In this article, we will look at the 12 Best Long-Term Stocks to Invest in for Retirement.
Days are gone when investors simply put money into fixed-income assets for their appealing yields, generating solid streams of income to finance a comfortable retirement. According to the Bureau of Labor Statistics, retirees spent an average of $59,616 in 2025, or about $5,000 a month. While $5000 might not be enough for everyone, saving and investing enough is crucial.
Building a nest beyond the traditional approach is becoming increasingly popular. Dividend-paying stocks from top-notch, low-risk companies offer an avenue to build steady, solid income streams. That’s because such companies boast strong recurring revenue and are constantly innovating without overextending.
“If you invested $100,000 today and the stock averaged a conservative 10% annual return (slightly below its 20-year average), your portfolio could grow to roughly $259,000 in 10 years,” said Danny Ray, founder of PinnacleQuote. “Furthermore, reinvesting dividends could push that number even higher.”
Finding solid income-producing stocks averaging a 3% dividend yield is a sure way to grow one’s retirement nest, hassle-free. The stocks are ideal for combating inflation and boosting passive income over time.
Likewise, Susan Dziubinski, an investment specialist at Morningstar, insists that investors with a greater risk appetite or a longer retirement runway should consider stocks. According to Dziubinski, undervalued stocks with significant advantages and reliable cash flows would be ideal long-term investment plays for retirement.
“While these aren’t necessarily stocks to own forever (because there’s no such thing; stocks require monitoring!), these are companies that, given their competitive advantages, should be around and fighting off competitors for the long term,” she wrote in an email response.
Amid growing concerns of potential market correction with equities at all-time highs after two years of blockbuster gains, let’s take a look at some of the best long-term stocks to invest in for retirement.
Our Methodology
We sifted through financial media reports and ETFs tracking high-quality US stocks to find the best long-term US stocks to invest in for retirement. From that list, we settled on stocks with dividend yields of more than 3% and returns on equity of more than 15%. We also focused on less volatile stocks with betas between 0 and 1 and detailed hedge fund holdings. Finally, we ranked the stocks in ascending order by the number of hedge funds holding stakes in the third quarter of 2025.
Note: The data is of February 10, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Long-Term Stocks to Invest in for Retirement
12. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield: 6.46%
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is one of the best long-term retirement stocks. On February 5, TD Cowen reiterated a Hold rating on Enterprise Products Partners L.P. (NYSE:EPD) and raised the price target from $33 to $34.
The price target hike follows remarks that the company completed 2025 with a record fourth quarter of natural gas inlet volume of 8.1 Bcf/d and a record NGL fractionation volume of 1.9 million BPD. The volume increase led to a higher gross operating margin in the NGL segment and a record net income attributable to common unit holders.
“We continue to forecast strong natural gas and NGL production growth in the Permian Basin as gas-to-oil ratios continue to increase and as producers use new completion technology, develop new geologic horizons, and step out further on their inventory of locations,” said A.J. “Jim” Teague, co-chief executive officer.
The company reported net income of $5.8 billion, or $2.66 per common unit on a fully diluted basis, compared to $5.9 billion, or $2.69 per common unit on a fully diluted basis. Operational distributable cash flow was $7.9 billion. Distribution declared increased 3.6% to $2.175 per common unit, marking the 27th consecutive year of distribution growth.
Adjusted cash flow from operations rose to record highs of $8.7 billion, compared to $8.6 billion in 2024. Likewise, the company repurchased $300 million of its common units, bringing total repurchases to $1.4 billion.
Enterprise Products Partners L.P. (NYSE:EPD) is a major North American midstream energy company that transports, stores, and processes natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
11. Albertsons Companies (NYSE:ACI)
Dividend Yield: 3.37%
Number of Hedge Fund Holders: 40
Albertsons Companies, Inc. (NYSE:ACI) is one of the best long-term retirement stocks. On February 2, Albertsons Companies, Inc. (NYSE:ACI) issued $2.1 billion in senior notes to refinance its existing debt.
