with a small measure of margin expansion, as well as steady share repurchases.

Given the massive decline in Qualcomm shares thus far in 2022, we see total return prospects as excellent going forward. In total, we think buyers today could see 18% annual total returns over the coming years.

We estimate 7% earnings growth, the dividend yield is good for 2.3%, and the valuation makes up the rest with a massive 9% gain annually possible. Shares go for just 10.4 times this year’s earnings, which is well below our somewhat conservative estimate of fair value at 16 times earnings. Should the stock revert to that valuation, holders of Qualcomm would see sizable capital appreciation.

State Street (STT)

Our next blue-chip stocks company is State Street, a financial services company based in the U.S. State Street isn’t a traditional bank that focuses on deposits and lending products. Rather, it is a custodial bank, meaning it generates the bulk of its revenue from fees rather than interest on loans. State Street, therefore, primarily serves institutions such as investment firms, pension funds, insurance companies, endowments, and the like.

State Street traces its roots to 1792, making it one of the oldest banks in the U.S. It generates about $13 billion in yearly revenue, and its market cap is $24 billion.

We estimate State Street can grow earnings at 7% annually in the years to come, driven by strong fee generation, and State Street’s inherent insulation from interest rate moves that can be a boon or bust for traditional banks. The bank owns the lucrative and wildly popular SPDR exchange-traded product family, which benefit from inflows of cash into equities. The company’s other fee-generating businesses are diverse and therefore, aren’t especially susceptible to recessions.

We think State Street can provide nearly 20% annual returns from current levels, as the market has priced shares for a recession already. The dividend yield has soared to a very impressive 3.7%, so along with 7% projected growth, and a significant tailwind of almost 10% from the valuation, State Street looks quite attractive. Shares trade for under eight times this year’s earnings, which is a long way from our estimate of fair value at 12.5 times earnings, driving the tailwind.

Blue-Chip Stocks: Dover Corp. (DOV)

Our final stock is Dover Corp., which provides equipment, consumable supplies, aftermarket parts, software and support services for various industrial applications worldwide. It offers products through five segments, offering significant diversification of revenue: engineered products, clean energy and fueling, imaging and identification, pumps and process solutions, and climate sustainability technologies.

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Dover was founded in 1947, generates $8.6 billion in total revenue, and trades with a market cap of $18.5 billion. Dover also holds one of the longest dividend increase streaks of any company in the world at 66 years.

We estimate 8% annual earnings growth for Dover, driven largely by revenue gains. The company buys back a very small amount of stock, but Dover’s growth is largely driven by revenue and associated margin gains. Growth has been lumpy at times in the past, but over the medium term, we expect earnings to be much higher than they are today.

Dover offers the weakest potential returns of the three stocks, but “weakest” is used in a relative sense as we still expect ~13% annual returns for buyers today. Eight percent growth, the 1.6% dividend yield, and a ~3% tailwind from the valuation should see the stock produce strong total returns in the years to come.

Final Thoughts

Finding high-quality dividend stocks is always the best strategy for building wealth long-term, in our view, but that’s especially true during tough economic times, such as recessions.

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We like the blue-chip stocks as a place to start screening for high-quality names, and we’ve highlighted three we like very much. All three have strong growth potential, and very reasonable payout ratios, the combination of which should see them able to pay – and even raise – their dividends into the next recession.

We have buy ratings on Qualcomm, State Street, and Dover and believe their dividends will continue to be raised regardless of whether we enter a recession or not.

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

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While the shaky ground that the equities sector is walking on tempts the idea of acquiring popular investments, you might want to give the top retirement stocks to buy another look. No, these underlying companies aren’t exactly bringing sexy back. But chances are, they won’t put you on your back — at least not like growth-oriented trades that may be vulnerable to extreme volatility.

First off, the top retirement stocks to buy are associated with proven, reliable businesses. Because of their track record, they are less likely to crumble, even under sizable market pressure. Better yet, during a downturn, consumers will gravitate toward the essentials, which naturally benefits blue-chip entities. Therefore, you can at least sleep a little easier at night.

Second, the top retirement stocks to buy offer a balanced mix of capital gains potential with decent dividend payouts. Such an attribute will be particularly important during this inflationary cycle, where the greenback has dropped 11.3% of purchasing power between April 2020 through April 2022.

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Of course, you want to stay diversified since no guarantees exist in the capital markets. However, if you’re looking for relatively safe progress, consider these top retirement stocks to buy in June:

Retirement Stocks to Buy: McDonald’s (MCD)

One of the most recognizable names in American business, fast-food giant McDonald’s (NYSE:MCD) easily ranks among the top retirement stocks to buy. Featuring a powerful and influential consumer brand, McDonald’s as of 2021 had 40,031 restaurants under its belt. This figure may have dipped due to the conflict in Eastern Europe. Still, upcoming fundamentals boost MCD’s prospects.

First, the grand work-from-home experiment could be coming to an end. Even Elon Musk of Tesla (NASDAQ:TSLA) weighed in on this topic, implying through a series of emails that his employees must return to the office or face the consequences. If so, McDonald’s could see rising traffic as worker bees head over there to escape the drudgery with well-caffeinated beverages — and perhaps some fries.

Second, if a recession capsizes the economy, McDonald’s offers an escape, a form of cheap entertainment. Basically, it’s the same thesis that drove the Golden Age of Hollywood during the Great Depression. Therefore, I like MCD as a surprisingly relevant idea among the top retirement stocks to buy.

BlackRock (BLK)

No stranger to controversy, BlackRock (NYSE:BLK) generated some unwanted headlines throughout the new normal as it courted severe criticisms that it and other asset managers were buying up residential homes, thus killing the American Dream. In turn, BlackRock issued a statement on its website that it is “not buying individual houses in the U.S.”

We report, you decide, I guess.

In all seriousness, despite the less-than-ideal reputation that BlackRock carries, it’s the world’s largest asset manager. And that means at some point, investors ought to consider BLK stock as one of the top retirement stocks to buy. No, you’re probably not going to score environmental, social and governance (ESG) creds with BlackRock. But chances are, you’ll end up in a better position investing in it than against it.

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Further, the company is in the business of helping its clients navigate good times and bad, making it appropriate for our times. Finally, a solid 2.95% dividend yield should help you in the decision-making process.

Retirement Stocks to Buy: NextEra Energy (NEE)

Upon Russia’s reckless and destabilizing invasion of Ukraine, the hydrocarbon sector immediately skyrocketed. While fuel costs were already elevated because of inflation, the sudden loss or restriction of global oil and gas supplies exacerbated an already tense situation. However, in the long run, the disruptive event should serve as a long-term catalyst for NextEra Energy (NYSE:NEE), one of the top retirement stocks to buy.

As the world’s largest producer of wind and solar energy, NextEra is already well ahead in a game that many nations suddenly want to play. According to the Yale School of the Environment, several European countries have begun fast-tracking their sustainable energy initiatives following Russia’s attack. To be fair, such initiatives will likely take time. However, the broader pivot to renewables should make NEE stock even more compelling.

Admittedly, the company’s 2.06% dividend yield is nothing to write home about. However, for patient investors, NEE could make up for it through long-term growth in capital gains.

Verizon Communications (VZ)

As one of the world’s biggest telecommunications conglomerates, Verizon Communications (NYSE:VZ) makes for an intriguing idea among the top retirement stocks to buy. Essentially, Verizon represents access to technology and connectivity that households can’t afford to lose. Almost in the same vein as food and water, Verizon might act as a “sacrosanct” investment.

According to data complied by Statista.com from a February 2021 survey, “nearly half of the respondents stated that on average they spent five to six hours on their phone on a daily basis, not including work-related smartphone use.” That type of loyalty and commitment is not easy to separate from.

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But beyond our digital addiction, Verizon is an absolute necessity. From the mobile connectivity angle to broadband services, Verizon offers everything a modern household needs — and this especially rings true if the gig economy expands significantly. Plus, the company’s 4.96% dividend yield is a selling point all on its own.

Retirement Stocks to Buy: BHP Group (BHP)

An Australian multinational mining, metals and petroleum firm, BHP Group (NYSE:BHP) is one of the largest businesses of its kind. It’s also one of the top retirement stocks to buy that’s benefitting from a surge in relevance. On a six-month basis, BHP shares are up nearly 8.7%, with momentum continuing to build favorably.

While renewables represent perhaps the most popular topic in the broader energy sphere, you can’t take hydrocarbons out of the picture entirely. Primarily, it’s a scientific matter: fossil fuels command incredibly high energy density. There’s also the matter of capacity factor, or the reliability of power production. Here, wind and solar are the lowest ranked among energy sources.

But what makes BHP Group special under these circumstances is its diversified business. Commanding a range of high-demand products, such as copper, nickel and potash, BHP is something to keep in your back pocket. Plus, its forward yield of 10.7% should draw some interested eyes.

3M (MMM)

I’ll be the first to admit that I’ve had a like/dislike affair with industrial conglomerate and applied sciences firm 3M (NYSE:MMM). Out of the companies that enjoyed increased demand because of the coronavirus pandemic — remember the N95 respirators? — 3M is one of the more disappointing. In fact, as of this writing, MMM is trading below the highs it reached just prior to the global health crisis.

Still, it’s important to remember that 3M is a massive and incredibly diversified company. With a product portfolio that consists of 60,000 individual brands, 3M is virtually guaranteed to stay relevant through any market cycle. As a result, the company consistently generates robust earnings and positive free cash flow.

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To be fair, the stock itself has been lackluster, taking it on the chin during a volatile year so far. However, this could be a discounted opportunity as consumption patterns pivot from discretionary categories to essential and utilitarian ones. Additionally, 3M has a very solid 4.1% dividend yield.

Retirement Stocks to Buy: Walgreens Boots Alliance (WBA)

Best known for its ownership of retail pharmacy chains, Walgreens Boots Alliance (NASDAQ:WBA) has the advantage of permanent relevance. No matter how many advancements humanity forwards, we will still be beholden to core needs. And as the Covid-19 pandemic proved, some of our biggest threats happen to be the most diminutive.

Just by the numbers, WBA makes for an intriguingly bullish case. According to Precedence Research, the global pharmacy market size was $1.07 trillion in 2021. Experts project that this segment will expand by a compound annual growth rate of 4.7% between 2022 and 2030, culminating in a market size of over $1.6 trillion by the end of the forecasted period.

Encouragingly, Walgreens has demonstrated year-over-year revenue growth for its most recent quarter. In addition, the company features solid fundamentals throughout. Combined with a 4.48% dividend yield, WBA is one of the top retirement stocks to buy in June.

On the date of publication, Josh Enomoto 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.

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Dividend growth investing can be an excellent way to produce secure cash flows in retirement. Markets go up and down, but dividends often grow, especially when one invests in quality companies.

With most companies distributing dividends on a quarterly basis, investors needing predictable monthly cashflows could face some uncertainty due to the timing of payments.

The good news is that there are a number of securities that pay dividends on a monthly basis, helping to deliver a steady stream of income. Real estate investment trusts (REITs) are some of our favorite monthly paying stocks as REITs are required by law to distribute the vast majority of income in the form of dividends.

Here are three of our favorite monthly dividend stocks.

Monthly Dividend Stocks: Realty Income (O)

Our first entry of monthly dividend  stocks to consider is Realty Income (NYSE:O), which specializes in single-tenant standalone properties. The trust is valued at $41 billion and generates annual revenue approaching $2 billion.

Realty Income has more than 11,100 properties in its portfolio, giving the trust an expansive reach that is largely unmatched by competitors. The trust operates a highly diversified business model, with more than 1,000 clients in 60 industries across 50 U.S. states and Puerto Rico. Realty Income has also expanded its business into Europe, with properties located in Spain and the U.K.

The trust’s top 20 tenants account for 42% of properties and include names such as Walgreens Boots Alliance (NASDAQ:WBA), Dollar General (NYSE:DG), CVS Health (NYSE:CVS), Home Depot (NYSE:HD) and Amazon (NASDAQ:AMZN). Just three tenants represent ~4% of the portfolio and nearly half of properties are leased to investment grade tenants.

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Realty Income is diversified across industries as well, with the top three of grocery stores, convenience stores and dollar stores contributing 10.2%, 9.1%, and 7.5% of annual revenue, respectively. Geographically, only Texas makes up more than 10% of properties.

Realty Income has made several moves to improve the quality of its business. Last November, the trust finalized its merger with VEREIT, which held nearly 4,000 single-tenant properties. Overnight, Realty Income become a leading property manager in the U.K. and Spain. As a result, the U.K. now holds the second largest number of properties for the trust at nearly 8% of the total.

The trust then spun off its office property business, which had been among the weakest areas of the business during the worst of the Covid-19 pandemic, into Orion Office REIT (NYSE:ONL). Following these strategic endeavors, Realty Income simultaneously strengthened its portfolio and expanded its operations.

Realty Income has earned the title Monthly Dividend Company because it has distributed dividends on a monthly basis since its IPO in 1994. In total, the trust has declared more than 620 consecutive monthly dividends. The dividend has a compound annual growth rate of more than 5% over the last decade. The dividend appears to be on very stable ground as the projected payout ratio for this year is 75%, lower than the 10-year average of 84%. Shares currently yield 4.4%, nearly three times the average yield of 1.5% for the S&P 500.

SL Green Realty (SLG)

Next up is SL Green Realty (NYSE:SLG), which owns, develops and leases office properties in the New York City metropolitan area. The trust had revenue of just over $678 million in 2021 and has a current market capitalization of $3.7 billion.

SL Green Realty’s portfolio includes 35 million square feet of office space spread out over 70 buildings, making the trust the largest owner of office space in Manhattan. This area has been synonymous with the financial industry for a long period of time, making the trust’s properties ideally located for companies in this space.

One cautionary item is that SL Green Realty is beholden to the operating environment within New York City given the density of its portfolio. When Covid-19 first emerged, restrictions were implemented to slow the spread of the virus and  the fallout meant that companies tightened their budgets. With many employees working from home, office space wasn’t a large need. At one point, Manhattan office buildings were less than 15% occupied.

That has changed, with the majority of unoccupied office space now having a tenant. SL Green Realty’s portfolio was close to 93% occupied as of the most recent quarter, showing that the trust’s properties remain in high demand following the unprecedented actions that were taken in 2020.

While SL Green Realty does lack geographic and industry diversification, the trust is increasing becoming attractive to the technology sector. New York City is now one of the largest employers in the tech sector, giving SL Green Realty a potential additional avenue for growth. Pivoting away slightly from just financial sector tenants would provide some diversification to the trust’s business model.

SL Green Realty ended the last quarter with nearly 4 million square feet of properties in development, which would further add to the trust’s leading position in its area of operations. The majority of SL Green Realty’s leases range from seven to 15 years. The length of the agreements provides the trust idea of what revenue will look like in the future.

SL Green Realty joined the list of monthly dividend stocks in 2020. The trust has raised its dividend for 11 years and with a CAGR of 14.5% over the last decade. The expected payout ratio for 2022 is 57%, higher than the 10-year average of 41%, but still quite low for a REIT. The stock yields 6.5%, more than four times the market index average.

Monthly Dividend Stocks: STAG Industrial (STAG)

Our final name on this list of monthly dividend stocks is STAG Industrial (STAG), which specializes in industrial real estate properties. The $6 billion trust produced revenue of $562 million last year.

STAG Industrial is very much a niche business as it is the only public pure-play industrial real estate company. This is a significant advantage because potential tenants are limited in their choices when it comes to leasing a facility.

Unlike SL Green Realty, STAG Industrial has a highly diversified business model. The trust owns and leases 553 buildings across 40 U.S. states. STAG Industrial tenants are found in more than 45 industries. The trust counts Amazon as its largest contributor to annual base rents, but this one tenant amounts to just 8% of yearly totals.

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The top 20 tenants account for less than 20% of annual rent, with each company’s annual revenue ranging from $50 million to $100 billion. This level of diversification protects STAG Industrial from weakness in any one area, whether its geographic region, industry, or company size.

STAG Industrial has grown quickly since going public in 2021. The trust now has more than 110 million square feet of leasable space as the property total has climbed from 93 to its current total. This expansion continues has the trust had almost $4 billion of deals completed through the first four months of 2022. And with a total addressable market value of $1 trillion, STAG Industrial, thanks to its size, scale, and experience, is likely to continue to grow its portfolio.

STAG Industrial has raised its dividend for 11 years and with a 3.4% growth rate since 2012. The payout is projected to be 66% for this year, well below the long-term average of 85%. Today’s dividend looks safer than it has in a long time. STAG Industrial yields 4.3% today.

Final Thoughts

Investors needing income on a more regular basis should consider owning securities that pay dividends monthly. With less than 50 names that do so, the pickings can be slim. However, we believe there are high-quality companies that have competitive advantageous that should allow for continued dividend growth.

Realty Income, SL Green Realty and STAG Industrial are three such examples of REITs that we believe will continue to pay monthly dividends given the strength of their respective business model.

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

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Look up the term “retirement stocks,” and you’ll pull up many lists, often listing the same basket of widely held, blue-chip stocks. But while a portfolio of such names could provide you with the income and capital growth needed for your golden years, you may want to consider adding a few undervalued retirement stocks into the mix.

