In this article, we will take a look at the 13 Best Stocks to Buy for Retirement.
Although many people aim to save $1 million before they retire, the majority of Americans find it difficult to reach that savings goal. Vanguard reports that, in plans run by the asset management company, the average retirement account balance for individuals between the ages of 55 and 64 at the end of 2024 came in at only $271,000.
In that regard, it’s no surprise that Americans remain concerned regarding retirement since the above-mentioned number isn’t anywhere close to the $1 million mark. To put this into perspective, a June report from the nonprofit Transamerica Center for Retirement Studies revealed that Americans are more afraid of outliving their money than they are of any other possible retirement setback, including deteriorating health.
The last thing an aspiring retiree needs to hear is future uncertainty. That said, the retirement landscape, much like the rest of the financial market, is ever-evolving. Recently, President Donald Trump issued an executive order opening the $9 trillion US retirement market to private equity, cryptocurrencies, and other nontraditional investments. The directive instructs regulatory authorities in Washington to review and clarify current restrictions to permit the investments to be included in professionally managed funds used by around 90 million US investors for 401(k) retirement plans.
The move will likely allow crypto investments to US retirement savings accounts and support the expansion of the private capital sector, which has been looking for new sources of funding. However, critics argue that while an individual’s investment basket will be diversified beyond conventional stocks and bonds as a result, they will also be exposed to additional risks like increased leverage and volatility, higher fees, and decreased liquidity.
Image by Mike Flynn from Pixabay
Our Methodology
We employed a screener to select dividend stocks with a yield of 5% or higher for this list. These stocks are suitable for a retirement stock portfolio, as they are diversified across multiple industries and have demonstrated robust and consistent payout policies. The stocks are ranked according to hedge funds having stakes in them as per Insider Monkey’s Q2 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. MPLX LP (NYSE:MPLX)
Dividend Yield: 7.54%
Number of Hedge Fund Holders: 13
MPLX LP (NYSE:MPLX) ranks among the best stocks to buy for retirement. Stifel raised its price target for MPLX LP (NYSE:MPLX) to $60 from $57 on August 14, retaining a Buy rating on the company. The price target hike follows MPLX’s second-quarter 2025 earnings, which Stifel reported were below forecasts.
While pointing to MPLX’s recent acquisition of Northwind as a positive catalyst, Stifel warned that it might take 12 to 18 months for the full advantages to become apparent when growth projects begin.
Additionally, the firm cited management’s remarks that the partnership’s distribution growth rate should be maintained at 12.5% “for the foreseeable future, while living within cash flows” as a positive indication.
Founded in 2012 by Marathon Petroleum Corporation, MPLX LP (NYSE:MPLX) owns and operates midstream energy infrastructure alongside logistics assets and offers fuels distribution services.
12. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield: 6.88%
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) ranks among the best stocks to buy for retirement. On August 22, Enterprise Products Partners L.P. (NYSE:EPD) completed its acquisition of Occidental’s natural gas gathering affiliate for $580 million in cash. Signed in July, the sale is a component of Occidental’s debt-reduction plan.
The debt-free purchase comprises natural gas gathering systems in the Midland Basin, as well as nearly 200 miles of pipelines.
The acquisition instantly increases Enterprise’s natural gas gathering footprint in the Midland Basin and gives the company long-term development visibility by giving it access to more than 1,000 drillable prospects.
One of the leading midstream energy companies in the United States, Enterprise Products Partners L.P. (NYSE:EPD) runs a vast network of pipelines, terminals, processing facilities, and storage facilities in key energy-producing areas of the country.
11. Omega Healthcare Investors, Inc. (NYSE:OHI)
Dividend Yield: 6.38%
Number of Hedge Fund Holders: 28
Omega Healthcare Investors, Inc. (NYSE:OHI) ranks among the best stocks to buy for retirement. In response to Omega Healthcare Investors, Inc. (NYSE:OHI)’s second-quarter 2025 results, Citizens analyst Aaron Hecht reaffirmed its Market Perform rating on the company on August 14.
Omega Healthcare Investors, Inc. (NYSE:OHI) posted core FFO of $0.77 per share for the quarter, which surpassed both Citizens’ expectation of $0.74 and the consensus projection of $0.75. According to the firm, the company’s outperformance was mostly due to “other investment income.”
The healthcare REIT completed acquisitions totaling $527 million during the quarter. Considering these results, management boosted its full-year 2025 Core FFO guidance by $0.075 at the midpoint, from the previous range of $2.95-$3.01 to a range of $3.04-$3.07.
Omega Healthcare Investors, Inc. (NYSE:OHI) is a real estate investment company that provides funding for skilled care and assisted living facilities in the US and the UK.
10. Enbridge Inc. (NYSE:ENB)
Dividend Yield: 5.75%
Number of Hedge Fund Holders: 30
Enbridge Inc. (NYSE:ENB) ranks among the best stocks to buy for retirement. On August 12, Argus maintained its Buy rating on Enbridge Inc. (NYSE:ENB) and boosted its price target to $54 from $50. The firm highlighted Enbridge’s varied pipeline assets, expanding utility business, and low exposure to commodities and volume as important elements that position the company for success in the current energy landscape.
Argus emphasized Enbridge’s substantial infrastructure network for both crude oil and natural gas transportation, stating that the company generates consistent cash flow and can engage in significant stock buybacks.
The firm also pointed towards Enbridge’s dividend yield, which it views as “safe and sustainable,” establishing the Calgary-based company as a leading equities choice for investors looking for income.
Enbridge Inc. (NYSE:ENB) is a midstream energy company that specializes in the distribution and transportation of natural gas, oil, and natural gas liquids.