The company issued $1.2 billion in aggregate principal amount of 5.625% senior notes due in 2032 and $900 million in 5.75% senior notes due in 2034. Albertsons Companies is to use the net proceeds to redeem all $1.35 billion of its outstanding 4.625% notes due 2027 and $750 million of its outstanding 5.875% notes due 2028.
Earlier on January 15, Morgan Stanley downgraded Albertsons Companies, Inc. (NYSE:ACI) to Underweight from Equalweight and cut the price target from $20 to $14. The downgrade came amid concerns that the company is facing competition in the grocery market, which could lead to significant market share losses.
The downgrade also underscores the company’s limited top-line growth drivers, as sales have been driven by pharmacy rather than core food sales. Morgan expects Albertsons Companies to face margin pressure from excluding benefits from IRA rebates.
Albertsons Companies (NYSE:ACI) Inc is a major U.S. food and drug retailer. It offers groceries, pharmacy services, fuel, and general merchandise, supported by manufacturing plants and distribution centers.
10. Kimberly-Clark Corporation (NASDAQ:KMB)
Dividend Yield: 4.91%
Number of Hedge Fund Holders: 42
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best long-term retirement stocks. On January 29, shareholders approved the proposed acquisition of Kenvue by Kimberly-Clark Corporation (NASDAQ:KMB). The voting results indicate that 96% of Kimberly-Clark Corp approved the issuance of shares in connection with the proposed acquisition.
The proposed merger is poised to result in a combined company with a significant presence in global health and wellness. It will result in the merger of Kimberly-Clark brands, including Huggies and Kotex, with Kenvue’s Aveeno, Band-Aid, and Tylenol.
Earlier on January 28, Evercore ISI lowered its price target of Kimberly-Clark Corp from $120 to $115 while reiterating an In Line rating. The price cut comes amid growing concerns of stiff competition in the US diaper market. Retailers are reportedly using diapers as loss leaders to attract shoppers.
The end of exclusivity at Costco, which holds a significant share in US diaper sales, is also seen as a headwind. Kimberly-Clark Corp has also stopped manufacturing Costco’s private-label diapers. Walmart has already rolled out a second China-imported diaper brand amid shipping costs and tariffs expected to intensify competition in the sector.
Evercore expects continued pressure on the diaper profit pool to significantly impact Kimberly-Clark more than its competitors.
Kimberly-Clark Corporation (NASDAQ:KMB) is a leading global manufacturer of personal care, consumer tissue, and professional products, with brands such as Huggies, Kleenex, Scott, and Kotex. The company serves over 175 countries and focuses on products made from natural or synthetic fibers.
9. Omnicom Group Inc. (NYSE:OMC)
Dividend Yield: 4.10%
Number of Hedge Fund Holders: 42
Omnicom Group Inc. (NYSE:OMC) is one of the best long-term retirement investments. On January 29, Omnicom Group Inc. (NYSE:OMC) appointed Jantzen Bridges as Global President of Credera, its enterprise transformation consultancy. Bridges, with over 20 years of experience at firms like Accenture and EY, will lead AI-enabled transformation programs, reflecting Omnicom’s push to help clients redesign data platforms and technology strategies as AI reshapes enterprise operations. Credera has more than 4,000 consultants worldwide supporting AI-ready systems and operating models.
On January 21, reports emerged that experimental marketing agency Jack Morton is separating from Omnicom Group Inc. (NYSE:OMC). The spinoff is to take place in a private equity deal, barely two months after Omnicom Group acquired Jack Morton as part of a multi-million-dollar takeover of IPG. The spinoff will result in Jack Morton becoming an independent entity.
Meanwhile, NewsGuard has reportedly sued the Federal Trade Commission for allegedly violating the First Amendment by prohibiting Omnicom from contracting with news ratings services as a condition of its merger with Interpublic Group. Omnicom acquired Interpublic in an effort to strengthen its advertising edge.