In other words, stocks that either sport higher dividend yields than the lauded “dividend aristocrats,” and/or sell at a lower valuation. Such names could help you in two ways. First, stocks with high-yet-sustainable yields could help you maximize portfolio income.

Second, some of these undervalued names could see price appreciation. Either due to market conditions normalizing, or from fixing company-specific issues that are causing negative sentiment at present.

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That’s the story here with these seven undervalued retirement stocks. Each one offers an above-average dividend, plus upside potential.

Devon Energy (DVN)

Skyrocketing oil and gas prices have resulted in a similar move for shares in Devon Energy (NYSE:DVN). This independent energy company is up around 70% year-to-date alone, and up 151% over the past twelve months.

But don’t take that to mean you have missed out on DVN stock. If you’re bullish on energy prices staying high, it’s a great opportunity. If oil and gas prices remain elevated, it will keep reporting high earnings. This may enable it experience further multiple expansion. Shares today trade for around 8.9x earnings.

In terms of its appeal to retirement investors, high energy prices will result in very high dividends as well. Devon pays a fixed-plus-variable dividend. That is, its dividend moves higher or lower based on earnings. If high oil prices aren’t going away, it will continue to sport a high yield (6.66% at current prices).

Enbridge (ENB)

Enbridge (NYSE:ENB) is a great “safe and steady” energy stock. Based in Canada, Enbridge is a large owner of oil and gas pipelines. Changes in energy prices do not materially impact its earnings. If you’re less confident oil and gas will remain at prices not seen in over a decade, this may make a better choice.

Trading for around 20x earnings, ENB stock may not sound “cheap” on the surface. Yet it may be a more than fair price to pay, given the consistency of its dividend. At current prices, it has a forward dividend yield of 5.66%.

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With 10 years of consecutive dividend growth, it has increased its payout by an average of 9.58% per year over the past five years. If you’re looking for steady returns via dividends, Enbridge is a solid choice. Moving higher in recent weeks, consider it a buy.

Gladstone Commercial (GOOD)

Gladstone Commercial (NASDAQ:GOOD) is another of the high-yield undervalued retirement stocks to consider. This real estate investment trust (REIT) has never missed a dividend payment, with zero dividend cuts.

This stability, plus the fact it pays out its dividends monthly rather than quarterly, makes GOOD stock appealing for dividend investors. You can argue that it’s not “undervalued,” in the traditional sense. It doesn’t trade at a discount to its book value. Its valuation on a price/funds from operations (P/FFO) doesn’t scream “deep value,” either.

So then, why consider it a buy? It may be a great vehicle for high yield with limited downside risk. After its pullback in recent months, investors buying today can get a 7.38% annual return via dividends. Its payout consistency suggests a low chance of it becoming a case of yield chasing gone wrong.

IBM (IBM)

Up slightly year-to-date (around 4%), with IBM (NYSE:IBM), market volatility has been outweighed by investors buying into it as a safe harbor play. That’s not all. “Big Blue” has reported strong results in recent quarters.

While obviously a mature tech company, don’t assume that it’s a “dinosaur.” There’s more to like with IBM stock besides its 4.71% dividend yield. The company’s solid fiscal performance has been in large part to its so far successful turnaround. Shedding legacy businesses, it is now focused on its cloud computing and artificial intelligence (AI) segments.

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This could result in steady earnings growth for previously low-growth IBM. In turn, a higher stock price. Due to both its increased earnings, plus a possible expansion of its forward earnings multiple. Offering both a high yield, and upside due to its current low forward multiple (14.3x), investors building a retirement portfolio should take a look.

Altria Group (MO)

Altria Group (NYSE:MO) is another stock that has benefited by the move to “risk off” in recent months. Attracted by its steady earnings and high dividend (6.65% yield), shares in this company, parent of tobacco giant Philip Morris USA, are up around 11% in 2022.

Granted, this sin stock may not be for everybody. There’s no getting around the controversial nature of its business. Not only that, there’s the concern that changes in U.S. tobacco use trends will drag earnings lower over time.

Yet concerns of secular decline may be overblown. Altria could make up for declining cigarette sales through price increases, plus the move of cigarette users to Altria’s other non-cigarette tobacco products. This will enable continued slow and steady earnings/dividend growth. Consider MO stock a buy because of its high yield (6.65%) at a low price (11.x earnings).

AT&T (T)

A lot has changed with AT&T (NYSE:T) in recent months. It has divested its media business. The telecom company is now purely “Ma Bell” once again. Unfortunately, it has also slashed its dividend.

Even so, since the spinoff of Warner Bros. Discovery (NASDAQ:WBD), the “new” T stock has inched higher. While no longer as high-yield as before, a 5.24% dividend is nothing to sneeze at. The company also continues to trade at a low valuation (8.3x). Yes, this stock has a reputation as a “value trap.”

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Yet it could be in the process of shaking off this reputation. Now streamlined, management can focus on improving the profitability of its telecom business, de-lever AT&T’s balance sheet, and make other moves that may enable it to make a further recovery. With steady returns via its payout, plus the potential for upside, add it to your watchlist.

Western Union (WU)

Western Union (NYSE:WU) is another name you can consider to be an undervalued retirement stock. It trades at a low multiple (around 10x), and has a 5.27% forward dividend yield. It’s also a bit of a contrarian play.

The rise of fintech is seen as a possible threat to its old-school payment remittance business. However, like I argued late last year, it may be too soon to say that it will be “disrupted” out of business. Around since the 1850s, it’s no stranger to keeping up with the times.

It may prove the market wrong with steady earnings. Also, it could continue increasing its dividend payout. All of this may result in a move to higher prices for Western Union stock. If you’re looking for a play where going against the grain may pay off, this may be it.

On the date of publication, Thomas Niel held a LONG position in MO stock. He 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.

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Amidst the volatility and declines on Wall Street, dividend stocks with high yields have become a prized commodity among investors. Growing fears that the economy is tipping into recession continue to draw investors into reliable stocks that offer passive income.

Most dividend payers are primarily concentrated in industries that consumers rely on throughout the year, regardless of the economic environment. Such sectors typically include utilities, infrastructure, consumer staples and telecommunications. We should also add real estate investment trusts (REITs) and master limited partnerships (MLPs) to the list of high-yield plays.

So far in 2022, dividend stocks have outperformed broader indices. For example, an exchange-traded fund (ETF) that tracks 75 high-dividend stocks, the iShares Core High Dividend ETF​ ​(NYSEARCA:HDV), has appreciated over 7% year-to-date (YTD). Conversely, the S&P 500 index has lost over 13% since January.

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With that information, here are seven high-quality dividend stocks with high yields that will provide a safe way to position investor portfolios amidst the uncertainty in the stock market.

Brookfield Infrastructure Partners (BIP)

52-Week Range: $52.92 – $69.01
Dividend Yield: 3.5%

Brookfield Infrastructure Partners (NYSE:BIP) is one of the leading operators of infrastructure assets across the globe. Its portfolio includes communications towers, data centers, fiber optic cable, natural gas pipelines, storage, and processing facilities.

The infrastructure giant announced first-quarter metrics on May 4. Revenue increased 27% year-over-year (YOY) to $3.4 billion. Funds from operations (FFO) per unit increased 3% YOY to 96 cents. Cash and equivalents ended the period at $1.97 billion.

The company is capitalizing on soaring demand for infrastructure worldwide. As a result, its FFO was the highest in the partnership’s history.

In May, the company also announced a 3-for-2 stock split. It is expected to take place on June 10. Many investors focus on stock-splits as historically the move has provided positive momentum for such shares.

So far in 2022, BIP stock is trading almost flat. The stock generates a 3.5% dividend yield.

Shares are trading at 89 times forward earnings and 1.5 times sales.  The 12-month median price forecast for Brookfield Infrastructure stock stands at $70.

EPR Properties (EPR)

52-Week Range: $41.14 – $56.38
Dividend Yield: 6.6%

EPR Properties (NYSE:EPR) is a specialty triple-net lease REIT focused on “experiential” real estate properties. They includes vacation resorts, theme parks, movie theaters and other entertainment-oriented sites.

The thematic REIT released Q1 results on May 4. Revenue increased 41% YOY to $157.5 million. Adjusted FFO per diluted share more than doubled to $1.10, up from 48 cents in the prior-year quarter. Cash and equivalents ended the period at $323.8 million.

Analysts concur that such venues could capitalize on the post-pandemic “travel revenge” momentum. Management projects adjusted FFO for 2022 to increase more than 42% to between $4.39 and $4.55.

The REIT generates a 6.6% dividend yield paid in monthly installments. It has a reasonable dividend payout ratio, standing at 75% of its adjusted FFO.

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EPR stock has returned over 5% YTD. Shares are trading at 23 times forward earnings and 6.55 times sales. The 12-month median price forecast for EPR Properties stock stands at $58.50.

Foot Locker (FL)

52-Week Range: $26.36 – $63.98
Dividend Yield: 4.9%

Foot Locker (NYSE:FL) operates footwear and apparel retail stores across the U.S. as well as globally.  Wall Street has not been happy to hear that Nike (NYSE:NKE), a vital supplier to the retailer, has recently taken a direct-to-consumer business approach.

In other words, Nike is now selling a majority of products through its own channels. However, Foot Locker’s management seems confident in its ability to navigate this headwind.

The retail store chain issued Q1 numbers on May 20. Revenue increased 1% YOY to $2.18 billion. Adjusted earnings came in at $1.60 per share, down from $1.96 in the prior-year quarter.

Cash and equivalents totaled $551 million at the end of the period. The group also reaffirmed its guidance for 2022.

So far in 2022, FL stock has tumbled 25%. Nonetheless, it currently generates a juicy 4.9% dividend yield. Shares are changing hands at 7.2 times forward earnings and 0.36 times sales. The 12-month median price forecast for Foot Locker stock is at $32.

Kinder Morgan (KMI)

52-Week Range: $15.01 – $20.19
Dividend Yield: 5.6%

Kinder Morgan (NYSE:KMI) is one of the largest midstream energy firms in North America. It specializes in transporting, storing, and processing natural gas and crude oil as well as refined products.

The midstream giant announced Q1 results on April 20. Revenue declined nearly 18% YOY to $4.29 billion. Adjusted earnings per share came in at 32 cents, down 47% from 60 cents in the prior-year quarter. Cash and equivalents ended the period at $84 million.

The spike in energy prices has allowed Kinder Morgan to secure attractive renewal rates and expansion projects. Moreover, management highlighted that the Russian invasion of Ukraine created more growth opportunities in its gas infrastructure business.

KMI stock currently generates a lucrative 5.6% dividend yield.

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Shares have gained almost 25% YTD. KMI stock is changing hands at 16.3 times forward earnings and 2.75 times sales. The 12-month median price forecast for Kinder Morgan stock stands at $20.

Kraft Heinz (KHC)

52-Week Range: $32.78 – $44.87
Dividend Yield: 4.4%

Food and beverage giant Kraft Heinz (NASDAQ:KHC) is the next of our dividend stocks with high yields. Along with its namesake brands, its product portfolio includes Oscar Mayer, Velveeta and Philadelphia brands.

The food manufacturer released Q1 numbers on April 27. Revenue declined 5.5% YOY to $6.05 billion. Adjusted earnings were 60 cents, down 16.7% from 72 cents a year ago. Cash and equivalents ended the period at $2.98 billion.

Kraft has been increasing prices to compensate for the rising costs of raw materials and transportation. With a large global portfolio, KHC stands out as an inflation-resistant stock. Moreover, the company raised its sales guidance for the fiscal year.

So far in 2022, KHC stock has gained over 2%. It supports an attractive 4.4% dividend yield. Shares have a modest valuation at 14.6 times forward earnings and 1.9 times sales. The 12-month median price forecast for Kraft Heinz stock is at $45.

Viatris (VTRS)

52-Week Range: $9.66 – $15.92
Dividend Yield: 4.1%

Viatris (NASDAQ:VTRS) is an important global generic drug manufacturer. It offers a substantial off-patent branded drug portfolio. It is known for a number of brands, including Lipitor, Xanax and Zoloft.

The pharma play issued Q1 results on May 9. Revenue declined 5% YOY to $4.18 billion. Adjusted earnings came in at $1.13 billion, or 93 cents per share, compared to $1.12 billion in the previous year. The company generated $1.07 billion of free cash flow.

Viatris expects to generate full-year revenues of around $17 billion. It is selling its biosimilars portfolio to Biocon Biologics for $3.3 billion as well.

Recently, Viatris announced the launch of Abevmy, a cancer drug, in Canada. The treatment was approved for use in treating certain types of colorectal, lung, ovarian and brain cancer. Abevmy represents the third cancer treatment that Viatris has had approved by Health Canada.

Earlier in the year, management approved a 9% increase in quarterly dividend, currently offering a yield of 4.1%. Moreover, the board authorized a “Dividend Reinvestment and Share Purchase Plan” in May.

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VTRS stock has declined 13% YTD. Shares look like a bargain at just 3.3 times forward earnings and 0.8 times sales. The 12-month median price forecast for Viatris stock stands at $13.50.

Walgreens Boots Alliance (WBA)

52-Week Range:  $39.72 – $55.82
Dividend Yield: 4.4%

The last of our dividend stocks with high yields, retail pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA), needs little introduction. Over the past year, many Americans have visited one of its stores for Covid-19 vaccine shots. Management has been investing in full-service health clinics and specialty pharmacy management systems.

In late March, Walgreens released Q2 metrics. Revenue increased 3% YOY to $33.8 billion. Adjusted earnings came in at $1.59 per diluted share, up from $1.26 in the prior-year period. Cash and equivalents ended the quarter at $2.03 billion.

Walgreens reported a 14.7% growth in U.S. retail comparable sales, the highest in two decades. Moreover, its focus on digitization led to a 38% increase in online purchases.

This Dividend Aristocrat has raised its payout for over four decades and now has a 4.4% dividend yield.

So far in 2022, WBA stock has lost 17%. Shares are attractively priced at 8.1 times forward earnings and 0.3 times sales. Lastly, the 12-month median price forecast for Walgreens stock is at $48.

On the date of publication, Tezcan Gecgil 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.

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When picking safe retirement stocks to buy, it’s important to prioritize a few traits. A company should have a strong balance sheet to keep it secure during economic downturns. It should pay a dividend, and have a history of raising it at least as quickly as the inflation rate so that your dividend income keeps up with expenses during retirement. Also, the company should have a strong competitive moat or other inherent advantages to ensure that it remains a dominant player in its industry for years to come.

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While smaller or more speculative companies may offer greater upside, an investor focused on retirement is generally seeking to make solid returns while avoiding significant drawdown risk. Once you have made enough to leave the workforce, a top priority is on making sure that the nest egg remains healthy while generating enough returns and income to support a fruitful retirement. These seven safe retirement stocks fit the bill today.

Diageo (DEO)

Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. It is known for a wide variety of brands including Smirnoff, Johnnie Walker, Crown Royal, Captain Morgan, Baileys and Guinness beer.

Diageo has existed in its present form since the 1990s, when the Guinness beer business merged with the Grand Metropolitan spirits company. However, the underlying brands have existed far longer than that. Guinness, for example, was founded in 1759. That’s the sort of longevity that ensures that the company can keep your retirement dividends flowing.

Diageo is a great business because of its industry. Alcohol is a high profit margin product with steady consumption patterns regardless of political and economic developments. Diageo has raised its dividend each and every year dating back to when the company was formed. Shares have also dropped to below 25 times earnings with the recent selloff, making this a fine entry point.

McCormick & Company (MKC)

McCormick & Company (NYSE:MKC) is by far the world’s largest spice company, outselling its nearest rival at least fivefold on an annual basis. The company has a strong competitive advantage for its sheer size. Most grocery stores don’t want to carry many brands of products such as black pepper or oregano, giving McCormick a natural monopoly. McCormick is also the largest player in generic store brands of spices as well.

In addition to the core spice business, McCormick has moved heavily into salsas and hot sauces. Recent purchases such as Frank’s Red Hot and Cholula have supercharged McCormick’s growth trajectory. Consumers are increasingly looking for novel and diverse flavors, and McCormick is a major winner in that trend.

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MKC stock is generally not cheap, and that remains true now. People pay up for quality, after all. However, after a recent 10% decline in the stock price, shares are back under 30 times earnings. That’s a reasonable entry point historically for McCormick, given its solid growth rate and impeccable dividend history; the company has raised its dividend payout 36 years in a row.

Exxon Mobil (XOM)

The oil and gas industry is back. After many obituaries were written for the sector in 2020, it turns out that these reports were premature. The invasion of Ukraine has highlighted the precarious nature of the world’s energy supply. While renewables will eventually shoulder the load, they’re not yet there in terms of being able to supplant oil and gas.

With gasoline prices hitting record highs, oil majors are in a uniquely powerful position. Government regulations and environmental pressure have made it hard to drill for oil or build new pipelines and refineries in recent years. This has created a massive structural deficit of energy infrastructure.

The owners of existing assets, thus, have a winning hand. Exxon Mobil (NYSE:XOM) is now producing record profits and cash flows. That has allowed it to resume boosting its already generous dividend; XOM stock currently yields 3.6%. While energy can be a boom and bust industry, Exxon Mobil’s diversified operations across oil production, transportation, refining and chemicals make it much more stable and reliable for retirees than the average energy outfit.

