10 High Yield Stocks For Lasting Retirement Income

In this article, we will take a look at the 10 High Yield Stocks For Lasting Retirement Income.

Dividend stocks have long attracted investors across different market conditions. A report from RidgeWorth Investments found that dividend-paying stocks have delivered consistent and positive return streams over time, regardless of broader market movements. The report also noted that the long-term compounding effect of dividends has played a major role in overall returns.

According to ISI, compounded dividends have historically accounted for about 50% of total stock market returns since the 1930s. The report also pointed to the support dividends provided during difficult economic periods, including the 1930s, 1970s, and 2000s.

The findings also showed that dividend-paying stocks performed well on a risk-adjusted basis. The report analyzed the 1,000 largest stocks by market capitalization and grouped them by dividend yield. Higher-yielding stocks, represented by quintiles 1, 2, and 3, produced stronger returns while carrying considerably lower risk compared with lower-yielding stocks in quintiles 4 and 5.

The report further highlighted that dividend growers and dividend initiators performed even better than dividend payers overall. Companies that either raised or initiated dividends generated returns of 9.6% over the past 38 years. Stocks that maintained their dividend payouts returned 7.5% over the same period. In comparison, non-dividend-paying stocks posted gains of just 1.7%.Companies that reduced or eliminated their dividends were penalized by investors and recorded a decline of 0.5%.

Given this, we will take a look at some of the best dividend stocks for lasting retirement income.

Photo by Esther Tuttle on Unsplash

Our Methodology:

For this list, we screened for dividend companies that have raised their dividends for at least 10 consecutive years and shortlisted those with dividend yields above 3%, as of May 22. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. The Southern Company (NYSE:SO)

Dividend Yield as of May 22: 3.22%

On May 21, Morgan Stanley analyst David Arcaro lowered the firm’s price recommendation on The Southern Company (NYSE:SO) to $87 from $92. He reiterated an Underweight rating on the shares. The analyst said the firm updated its price targets for Regulated & Diversified Utilities and IPPs across North America for April. Morgan Stanley also noted that utilities lagged the S&P’s return during the month.

Earlier in the month, on May 1, Raymond James raised its price goal on SO to $104 from $103. It kept an Outperform rating on the stock. The analyst said the company continues to execute well, backed by solid demand visibility, a large contracted load pipeline, and an $81B regulated capital expenditure plan expected to support 9% rate base growth through 2030. The research note also pointed to improving financing clarity, which the firm believes gives Southern Company more flexibility as investments increase. The analyst added that there could still be more upside for the stock despite only modest gains following earnings.

The Southern Company (NYSE:SO) is an energy provider that owns three traditional electric operating companies, along with Southern Power Company and Southern Company Gas. Its electric utilities, Alabama Power, Georgia Power, and Mississippi Power, provide electricity to retail customers across three Southeastern states, as well as wholesale customers throughout the Southeast.

9. Target Corporation (NYSE:TGT)

Dividend Yield as of May 22: 3.63%

On May 22, Roth Capital raised its price recommendation on Target Corporation (NYSE:TGT) to $114 from $88. It reiterated a Neutral rating on the shares. The company posted a strong first-quarter comparable sales and earnings beat and also raised its FY26 guidance. The analyst noted that two key concerns still remain. One is that SG&A expenses continue to grow faster than the upside in revenue. The other is the possibility that Q1 represented a “Goldilocks” quarter, helped by the easiest comparisons and a favorable environment for discretionary spending. Roth added that Target’s performance could slow in the coming quarters as comparisons become tougher and fuel prices rise.

Also on May 22, Argus raised its price goal on TGT to $150 from $145. It maintained a Buy rating on the stock. The firm said the shares remain attractively valued, pointing to a dividend yield of roughly 3.7% and meaningful upside to the new price target. The analyst also said the company’s new management team has a clear roadmap to invest in the business and make its merchandise more appealing to customers. Target has increased its dividend for 54 consecutive years and is expected to extend that streak to 55 years in FY27, according to the research note.

Target Corporation (NYSE:TGT) is a general merchandise retailer that sells products through its stores and digital channels. The company offers customers, referred to as guests, a mix of differentiated merchandise and everyday essentials at discounted prices.

8. PepsiCo, Inc. (NASDAQ:PEP)

Dividend Yield as of May 22: 3.93%

On May 20, Bloomberg reported that PepsiCo, Inc. (NASDAQ:PEP) is preparing to raise prices on some of its smaller chip bags, according to people familiar with the matter. The move comes even as the company recently lowered prices on larger chip bags after facing pushback from consumers.

