Dividend stocks are a natural choice for a retirement portfolio. But picking the right ones isn't always easy. You've got to be strategic with your selections. The highest yield dividend stocks are tempting, but can also signal an unsustainable payout. And a company unable to adapt to these rapidly changing times can introduce risk to your portfolio. Well-run, resilient companies with a solid dividend track record are your ticket for retirement success. Taking these factors into account, here are three dividend stocks ideal for retirement.
This year marked the 48th consecutive year that PepsiCo (NASDAQ:PEP) raised its dividend, despite the uncertainty introduced by the coronavirus pandemic. PepsiCo possesses a diverse product portfolio packed with popular beverages and snack foods, such as Gatorade and Quaker Oats. This diversity helped it succeed in a roller-coaster year. I'm a fan of Target (NYSE:TGT) because it's so resilient and adaptable. Along with selling consumer staples that are always in demand (another plus), Target successfully evolved its business to embrace consumer shifts to e-commerce. IBM (NYSE:IBM) isn't an exciting stock, and in fact, the company is in the midst of a transition. But it quietly continues to make money, generating $4.8 billion in free cash flow over the first nine months of 2020. While some investors may balk at a company in transition, IBM has existed for over 100 years for a reason: its ability to evolve.
Source: Motley Fool
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