Lockheed Martin (LMT)

After the pullout from Afghanistan last year, some investors gave up on the defense stocks. It seemed like America might pull back a bit from international engagement. However, the invasion of Ukraine has highlighted the ongoing need for national defense capabilities. In addition to the U.S. buying more armaments, foreign powers such as Germany and Japan have sharply increased their military budgets.

This has led to an upturn in the stock prices for firms such as Lockheed Martin (NYSE:LMT). Lockheed, in particular, has inked several new contracts for fighter jets this spring. With LMT stock up 25% year-to-date, it might seem too late to buy. It’s not, though.

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In fact, shares are still selling for less than 17 times earnings. And defense contractor earnings are high quality, as they are backed by decades-long contracts paid for by government spending. This is the sort of stable reliable business that a retiree can count on.

Medtronic (MDT)

One of the biggest demographic trends in America is the aging of the population. And as retirees know, the cost of medical care constantly rises. The best way to play defense against these inexorable forces is to own stocks in the healthcare industry.

Medical device makers such as Medtronic (NYSE:MDT) are uniquely well-positioned to protect investors from rising healthcare costs. Medtronic is a large pureplay device maker focused on cardiac care, diabetes, neurological conditions and spinal disorders among other issues. As more of the population becomes elderly, demand for these sorts of life-enhancing products will increase.

MDT stock is near its 52-week lows at the moment. It was slowed down by a reduction in the tempo of elective surgeries with the pandemic. And now inflation and supply chain issues are running their course. Regardless, shares go for less than 18 times forward earnings and offer a near-3% dividend yield.

Nike (NKE)

For global consumer brand names, Nike (NYSE:NKE) is right up there. The company’s footwear and athletic apparel can be found on almost every corner of the planet. That has been something of a headwind in 2022. Nike is pulling out of the Russian market this year, and it also faces a potential sales slowdown in China as that country remains under more strict Covid-19 restrictions.

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Throw in global supply chain issues and inflation, and NKE stock has dropped 30% year-to-date. That’s an overreaction, however. Shares are now selling for less than 30 times forward earnings, and analysts see those earnings growing at 20% a year in 2023 and 2024 once the current headwinds let up. And while Nike only pays a 1% dividend today, it has grown that dividend at a double-digit compounded rate in recent years, making this a strong growth and income play.

Texas Instruments (TXN)

It can be hard to pick technology companies as part of a lower-risk income-generating portfolio. After all, technology changes quickly, and also many tech firms don’t pay dividends.

Texas Instruments (NASDAQ:TXN) is a great solution to these two issues, however. The semiconductor company makes thousands of different niche analog chips. These serve specialized functions such as converting real-world weather information into digital data that machines such as autonomous vehicles can use. These sorts of specialty chips have a much longer lifespan than, say, a semiconductor for the latest iPhone or gaming device.

By serving durable industrial markets, Texas Instruments faces much less competition than in consumer electronics. In addition, Texas Instruments’ management makes all its decisions with a focus on boosting is free cash flow. This cash generation, in turn, is shared with investors via aggressive dividend hikes. Shares currently yield 2.6% and, impressively, the company has grown its dividend at a 19% per year compounded rate over the past five years.

On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Investing in REITs, or real estate investment trusts, remains one of the best inflation protection tactics in 2022. However, choosing which individual REITs to buy can still be a daunting task susceptible to asset selection risk. So investors may choose to buy exchange-traded funds (ETFs) focused on REITs instead. These REIT ETFs offer wide diversification benefits right from the onset.

Besides REITs’ well known inflation protection capabilities, investing in REIT ETFs helps diversify stock and bond market risks in a portfolio and boost investment income. Some of the selected ETFs on this list boast high income yields, while others will offer international diversification among REITs, and some are sector specific.

Sector-specific REIT ETFs will tilt the odds in your favor if growth is what you are targeting. Datacenter focused REITs, industrial real estate developers and cell tower landlords still promise strong growth, while office and healthcare REITs could make it a value plays.

Although the stock market has sold off so far in 2022, investors still find pockets of value and attractive investment options as seen in a net increase of funds invested in exchange-traded funds (ETFs) over the past three months. According to the VettaFi (formerly ETF Database), about $4 billion in net new funds trickled into REIT ETFs during the past three months.

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Let’s take a closer look at which ETFs you can buy right now for diverse exposure to REITs.

REITs: Vanguard Real Estate Index Fund (VNQ)

Expense Ratio: 0.12%, or $12 per $10,000 invested annually.

The Vanguard Real Estate Index Fund (NYSEARCA:VNQ) is the largest among REIT ETFs in the world, boasting of over $82 billion in assets under management. VNQ passively tracks the MSCI US Investable Market Real Estate 25/50 Index. Its benchmark essentially covers all REITs and real estate sectors tradable on U.S. exchanges.

The VNQ provides wide exposure to the REIT asset class. Pure REITs constitute about 95.5% of the ETF’s holdings. The remainder is allocated to real estate services stocks (3.8%), real estate developers (0.3%), real estate operating companies (0.2%), and diversified real estate activities (0.1%). Thus, investors in the VNQ ETF will own a diversified real estate portfolio and enjoy exposure to plenty of REITS and everything real estate-related.

The fund is passively managed with a low expense ratio of 0.12% or $12 for every $10,000 invested. Total returns from owning the VNQ ETF stock are augmented by a roughly 3% dividend yield, which compares very well to the S&P 500’s 1.5% annual dividend yield today.

Schwab U.S. REIT ETF (SCHH)

Expense Ratio: 0.07%

The next of our ETFs to invest in REITS —  Schwab U.S. REIT ETF (NYSEARCA:SCHH) — is one of the largest and most diversified real estate exchange-traded funds with more than $6.3 billion in assets invested in more than 140 individual REITs. The ETF offers investors simple, straightforward and low-cost access to REITs and excludes several non-REIT stocks that are sometimes included in other competing real estate offerings.

It’s a passively managed fund that tracks the Dow Jones Equity All REIT Capped Index. Mortgage REITs are excluded from the index, and investors will find SCHH’s expense ratio of 0.07% (or $7 for every $10,000 invested) far cheaper than Vanguard’s VNQ. Investors may expect to receive quarterly distributions that currently yield about 3.3% annually.

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The fund’s manager has more than five years of manager tenure. Investors should feel they’re in good, experienced hands. The fund’s largest holding is American Tower REIT Corp (NYSE:AMT) at 8.3% followed by a 6.7% allocation to Prologis REIT (NYSE:PLD) stock.

Real Estate Select Sector SPDR Fund (XLRE)

Expense Ratio: 0.1%

The Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE) is one of the largest REIT ETFs by assets under management. It boasts of more than $5.4 billion in net assets. The XLRE ETF offers investors exposure to “the real estate sector of the S&P 500 Index.” It has 30 holdings, including real estate management and development companies (comprising under 3% of the fund) and equity REITs which comprise over 97% of the portfolio. The fund excludes mortgage REITs from its portfolio.

Investors will find the REIT ETF’s low expense ratio of 0.1% too low to significantly matter. XLRE stock has declined by about 15% so far this year. However, the ETF pays out quarterly dividends that yield 2.8% annually.

Top holdings include American Tower Corp, Prologis, and cell-tower giant Crown Castle International Corp. (NYSE:CCI).

Global X Super Dividend REIT ETF (SRET)

Expense Ratio: 0.58%

Income-oriented investors seeking high distribution yields and some global diversification may find the Global X Super Dividend REIT ETF (NASDAQ:SRET) more appealing than many pure U.S. REIT ETFs. It offers high yields and geographical and interest rate risk diversification off the bat.

The SRET portfolio holds 29 of the highest yielding REITs in the world. It invests about 53% of its assets in U.S. REITs, allocates 33% of the portfolio in developed Asia (Singapore REITs), and spreads the balance equally into Canadian and Australian REITs.

Most noteworthy, the SRET ETF pays distributions that yield 7.1% annually at the time of writing. The portfolio has more than $360 million of net assets and a reasonable expense ratio of 0.58% annually.

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Top holdings include the WP Carey (NYSE:WPC) at 4.05% followed by the Physicians Realty Trust (NYSE:DOC) at 3.85% of the portfolio.

Hoya Capital High Dividend Yield ETF (RIET)

Expense Ratio: 0.25%

The Hoya Capital High Dividend Yield ETF (NYSE:RIET) is a recently launched REIT ETF that invests in high dividend yield paying real estate equity securities to produce high yields for its investors. The fund invests around 90% of its assets in REIT common equity, and about 10% is invested in preferred stock. Preferred stock positions significantly augment the fund’s recurring income. However, preferred equity limits growth potential.

The fund manager waived management fees for now to reduce the trust’s total expense ratio to 0.25% or $25 for each $10,000 invested in the fund. RIET ETF’s total expense ratio will revert to 0.5% after September 2022 — the first ETF launch anniversary. The fund tries to replicate the Hoya Capital High Dividend Yield Index, a proprietary, internally managed index of high-quality high yielding publicly traded real estate assets.

You can invest in the RIET ETF for its juicy dividend income offering. The trust pays a dividend that yields 7.3% annually. Its top 10 holdings include the Simon Property Group (NYSE:SPG), Starwood Property Trust (NYSE:STWD) at 1.5% and Iron Mountain (NYSE:IRM), all at around 1.5% of the portfolio.

Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR)

Expense Ratio: 0.6%

The Pacer Benchmark Data and Infrastructure Real Estate SCTR ETF (NYSEARCA:SRVR) is a strategy-driven exchange-traded fund (ETF) that offers investors exposure to global developed market REITs and real estate companies in the fast-growing data and infrastructure sector.

The SRVR ETF tracks the Kelly Data Center & Tech Infrastructure Index and it boasts more than $1.2 billion in net assets. It has a total expense ratio of 0.6% per annum and pays distributions that yield 1.1% annually.

Investors in SRVR ETF stock gain access to an internationally diversified portfolio. The fund has about 80% of its assets invested in U.S. REITs. The manager spreads the balance across Europe, Australasia and Asia.

That said, there’s a bit of concentration risk as its 10 largest holdings comprise nearly 79% of the total assets. However, there aren’t too many data center REITs to invest in worldwide, anyway.

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Top holdings include a 17% allocation to the Crown Castle, another 17% allocation to American Tower stock, and 14% in Equinix (NASDAQ:EQIX) stock.

iShares Residential and Multisector Real Estate ETF (REZ)

Expense Ratio: 0.48%

The iShares Residential and Multifactor Real Estate ETF (NYSEARCA:REZ) gives investors more refined and direct access to the U.S. residential sector. Managed by BlackRock (NYSE:BLK), one of the world’s largest asset managers, the REZ ETF invests in U.S. residential, healthcare, and self-storage real estate equities, and has over $1 billion in net assets.

Bullish on the sustained resilience of the U.S. housing sector? Or a strong rebound in healthcare REIT economics post-COVID-19? And a sustained growth in self-storage space demand? Investing in the REZ ETF offers exposure to all three growth opportunities while giving investors some long-term inflation protection.

REZ ETF’s expense ratio of 0.48% annually is reasonably low. It pays quarterly distributions that currently yield about 1.8% annually.

Top holdings include the Public Storage REIT (NYSE:PSA) at 10.4% of the portfolio, followed by Welltower Inc. (NYSE:WELL) at 8.1% while AvalonBay Communities REIT (NYSE:AVB) stock comprises  6% of the ETF’s deployed assets.

Pacer Benchmark Industrial Real Estate SCTR ETF (INDS)

Expense Ratio: 0.6%

Since its inception in 2018, the Pacer Benchmark Industrial Real Estate SCTR ETF (NYSEARCA:INDS) has grown its total assets under management from around $40 million in 2018 to over $320 million today. Industrial REITs attract investor attention for their growth opportunities. The INDS ETF offers investors direct and diversified access to industrial real estate economics. It has an annual expense ratio of 0.6% or $60 per every $10,000 invested in the fund.

Investors may receive quarterly distributions that yield 1.3% annually. The yield is low, but it’s a small bonus for growth-oriented investors seeking capital gains.

The Pacer Benchmark Industrial Real Estate SCTR ETF stock’s year-to-date decline of 22% has been worse than the broader equity market’s fall so far in 2022.

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A general capital flight into consumer defensive names offers contrarian, long-term focused investors an opportunity to buy the dip for above-average future capital gains potential.

On the date of publication, Brian Paradza did not hold (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.

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We believe that investors should strive to own the best names in a particular sector as these companies often have competitive advantageous that will allow it to outperform the competition.

One industry we find appealing is the beer industry, which tends to hold up well even during recessionary environments. Not all beer companies are created equal, so investors should identify the top names in the industry before making an investment decision.

This article will examine three of our favorite beer stocks.

Beer Stocks for Dividends: Constellation Brands (STZ)

Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. The company is valued at nearly $46 billion and has produced revenue of almost $9 billion over the last year.

Over time, Constellation Brands has become a dominant force in the beer industry. The company’s product portfolio includes Corona, Modelo Especial, Modelo Negra and Pacifico. These products, along with a craft beer lineup, have enabled Constellation Brands to become the third largest beer company in the U.S. and the largest seller of import beers in the country.

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In addition, Constellation Brands often attempts to expand its reach through product innovation, which includes products like Corona Refresca. Modelo Especial is the top grossing imported beer, so the company will launch several new additions to the Modelo lineup as it tries to capitalize on the strength of this brand. New beers to the lineup include Modelo Oro, a premium light beer, and Modelo Ranch Water, a spiked sparkling water.

Constellation Brands has a heavy presence in more than just beer. The company holds many leading wine and spirits brands as well. After selling off non-premium brands, Constellation Brands holds just premium brands names in its portfolio. This includes Robert Mondavi and Kim Crawford in wine and SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey in spirits. The reconfiguration of the portfolio has the company well positioned to lead the premium industry in both wine and spirts.

The company is also looking beyond traditional alcoholic beverages to fuel growth. For example, Constellation Brands has a controlling stake in Canopy Growth Corporation (NASDAQ:CGC). While the future of cannabis infused beverages in the domestic market is murky, Constellation Brands’ stake in one of the top companies in the industry does provide yet another potential avenue for growth.

Business strength has led to excellent results in the business as revenue has nearly tripled over the last decade. Earnings-per-share have increased with a compound annual growth rate of nearly 19% for the last decade.

Despite this long-term success, we project that Constellation Brands can produce earnings growth of 5.5% per year for the next half-decade. This growth rate takes into account the quality of the firm’s product portfolio with the fact that earnings are starting from a high base.

Exceptional business performance has enabled Constellation Brands to increase its capital returns to its shareholders. A dividend was initiated in fiscal year 2016 and it has a CAGR of 9.7% over the last five years. Shares currently yield about 1.3%.

Diageo (DEO)

Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. The $107 billion company has generated $16 billion of revenue over the last year.

Diageo’s beer lineup includes Guinness, the top selling stout beer in the world and one of the most iconic brands in the alcohol space. The company has used the popularity of Guinness to bring additional products to market, including Guinness blonde.

Like Constellation Brands, Diageo has an envious portfolio of products aside from just beer. The company has some of the best-selling spirits brands in the world, including Baileys, Captain Morgan, Crown Royal, Johnnie Walker, Ketel One and Tanqueray.

The global alcoholic beverage market is highly fragmented, which could provide the company with ample opportunity to grow its business. Presently, Diageo has a 4% market share, but aims to increase its positioning to 6% by the end of the decade. The company is on track to meet this goal due to its brands.

Helping to achieve this market share target is Diageo’s business in emerging markets. Key markets for the company include China, India and Latin America. The company’s presence in emerging markets should provide tailwinds over time. For example, Diageo experienced organic sales growth of 45%, 23% and 13% in Latin America, Africa and Asia Pacific/China in the first half of 2022. This was ahead of its more developed markets.

Results for the U.K. based company will always be subject to currency exchange rates, but U.S. investors have still seen solid results. Though top-line results are minimal for Diageo over the last decade, revenue has compounded at a rate of 3% annually since 2017. Bottom-line growth has been slightly more robust over this period of time as earnings-per-share have a five- and 10-year CAGR of 7.2% and 4.2%, respectively.

We estimate that the company can grow earnings-per-share at a rate of 8% per year for the next five years given the popularity of its product lineup.

Diageo distributes dividends twice per year to shareholders. The company has raised its dividend for the past eight years in local currency. U.S. shareholders have seen an average increase of 4.2% annually since 2012. Diageo yields 2.2%.

Beer Stocks for Dividends: Molson Coors (TAP)

Our final pick for beer stocks is Molson Coors, which has a market capitalization of $11.7 billion and generated revenue of $10.6 billion over the last 12 months.

Formerly known as Molson Coors Brewing Company, Molson Coors has a rich history that dates back almost 150 years. The company is one of the largest brewers in the country and includes leading brands such as Coors Light, Molson Canadian, Miller Lite, and Coors Banquet. These are some of the most popular beer names in the country, giving Molson Coors a significant competitive edge over peers.

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Recently, however, the traditional beer industry has faced headwinds as younger consumers have trended toward craft beer. The industry giants were slow to react to these changing habits, but Molson Coors is taking steps to improve its standing in the craft beer business. For example, the company’s Blue Moon lineup has become very popular in North America, with the brand owning a high single-digit market share for the region.

