5 Top Dividend Stocks for Retirees to Buy

Investors in or nearing retirement who are looking for additional income might consider buying stocks that pay dividends. Dividend-paying stocks can offer significant income potential, which is often important for retirees, particularly as interest rates remain at rock-bottom levels, which means retirees aren't getting much in interest income from bank products like certificates of deposit. In fact, according to Bankrate.com, the average 1-year CD yields just 0.97%. Savings accounts are even worse, providing just 0.54% annual interest on average.

The consumer goods sector encompasses a wide range of industries that provide discretionary or staple products that households consume on a regular basis. These include food and beverage companies, restaurants, retailers, and household products companies. Companies engaged in these businesses (at least the best among them) maintain low capital expenditure needs, and people use their products regularly. This allows for more reliable profits, a portion of which companies can use to pay dividends to shareholders. Here are some large-cap consumer goods stocks that have high dividends: Procter & Gamble (NYSE: PG), Wal-Mart Stores (NYSE: WMT), PepsiCo (NYSE: PEP), Altria Group (NYSE: MO) and McDonald's Corporation (NYSE: MCD).

Source: Motley Fool

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