According to NewsGuard, the FTC is using its power on an issue that does not concern trade or commerce, but rather to censor speech.
“In addition to the direct restrictions imposed on Omnicom and its affiliates, other NewsGuard clients have been scared away by the FTC’s actions,” NewsGuard alleges.
Omnicom Group Inc. (NYSE:OMC) is a leading global marketing and corporate communications company that provides advertising, strategic media planning and buying, digital marketing, public relations (PR), and customer relationship management (CRM) services. Operating in over 70 countries, it serves over 5,000 clients through renowned agency networks.
8. Phillips 66 (NYSE:PSX)
Dividend Yield: 3.21%
Number of Hedge Fund Holders: 47
Phillips 66 (NYSE:PSX) is one of the best long-term retirement stocks. On February 9, Citi raised its price target on Phillips 66 (NYSE:PSX) to $159 from $146 while maintaining a Neutral rating, following updates to its oil and gas refiner models after the company’s fourth-quarter results.
On February 4, Phillips 66 delivered impressive fourth-quarter and full-year results, benefiting from a rebound in US refining margins that lifted earnings.
The company delivered $2.9 billion in earnings in the fourth quarter compared to $133 million in the third quarter. The fourth quarter earnings included pre-tax special item adjustments of $2.0 billion in the Marketing and Specialties segment. Full-year earnings totaled $4.4 billion or $10.79 a share.
During the quarter, the company achieved record natural gas transportation and fractioning volumes of over 1MMBD, while also delivering a record clean product yield of 88%. The company generated $2.8 billion in net operating cash flow.
During the year, Phillips 66 enhanced its portfolio to focus on core assets and geographies. It also adopted a disciplined approach to improve refining operations.
“2025 was a transformative year for Phillips 66. We sold the majority of our European retail business, acquired the remaining 50% interest in WRB, and improved our Midstream competitive position with the acquisition of Coastal Bend and expansion of Dos Picos II,” said Mark Lashier, chairman and CEO of Phillips 66.
Phillips 66 (NYSE:PSX) is a major diversified energy manufacturing and logistics company. It refines crude oil into fuel, transports products via pipeline, produces petrochemicals, and markets gasoline, diesel, and lubricants globally.
7. The AES Corporation (NYSE:AES)
Dividend Yield: 4.38%
Number of Hedge Fund Holders: 52
The AES Corporation (NYSE:AES) is one of the best long-term stocks to invest in for retirement. On February 10, Haven Safety AI launched in partnership with The AES Corporation (NYSE:AES) and Andrew Ng’s AI Fund.
AES Chief Product Officer Chris Shelton highlighted the company’s commitment to worker safety, noting that Haven’s AI-native platform enables crews to move rapidly from incident to cause to corrective action, transforming safety programs from reactive reporting into proactive prevention. AES sees the launch as a major step in protecting teams across energy and other high-risk industries.
On February 4, Barclays downgraded AES Corporation (NYSE:AES) to Equalweight from Overweight with a $15 price target, citing the stock’s sharp re-rating over the past year and renewed acquisition speculation after reports that GIP and EQT were in talks to buy the company.
Barclays warned of risks including a potential “take-under,” limited buyers for divested assets, and the need for reinvestment in legacy IPG operations, while noting AES’s high leverage could constrain renewable expansion. The firm cut growth assumptions and expects AES’s revenue to lag peers, with earnings scheduled for release on February 26, 2026.
A day earlier, on February 3, analysts at Jefferies reiterated a Hold rating on AES Corp. and increased the price target from $13 to $16. The price target hike comes amid reports that AES is a potential acquisition target for Global Infrastructure Partners and EQT. While GIP acquired select AES assets in 2025, it indicated it was not planning to acquire the entire company. Sentiment has changed amid reports of a potential joint bid with EQT.