Molson Coors also made several acquisitions over the past few years that have brought additional craft beers and ciders into the fold.  The company added Aspall Brewing, a leading maker of premium ciders, in 2018. The company followed this acquisition up by buying Atwater Brewery, the largest craft brewery in Detroit, in 2020.

Molson Coors sales more than doubled over the last decade, though this is skewed by the addition of MillerCoors in 2016. The last five years saw revenue fall nearly 2% per year. Bottom-line performance was nearly as poor as earnings-per-share are up marginally since 2017.

However, the company has stopped making certain low-premium names, including High Life Light and Keystone Ice, that weren’t resonating with customers in an effort to focus on its core brands. This, combined with a heavier emphasis away from legacy beer names, should provide some lift to results going forward. We project that Molson Coors can grow earnings-per-share by 4% annually through 2027.

Molson Coors suspended its dividend in mid-2020 as the company faced the fallout from the Covid-19 pandemic. The company did reinstate in late-2021, albeit at a lower amount than its previous payment. Given its recent actions with regards to the dividend, investors might be wary of owning Molson Coors. The good news is that shareholders did receive a 10.5% increase in the payment earlier this year. Shares yield 1.9% at the moment.

Final Thoughts

The beer industry has undergone changes over the past few years, with new companies becoming leaders in the category. The business is fairly recession-resistant and has proven successful over the long-term.

Constellation Brands, Diageo and Molson Coors are three of our favorite names in the industry. The first two have captured significant market share and also offer products beyond just beer that are leaders in their own categories. Molson Coors continues to focus primarily on beer and has faced some challenges due to changing consumer tastes. That said, the company has made strides to catch up and its legacy beer business continues to hold a top spot.

All three names offer a dividend yield near or above the average yield of the S&P 500.

For investors looking for growth and income from the beer industry, any of these names could be a solid addition to their portfolio.

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

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Investing in retirement requires careful thought and preparation. Investors looking for retirement stocks not only need to continue to grow their nest egg, but also protect their portfolio from inflation, market downturns and unexpected events.

As such, investors need to seek out stocks of established companies that have a track record of delivering consistent, reliable returns to shareholders. Retirees also need to consider whether a stock pays a dividend and if the company buys back its own shares on a regular basis, as these can each add value.

Investors in retirement should also seek out stocks that will continue to perform strongly during an economic downturn or recession. There’s a lot to think about and many factors to weigh. In this article, we help retirees figure it out.

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Here are three of the best retirement stocks to buy for long-term wealth.

Apple (AAPL)

Consumer electronics giant Apple (NASDAQ:AAPL) is a great business and equally great long-term investment. There are many ways that Apple provides value to its shareholders.

Driven by consistently strong quarterly earnings and profits, Apple’s share price has gained 283% over the past five years; the company has split its stock on two separate occasions in the past 10 years; the stock pays a quarterly dividend that currently yields 0.6%, or 92 cents per share annually; and Apple buys back more of its own stock than any other publicly traded U.S. company.

At the end of April this year, Apple announced that it will buyback $90 billion of its own stock in 2022 and raised its quarterly dividend by 5%. Last year, Apple spent $85.5 billion repurchasing its own shares, and spent another $14.5 billion on dividends for shareholders.

All of these benefits make AAPL stock a must own for any portfolio. Until this year’s market downturn, Apple also was the only company in the world to have a $3 trillion market capitalization, making it the most valuable publicly traded company on Earth.

Given its incredibly strong financial position and the myriad of ways in which it rewards shareholders, Apple stock should be a top choice of retirees.

JPMorgan Chase (JPM)

For another reliable, long-term investment look no further than JPMorgan Chase (NYSE:JPM), which is the largest bank in the world by market capitalization. With nearly $4 trillion of total client assets, JPMorgan Chase is involved in all aspects of banking, from consumer retail branches, to corporate lending, investment banking and trading.

The company is a global leader in the world of finance and an earnings machine, having posted a record $48.3 billion in profit last year. JPM stock has also been a consistent winner, having gained over 400% since the 2008 financial crisis, including a 69% gain since its March 2020 low.

JPMorgan Chase also pays a strong quarterly dividend yield of 3%, which is good for a payout of $1 a share every three months. And, like the other names on this list, the bank has been aggressive about buying back its own stock, authorizing share repurchases of $30 billion for this year.

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While the bank performs strongly in good economic times and bad, as the largest lender in America, JPMorgan Chase does particularly well when interest rates are rising as they are now, as it enables the bank to charge more interest on products ranging from credit cards to home mortgages. If you’re looking for dependable retirement stocks, look no further than JPMorgan Chase.

Berkshire Hathaway (BRK-B)

Former hedge fund manager turned analyst Whitney Tilson calls Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) “the No. 1 retirement stock in America.” And he might be right. Helmed by legendary investor Warren Buffett, Omaha-based Berkshire Hathaway has a lot to recommend it.

The holding company is incredibly diversified, owning railroads, insurance companies, the Dairy Queen restaurant chain and the Fruit of the Loom underwear maker. Additionally, Berkshire Hathaway has a monster stock portfolio that currently totals more than $350 billion.

Top stock holdings in the portfolio include stalwart companies such as American Express (NYSE:AXP) and Coca-Cola (NYSE:KO).

Impressively, BRK-B stock has consistently outperformed the benchmark S&P 500 index for the past 40 years. Since the beginning of 2020, the stock has gained 38% compared to a 27% return for the S&P 500. The company’s stock tends to perform its best when markets are at their worst. Case in point, Berkshire Hathaway’s share price is up 4% this year, compared to a 13% decline in the S&P 500.

While Berkshire Hathaway doesn’t pay a dividend, Warren Buffett does buy back the company’s stock when he feels it is undervalued. In 2021, Berkshire Hathaway repurchased a record $27 billion of its own stock, which helped to bolster the share price. This is a rock solid investment that will help retirees sleep soundly at night knowing that it’s in their portfolio.

On the date of publication, Joel Baglole held long positions in AAPL, BRK-B and AXP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Investors focusing on a strategy of dividend growth stocks have performed better than some broader market indices. For instance, the Dividend Aristocrats have declined about 5.3% year-to-date, much better than the S&P 500 or the Nasdaq. The S&P 500 is down about 13.1%, and the Nasdaq has decreased about 22.9% and is in a bear market.

High-quality stocks paying an increasing dividend have arguably done well. However, investors are selling quality along with riskier stocks. Hence, they may want to take this opportunity to buy the dip.

Here, we discuss three quality dividend growth stocks that are undervalued today.

Undervalued Dividend Growth Stocks: Lowe’s (LOW)

Lowe’s (NYSE:LOW) was founded in 1921 and today is one of the largest home improvement retailers in North America. The company has approximately 2,200 stores in the U.S. and Canada. Lowe’s sells lumber, hardware, appliances, flooring, lawn and garden items, lighting and plumbing, etc. The company also provides services to consumers. The company sells leading national brands and well-known private label brands.

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The company generated $95,487 million of revenue in the last 12 months, of which around 75% is from retail consumers and about 25% is from professional contractors. Lowe’s has gained roughly 10% of the nearly $1 trillion home improvement market, placing it second after Home Depot (NYSE:HD).

Lowe’s continues to grow organically and by adding stores. The company benefits from new home construction because professional contractors buy more materials. However, rising mortgage rates usually slow new home construction, but extant homeowners tend to remodel and improve homes, benefitting Lowe’s sales. Furthermore, Lowe’s is profiting from sub-4% unemployment rates.

Lowe’s is well-known for its 60-years of dividend increases, placing it on the Dividend Kings list. The company is also a Dividend Aristocrat. The retailer is known for its high dividend growth rate of about 17.3% in the trailing five years and 18.8% in the past 10 years. The conservative payout ratio of 24% leaves room for more dividend increases. Currently, the forward dividend yield is approximately 1.64%, just below the average in the past five years of 1.73%.

Lowe’s stock price has been caught in the downward trend of the broader stock market with a ~22.4% year-to-date (YTD) decline. The forward price-to-earnings (P/E) ratio has decreased to about 14.4X, below the range in the past five years and 10 years.

T. Rowe Price (TROW)

T. Rowe Price (NASDAQ:TROW) was founded in 1937. Today, it is one of the largest active asset managers in the U.S. It is also one of the few large publicly traded asset managers.

The firm is known for its 401(k) and individual retirement account plans. Besides retirement plans, T. Rowe Price offers mutual funds to retail investors, institutional accounts and sub-advisor services.

Total revenue was about $7,708 million in the past 12 months. As an asset manager, the firm charges a fee for assets under management (AUM). If the AUM is higher due to market action and fund inflow, then T. Rowe Price’s revenue is greater and vice-versa.

At the end of Q1 2022, the company had about $1.55 trillion in AUM. However, T. Rowe Price’s revenue and earnings are sensitive to the stock market.

The firm grows by adding more assets and expanding its distribution. Notably, the company’s funds tend to perform well over the long term, attracting investors and money. In the past 10 years, 85% of the equity funds outperformed the Morningstar median, 67% exceeded the passive peer median, and 72% beat their benchmark. In addition, T. Rowe Price does well for fixed-income and multi-asset funds.

T. Rowe Price is a Dividend Aristocrat with a 36-year streak of dividend increases. The relatively low payout ratio of 33.9% means more future dividend growth. The company often increases the dividend by double-digits, and the trailing 10-year growth rate is ~13.3%, and the 5-year growth rate is ~14.9%.

The stock price recently was down about 34% YTD to $128.59, near the 52-week low and well-off the 52-week and all-time high of $224.56. Simultaneously, the valuation has fallen to about 12.3X, below the range in the past five years and 10 years. T. Rowe Price is an undervalued market leader with a nearly 4% dividend yield.

Undervalued Dividend Growth Stocks: Pfizer (PFE)

Pfizer (NYSE:PFE) traces its history back to 1849. The company has evolved into one of the largest global pharmaceutical companies.

Pfizer reorganized over the past few years into an R&D-based company. The company formed the GSK Consumer Healthcare Joint Venture in 2019 with GlaxoSmithKline (NYSE:GSK), including Pfizer’s over-the-counter business. Pfizer owns 32% of the JV. Additionally, Pfizer spun off its Upjohn segment and merged it with Mylan forming Viatris for its off-patent, branded, and generic medicines in 2020.

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Total revenue has more than doubled from 2020 to $92,433 billion in the past 12 months because of Pfizer’s Covid-19 vaccine, Cominranty, and the anti-viral, Plaxlovid. Furthermore, Pfizer has multiple blockbuster drugs with $1 billion-plus in revenue, including the Prevnar vaccine, Ibrance, Elquis, Xtandi, Vyndaqel/Vyndamax, Xeljanz, and Enbrel.

Pfizer grows organically through additional indications for existing drugs, and M&A. Pfizer has bought smaller companies with promising molecules and compounds.

Most recently, Pfizer bought Arena Pharmaceuticals for $11 billion in cash for potential therapies in immune-inflammatory diseases. Pfizer has also acquired Array BioPharma and Trillium. In addition, the company announced the acquisition of Biohaven Pharmaceutical for $11.4 billion for oral migraine therapies.

Pfizer is a Dividend Contender with 12 consecutive annual dividend increases. The forward dividend yield of about 3% is supported by a 35% payout ratio and robust free cash flow. As a result, Pfizer tends to raise the dividend at a low-to-mid single-digit rate.

Despite the market correction, Pfizer’s stock price is up about 6.38% for the year. But the rapid rise in revenue and earnings means the forward earnings multiple is 8x for this market leader. In addition, Pfizer will likely benefit from its mRNA vaccine technology and M&A strategy for long-term growth.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Prakash Kolli holds a long position in TROW.

The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.

Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor and blogger on dividend growth stocks and financial independence. Some of his writings can be found on Seeking Alpha, InvestorPlace, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, FXMag, and leading financial blogs. He also works as a part-time freelance equity analyst with a leading newsletter on dividend stocks. He was recently in the top 1.0% and 100 (81 out of over 9,459) of financial bloggers as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

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• These seven high-yield retirement stocks to buy are among the top picks to build a retirement portfolio that will provide a stable income.
• Amcor (AMCR): Is a global leader in developing and producing responsible packaging.
• 3M Company (MMM): This conglomerate has a company history of 120 years.
• AbbVie (ABBV): A global biopharmaceutical company with a wide range of therapeutic areas.
• Cardinal Health (CAH): An integrated healthcare services and products company operating intentionally.
• Chevron (CVX): This energy giant has several big projects underway.
• Exxon Mobil (XOM): Here’s another global oil giant with a rich company history of 152 years.
• International Business Machines (IBM): The iconic technology company transforms the past, present, and future of technology.

Building a retirement portfolio is a challenge. One has to compensate for the loss of income and it is a process that takes time and dedication. However, it does not need to be a complex decision as the need for a low-risk and income-oriented portfolio is clear. Today, I will discuss seven high-yield retirement stocks to buy to build your nest egg now.

These seven stocks are dividend aristocrats, a list of high-yield stocks suitable for a retirement portfolio as they are among the “65 members of the S&P 500 that haven’t just paid dividends for at least 25 consecutive years – they’ve raised their dividends for a minimum of 25 straight years.”

All these companies have strong balance sheets, well-established businesses, very attractive dividend yields, and can sustain economic and business cycles with capital appreciation. For simplicity, the following data is referred to at closing stock prices on May 20, 2022.

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Here are my top seven high-yield retirement stocks to buy for your nest egg:

High-Yield Retirement Stocks: Amcor (AMCR)

• Sector: Consumer Cyclical
• Industry: Packaging & Containers
• Forward Dividend & Yield: $0.48 (3.68%)

Amcor (NYSE:AMCR) is a producer and seller of packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments: Flexibles and Rigid Packaging. Amcor provides packaging solutions for many products, such as beverages, food, healthcare, home care, personal care, and pet care.

This global leader in responsible packaging has about 46,000 employees, with business operations in more than 40 countries and revenue of $13 billion. Additionally, the company is focused on sustainability by making packaging that is recyclable and reusable.

Amcor has 39 years of a dividend increase and a forward payout ratio of 57.81%. The dividend frequency is quarterly. The expected 3 to 5 year earnings per share (EPS) growth is 9.82%.

3M Company (MMM)

• Sector: Industrials
• Industry: Conglomerates
• Forward Dividend & Yield: $5.96 (4.09%)

3M Company (NYSE:MMM) is a diversified technology company worldwide, operating through four segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The company was founded in 1902, giving it 120 years of business history. The list of 3M Company products is endless, with 19,079 items on its official website providing solutions for various industries, such as electronics, energy, manufacturing, automotive, communication, and transportation.

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3M Company has 65 years of dividend increases with a forward payout ratio of 52.74% and a quarterly dividend frequency. The expected 3-5 year EPS growth for such a mature company is not negligible, as it stands at 9.5%.

High-Yield Retirement Stocks: AbbVie (ABBV)

• Sector: Healthcare
• Industry: Drug Manufacturers — General
• Forward Dividend & Yield: $5.64 (3.78%)

AbbVie (NYSE:ABBV), is a manufacturer and seller of pharmaceuticals worldwide. It has an extensive range of products for immunology like Humira and Skyrizi. In the neuroscience field, it offers Botox, Celexa and Fetzima. Additionally, the company has treatments for oncology, virology, eye care, aesthetics, and other specialty areas.

The firm is investing in big data technology, precision medicine, and in genetics and genomics.

AbbVie has 50 years of dividend increases with a forward payout ratio of 46.8% with a quarterly dividend frequency. The expected 3 to 5 year EPS growth is 2.54%.

Cardinal Health (CAH)

• Sector: Healthcare
• Industry: Medical Distribution
• Forward Dividend & Yield: $1.98 (3.55%)

Cardinal Health (NYSE:CAH) is an integrated healthcare company providing services and products in the United States, Canada, Europe, and Asia. It operates in two segments: Pharmaceutical and Medical.

The company provides services for a wide audience, consisting of the home care sector, hospital pharmacy, community laboratory, health centers, retail independent pharmacy, ambulatory surgery center supplies, and solutions, among others. Some of its pharmaceutical products cover sectors like biosimilars, influenza, nuclear medicine, and specialty drugs.

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Cardinal Health has 36 years of dividend increases with a very healthy forward payout ratio of 35.77%. The dividend frequency is quarterly. The business outlook is stable and this is reflected in the expected 3 to 5 year EPS growth of 1.62%.

High-Yield Retirement Stocks: Chevron (CVX)

• Sector: Energy
• Industry: Oil & Gas Integrated
• Forward Dividend & Yield: 5.68 (3.29%)

Chevron (NYSE:CVX) is an integrated energy and chemicals company with operations worldwide. The company operates in two segments: Upstream and Downstream. It was founded in 1879, 143 years ago.

The company has important projects, like the Gorgon Project, one of the world’s largest natural gas projects and a very important one for the Australian economy. It also operates the Wheatstone project, one of Australia’s largest resource developments; the Jack St. Malo project in the U.S. Gulf of Mexico; the Big Foot project in the U.S. Gulf of Mexico; the Mafumeira Sul project in Angola; and the Permian Basin project, just to name a few.