The report said PepsiCo plans to increase prices by 10 to 20 cents on certain single-serve bags that currently retail for $2.69. The changes are expected to roll out in the coming weeks. Sources familiar with the matter said the smaller bags often sold as two for $1 are also likely to see higher prices. A company spokesman said the increase would affect only a limited number of single-serve products starting in late June. The planned price hikes reflect the pressure companies continue to face from rising costs after years of inflation-strained consumers and lifted prices across the market.

PepsiCo said the increases are tied to higher production, distribution, and retail costs in the US. The company added that the move is not directly related to the war in Iran, which has pushed energy prices higher. According to the spokesman, PepsiCo’s US food business had kept prices steady on some single-serve products for nearly 15 years. Some of the smaller chip bags have already had the suggested retail price removed from the packaging, which often signals that pricing changes are coming.

The changes follow PepsiCo’s broader effort to reduce prices on larger family-sized chip bags by as much as 15%. The company introduced those cuts after some consumers pulled back from buying Frito-Lay products as prices on certain bags climbed above $7. The spokesman said those lower prices on larger bags will remain in place.

Chief Executive Officer Ramon Laguarta said in April that lowering prices on family-sized chip bags helped improve sales and brought back shoppers who had stopped purchasing Frito-Lay snacks. He also noted that retailers are giving the company more shelf space as part of agreements tied to the larger bag price reductions.

PepsiCo, Inc. (NASDAQ:PEP) is a global beverage and convenient food company. Its business segments include PepsiCo Foods North America, PepsiCo Beverages North America, International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods, and Asia Pacific Foods.

7. Polaris Inc. (NYSE:PII)

Dividend Yield as of May 22: 4.01%

On May 19, Morgan Stanley lowered its price recommendation on Polaris Inc. (NYSE:PII) to $69 from $74. It reiterated an Equal Weight rating on the shares. The firm said it raised its 2026 estimates following the company’s first-quarter results, reflecting earnings that came in ahead of expectations, improving competitive positioning, and easing tariff pressures. The analyst also noted that the combination of interest rates and tariffs continues to cloud visibility for the business.

During the Q1 2026 earnings call, CEO Michael Speetzen said the company started the year strongly, with quarterly results exceeding expectations. He noted that reported sales increased 8%, while organic sales rose 14% after excluding the impact of Indian Motorcycle and related items. Speetzen also said Polaris posted adjusted earnings per share of $0.13. According to him, EPS would have reached $0.26 without the Indian Motorcycle business.

He said first-quarter demand was mainly driven by the utility and commercial segments. The company’s Power Sports division posted double-digit growth, supported by the utility RANGER lineup, growth in the commercial business, and snowmobiles. Speetzen added that North American retail sales increased 1%, while ORV retail sales rose 3%. He also said the company ended the quarter with market share gains in ORV, snowmobiles, and Godfrey pontoons.

The CEO tied margin improvement to product mix, pricing, and operational efficiencies, despite ongoing tariff pressure. He said gross margins improved by 389 basis points, even after a 240-basis-point tariff-related headwind. He also noted that dealer inventory levels remained healthy. Snowmobile inventory, meanwhile, was reduced by more than 50% from the prior year following significant progress during the quarter.

Polaris Inc. (NYSE:PII) designs, engineers, manufactures, and markets powersports vehicles. The company also designs and sources parts, garments, and accessories, including aftermarket accessories and apparel.

6. The J. M. Smucker Company (NYSE:SJM)

Dividend Yield as of May 22: 4.25%

On May 19, JPMorgan lowered its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $120 from $130. It reiterated an Overweight rating on the shares ahead of the company’s fiscal fourth-quarter report on June 9. The firm said the target cut reflects lower forward estimates and reduced valuation multiples across the food group. JPMorgan expects organic sales growth of 4.8%, below the consensus estimate of 5.8%. The analyst pointed to slight weakness across most of Smucker’s business segments, including coffee.

Earlier in the month, on May 15, Evercore ISI initiated coverage on SJM with an Outperform rating and a $117 price target. The analyst said Smucker offers “a compelling valuation with superior growth prospects relative to peers.” The firm also projected a “robust” EPS compound annual growth rate of about 9% through FY28, mainly driven by recovery in the coffee segment and operational efficiencies.

The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide. Its portfolio includes a range of well-known brands that are primarily sold to consumers through retail outlets across North America.

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