10 Stocks Retirees Love Because They Have a History of Paying Dividends

Dividend stocks can offer a steady stream of income to long-term investors, who get to share in the fruits of a company’s labor in the form of a dividend payment.

Depending on your situation and the companies you choose, adding dividend stocks to your portfolio can maximize your retirement savings over time.

As with all stock picks, past performance isn’t a guarantee of future success. Buying stocks always includes an element of risk. For that reason, you might want to talk with a financial adviser before purchasing dividend stocks.

A dividend stock offers you a slice of a publicly traded company that has a history of regularly sharing profits with shareholders in the form of dividends.

As the investor, you purchase a stock. From there, you wait for the company to send out dividend payments. Although dividends are often paid quarterly, some companies choose other dividend schedules.

It’s worth noting that a company isn’t necessarily required to pay out dividends. If a company has a bad year or changes its policy, you could see dividends from that particular stock dry up.

Below is a look at some stocks of companies known for paying out dividends.

JPMorgan Chase is one of the largest banks in the world and boasts around $3.8 trillion in assets. The company has been in business for more than two centuries and is known for providing services related to investment banking and commercial banking.

The bank currently offers a dividend yield of 2.01%.

Recognizable as the largest home improvement retailer in the U.S., Home Depot has become a success story thanks to the millions of Americans who regularly buy and update homes. The company has more than 2,300 stores from coast to coast.

Home Depot currently offers a dividend yield of 2.14%.

Coca-Cola is one of the most iconic brands in the world. The maker of a beloved line of carbonated drinks has been a strong company for many years. In fact, Coke has sold its famous soda since 1892.

In recent years, the company has begun to diversify away from sugary drinks as people have become more health-conscious.

Coca-Cola currently has a dividend yield of 3.04%.

Merck is a pharmaceutical company that has been around for more than 130 years. It researches new ways to treat or prevent disease in both people and animals. In 2023, Merck boasted a total revenue of $60.1 billion.

Merck currently offers a dividend yield of 3.11%.

Chevron is primarily known as an oil and gas company, but it also delivers lubricants such as motor oil, as well as petrochemicals and additives. The company is also in the process of trying to drive down its costs through improvements in technology.

Chevron currently has a dividend yield of 4.02%.

Even if you don’t know much about Procter & Gamble, it’s likely you have one of the company’s products in your house right now. P&G manufactures a slew of household goods, such as shampoos, laundry detergents, dish soap, and more.

Procter & Gamble currently offers a dividend yield of 2.28%.

In an increasingly digital world, the cybersecurity features offered by Cisco Systems are likely to be in high demand for many years. The company also offers technology focused on areas such as networking, collaboration, and cloud management.

Cisco currently offers a dividend yield of 2.72%.

AbbVie is a pharmaceutical company founded in 2013, when it was split from Abbott Laboratories. Like any company in its industry, AbbVie focuses on developing new treatments and therapies to keep chronic and deadly diseases at bay.

AbbVie currently has a dividend yield of 3.5%.

Southern Co. is a gas and utility holding firm based in Atlanta. It provides service for 9 million customers, making it one of the biggest utility companies in the U.S. Southern’s focus on renewable energy makes it attractive to many investors.

Southern currently has a dividend yield of 3.29%.

Amgen is one of the largest biopharmaceutical companies in the world. It has a presence in about 100 countries across the world and focuses on therapies in areas such as inflammation, oncology, and rare diseases.

It currently has a dividend yield of 3.06%.

Dividend stocks can provide a nice way to build an income stream in retirement. But as with any stock, there is plenty of risk involved.

As you start investing, weigh all of your options before committing a significant portion of your portfolio to any particular type of asset. Sitting down and discussing your goals and options with a financial advisor can be a good option for many investors.