BlackRock’s GIP has reportedly teamed up with EQT AB to acquire AES amid growing demand for renewable energy from tech giants such as Microsoft. Power providers are in strong demand amid surging electricity demand from computer farms running artificial intelligence applications.
Jefferies raised the stock’s price target given the higher renewable energy multiples. Clean energy companies have been trading higher, contributing to a favorable valuation environment.
The AES Corporation (NYSE:AES) is a global power company that generates and distributes electricity, focusing on accelerating the transition to clean energy. As a major independent power producer and utility owner, AES develops and operates renewable, thermal, and battery-storage facilities, providing sustainable energy to businesses, utilities, and communities worldwide.
6. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield: 5.97%
Number of Hedge Fund Holders: 60
Verizon Communications Inc. (NYSE:VZ) is one of the best long-term stocks to invest in for retirement. On February 5, Verizon Communications Inc. (NYSE:VZ) confirmed that its consumer division chief, Sowmyanarayan Sampath, will step down at the end of the first quarter. His exit comes as the company embarks on a turnaround plan under the new CEO, Dan Schulman.
The company has already appointed Alfonso Villanueva, its executive vice president and chief transformation officer, to lead the consumer unit on an interim basis. Amid the turnaround push, Verizon has already confirmed plans to cut 13,000 jobs and convert 179 corporate-owned retail stores into franchised operations.
“We are at a pivotal moment, committed to enhancing customer experience and intensifying execution,” stated Schulman, who assumed the CEO position in October. “As we evolve and grow, changes in our organizational structure and leadership are anticipated.”
On February 2, Morgan Stanley raised its price target on Verizon to $49 from $47 while keeping an Equal Weight rating, noting the company’s updated outlook balanced aggressive market promotions with financial discipline. The firm’s EBITDA estimates remain largely unchanged, but its free cash flow forecast improved on lower capital spending.
Meanwhile, Verizon Wireless is suing T-Mobile over claims of false advertising, alleging that T-Mobile promised consumers more than $ 1,000 in annual savings if they switched cellphone carriers. According to the wireless carrier, T-Mobile exaggerated the savings claims by more than 100%. The lawsuit seeks unspecified treble damages for the alleged false advertising claims.
Verizon Communications Inc. (NYSE:VZ) is a leading global technology and communications provider. It delivers 5G and 4G LTE wireless services, Verizon Fios fiber-optic broadband, and, through its Verizon Business segment, offers IoT services, managed networking, and security solutions.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield: 4.24%
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best long-term stocks to invest in for retirement. On February 10, Bernstein SocGen Group reiterated its Market Perform rating and $58 price target on Bristol-Myers Squibb Company (NYSE:BMY) following strong fourth-quarter results, with revenue of $12.5 billion and EPS of $1.26 both beating consensus.
The firm highlighted growth from BMY’s portfolio, particularly Eliquis, which provides near-term support ahead of loss-of-exclusivity pressures, and pointed to a backloaded year of pipeline readouts: especially Cobenfy/Milvexian, Admilparant, and CELMoDs—as critical drivers for the company’s 2026 outlook.
On February 6, Wells Fargo raised its price target on Bristol-Myers Squibb Company to $60 from $55 while keeping an Equal Weight rating, citing potential upside to 2026 guidance as the company’s growth portfolio could outperform expectations.
The firm highlighted strength from Eliquis and upcoming pipeline readouts for CelMoDs, LPA1, Milvexian, and Cobenfy, while noting slower growth for Opdivo and continued demand for Orencia, Yervoy, Camzyos, Breyanzi, and Reblozyl.
On February 5, Bristol-Myers Squibb Company (NYSE:BMY) reiterated real momentum in its Growth Portfolio. A strengthened balance sheet continues to provide strategic flexibility to invest in growth drivers.
The remarks follow solid fourth-quarter and fiscal 2025 results, as the company benefited from a differentiated pipeline with multiple pivotal readouts. Fourth quarter revenues were up 1% to $12.5 billion, driven by a 16% increase in Growth Portfolio revenues to $7.4 billion. Full-year revenues totaled $48.2 billion as Growth Portfolio revenues increased 17% to $26.4 billion.
