Prioritizing cash flow and stability can be crucial for investors who are in their retirement years. As investors age, it becomes more important to preserve capital rather than risk it in growth stocks that may or may not achieve their lofty ambitions.
Three stocks that retirees may want to consider for their portfolios today include Verizon Communications (VZ -1.01%), Medtronic (MDT -0.55%), and Duke Energy (DUK -0.01%). These dividend stocks can add diversification, generate a ton of dividend income over the years, and be fairly safe investments to hang on to, even amid market instability.
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Verizon Communications
Cash flow is what retirees can expect from Verizon Communications stock. They can generate a boatload of it from the stock’s lavish dividend, which yields close to 6.1%. It’s a payout that almost seems too good to be true for a top telecom stock. The stock has risen 14% this year and has begun to rally after a pullback that spanned multiple years. Rising interest rates have weighed on many telecom stocks, even though their underlying businesses remain sound. Verizon is a prime example of that.
The business pays its shareholders a ton of cash and also generates plenty of it. In the trailing 12 months, Verizon’s free cash flow has totaled more than $20 billion, easily enough to cover the roughly $12 billion it paid in dividends during that period. That also puts it in an excellent position to raise its cash dividend payments in the future.
Today’s Change
(-1.01%) $-0.48
Current Price
$46.88
Key Data Points
Market Cap
Day’s Range
$46.06 – $47.08
52wk Range
$38.39 – $51.68
Volume
23M
Avg Vol
27.2M
Gross Margin
45.71%
Dividend Yield
5.90%
Retirees may also come to love the stock for its low volatility, as it has averaged a beta of just 0.23 over the past five years. This is a sign that the stock doesn’t experience wild swings and that the market’s overall performance may not have a drastic impact on its share price.
Medtronic
Another stock that retirees may gravitate to when they want a lot of cash is Medtronic. This is a healthcare giant whose medical devices are used all over the world to help treat dozens of different conditions. It’s a major player in the healthcare sector, and the consistent demand for its devices makes Medtronic a reliable income-producing investment.
It recently wrapped up its 2026 fiscal year (it ended on April 24), and for the new year, it is projecting organic revenue growth of around 7%. Its financial strength has enabled the business to confidently raise its dividend for years; its dividend growth streak now stands at 49 consecutive years, an impressive feat that highlights the stability and safety of this dividend stock, which currently yields 3.4%.
Today’s Change
(-0.55%) $-0.48
Current Price
$86.20
Key Data Points
Market Cap
Day’s Range
$84.95 – $86.24
52wk Range
$73.31 – $106.33
Volume
6.3M
Avg Vol
9.9M
Gross Margin
60.27%
Dividend Yield
3.29%
Medtronic’s beta of 0.57 is slightly higher than Verizon’s, but it’s still not particularly volatile, and the stock may have more long-term upside given its solid growth prospects. Although it’s down 11% this year, with a terrific business, buying the stock at a lower price could prove to be a great move for retirees.
Duke Energy
Rounding out this list of top dividend stocks for retirees is Duke Energy. The energy holding company released its latest earnings numbers today, and they were solid once again. Duke reported net income of $1.1 billion, which was up around 11%. Its earnings per share of $1.38 was also higher than $1.25, which is what it reported in the prior-year period.
The company has increased its dividend by two cents this year, and at $1.085 per share, it’s incredibly safe given Duke’s strong financial results. The company has been paying a cash dividend for a century, as there’s little wonder about the reliability of its payout. Currently, it yields 3.5%.
Today’s Change
(-0.01%) $-0.01
Current Price
$124.27
Key Data Points
Market Cap
Day’s Range
$121.80 – $124.87
52wk Range
$113.89 – $134.49
Volume
5M
Avg Vol
3.6M
Gross Margin
30.76%
Dividend Yield
3.43%
Utility stocks such as Duke can be highly valuable to retirees for their dependable and recurring revenue. And Duke has demonstrated its financial strength with another round of strong quarterly results.
The stock has averaged a beta of 0.37 over the past five years, as this is yet another low-volatility stock retirees are likely to value for its lack of surprises. It has risen a modest 5% this year.
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