Chevron has 35 years of a dividend increase and a forward payout ratio of 38.95% It pays a quarterly dividend. Additionally, the company is expected to have a 3 to 5 year EPS growth of 11.55%.

Exxon Mobil (XOM)

• Sector: Energy
• Industry: Oil & Gas Integrated
• Forward Dividend & Yield: $3.52 (3.83%)

Exxon Mobil, (NYSE:XOM) along with Chevron, has been in the best performing sector in 2022: the energy sector. When you invest in the long-term, like building a diversified retirement portfolio, having stocks that have appreciated significantly offers additional investment opportunities. It is not a bad idea to sell some shares and book profits while having the remaining ones continue to build wealth and recurring income.

Exxon Mobil explores and produces crude oil and natural gas in the United States and internationally, operating through Upstream, Downstream, and Chemical segments. It was founded in 1870, 152 years ago.

The firm is committed to achieving net-zero emissions from its operating assets by 2050. It has 38 years of dividend increases and a forward payout ratio of 42.19%. The dividend frequency is quarterly.

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The expected 3 to 5 year EPS growth of 20.41% is very high, signaling strong business prospects.

High-Yield Retirement Stocks: International Business Machines (IBM)

• Sector: Technology
• Industry: Information Technology Services
• Forward Dividend & Yield: $6.60 (5.14%)

International Business Machines (NYSE:IBM) is a provider of integrated solutions and services worldwide and operates through four business segments: Software, Consulting, Infrastructure, and Financing. The firm was founded in 1911, which gives them 111 years of business activity.

The technology firm provides many tools for businesses, such as Hybrid Cloud, Public Cloud, Blockchain, IBM Watson, Security, Data & analytics, and Quantum computing, among others. Some of the services IBM provides offer solutions for different sectors, including Financial Services, Consumer goods, Energy, Retail, and Telecommunications.

The dividend has increased for 28 years, and the firm has a high forward payout ratio of 62.49%.

The quarterly dividend frequency is ideal, like all other high-yield retirement stocks to buy on this list. Additionally, the 3 to 5 year expected EPS growth of 9.02% is strong for such a large and mature technology company.

On the date of publication, Stavros Georgiadis, CFA  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.

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• Undervalued retail dividend stocks are available after the recent selloff.
• Gap (GPS) is a clothing and accessories retailer that operates worldwide.
• Dick’s Sporting Goods (DKS) is a sporting goods retailer that started out as a fishing-focused shop more than 70 years ago.
• Best Buy (BBY) is a leading consumer electronics retailer that operates in the United States and Canada.

Inflation worries and fears about a potential recession have caused many retail stocks to pull back in recent months.

Both low and high quality retail stocks have sold off, which does not seem justified, and which has resulted in buying opportunities in some of these retail stocks.

In this article, we’ll showcase three retail industry stocks that promise attractive total returns over the coming years.

Undervalued Retail Dividend Stocks: Gap (GPS)

Gap (NYSE:GPS) is a clothing and accessories retailer that operates worldwide, although its biggest market is its home market, the U.S. Its brands include Gap, Banana Republic, Old Navy and several more.

The company cut its dividend during the pandemic, but it did not have an overly reliable dividend growth track record in previous years, either. In 2022, however, the company raises its dividend from 12 cents per share to 15 cents per share per quarter.

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The company reported its most recent quarterly results in early March. During the quarter, the company saw its revenue rise by 3% year over year, which was better than what the analyst community had expected. The company reported a net loss of 2 cents per share, which also beat estimates.

For the current year, earnings-per-share are expected to come in between $1.85 to $2.05, or $1.95 at the midpoint. Unlike many other retailers, Gap’s strongest quarter is not Q4, but usually Q2, as its product lineup is more weighted toward “summer” wear.

Today, Gap trades at just 5x net profits, which is an incredibly low valuation both in absolute terms and relative to how the company was valued in the past. We believe that a meaningfully higher valuation, at a high single-digit earnings multiple, is justified.

Gap is not a high-growth company, but we still believe that there will be some earnings-per-share growth in the long run. Buybacks will likely play a role in that, as Gap has bought back more than 20% of the company’s float over the last decade.

Going forward, we believe that Gap will generate annual total returns of at least 10%. The dividend yield alone is a little over 6%, and earnings-per-share growth and multiple expansion should at more than 4% a year in the long run, although Gap’s shares could remain volatile in the near term as the market is jittery due to inflation and recession concerns.

Dick’s Sporting Goods (DKS)

Dick’s Sporting Goods (NYSE:DKS) is a sporting goods retailer that started out as a fishing-focused shop more than 70 years ago. Its store concept includes a variety of shops-in-shop, dedicated to team sports, golf, fitness, outdoor equipment and so on.

During the pandemic, when many consumers sought ways to entertain themselves without travel, going to the movies or malls, and so on, Dick’s Sporting Goods performed exceptionally well. Its sales soared, and thanks to operating leverage, earnings-per-share hit new record levels in both 2020 and 2021. It is not surprising that the environment will not remain as great as it was in 2021 for outdoor and sporting goods retailers, which is why a decline in profits is forecasted for the current year.

That being said, Dick’s Sporting Goods should still be very profitable this year. During the most recent quarter, the company reported revenue growth of 7% year-over-year, and its earnings-per-share of $3.64 beat estimates easily. Throughout the current year, comparables will get more difficult, and at the same time, rising inflation will likely put some pressure on Dick’s margins.

Another factor to consider is that consumers will now be more eager to spend on travel, dining out, etc. as the pandemic is coming to an end, which will likely reduce the amount of money they spend on sporting and outdoor products. This will also be a factor in this year’s expected earnings-per-share decline. That being said, earnings-per-share are still forecasted at $12.50, which is significantly more earnings-per-share than the company generated prior to the pandemic.

In recent years, DKS has bought back shares at a rapid pace, repurchasing more than 10% of its float during 2021 alone. We do believe that buybacks will be meaningful in the coming years as well, which should be a tailwind for earnings-per-share going forward.

DKS currently offers a dividend yield of 2.7%, and when we account for the forecasted earnings-per-share growth of 5% a year and the multiple expansion tailwind potential (5%+ a year), 12%+ annual returns could be achievable here.

Undervalued Retail Dividend Stocks: Best Buy

Best Buy (NYSE:BBY) is a leading consumer electronics retailer that operates in the United States and Canada. The company has more than 1,000 retail locations, with around 90% of those being located in the U.S. There used to be operations in Mexico as well, but Best Buy exited that market in 2021. The company has raised its dividend for 19 years in a row, which doesn’t make it a Dividend Aristocrat yet, but which is still a very solid dividend growth track record.

Best Buy’s most recent quarterly results were reported in early March. During the quarter, the company saw its revenue decline by a couple of percentage points, partially due to a tough comparison with a strong quarter in the previous year. The company still generated attractive earnings-per-share of $2.73 for the quarter, well above pre-pandemic levels.

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This year, it is expected that profits will decline versus 2021, due to the aforementioned tough comparables. Still, 2022 should be the second-best year in Best Buy’s history, as earnings-per-share guidance is for ~50% growth as compared to 2019, before the pandemic.

Best Buy is not opening a significant number of new stores. Instead, earnings-per-share growth is being boosted by buybacks. Over the last decade, Best Buy has bought back around one-third of its share float. With buybacks continuing and some tailwinds from growing same-store sales, we believe that an earnings-per-share growth rate of 5% to 6% is realistic in the long run.

When we add the dividend, which currently yields 4.8%, we get to total returns in the 10% range even before accounting for potential multiple expansion tailwinds. Since we believe that the current valuation of around 8.5x net profits is lower than justified, total returns could easily reach 12% a year going forward, factoring in some upside potential to Best Buy’s valuation.

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

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• Buying quality retirement stocks can provide both safety and growth to keep savings goals on track
• AbbVie (ABBV): With revenue concerns abating, it’s time to take a fresh look at this dividend king.
• Amgen (AMGN): This biotech giant has an ideal combination of in-market products and products in its pipeline.
• Apple (AAPL): Make this tech giant prove that the bears are right before abandoning its stock.
• Dollar General (DG): Inflation and a weakening economy will help keep the revenue coming.
• Western Union (WU): In tough times, the company’s reliability helps keep investors afloat.
• Schwab U.S. Dividend Equity ETF (SCHD): An ETF that tracks the Dow Jones U.S. Dividend 100 index.
• ProShares S&P 500 Dividend Aristocrats ETF (NOBL): This ETF invests exclusively in the elite group of companies known as dividend aristocrats.

For many years, the model for finding retirement stocks to buy got clouded with some FOMO (fear of missing out) and YOLO (you only live once). Investors got conditioned to years where a 20% or higher return was the normal.

However, to borrow an axiom from golf, 2022 is turning out to be a stark reminder to investors that “sometimes par is a really good score.” Whatever happens over the next few years (and I’ll always remain a cautious optimist), the new reality is that investors who get high single-digit growth will be doing well.

One way to boost the total return of your portfolio is with quality dividend stocks. Reinvesting these regular dividends is a simple way to boost the total return of your portfolio. That makes them the ideal choice for long-term retirement portfolios where safety and security should be the top priority.

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So let’s get right to it. Here are seven retirement stocks to buy that combine modest growth with safe dividends.

AbbVie (ABBV)

The first of the retirement stocks to buy is AbbVie (NYSE:ABBV). Concerns about expiring patents for its flagship drug, Humira, gave analysts reasonable concerns about the company’s revenue outlook. However, the company’s most recent earnings report should quell those concerns.

First the company is showing that sales of Humira in Europe (where Humira has lost its patent protection) are not declining as rapidly as expected. Second, AbbVie has in-market replacements for Humira that are delivering strong year-over-year revenue growth.

My InvestorPlace colleague Josh Enomoto also reminded investors that AbbVie is likely to benefit from its acquisition of Allergan, which put Botox into the company’s product portfolio.

Investors also get a stock that remains up 11% for the year and recently joined the ranks of dividend kings. This means it has increased its dividend each year for 50 consecutive years. And ABBV stock has a dividend yield that currently is 3.73%.

Amgen (AMGN)

Sticking in the biotech space, Amgen (NASDAQ:AMGN) is another company that is up 10% for the year. One reason for this is that investors are no longer chasing after speculative biotechs that were competing in the Covid-19 vaccine race.

That is putting attention back on companies that are delivering revenue and earnings today and will continue to do so tomorrow. That’s Amgen. The company’s portfolio focuses heavily on treatments for heart disease and cancer which means demand will stay high.

And, as Tezcan Gecgil points out, the company is building a new manufacturing plant in North Carolina. With supply chains likely to become shorter in future years, this should aid the company’s efficiency as well as lower costs.

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Amgen has increased its dividend in each of the last 11 years and currently has a dividend yield of 3.14%.

Apple (AAPL)

When considering retirement stocks to buy, you may challenge my decision to put Apple (NASDAQ:AAPL) on this list. There are bearish views of the “FAANG” stock. And AAPL stock is down 22% so far in 2022.

However, much of the concern about Apple’s growth is based on its iPhone. But the company has shown over the last few years that its Services division is responsible for a good bit of the company’s growth in recent years.

And while Apple doesn’t offer a particularly impressive dividend yield, it has been increasing its dividend in each of the last 11 years. Plus, the company has a history of share buybacks.

That’s why you should make Apple prove that it’s not a great long-term growth stock before you abandon it.

Dollar General (DG)

Inflation is taking a bite out of consumer’s take-home pay and that is showing up in the results of many retailers. And that includes discount stores such as Dollar General (NYSE:DG). I’m writing this a few days before the company reports earnings. If the trend continues, Dollar General is likely to deliver guidance that reflects the effect that inflation is having, and will continue to have on its business.

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However, the company has a business model that puts its store locations in areas that are not easily serviced by the larger chains. This is likely to give the company a distinct advantage as consumers will be looking to find ways to save money on gas as well as on their groceries. And Dollar General is putting more emphasis on allowing customers to use their stores as a one-stop location, which should be an additional catalyst.

Western Union (WU)

Many economists are predicting a recession in the United States if not in 2022, then sometime in 2023. If you share that view, then Western Union (NYSE:WU) may be worth a look. The company remains a reliable option for the underbanked or unbanked. This group may rely on the company’s ability to facilitate peer-to-peer money transfers as well as providing bill payment services. The company is also embarking on an internal strategic review, which may lead to greater efficiency in the company’s operations.

WU stock is down 6% this year and currently has a consensus Hold rating. However, the stock is still a favorite among institutional investors. And it currently has a dividend yield of over 5% with a seven year streak of raising its dividend.

Schwab U.S. Dividend Equity ETF (SCHD)

An alternative approach to finding retirement stocks to buy is to look at dividend-focused exchange-traded funds (ETFs). I have two on this list. The first is the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD).

This ETF tracks the performance of the Dow Jones U.S. Dividend 100 index. This means the fund invests in high-yielding U.S. stocks that are financially sound and have a history of paying consistent dividends. In fact, one of the fund’s largest holdings is Amgen which is also on this list of retirement stocks.

This is reflected in the fund’s dividend yield which is over 3% (3.04%) at the time of this writing. The fund also has what an amazingly low expense ratio of just 0.06%. That means that for a $10,000 investment investors pay just $6.

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The fund is down about 7.5% for the year. However, much of that loss has occurred with the broad selloff in mid-May.

ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

The last security on this list of retirement stocks to buy is the ProShares S&P 500 Dividend Aristocrats ETF (NYSEARCA:NOBL). As its name implies, the benefit of this fund is that it invests exclusively in companies that are part of the dividend aristocrats club. This means that the companies have increased their dividends for at least 25 consecutive years. Companies that prioritize a dividend in this fashion are much more likely to prioritize the dividend.

Another feature of the fund is that it does not allow any sector carry more than 30% of the weighting in the fund. The top three weighted sectors in the fund are consumer staples, industrials and materials.

The fund has an expense ratio of 0.35%, which is considered a bit expensive. And it has not been spared from the market selloff. The fund is down 10% in 2022.

On the date of publication, Chris Markoch had a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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• It’s a good time to look for retirement stocks, and these seven are good, reliable choices.
• Alico (ALCO) has a compelling but unusual business as a holding company for agribusiness and land management assets.
• BCB Bancorp (BCBP) is a regional bank headquartered in New Jersey that will benefit from wider margins and continued growth.
• Global Partners LP (GLP) is a limited partnership that buys, sells, stores and transport gasoline to various retailers across its service territory.
• Hess Midstream LP (HESM) is another limited partnership but is in the pipeline business, which will continue to thrive.
• OGE Energy (OGE) has two businesses as an electric utility and a natural gas pipeline company.
• Pangea Logistics (PANL) is a new breed of logistics company that currently focuses on dry bulk shipping.
• Sisecam Resources LP (SIRE) is major soda ash producer, a material used in smelting alumina metals and lithium.

When the markets turn down, it’s a good time to start thinking long term. Bull markets and their heady last days can certainly be exciting as everything just keeps going up. But long-term thinking is in order now, and that means finding quality retirement stocks that offer growth as well as solid dividends.

Dividends are the quiet power behind compounding. Three or four percent may not seem like a game-changer given the last decade of growth, but it’s a powerful tool year after year.

It’s also helped along by quality companies that have built their businesses and control solid niches. That means durable growth on top of steady income.

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Also bear mind that a few energy-focused companies on the list are limited partnerships. That means they operate as a tax-advantaged entity, like real estate investment trusts (REITs). They have to share their net profits with their shareholders as a form of dividends, so their dividends are usually higher than average.

Alico (ALCO)

Land, they’re not making any more of it. That has been the line about real estate for decades.

Alico (NASDAQ:ALCO) understands this well. It has land that it leases out for ranchers. Lands that it leases for orange groves. And other land that has oil and natural gas wells on it. ALCO has 84,000 acres of land in Florida, 49,000 of which are dedicated to orange groves.

The company basically operates like a REIT for raw land. It doesn’t have to improve anything and can also hold plots in reserve for conservation tax credits. It’s a simple business that has been in operation for six decades, so it knows what it’s doing.

ALCO stock has gained almost 13% year to date, and it also comes along with an attractive 4.9% dividend.

This stock has an “A” rating in my Dividend Grader.

BCB Bancorp (BCBP)

Banks stocks have been hammered since the beginning of the year. But a lot of the headlines go to the big national banks with their massive trading desks, investment banking arms and huge reach.

BCB Bancorp (NASDAQ:BCBP) isn’t one of those. And that’s why it made this list of retirement stocks. It’s a regional bank with office across New Jersey and eastern New York. That’s a very good market for mortgages, refinancing and the kind of meat and potatoes business traditional banks no how to make money with.

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Rising rates isn’t bad for banks, because it gives them more margin to play with when lending money or setting credit card interest. And it shows in BCBP stock performance; it has gained 21% year to date yet still trades at a price-to-earnings ratio (P/E) of 9. And it has a solid 3.4% dividend.

This stock has an “A” rating in my Dividend Grader.

Global Partners LP (GLP)

One inflationary factor that everyone feels is the rising price of gasoline. Many people are upset that gas costs are now over $4 a gallon in every state. But compared to many places in the world, we still have it pretty good. And the nations where gas is cheaper than it is here aren’t likely immigration destinations.

