Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

3 Safe Retirement Stocks To Earn Sustainable, Growing Dividends

By Haris Anwar/Investing.comStock MarketsJan 12, 2022 09:32AM ET
3 Safe Retirement Stocks To Earn Sustainable, Growing Dividends
By Haris Anwar/   |  Jan 12, 2022 09:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

For many investors aiming to save for retirement, keeping track of daily market gyrations simply doesn’t make sense. Rather, a more effective investment style is to buy quality stocks, then hold them and receive regular dividend income.

If the goal is to build a solid cash stream for retirement, a major market correction could provide an opportunity to buy good retirement stocks more cheaply. Good retirement stocks pay dividends no matter what’s happening with the general economy. Their payouts survive peaks and troughs, wars, depressions, and asset bubbles.

These companies’ products and services are so crucial that we can’t imagine a normal life without them. This quality has turned these businesses into cash machines that never run out.

Here are our three top picks to consider adding to portfolios—especially when markets are going through a correction phase which can further extend stock values, making them more attractive:

1. Procter & Gamble

Consumer staple giant Procter & Gamble (NYSE:PG) has proven to be a great stock for long-term investors. The company has increased its dividends for 65 consecutive years, a track record that's very hard to match.

This consistent dividend history also shows the power of the company’s cash-flow generation. Its range of products, including such globally recognized brands as Pampers diapers, Tide laundry detergent, and Charmin toilet paper, is strong enough to sustain revenue growth through wars, recessions and market downturns.

With the steadily growing payouts, P&G has also provided capital growth to its investors. The value of its shares almost doubled during the past five years.

Procter & Gamble Weekly Chart
Procter & Gamble Weekly Chart

P&G stock, which closed yesterday at $158.66, currently yields 2.14%. That yield may not seem exciting if you’re looking to earn a higher return on your investment, but given its track record, Cincinnati-based P&G is a reliable dividend stock in both good and bad times. It currently pays $0.87 a share quarterly dividend.

The strength of P&G’s consumer brands has been evident during the current health crisis as well. The consumer staples giant has been among the few companies that have maintained their full-year earnings guidance throughout the pandemic, benefiting from the increased buying of cleaning products.

P&G’s consistent growth and long dividend history make its stock an ideal addition to any retirement portfolio.

2. Lowe’s

The home-improvement giant Lowe’s (NYSE:LOW) is another safe retirement stock that we recommend for buy-and-hold investors.

The No. 2 home improvement retailer has outperformed the broader market during the past one year, benefiting from the stay-at-home environment that prompted many Americans to put more money into their homes. After surging more than 50% during the past year, LOW shares closed yesterday at $249.50.

Lowe's Weekly Chart
Lowe's Weekly Chart

Analysts expect this trend to continue as we see more people moving out of big cities and heading to the less crowded suburbs as work from home becomes a norm after the pandemic.

This de-urbanization, low-interest rates, and the massive savings that Americans have accumulated during the pandemic indicate continued gains for home improvement stocks.

Along with impressive capital gains, LOW has also been growing its payouts regularly—far exceeding the inflation rate. During the past five years, Lowe’s average dividend per share growth rate has been about 17%. The company currently pays $0.8 a share quarterly dividend which translates to a 1.2% annual yield.

3. Enbridge 

For buy-and-hold investors, we like utilities for one simple reason: these companies invest billions of dollars to build assets that generate solid income for their investors. As long as customers continue to pay their utility bills, the cash will keep rolling in.

In this space, we particularly like Calgary, Canada-based Enbridge (NYSE:ENB), which is North America’s largest gas and oil pipeline operator. The company operates across North America, moving nearly two-thirds of Canada’s crude oil exports to the U.S. It also transports about 20% of the natural gas consumed in the U.S. and operates North America’s third-largest natural gas utility by consumer count.

Enbridge Weekly Chart
Enbridge Weekly Chart

ENB, whose shares closed at $41.34 on Tuesday, has an impressive track record when it comes to paying dividends. It has increased dividends at an annual rate of 10% over the past 27 years. Currently, the utility has a rich annual dividend yield of about 6.6%, which translates into a quarterly payout of $0.6725 per share.

The company forecasts it will increase distributable cash flows (DCF) between 5% and 7% through 2023. It also expects to pay between 60% and 70% of its DCF as dividends, making the payouts sustainable.

3 Safe Retirement Stocks To Earn Sustainable, Growing Dividends

Related Articles

3 Safe Retirement Stocks To Earn Sustainable, Growing Dividends

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Will Turnage
Bucked_up Jan 13, 2022 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why not steer dividend seeking investors to chevron?
Princess Nhor Abedin
Princess Nhor Abedin Jan 12, 2022 3:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hi all
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email