1 Dividend Stock for Retirees to Buy

Retirement investing involves a certain degree of stability and risk-aversion. As opposed to young investors just starting out who have a long time horizon to recover from losses, investors in or nearing retirement can't afford to gamble on speculative investments. That's why retirement portfolios typically consist of income-generating investments, such as bonds. But with interest rates still sitting near historic lows, yield from fixed income is hard to find. After all, the yield on the 10-Year U.S. Treasury Bond is barely above 2%. Never fear, retirees: There are plenty of stocks out there that pay strong income, without requiring you to take abnormally high risks.

One specific sector of the market that is ideal for retirees is the consumer staples sector. This is a group consisting of companies that provide a wide range of household products that are used every day across millions of homes worldwide. And, no discussion of consumer staples stocks is complete without mentioning the biggest of them all, Procter & Gamble (NYSE: PG). P&G is a megacap company, with a market capitalization in excess of $225 billion. That makes it one of the biggest companies in the world, and as such, it's a model of stability. P&G has a huge number of brands that each rake in billions of dollars every year, including Tide laundry detergent, Crest toothpaste, Bounty paper towels, and Gillette shaving products.

Source: Motley Fool

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