Also bear in mind that most service stations aren’t making a killing because they have very slim margins on their gasoline revenue. But one business that will continue to see consistent demand is the wholesale and transport companies like Global Partners LP (NYSE:GLP).

GLP operates from 21 terminals in the Northeast and then transports fuel to businesses, retailers and resellers. Demand remains high for fuel, especially as summer driving trends come into play. Construction, farming, holiday travel all pick up in the summer.

GLP has been in this business for more than 75 years, so it’s a seasoned veteran of the pricing and supply/demand vagaries that are permanent factors in the fuel business.

The stock has gained 21% year to date, and along with that is a big 8.4% dividend.

This stock has an “A” rating in my Dividend Grader.

Hess Midstream LP (HESM)

Another LP in the energy space, Hess Midstream LP (NYSE:HESM) is also driven more by demand than price. Midstream companies are generally pipeline companies that are moving natural gas and oil from fields to ports, tank farms or refineries.

Unlike most of the oil market, midstream players make money on volume, not price. The more product that flows through their pipes, the more money they make.

While prices may have some effect on fuel demand, the economy isn’t showing a lot of signs of weakness here. That means energy demand will continue, especially from U.S. fields.

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HESM stock is a relative outperformer, gaining nearly 12% year to date. It also has a 7.4% dividend, which is pretty tidy return year in and out. Plus, midstream companies are more stable than upstream exploration and production companies.

This stock has an “A” rating in my Dividend Grader.

OGE Energy (OGE)

Another twist on the energy industry is the conservative path. Utilities. OGE Energy (NYSE:OGE) is an Oklahoma electrical utility that services some of Arkansas as well. It has natural gas midstream business as well.

That gives investors a taste of the risk in the unregulated energy business. And it’s bolstered by a conservative, predictable utility operation to keep cash flow steady.

It’s an attractive combination, especially in natural gas-rich Oklahoma. It has an $8 billion market cap, so it’s not a massive player, but it has carved out a couple very successful niches.

OGE stock has returned almost 5% year to date, with a 4.1% dividend as well. And its P/E is slightly above 8.

This stock has an “A” rating in my Dividend Grader.

Pangea Logistics (PANL)

This supply chain crisis is one for the ages, to be sure. The amount of things that have to go wrong simultaneously — and did — is amazing. But here we are.

Some of the trouble with logistics management is that systems are pretty antiquated, so when things started to go wrong, you couldn’t just flip a button or switch to keep chaos at bay.

Pangea Logistics (NASDAQ:PANL) is a somewhat new name in the dry bulk shipping business, going public in 2013. But it’s run by experienced shippers that have been in the game for decades. PANL focuses on dry bulk shipping — think ore, grain, coal, steel, any cargo that’s “dry” — and also does some work upgrading and build ports. It’s also a leader in high Arctic logistics, which is becoming more attractive because it would cut shipping times significantly. Think of this as one of those retirement stocks that you can buy now and leave it alone for decades.

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PANL stock only has a $294 million market cap but it’s in the right place at the right time. The stock has gained 69% year to date, it has a 5% dividend, and it trades at a P/E of 3.5.

This stock has an “A” rating in my Dividend Grader.

Sisecam Resources (SIRE)

Whenever you start looking deeply into an industry, you realize there are companies that provide an essential service to the industry that few people outside of it even realize is a real business.

Sisecam Resources (NASDAQ:SIRE) is one of those companies. Granted, it only has a $368 million market cap, but this soda ash producer is in the center of the aluminum manufacturing business as well as the lithium battery business. You see, soda ash is used to smelt metals in the aluminum family as well lithium. That’s a pretty good business. Think about the next time you buy a 12-pack of sodas or adult beverages.

And its lithium business is certainly going to stay under heavy demand for many years to come. Its profile may well grow for green investors as well. Also, given its size, it may well end up a premium takeover target at some point.

SIRE stock has gained almost 12% year to date, and it also has a whopping 10.8% dividend. Its P/E sits below 10.

This stock has an “A” rating in my Dividend Grader.

 On the date of publication, Louis Navellier has no position in any of the stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. 

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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• Although the market turmoil may have investors scrambling for cover, these retirement stocks can likely withstand the heat.
• Brookfield Infrastructure (BIPC): One of the largest owners and operators of critical global infrastructure networks, Brookfield presents unbeatable relevance.
• Duke Energy (DUK): A classic name among retirement stocks, Duke Energy’s pertinent business and compelling coverage map make it a worthwhile idea.
• American Electric Power Company (AEP): A massive electric utility firm covering 11 states, AEP commands permanent relevance among retirement stocks to buy.
• Merck (MRK): A powerhouse in the big pharmaceutical industry, Merck should benefit from its enviable product portfolio.
• AbbVie (ABBV): As society gradually returns to normal, AbbVie’s Botox acquisition should make ABBV an enticing name among retirement stocks.
• Exxon Mobil (XOM): While experts are screaming that electric vehicles are the future, crude oil likely has a long, lucrative road ahead.
• Philip Morris (PM): If you don’t mind digging into vice plays, PM could provide a relevant lift regarding retirement stocks to buy.

Just as society thought it was about to turn a corner with the vexing coronavirus pandemic, Russia’s unprovoked attack on Ukraine unsettled global markets, sending many investors seeking shelter from the storm. Despite the volatility, the equities sector still represents one of the best places to grow your money and as such, retirement stocks to buy command relevance.

Of course, you can’t just pick out any idea and expect it to perform well. Unfortunately, this year has witnessed multiple headwinds. Setting aside escalating geopolitical tensions in Europe, the choices that the Federal Reserve made to keep the U.S. economy afloat following the Covid-19 breach have now come to roost in the form of rising inflation. Given this tricky backdrop, investors must be selective regarding retirement stocks.

To better navigate the treacherous waters, your long-term portfolio should consist of companies that don’t just address immediate needs, but will be around well into the future. Granted, qualified ideas are difficult to find, but it’s not impossible.

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Here are some intriguing names to consider for retirement stocks to buy:

Retirement Stocks to Buy: Brookfield Infrastructure (BIPC)

An everyman of supremely relevant and irreplaceable industries, Brookfield Infrastructure (NYSE:BIPC) owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. Specifically, the company invests in transmission and telecommunication lines, toll roads, ports and pipelines.

In other words, if it goes through the global supply chain, there’s a chance that Brookfield is involved. Thus, if you’re looking for a relatively stable and proven investment for retirement stocks to buy, BIPC should be high on your list. Though troubles weigh on global business networks currently, they will eventually fade. But before then, you’ll want exposure to BIPC.

Brookfield is also attractive for investors seeking retirement stocks in that its dividend yield is a solid 3.03%. It’s also recovering in terms of revenue performance since the Covid-19 pandemic, although management will need to address the net losses. Ultimately, though, patient investors should find lots to like about BIPC stock.

Duke Energy (DUK)

One of the classic ideas among retirement stocks to buy, Duke Energy (NYSE:DUK) is a go-to name for those with a long-term perspective. An electric power and natural gas holding company, Duke is essentially permanently relevant. As I like to say, people expect the lights to turn on when they flip the switch. Bad stuff happens when it doesn’t.

Aside from the obvious and cynical, DUK enjoys a fortuitous advantage in its coverage map. Levering a strong presence in the Southeast (Florida, South Carolina) and Midwest (Indiana, Kentucky, Ohio) regions, Duke Energy might see increased demand from migration patterns. As coastal metropolitan areas become overly crowded and expensive, many astute millennials are moving to states with lower costs of living, coinciding with Duke’s coverage map.

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Finally, DUK makes for a solid case for retirement stocks to buy because of its dividend yield, which currently stands at 3.62%. With a solid track record of profitability, the company should be able to take care of its shareholders for years to come.

Retirement Stocks to Buy: American Electric Power Company (AEP)

One of the biggest electric utility firms in the country, American Electric Power Company (NASDAQ:AEP) provides a solid mix of capital return potential and passive income. On a year-to-date basis through the May 16 session, AEP has gained over 12%. At the same time, its dividend yield stands at a solid 3.15%, making it one of the more intriguing retirement stocks to buy.

As with Duke Energy above, American Electric Power enjoys a compelling coverage map. This one in particular spans 11 states — including millennial destination spots like Ohio and Texas — and serves 5.5 million customers. Therefore, because of migration patterns largely fueled by economic necessity, it’s quite possible that AEP could enjoy increased demand.

Financially, the company is rock-solid. After suffering a noticeable sales drought in 2020, annual revenue is now exceeding pre-pandemic norms. In addition, it consistently drives robust net income, making AEP among the most dependable retirement stocks to buy.

Merck & Co. (MRK)

One of the ironies of the Covid-19 pandemic was that it didn’t holistically benefit the broader healthcare industry. Indeed, because of initial fears associated with the mysterious SARS-CoV-2 virus, many chose to avoid hospital and clinical settings unless absolutely necessary. Thus, the pandemic wasn’t exactly a boon for pharmaceutical giant Merck & Co. (NYSE:MRK).

But now that both the virus itself and the fear of Covid-19 are fading, Merck might make for an intriguing idea among retirement stocks to buy. Specifically, investors should key in on the company’s enviable product pipeline. Thanks to societal normalization, people are much likelier to visit health facilities for non-Covid-related issues.

Of course, Merck has a powerhouse oncology drug in Keytruda, which should bolster MRK stock in the long run. According to Mordor Intelligence, experts project the cancer immunotherapy market to command nearly a double-digit compound annual growth rate from now until 2027.

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And while you’re waiting for this narrative to fully materialize, you can take advantage of MRK’s 3% dividend yield.

Retirement Stocks to Buy: AbbVie (ABBV)

Another popular pharmaceutical firm, AbbVie (NYSE:ABBV) is especially enticing as one of the retirement stocks to buy because of its acquisition of Allergan, which it completed in May 2020. Under the Allergan brand were several intriguing products, the most attractive (in my opinion) being Botox.

Say what you want about the neurotoxic protein, it’s a popular treatment because humans want to keep their youthful appearance as long as possible. More significantly, the gradual normalization of society could positively affect Botox. Basically, as more people go out and about, they’ll want to look their best. That’s doubly so if workers are recalled to the office.

However, another demographic aspect might help Botox sales — and thus AbbVie — for decades to come and that’s aging millennials (and eventually Generation Z). Given that western societies have generally become more concerned with physical appearance, people from these demographics would be even more incentivized to consider Botox.

Exxon Mobil (XOM)

Listing Exxon Mobil (NYSE:XOM) as one of the retirement stocks to buy might draw scorn, ridicule, or both. For one thing, society at large has shifted toward an economic ecosystem that favors environmental, social and governance (ESG) sentiments. Big oil doesn’t really factor into such thought processes. Moreover, arguably most analysts proclaim that electric vehicles (EVs) are the future. That’s going to put XOM in a bind.

Well, maybe not. Sure, the war in Ukraine has spurred colossal interest in alternative energy solutions, which EVs play a significant role in. However, the harsh reality is that integration of EVs will take time. For example, the infrastructure to support the electrification of transportation isn’t fully developed. Additionally, EVs are currently extremely pricey, only accessible to affluent households.

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Sorry to burst any bubbles, but the road to true mainstreaming of EVs could take many, many years. In the meantime, hydrocarbon-based infrastructure is ready to go, making XOM a surprisingly intriguing idea among retirement stocks to buy.

Retirement Stocks to Buy: Philip Morris (PM)

Some folks have certain principles or values they want to uphold with their investment portfolios. If that’s you, I can totally respect that. Therefore, you might not want to hear about tobacco giant Philip Morris (NYSE:PM). At the same time, I can’t assume that everyone has the same thought process. For those that don’t mind a little vice in their retirement stocks, PM might fit the bill.

For starters, the vaping community has recently gravitated toward smaller devices due to their convenient profile and ease of use. Such a subculture shift benefits Philip Morris perfectly, which specializes in both heated tobacco products and e-cigarettes that focus on the experience of smoking rather than the wizardry of digital devices.

Second, it’s not unreasonable to believe that as stress levels rise globally due to recession fears — and perhaps an actual recession materializing — many people may turn to coping mechanisms such as cigarettes, both the analog and electronic varieties. Of course, it’s a cynical thesis. But if that doesn’t bother you, PM might be an interesting name among retirement stocks to buy.

On the date of publication, Josh Enomoto 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.

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• ABM Industries (ABM): Though relatively small in size, ABM Industries is one of top names in its industry.
• Becton, Dickinson & Co. (BDX) has grown from humble beginnings to be one of the largest names in the medical device industry.
• Dover  (DOV) is a global manufacturer with a highly diversified business model.

The recent sharp declines in markets have sent prices lower almost across the board for stocks. Investors appear willing to accept any price in an effort to protect the gains they have seen over the past few years.

While this may sooth investors’ nerves in the short-term, long-term it could be a mistake.

Given the volatility, we believe that investors should focus on owning shares of high-quality companies that have business models that work under most market conditions.

The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. There are less than 40 stocks within this index as a company must have a very strong business model to raise dividends for five decades. These are the companies we suggest investors turn to when markets sell off.

Dividend Kings: ABM Industries (ABM)

Our first Dividend King for consideration is ABM Industries (NYSE:ABM), a leading provider of facility solutions. The $3 billion company has annual revenue of more than $6 billion.

Though relatively small in size, ABM Industries is one of top names in its industry. The company provides a wide range of services, including janitorial, electrical and lighting, energy solutions, facilities engineering HVAC, mechanical, and parking. This wide range of services appeals to a variety of clients, including airports, schools, universities, hospitals, and manufacturing plants.

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The company has been in business for more than a century and has established a very positive reputation in facility solutions. This attracts new customers as well as helps to maintain existing partnerships. It is a major reason why ABM Industries often targets, and is successful at, winning large national accounts in order to acquire substantial business.

In addition, ABM Industries uses acquisitions to gain entrance into new markets. For example, the company made two sperate purchases in 2014 and 2015 that helped ABM Industries enter the United Kingdom. While still primarily focused on the U.S. market, these acquisitions have helped propel ABM Industries’ international business. In 2021, ABM Industries acquired Able Services, which was the largest family-owned facility services company in the U.S., helping to further expand the company’s reach and offerings.

Because of these tailwinds, we project that ABM Industries can grow earnings-per-share by 5% annually through 2027, which is in-line with the long-term growth rate.

ABM Industries long track record of success has led to 54 consecutive years of dividend growth. The stock yields 1.7%. We forecast that ABM Industries’ payout ratio will be just 22% for the year.

Shares of the company are currently trading at 12.7 times our expected earnings-per-share of $3.60. We believe fair value lies at 17.5 times earnings, which is the stock’s average valuation since 2012. Multiple expansion could add 6.5% to annual returns over the next half-decade.

Therefore, we estimate that ABM Industries can return 13.2% per year through 2027, stemming from a 5% earnings growth rate, a starting yield of 1.7%, and a mid-single-digit tailwind from multiple expansion.

Becton, Dickinson & Company (BDX)

Our next pick is Becton, Dickinson & Co. (NYSE:BDX), or BD, which is a leading medical device company. BD is valued at just under $71 billion and generated $20 billion in fiscal year 2021.

BD traces its history back more than 120 years. The company has grown from humble beginnings to be one of the largest names in the medical device industry. BD has achieved its leadership position because it has a wide variety of products that are needed in the healthcare sector.

The company consists of three segments, including medical, life sciences, and intervention. BD’s core product categories include diagnostic, infection prevention and surgical equipment. The company is highly innovative dating back to its beginning. That tradition of bringing new products to market continues today, as BD expects to launch more than 100 new products through fiscal year 2025. These products will provide additional tailwinds to results as the company expects nearly $2 billion in incremental revenue during this time.

BD also uses acquisitions to augment its core portfolio, the most important of which was the company’s 2017 purchase of C.R. Bard for $24 billion. The largest acquisition in BD’s history added the one of the top medical supply companies to the portfolio and helped establish the Intervention segment. With Bard in the fold, BD’s total addressable market increased by $20 billion. At the same time, BD spun off its diabetes care business, which had been lagging for some time, into a standalone company on April 1st of this year.

BD’s has been successful for a very long time, with earnings-per-share growing at a rate of more than 10% annually over the last decade. We believe the company can see this level of growth going forward as well.

The healthcare sector is often recession-resistant due to the importance of products and services offered. Combined with a strong business model, BD has been able to grow its dividend for five decades. The company’s dividend should grow for years to come as the payout ratio is projected to be just 27% this fiscal year. The stock yields 1.4% at the moment.

Shares of the company are trading with a price-to-earnings ratio of 19.2 using our earnings estimate of $12.93 per share for fiscal year 2022. With a five-year target valuation of 18.6 times earnings, this implies a small annual headwind to total returns from multiple compression.

In total, BD is projected to return 10.4% per year for the next five years, due to a 10% earnings growth rate and starting yield of 1.4% that are only partially offset by a modest multiple compression.

Dividend Kings: Dover (DOV)

Our final top Dividend Kings pick is Dover (NYSE:DOV), a global industrial manufacturer. The company has annual revenues of more than $6 billion and is valued at $18.6 billion.

Dover operates a highly diversified business model. The company’s reporting segments include engineered systems, clean energy and fueling, pumps and process solutions, image and identification, and climate and sustainability technologies.

