Top Dividend Stocks for Retirees

Well-chosen dividend stocks with ever-growing income payouts can be the foundation of a retired investor's portfolio. But what dividend stocks are the most compelling buys today? We asked three Motley Fool contributors that very question. Read on to see why Starbucks (NASDAQ: SBUX), Unilever (NYSE: UL), and PepsiCo (NYSE: PEP) made the cut. Joe Tenebruso (Starbucks): While I can certainly understand the allure of a high-yielding stock, investors would be wise to remember that total returns include both dividend yield and capital appreciation. That's why I believe Starbucks is an excellent dividend stock that retirees may wish to consider adding to their portfolios.

Asit Sharma (Unilever): For dividend-oriented retirees, I love both the safety and the appreciation potential of Unilever. The Anglo-Dutch company is the third largest consumer goods conglomerate in the world, with annual revenue of $60 billion. Focused on packaged foods, refreshments, household goods, and beauty products, UL competes with U.S.-based Procter & Gamble (NYSE: PG). UL currently yields 3.6%, and pays out a significant, but still manageable, 61% of net income to shareholders. Andrés Cardenal (PepsiCo): Smart dividend investing is not just about picking companies with big dividend yields, the trajectory of dividend payments and the fundamentals behind the business are of utmost importance. With this in mind, PepsiCo looks like rock-solid dividend stock for retirees.

Source: Motley Fool

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