Fourth-quarter earnings reached $1.26, and full-year earnings rose to $6.15, compared to $1.15 in 2024. Key drivers behind the better-than-expected results included the immuno-oncology portfolio, as Breyanzi revenues surged 82% while Camzyos jumped 77%.
“2026 is data-rich, and we are advancing a truly differentiated pipeline with multiple pivotal readouts expected in the back half of the year. Our core business is strong and growing, and we have the potential to achieve industry-leading, sustainable growth into the 2030s and beyond,” said CEO Christopher Boerner.
Bristol Myers Squibb (NYSE:BMY) is a global biopharmaceutical company that discovers, develops, and delivers innovative medicines to treat serious diseases. Focused on oncology, hematology, immunology, and cardiovascular diseases, it produces both small-molecule drugs and biologics.
4. The Progressive Corporation (NYSE:PGR)
Dividend Yield: 3.59%
Number of Hedge Fund Holders: 84
The Progressive Corporation (NYSE:PGR) is one of the best long-term retirement stocks. On February 2, UBS cut its price target on Progressive Corporation (NYSE:PGR) to $226 from $234 but kept a Buy rating, noting insurance brokers remain well positioned for 2026 with steady revenue growth, stronger margins, and potential upside to earnings despite property rate pressures.
On January 29, Goldman Sachs reiterated a Buy rating on The Progressive Corporation and stuck with a $230 price target. The positive stance follows the company’s solid results for December and the quarter ended December. Net premiums written in December were up 6% to $6.31 million, and net premiums earned increased 6% to $7.12 million.
Consequently, net income in the month increased 22% to $1.14 million. Meanwhile, net premiums in the fourth quarter increased 8% to $19.51 million, net premiums earned increased 10% to $21.1 million, and net income increased 25% to $2.95 million.
Goldman Sachs has touted Progressive Corp’s 2026, 2027, and 2028 earnings per share estimates, which remain largely stable, and has increased its 2026 Personal Auto Policies in force growth forecast by 30 basis points to 8.1%. The investment company expects the strong growth to be supported by improved advertising efficiency.
Meanwhile, Keefe, Bruyette & Woods has reiterated a Market Perform rating on the stock and cut the price target to $225 from $252. The price target cut comes amid concerns of moderation in PIF growth. Nevertheless, the research firm expects the company to perform in line with the sector average.
The Progressive Corporation (NYSE:PGR) is a major American insurance holding company, recognized as the second-largest personal auto insurer and a top commercial auto insurer. It provides insurance for personal/commercial autos, motorcycles, boats, RVs, and homes directly to consumers and via agents.
3. AT&T Inc. (NYSE:T)
Dividend Yield: 4.06%
Number of Hedge Fund Holders: 84
AT&T Inc. (NYSE:T) is considered a strong long-term investment for retirement. On February 4, AT&T Inc. (NYSE:T) entered into a strategic collaboration with Amazon Web Services and Amazon Leo to modernize connectivity infrastructure in the US.
The wireless carrier is to move more workloads from its current on-premises technologies to AWS and to utilize Amazon’s satellite fleet. In return, the cloud provider is to benefit from the new fiber connectivity between its data centers. Amazon Leo is to provide internet connectivity services to AT&T.
The integrations are expected to improve system resilience, enhance infrastructure management, and accelerate system modernization. In addition, AT&T is to broaden its connectivity capabilities and deliver fixed broadband services to business customers in areas where the services are needed.
“This collaboration with AWS marks a pivotal step forward in shaping the future of connectivity in the United States,” said Shawn Hakl, senior vice president of product at AT&T Business. By pairing our expanding fiber infrastructure with AWS’s cloud capabilities, and through our collaboration to deliver the infrastructure of the future by connecting data centers, we’re creating a more resilient, scalable, and intelligent connectivity ecosystem.”