Dover is also diversified along sources of revenue, with the U.S. accounting for just over half of annual sales. International markets contribute the remainder.

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The company operates in a niche market, but specializes in highly engineered products. Having the ability to create what customers need helps to raise switching costs as a competitor might not be able to match Dover’s technical prowess. This makes it less likely that customers will change who they do business with, one of the main reasons why Dover’s backlog grew 54% year-over-year to $3.4 billion in the most recent quarter.

Dover has also taken action to improve its portfolio, spending more than $800 million on acquisitions to improve the company’s standing or to enter new markets. This has brought new businesses to every segment within the company.

Earnings-per-share increased by 6% over the last decade, but we expect 8% growth going forward as the company’s history of organic growth supported by acquisitions should continue.

Despite operating in a highly cyclical industry, Dover has increased its dividend for 66 consecutive years, one of the longest track records in the market place. This growth streak is likely to continue as we have a projected payout ratio of just 23% for the year. Dover yields 1.5%.

Using earnings-per-share estimates of $8.55 for 2022, shares trade with a price-to-earnings ratio of 15.2. This is below our 2027 target valuation of 17 times earnings, implying a 2.3% annual contribution from multiple expansion over this period.

In total, Dover is expected to provide annual returns of 11.8% over the next five years, due to a combination of 8% earnings growth, a dividend yield of 1.5%, and a low single-digit contribution from multiple expansion.

Final Thoughts

Turbulent markets can frustrate the average investor, but we stress that those with a long-term perspective target companies that are leaders in their sectors. These companies often have the ability to pay safe and secure dividends because of the strength of their business models.

The recent market wide pullback has resulted in even high-quality names, such as ABM Industries, Becton, Dickinson & Co. and Dover, to see their share prices fall. As a result, all three names now offer the potential annual returns in excess of 10% over the next five years.

All three companies are also members of the exclusive Dividend Kings index. Just as important, the dividend growth streaks are likely to continue as each company has a very low payout ratio.

This suggests that ABM Industries, Becton, Dickinson & Company, and Dover could be good options for investors looking for high levels of total returns and secure income.

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

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• Dividend stocks are a great way to buffer your portfolio against the uncertainty in the market, especially when thinking long-term.
• Bank of New York Mellon (BK) was originally owned by Alexander Hamilton and has been around since 1784.
• Fifth Third Bancorp (FITB) is one of the top regional banks in the country and continues to drive innovation.
• Intel (INTC) remains a premier chipmaker and bringing chipmaking back to the U.S. will help its long-term stability.
• Merck (MRK) may have missed out on the Covid vaccine gold rush but it remains one of the top drug companies in the world.
• Amgen (AMGN) is the kind of biotech all biotech hopefuls want to grow up to be, with plenty of drugs in the market and in the pipeline.
• Morgan Stanley (MS) has proven to be both one of the most durable financial services companies and one of the most profitable, decade after decade.
• T Rowe Price (TROW) might not be one of the big Wall Street names but it has been delivering for its clients and shareholders more than eight decades.

As stocks devolve towards bear market territory and the global economic picture remains in the “uncertainty” camp, many investors want safety and security. That’s why dividend stocks are the perfect choice for long-term investors.

Buying dividend stocks isn’t a bet on the short term. They’re long-term choices where dividends and steady growth top the list of priorities. These stocks have been around for decades, some for centuries.

Their staying power means they understand that fads are exciting, but they don’t necessarily build the bottom line for a sustainable long-term future. This is somewhat refreshing given the start-ups that have flooded the market in recent years and sport massive market caps after just a few years on the exchanges.

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These are foundational companies that have been at the roots of their sectors. They have the necessary attributes to continue to grow through good and bad markets. They also provide reliable, income along the way.

Bank of New York Mellon (BK)

Not only does Bank of New York Mellon (NYSE:BK) carry the powerful banking name of the Mellon family — and of course the prestigious Carnegie Mellon University — but its lineage goes back to the founding fathers. Alexander Hamilton founded the bank in 1784, and this bank has been operating since before the Constitution was finalized.

Right now, a lot of banks, big and small, are trying to gain their footing as the economy and interest rate environments are very dynamic. Uncertainty is poison for the markets. And banks haven’t been immune to this uncertainty. That has hit big banks, including BK.

But that doesn’t spell doom for BK stock. On the contrary, it has been through more severe contractions and headier expansions than we’ve been through recently. And through it all, it has emerged stronger.

BK stock has lost 25% year to date and it’s carrying a price-to-earnings ratio (P/E) of 11. This is a great opportunity to add this stock to your nest egg for the long term. It currently has a rock-solid 3.1% dividend.

This stock has a “B” rating in my Dividend Grader.

Fifth Third Bancorp (FITB)

After the big national banks, the next tier is regional banks. These are banks that operate in a number of states around a geographical region. At this point for Fifth Third Bancorp (NASDAQ:FITB), it nearly covers two regions.

It has locations in Ohio, Kentucky, Indiana, Michigan, Illinois, Tennessee, West Virginia, North and South Carolina, Georgia, and Florida. That’s most of the Midwest and South, east of the Mississippi River.

But that growth has taken time. It wasn’t a massive private equity fueled buying spree. The bank has been around since 1858 and has spent decades methodically growing it operation.

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FITB stock has lost 18% year to date and now trades with a P/E of 10. It has a 3.4% dividend and is well situated in states where companies — and their workers — are moving into.

This stock has an “A” rating in my Dividend Grader.

Intel (INTC)

We’ve been hearing a lot about the semiconductor chip shortage this year. Well, Intel (NASDAQ:INTC) is the world’s largest chipmaker. That means it’s the largest victim of this issue, as well as the biggest beneficiary once it’s resolved.

What’s more, when most other chipmakers when “fabless” INTC continued to build its own chips.

Fabless chipmakers engineer the chips — usually in the U.S. or Europe — and then ship the specs to Asia for manufacturing, since a chip plant these days has a cost in the billions of dollars. That’s a massive expense, and fabless players don’t have to deal with that issue.

However, they’re now worse off due to the supply chain collapse. Now, everything is more expensive, and the chip foundries are starting and stopping production time and again. In the midst of all this, INTC announced it was going to build at least one if not more foundries in the U.S. That likely comes with massive tax breaks and federal subsidies as well.

INTC stock is down 18% year to date, but that’s not bad compared to many of its competitors. It also has a 3.4% dividend that will continue to help compound the cash in your portfolio.

This stock has an “A” rating in my Dividend Grader.

Merck (MRK)

Merck (NYSE:MRK) has been a drug maker since 1891. It has both a human health and an animal health division. The latter has become ever more important due to the economic devastation brought by recent animal-borne diseases from Covid-19 to the avian flu to African swine fever.

While the pandemic is a fresh memory of Covid-19’s power, rising egg and poultry prices in the U.S. are partially due to a fast-moving avian flu. And ASF was crushing the Chinese economy in the summer and fall of 2019.

But vaccines aren’t where the money is for big pharmaceutical companies. It’s drugs. And MRK has always been at the center of innovation. Its Keytruda was one of the first cancer immunotherapy drugs to get approval from the U.S. Food and Drug Administration. That means it was researching these drugs long before the public ever imagined these drugs were possible.

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MRK stock has gained 20% year to date, as healthcare beyond the pandemic returns to normalcy. It still trades at a bargain 17 P/E and has a stalwart 3% dividend.

This stock has an “A” rating in my Dividend Grader.

Amgen (AMGN)

Amgen (NASDAQ:AMGN) has been in the biotech space since 1980. And its $130 billion-plus market cap makes it a biotech that’s as big as some significant big pharma drug makers.

In the current market, investors are focused on companies that can deliver. The speculative bubble has burst, so money isn’t flowing into niche biotechs that have a cool technology. In the past market, they were buyout candidates or could get massive funding from private equity firms.

Now, everyone is keeping their cash closer to their vests. And the attractive drug companies are those with proven track records, a healthy portfolio drugs, and a strong pipeline. AMGN fits that bill to a T.

The stock has gained 9% year to date, has a P/E of 24 and a very reliable 3.2% dividend.

This stock has an “A” rating in my Dividend Grader.

Morgan Stanley (MS)

One of the realities of the markets is that the big institutional players like Morgan Stanley (NYSE:MS) don’t just do well when the markets are going up. They make money when investors are active, either moving money around, pulling it out or funneling it in.

They can use that cash flow to position their accounts as well as work complex cross-hedging across stock, bond and derivatives markets. As long as that momentum is moving, the direction isn’t as crucial as volume.

And right now, MS and others are staying busy. Financial services companies have sold off a little this year as broad selling is the first wave of market readjustments. But lumping banking stocks and financial services companies together isn’t always apples and oranges. For example, MS isn’t particularly interest in the traditional banking sector and continues to focus on its investment banking strengths. That focus will pay dividends (pardon the pun) in the long-term.

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Given that MS has been around since 1924, it understands the long term. Currently MS stock is down 18% year to date. But it has a generous and trustworthy 3.4% dividend and is trading at a P/E of 10.

This stock has an “A” rating in my Dividend Grader.

T Rowe Price (TROW)

Like MS, T Rowe Price (NASDAQ:TROW) is a financial services company that has been around since 1937. But unlike most of its peers, TROW isn’t a Wall Street firm. Its headquarters has always been in Baltimore, Maryland.

The logic is that there’s too much group think among all the firms on the Street. By operating out of Baltimore, TROW can think for itself and stick to its view of the markets without undue influence from competitors.

With a $28 billion market cap, it’s not a major player, but it’s a well established one. Much of its business is focused on its family of funds — for consumers and companies – and managing institutional money.

The current selloff has hit its assets under management, which has hit the stock pretty hard. TROW stock is down 38% year to date. But this is the kind of company that knows how to weather the storms, which is why it’s very attractive now. And its 3.8% dividend is an investment in your patience.

This stock has an “A” rating in my Dividend Grader.

On the date of publication, Louis Navellier has a position in AMGN in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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• Water stocks are attractive to income investors.
• American Water Works (AWK): American Water Works has a significant scale advantage.
• California Water Service Group (CWT): California Water Service Group is one of the three largest water utilities in the U.S.
• SJW Group (SJW): SJW Group engages in a full suite of water services.

Water stocks possess all the qualities one would wish for when it comes to long-term dividend growth.

Investors seeking long-term, secure dividend growth would do well to carefully select sectors of the market before picking individual stocks to ultimately purchase. There are many factors that determine how safe a company’s dividend payment is, with sector playing a big role in terms of competition, long-term demand, recession resistance and other critical factors.

In this article, we’ll take a look at why dividend growth investors would want to own water stocks, as well as three examples of companies we like today in the sector.

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Water is essential not only to all human life, but in manufacturing, irrigation, and countless other applications. Not only is water essential, but clean water is absolutely essential. That opens up the universe of water-related stocks to those that provide things like pumping and transportation equipment, filtering, storage, heating and cooling, and of course, the physical delivery of water itself.

Below, we’ll focus on three examples of companies that focus on the physical delivery of water. That is, three water utility companies.

Water utilities tend to exhibit many of the same characteristics as electric utilities, for instance; stable long-term demand, monopolies in their service areas, built-in pricing increases, and recouping of capital expenditures from customers. These characteristics make water utility stocks strong dividend growth candidates, and the three companies below have these and more.

Water Stocks: American Water Works  (AWK)

Our first stock is American Water Works (NYSE:AWK), a water and wastewater services company based in New Jersey. The company offers water and wastewater services to 1,700 communities in 14 states, serving about 3.4 million customers. Among utilities, that gives American Water Works a big scale advantage. Its customers include residential, industrial, food and beverage, property developers, energy suppliers, fire services and much more.

The company was founded in 1886, generates about $3.8 billion in annual revenue, and trades with a market capitalization of $26 billion.

American Water Works has only paid dividends to shareholders for 14 consecutive years, which is somewhat on the lower end of the scale when it comes to utilities. However, the company has raised its dividend by an average of nearly 9% annually over that 14-year period, so as a pure dividend growth stock, it definitely hits the mark.

The current yield is 1.8%, so it’s about better than the S&P 500, and the payout ratio is right at 60% of earnings. With the company’s reliable earnings stream, that’s a perfectly acceptable payout ratio. Further, we expect robust 8% earnings-per-share growth in the years to come, meaning the company could raise its payout by 8% annually without increasing the payout ratio. For that reason, we believe this stock has many years of strong dividend growth in front of it.

California Water Service Group (CWT)

Our next stock is California Water Service Group (NYSE:CWT), a water utility based in California. The company provides water and related services to customers in California, Washington, New Mexico, Hawaii and Texas. Its customer base includes about 550,000 total connections, with the vast majority of those in California. That makes California water one of the three largest water utilities in the U.S.

California Water was founded in 1926, generates about $835 million in annual revenue, and trades with a market capitalization of $2.7 billion.

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California Water’s dividend increase streak stands at an immensely impressive 54 years, making it a Dividend King. That puts the stock in very rare company in terms of dividend longevity, and is certainly one of the reasons we like it.

In addition, the average increase in the payout for the past decade is about 5%, so management is handily beating inflation with dividend increases. The current yield is 1.9%, so again, meaningfully better than the broader market. And California Water’s payout ratio is just 50% of earnings for this year.

Given the stable nature of its earnings, as well as 5% projected average annual growth, we see the dividend growth runway as very long for this stock. We are forecasting, 6% average annual growth in the dividend over the next five years, making California Water a strong dividend growth stock.

SJW Group (SJW)

Our final stock is SJW Group (NYSE:SJW), a water utility provider based in California. The company engages in a full suite of water services, including production, purchase, storage, purification, distribution, and selling of water and wastewater services. Its service area includes California, Connecticut, Maine, and Texas following its merger with the former Connecticut Water.

SJW has about 400,000 total connections, so its scale is quite large as well. It produces $645 million in annual revenue, and trades with a current market capitalization of $1.8 billion.

SJW’s dividend increase streak is 54 years, making it a Dividend King. In addition, its average annual increase over the past decade is more than 7%, so on a pure dividend growth basis, SJW receives high marks.

Its current yield is 2.4%, almost a full percentage point better than the S&P 500. Like the others on this list, its payout ratio is also quite reasonable at 61% of earnings for this year. That makes the dividend not only safe, but with lots of room to grow in the future.

Taking into account forecasted earnings growth of almost 8% annually, we see the potential for future dividend increases as vast for SJW, without undue stress on its ability to pay.

Final Thoughts

Water stocks have many characteristics that make them great dividend stocks. They have stable demand from a captive customer group, have built-in pricing increases from regulators that virtually ensure growing profitability over time, and they have shareholder-friendly management groups that prioritize returning capital to shareholders.

In addition, water stocks are inherently recession resistant, so they can have a diversifying impact on an investor’s portfolio.

The three stocks we’ve highlighted here – American Water Works, California Water and SJW – all have strong dividend growth histories, market-beating yields, relatively low payout ratios and strong growth prospects. Combined, these factors make these stocks great dividend growth stocks for long-term investors.

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

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• As economic troubles loom, these retirement stocks should keep you in the black.
• AbbVie (ABBV): strong portfolio for sustained dividend growth.
• ASE Technology Holding (ASX): semiconductor demand from automotive tailwinds.
• BCE (BCE): effective cost management will lift revenue and dividends.
• Manulife Financial (MFC): digitization of business will lower expenses.
• Altria Group (MO): strong brand and growth from healthier alternatives.
• Merck & Co (MRK): Covid antiviral pill will add billions in revenue.
• Prudential Financial (PRU): capital investments in real estate will increase returns in invested capital.

Investors who are just a few years away from retirement may look at markets in horror as the sell-off unfolds. Every time stocks fall, the value of retirement portfolios falls with it.

That could hurt a reader’s funds available upon retirement.

A worse scenario is that future retirees need to delay plans. Readers who are unwilling to work a few years more need to stay the course with a selection of stocks.

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They must offer steady long-term income and potential capital growth. Otherwise, poor quality speculations may keep falling as stock market conditions weaken.

AbbVie (ABBV)

AbbVie (NYSE:ABBV) fell from its 52-week high of $175.91 after posting unimpressive first-quarter results and lowering its outlook.

It earned $3.16 a share (non-GAAP). Revenue grew by 4.1% year on year to $13.54 billion. For 2022, AbbVie expects adjusted diluted EPS of $14.00 – $14.20. the outlook includes milestone expenses and acquired in business combinations and asset acquisitions.

AbbVie’s write-down should not worry investors seeking retirement income. The firm has a history of raising its dividends regularly, which now topped $5.64 a share.

On its conference call, AbbVie’s Executive Vice President & Chief Commercial Officer Jeff Stewart said that Imbruvica faced some market share erosion. Stewart thinks the decline is temporary. After some stabilization, revenue will rebound back to more normal levels. When that happens, AbbVie will raise its guidance.

Markets worry over the patent expiry for AbbVie’s blockbuster drug, Humira. Fortunately, the firm is co-positioned against biosimilars in the U.S. Furthermore, competitors may price biosimilars at unfavorable levels. Patients will prefer Humira instead of a generic version as a result.

ASE Technology Holding Co (ASX)

ASE Technology (NYSE:ASX) supplies semiconductor assembly and test services and electronic manufacturing services.