On February 2, AT&T announced a partnership with ActiveProtective and JACS Solutions to enhance the Tango Belt, a wearable device that detects falls and deploys an airbag to protect seniors’ hips. The collaboration adds a Connectivity Device powered by AT&T’s LTE network, enabling real-time data transmission and automatic caregiver alerts without relying on Wi-Fi. Developed by JACS Solutions, the component ensures reliable use even in areas with poor internet access, expanding the Tango Belt’s reach to senior living communities and healthcare providers focused on preventive care.
AT&T Inc. (NYSE: T) is a leading global telecommunications company providing wireless, broadband, and, through its subsidiaries, fiber internet to consumers and businesses. It operates as a major 5G network operator in the U.S. and provides connectivity services in Mexico, focusing on high-speed internet and mobility.
2. AbbVie Inc. (NYSE:ABBV)
Dividend Yield: 3.11%
Number of Hedge Fund Holders: 93
AbbVie Inc. (NYSE:ABBV) is one of the best long-term stocks to invest in for retirement. On February 6, Cantor Fitzgerald reiterated its Overweight rating on AbbVie Inc. (NYSE:ABBV) with a $250 price target. The positive outlook follows solid fourth-quarter 2025 results, as Skyrizi sales topped estimates and the company provided guidance above consensus.
On February 4, AbbVie delivered record net sales in its second full year following the US Humira exclusivity loss. The solid sales numbers underscored the strength of the company’s diversified growth platform. Fourth quarter net revenues were up 10% to $16.61 billion, driven by an 18.3% increase in revenues from the immunology portfolio to $8.63 billion. Diluted EPS in the quarter totaled $1.02.
Full-year net revenues totaled $61.16 billion, up 8.6% year over year. The increase was driven by a 14% increase in revenues in the Immunology portfolio. Adjusted diluted earnings per share totaled $10, representing a 1.2% year over year decrease. AbbVie expects its full-year 2026 earnings per share to range between $14.37 and $14.57.
During the quarter, AbbVie reached an agreement to acquire a device manufacturing facility in Tempe and associated intellectual property in the West. The acquisition should support the development of next-generation immunology and neuroscience medicines.
AbbVie Inc. (NYSE:ABBV) is a global research-driven biopharmaceutical company. It discovers and develops medicines for complex, chronic diseases across immunology, oncology, neuroscience, eye care, and aesthetics.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Dividend Yield: 3.32%
Number of Hedge Fund Holders: 140
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best long-term retirement stocks. On February 5, Mizuho cut its price target on UnitedHealth (NYSE:UNH) to $350 from $430 but kept an Outperform rating, citing a delayed earnings recovery following the company’s Q4 results.
On February 3, Piper Sandler reiterated an Overweight rating on UnitedHealth Group with a $390 price target. The positive stance underscores the research firm’s confidence in Optum Health, the company’s division, following disclosures in its Q2 fiscal 2025 results.
Optum is expected to generate total operating earnings of greater than $13.2 billion with an operating margin of 5.1%. The research firm believes the guidance is achievable, with potential upside from strategic contracting, benefit design, and risk adjustment. UnitedHealth has already implemented decisive actions expected to restore margins through product rationalization.
The remarks follow solid fourth-quarter and full-year 2025 results, in which consolidated revenues were up 12% year over year to $447.6 billion. Earnings from operations totaled $19 billion, net margin was 2.7%, and cash flows from operations were $19.7 billion.
“We confronted challenges directly and concluded 2025 as a strengthened organization with momentum to better serve our stakeholders and further improve our performance,” stated Stephen Hemsley, Chief Executive Officer of UnitedHealth Group.
UnitedHealth Group Incorporated (NYSE:UNH) is a leading, diversified global healthcare company that improves health systems and patient outcomes through two core, complementary businesses. It offers health insurance/benefits) and provides data-driven, technology-enabled care services.
While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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