In the first quarter, the firm posted net revenue of NT$144,39 million, up by 21% year over year. The gross margin improved by 0.7% to 19.7%. The operating margin was 11.2%.

ASE stock is cheap on every metric, which is something to treasure in retirement stocks. Its price-to-earnings ratio and forward P/E are in the mid-single-digit. The stock also pays an attractive dividend of 30 cents a share. Investors get both income and growth.

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In its EMS business, the company expects some foreseeable disruptions. The near-term headwind will last only a quarter. Overall momentum is strong. ASE has expanding projects with new customers.

In the automotive sector, ASE may realize $1 billion in revenue by 2024. This is a year earlier than the company previously projected.

Markets probably sold ASX stock on worries of a slowdown in the automotive sector. Pent-up demand will only boost revenue when supply constraints ease.

Retirees will realize significant capital gains by considering ASE stock before the automotive sales rebound.

BCE (BCE)

BCE (NYSE:BCE) is a Canadian telecom firm that faces minimal competition.

In the first quarter, it posted revenue growing by 2.6% year over year to CAD 5.85 billion. For fiscal 2022, BCE expects revenue to grow by between 1% to 5%. Adjusted EPS growth is 2% to 7%.

BCE is poised to rise steadily as markets underperform. It managed costs well and continues to par expenses. For example, financing and operating costs fell in Q1.

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The telecom giant posted service revenue growth of 8.7%. This is its best quarterly figure in 11 years. Furthermore, it added 34,230 net postpaid phone subscribers.

Its customers cannot cut their service no matter how poor the economy becomes. The Federal Reserve is raising interest rates, which may lead to a temporary recession. BCE’s business is immune to the economic slowdown.

In the media segment, the company realized digital revenue growth of 84%. Revenue rose by 15.7%, thanks to its stronger TV performance. Bell will sustain growth by expanding its fiber network. Customers will benefit from service improvements. This should increase its average revenue per user figure.

Manulife Financial (MFC)

Manulife Financial (NYSE:MFC) raised its dividend by 18% when it posted Q4 results on Feb. 9, 2022. In the quarter, it earned 84 cents a share. A healthy dividend is always worth considering when choosing retirement stocks.

In the previous quarter, banks and insurers in Canada could not raise their dividends due to Office of the Superintendent of Financial Institutions (OSFI) regulations. When Manulife posted strong earnings a share, the regulator eased those restrictions the next day.

Manulife is very focused on driving the benefits of scale. It is digitizing its business, resulting in a steep increase in efficiency rates in the last few years. As interest rates rise, Manulife will benefit from the tailwind. It will manage headwind risks from the hikes by reducing its expenses. It has the flexibility to adjust its pricing to offset higher costs.

Investors should expect Manulife to benefit from an inflow in retail investments. In the last quarter, it enjoyed $7.5 billion in inflows. The U.S. was the biggest contributor to Manulife reporting six straight quarters of positive net flows.

Altria Group (MO)

Income investors can count on Altria Group (NYSE:MO) to pay a $3.60 per share dividend. The tobacco firm benefits from the stability of its Marlboro product.

With the stay-at-home tailwind over, Altria will have no problem managing the discretionary income that will pressure its customers. Fortunately, Altria enjoys over 90% brand loyalty. It has a strong moat that will protect its profit growth in the long term.

Altria’s e-cigarette company Juul is a small risk. Still, the Food and Drug Administration will regulate the e-vapor category. Altria will need to manage the government oversight in the next 12 to 18 months. It has the flexibility to adjust Juul’s product mix to adhere to the FDA’s decisions.

By April 2022, investors should expect an upside for the e-vapor market. By then, the FDA will have finalized its authorization for e-vapor products in the marketplace.

In the interim, Altria will grow its smokeless tobacco products. This includes the oral nicotine pouch category which has strong margins.

Merck & Co (MRK)

Merck (NYSE:MRK) has a healthy portfolio of products. It posted a first-quarter report that pleased its shareholders.

In the quarter, Merck’s Lagevrio, which inhibits the replication of Covid, topped $3.2 billion in sales.

Without Lagevrio, growth was 19%. Keytruda sales grew by 23% to $4.8 billion. Gardasil and Gardasil 9, which is a human papillomavirus 9-valent vaccine, added $1.5 billion in sales for Merck. Sales of the vaccine grew by 60% year-over-year.

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The company benefited from strong demand in China for Gardasil. The country is managing Covid in a lockdown. As a result, Merck is supplying more Gardasil doses in other parts of the country.

For 2022, Merck raised its 2022 sales to between $56.9 billion and $58.1 billion. It expects full-year growth of 17% to 19%. Conversely, emerging biotech firms in need of cash cannot tap the initial public offering market.

Smaller players will suffer. This could open an opportunity for Merck to acquire those companies at a steep discount. Merck is in no rush to buy drug discovery companies. Its product portfolio is already healthy so this is one of those retirement stocks that looks good and is only likely to look better going forward.

Prudential Financial (PRU)

Prudential Financial (NYSE:PRU) experienced $4.3 billion in net outflows in its last quarter. The fixed income mutual fund industry weakened. Investor panic worsened in the quarter. Still, Prudential saw a $300 million positive flow into public fixed income and real estate.

Prudential has healthy product diversification. Its institutional business, for example, benefits from algorithms that are positioned into fixed income. Since 2017, Prudential saw $55 billion in inflows. Interest rates are rising sharply, too. This will exert pressure on the retail fixed-income industry. Higher rates are ultimately good for the company’s fixed-income business.

To expand profit margins, Prudential may increase its fee rate. But for now, it is benefiting from the strong real estate and private credit market. In the first quarter, it invested $9.6 billion in real estate. It raised another $1.8 billion through PGIM Private Capital. In the long term, investors will benefit from the company’s track record of a high return on invested capital.

On the date of publication, Chris Lau 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.

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• These cheap stocks to buy come from growth and dividend names. All are worth holding in the retirement portfolio for value creation.
• Pfizer (PFE): Undervalued with a robust dividend yield, Pfizer has a deep pipeline of drugs to ensure long-term revenue growth visibility.
• Chevron (CVX): Among the top oil and gas plays with assets that have an attractive break-even. Considering financial flexibility, aggressive investments expected in renewable and non-renewable energy assets.
• Apple (AAPL): This is the best-performing FAANG stock in 2022. Sustained revenue and earnings growth visibility through diversified revenue sources.
• Lockheed Martin (LMT): The top defense stock is likely to benefit from rising geo-political tensions. A strong order backlog provides clear cash flow visibility.
• Rivian (RIVN): In the early stages of growth, but the long-term outlook is promising. A deep correction provides an attractive entry point.
• Pinterest (PINS): Ample scope for upside in international ARPU. With the platform becoming more shopping friendly, Pinterest is a proxy e-commerce play.
• Target (TGT): Strong growth in comparable store sales. Target has an omnichannel presence with significant investments planned in the next few years.

It’s never too early to start retirement planning. The power of compounding can do wonders even if a small amount is allocated every month towards retirement funds. Similar to a dynamic portfolio, a retirement portfolio also needs to be diversified.

Some popular asset classes would include fixed-income securities, gold, equities and blue-chip cryptocurrencies. With equity markets having witnessed a meaningful correction from highs, investors can consider some cheap stocks to buy for the long-term.

Within the equity portfolio for retirement, I would consider holding some growth stocks as well as dividend stocks. In my view, the dividend income can be re-invested to further boost the retirement portfolio returns. Additionally, growth stocks have the potential to deliver multi-fold returns over the long-term.

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Let’s take a close look into seven cheap stocks to buy for a rich retirement.

Cheap Stocks to Buy: Pfizer (PFE)

Among income stocks, Pfizer (NYSE:PFE) would be among the top picks. PFE stock offers a dividend yield of 3.2% and it’s likely that dividends will increase in the coming years. In addition to this, the stock trades at a forward price-earnings ratio of 7.2. Considering the current valuation, there is scope for capital gains.

Pfizer is not just a Covid-19 vaccine play. The company’s growth and cash flow upside are likely to sustain in the long term. However, it’s true that the vaccine sales have provided a cash bump, which provides ample flexibility to invest in research and development.

For 2022, Pfizer expects revenue of $100 billion, which would imply a year-on-year growth potential of 27%. For the same period, the company expects robust research and development expense of $11.5 billion. With a product pipeline of 96 drug candidates, the company’s revenue visibility is strong.

In  the first quarter, the company completed the acquisition of Arena Pharmaceuticals. Further, Pfizer also entered into an agreement to acquire ReViral, which is expected to add $25 billion in risk-adjusted revenue by 2030. Acquisitions are likely to accelerate the growth trajectory over the next few years.

Chevron (CVX)

Legendary investor Warren Buffett is known to invest in long-term value creators. In Q1 2022, Buffett was on a buying spree and boosted his holdings in Chevron (NYSE:CVX). The stock is among the top five holdings for Buffett.

Of course, that’s not the only reason to consider CVX stock for the retirement portfolio. Even after a big rally, the 3.4% dividend yield stock looks attractive. Investors can consider buying the oil and gas exploration stock on dips.

With the Russia-Ukraine conflict, the West is looking to reduce energy dependence. There are two ways to achieve this. First, have policies and incentives that help in boosting production in U.S. and Europe. Further, increase investments in renewable energy.

For the first quarter, Chevron reported operating cash flow of $8.1 billion. This implies an annualized operating cash flow of $32 billion. Robust cash flows will allow Chevron to increase dividends and pursue aggressive share repurchase.

More importantly, the company is likely to maintain a high investment expenditure towards renewable and non-renewable assets. The long-term outlook is therefore positive with the company having 88 billion of barrels of oil equivalent (BBOE) in resources. Chevron is also investing in renewable fuel, hydrogen energy and carbon capture. These factors make CVX stock attractive for the long term.

Apple (AAPL)

Among FAANG stocks, Apple (NASDAQ:AAPL) stock has been an outperformer so far this year. I believe that at a forward P/E of 24.7, it’s among the cheap stocks to buy for the long term.

Considering the company’s top-line and earnings growth, I would still consider it as a growth stock. At the same time, the company has clear dividend growth visibility.

For the first six months of 2022, Apple reported top-line growth of 10% and earnings growth of 18%. A key point to note in the earnings report is healthy growth in segments like wearable and services. Apple is more diversified with the company having multiple segments that support growth.

Of course, the iPhone segment remains the cash cow. With 5G phones, the segment growth is likely to remain healthy. I also like the fact that Apple is cash rich and it allows the company to make big investments. It’s being speculated that the company will be launching autonomous driving cars by 2025. This is another potential source of revenue diversification and AAPL stock upside.

In the company’s fiscal second quarter 2022, Apple returned $27 billion to shareholders. This level of value creation is likely to sustain with innovation driving growth and cash flow upside.

Cheap Stocks to Buy: Lockheed Martin (LMT)

The escalation in geo-political tensions between Russia and Ukraine is likely to have a long-term impact on global defense spending. Global military spending has crossed $2 trillion for the first time with Europe boosting spending.

In current times, it’s important to have a defense stock in the long-term portfolio. Lockheed Martin (NYSE:LMT) has surged by 31% in the last six months. However, at a forward P/E of 16.3, it’s still among the cheap stocks to buy a rich retirement.

Besides the stock upside potential, LMT stock also offers an annualized dividend of $11.20 per share. As the company’s order backlog swells, there is clear cash flow visibility for higher dividend income. As of Q1, the company’s order backlog was $134 billion.

During the quarter, the company also returned $2.8 billion to shareholders. With a guidance of $6 billion in free cash flow for 2022, Lockheed is positioned to create value.

The company’s F-35 remains the key cash flow generator. International orders have increased for the aeronautics segment. With a bigger addressable market, the company is positioned for stable cash flows. Also, emerging segments like “Space” should increasingly contribute to growth in the next few years.

Rivian Automotive (RIVN)

There has been a sharp fall in electric vehicle stocks in the last few months. The reasons include chip shortage, supply chain issue and raw material inflation. Also, growth stocks have been battered in the recent plunge.

The deep correction provides a good opportunity to consider some EV stocks. Tesla (NASDAQ:TSLA) is clearly one name that’s worth considering on dips. However, among high-growth names, Rivian Automotive (NASDAQ:RIVN) looks attractive.

For Q1 2022, Rivian produced 2,553 vehicles and delivered 1,227 vehicles. The company has reaffirmed the guidance for production of 25,000 vehicles in 2022.

Rivian already has an order backlog of 90,000 vehicles for its electric trucks. The company also has an initial order of 100,000 electric delivery vehicle from Amazon (NASDAQ:AMZN). These orders provide revenue upside visibility.

In terms of production, Rivian already has plans to ramp up total capacity to 600,000 vehicles between its Normal and Georgia plants. With $18.4 billion in cash and equivalents, the company seems fully financed for the medium term.

Overall, Rivian has already launched R1T and R1S for the U.S. markets. Additionally, the company’s electric delivery vehicle is likely to boost growth. After a plunge of 78% for year-to-date 2022, RIVN stock is among the names to consider for the long term.

Pinterest (PINS)

Among growth stocks that have witnessed a significant correction, Pinterest (NYSE:PINS) looks attractive. The stock trades at a forward P/E of 23.1 and seems oversold considering the long-term growth outlook.

For Q1, Pinterest reported revenue growth of 18% on a year-on-year basis. However, excluding U.S. and Europe, the company’s revenue growth was 152%. This is one big reason to like Pinterest. The company has a global addressable market and there is ample headroom for growth in international markets.

Another major reason to like Pinterest for the long-term is the company’s effort to make the platform more shopping friendly. The company recently launched the Pinterest API for Shopping. With sustained growth in global e-commerce, Pinterest is well positioned to benefit.

Pinterest reported operating cash flow of $213 million in the first quarter. The company already has an annualized OCF potential of $800 million. With growth in international average revenue per user, the long-term free cash flow outlook is robust.

Of course, PINS is a high-beta stock. I would still include it in the retirement portfolio considering current valuations.

Cheap Stocks to Buy: Target (TGT)

With retail spending being a key driver of the U.S. economy, I would also consider a retailer for the retirement portfolio. Target (NYSE:TGT) is among the cheap stocks to buy from the sector. The stock currently trades at a forward P/E of 15.4. In comparison, Costco (NASDAQ:COST) trades at a forward P/E of 37.9.

For 2021, Target reported 12.7% growth in comparable store sales. This was on top of a 19.3% growth in 2020. Further, the company’s digital comparable sales growth was 21% in 2020 on a year-on-year basis. Clearly, Target has achieved robust growth and is building a strong omni-channel presence.

The company’s sale-day services have been the fastest growing part of the business. The company has also committed to invest significantly over the next few years towards store remodeling, new stores and ramping-up e-commerce sales.

For the long term, Target has guided for high single-digit growth in adjusted EPS. For the last financial year, the company reported operating cash flow of $8.6 billion. Given the growth visibility, OCF is likely to be in excess of $10.0 billion in the next few years. TGT stock therefore looks like a value creator through dividends and stock upside.

On the date of publication, Faisal Humayun did not hold (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.

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• The market weakness is a great opportunity to pick up retirement stocks that may have been overheated.
• Dollar General (DG): The retailer is expected to open 1,000 new stores in 2022.
• Home Depot (HD): The home improvement retailer plans to continue increasing dividend payments.
• JPMorgan Chase (JPM): Shares offer a compelling buying opportunity at 52-week lows.
• McDonald’s (MCD): The fast-food chain can prosper in just about every market environment.
• Walmart (WMT):The Dividend Aristocrat continues to gain market share against its peers.

As an investor, you are already looking for ways to add value to your hard-earned money as you plan for long-term goals, and these retirement stocks may fit the bill.

Amid declines on Wall Street, some investors are allocating an increasing portion of their portfolio to retirement stocks they would want to hold for decades.

Many of us save and invest for financial security in the future. Wells Fargo (NYSE:WFC) reminds us that investing may help us with long-term goals.

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Bear markets are a natural part of the market cycle on Wall Street. Seasoned investors typically position themselves to benefit from them. The S&P 500 index is currently down 18% year-to-date, while the tech-heavy Nasdaq 100 has declined more than 28% during the same period.

Therefore, this month could be the perfect time to buy solid retirement stocks and forget about them for an extended period. Against this backdrop, here are five retirement stocks to buy and hold for decades.

Dollar General (DG)

Dollar General (NYSE:DG) is one of the largest consumer retailers in the country.

The company boasts more than 80 years of history, operating over 18,000 stores in 46 states. It plans to add more than a thousand new stores to its total count during the 2022 fiscal year.

Dollar General reported Q4 2021 results on March 17. Net sales increased 2.8% year-over-year to $8.7 billion. However, same-store sales decreased 1.4% year-over-year, driven by a decline in customer traffic. Diluted earnings per share (EPS) fell 1.9% year-over-year to $2.57.

The retailer used most of its net cash flow of $2.9 billion to repurchase stocks and make dividend payments. Management declared a quarterly cash dividend of 55 cents per share, representing a 31% increase compared to the prior quarter.

DG stock is down just a little more than 1.5% for the year. Shares are trading at 20.3 times forward earnings and 1.6 times sales. Meanwhile, the 12-month median price forecast for DG stands at $255.50.

Home Depot (HD)