9. Conagra Brands, Inc. (NYSE:CAG)
Dividend Yield: 7.45%
Number of Hedge Fund Holders: 38
Conagra Brands, Inc. (NYSE:CAG) ranks among the best stocks to buy for retirement. On August 20, JPMorgan began coverage of Conagra Brands, Inc. (NYSE:CAG) with a Neutral rating and a $20 price target, down from the previous $25. The firm cited persistent cost pressures, especially with protein and tariff-related charges, alongside volume issues for the packaged food company.
That said, JPMorgan pointed out that if industry conditions improve for the packaged food industry, Conagra Brands, Inc. (NYSE:CAG) might emerge as a “disproportionate winner” in spite of these obstacles.
The firm highlighted ConAgra’s lower-than-average margins, increased exposure to protein costs, reduced valuation, and higher debt burden as variables that might give rise to more margin volatility while also potentially benefiting the company’s share value in an industry-wide positive rerating.
Conagra Brands, Inc. (NYSE:CAG) is a leading packaged food manufacturer with a diversified portfolio of frozen meals, snacks, and plant-based products.
8. Edison International (NYSE:EIX)
Dividend Yield: 6.03%
Number of Hedge Fund Holders: 42
Edison International (NYSE:EIX) ranks among the best stocks to buy for retirement. UBS retained its Buy rating for Edison International (NYSE:EIX), with a price target of $68 on August 20. According to UBS analyst Gregg Orrill, while the proposed ruling in Edison’s rate case permits the rate base as expected, debates and comments filed indicate possible financing gaps that, if not addressed, might lead to underinvestment.
On the other hand, UBS noted a number of potential drivers for Edison International (NYSE:EIX), including a potential settlement for the Woolsey disaster and the enactment of wildfire regulations, which the firm described as “Wildfire Fund Clarity a Potential Positive.”
According to UBS, the stock is currently prices in a $2 billion equity issuance at 9x the company’s 2027 estimated earnings per share of $6.47. The firm also noted that Edison International (NYSE:EIX) indicated during its second-quarter earnings call that it might wait a few weeks after the rate case decision before providing guidance.
Based in California, Edison International (NYSE:EIX) is a public utility company that specializes at generating power from a variety of sources, including renewable energy, nuclear energy, and natural gas.
7. Canadian Natural Resources Limited (NYSE:CNQ)
Dividend Yield: 5.61%
Number of Hedge Fund Holders: 44
Canadian Natural Resources Limited (NYSE:CNQ) ranks among the best stocks to buy for retirement. On August 21, Canadian Natural Resources Limited (NYSE:CNQ) published Q2 2025 earnings, which showed strong financial performance with an EPS of $0.71, exceeding analyst expectations of $0.63. This 12.7% surprise came alongside an actual revenue of $8.7 billion, which was marginally higher than the predicted $8.68 billion.
In addition to a 3% increase in thermal in situ output, the company recorded a 13% increase in oil sands mining and upgrading production of 463,800 barrels per day. Looking ahead, Canadian Natural Resources Limited (NYSE:CNQ) intends to keep oil sands mining production at 600,000 barrels per day and complete the AOSP swap in Q3 2025. The company also predicts continuing dividend growth and achieving a net debt reduction of $15 billion by 2026.
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian energy company focused on the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company operates in markets across North America and abroad through its varied portfolio, which includes oil sands mining, conventional oil and gas activities, and offshore initiatives.
6. Ford Motor Company (NYSE:F)
Dividend Yield: 5.07%
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) ranks among the best stocks to buy for retirement. Following Ford Motor Company (NYSE:F)’s “Next Model T Moment” event on August 11, BofA Securities reiterated its Buy rating and set a price target of $14 on the company’s shares. Ford announced its Universal Vehicle Platform at the event, emphasizing the benefits the new design will bring to EV manufacturing. The company also announced a $2 billion investment in its Louisville, Kentucky, plant to begin producing vehicles based on the platform.
BofA Securities sees promise in these developments, pointing out that Ford Motor Company (NYSE:F) seems to be taking cues from leaders in EV manufacturing to construct a value proposition that is competitive. Despite the current downturn in U.S. sales of electric vehicles, the firm believes Ford is setting itself up for the future of electrification.
Ford Motor Company (NYSE:F), a global automotive industry leader, manufactures a wide range of commercial and luxury vehicles under the Ford and Lincoln brands.
5. The Kraft Heinz Company (NASDAQ:KHC)
Dividend Yield: 5.78%
Number of Hedge Fund Holders: 45
The Kraft Heinz Company (NASDAQ:KHC) ranks among the best stocks to buy for retirement. On August 20, JPMorgan began coverage of The Kraft Heinz Company (NASDAQ:KHC) with a Neutral rating and a $27 price target. The firm continues to take a cautious approach regarding the food manufacturer, noting that although Kraft Heinz’s dividend yield is attractive at 5.78% and its valuation multiples are already at historically low levels, the company continues to face difficulties in its North American business.
That said, the firm acknowledges some solid trends in certain areas of Kraft Heinz’s business, emphasizing advances in emerging market performance.
Despite these improvements, JPMorgan wonders how long The Kraft Heinz Company (NASDAQ:KHC) can continue to avoid implementing large price increases that have impacted the earnings outlooks of comparable lower-growth competitors.
The Kraft Heinz Company (NASDAQ:KHC) is a global leader in food and beverage production that was founded in 2015 by the merger of Kraft Foods and Heinz. The company makes a variety of items, including dairy, meat, sauces, drinks, and other commodities.
4. BP p.l.c. (NYSE:BP)
Dividend Yield: 5.59%
Number of Hedge Fund Holders: 46
BP p.l.c. (NYSE:BP) ranks among the best stocks to buy for retirement. On August 20, Melius Research began coverage of BP p.l.c. (NYSE:BP) with a Buy rating and a $66 price target. The firm’s update coincides with BP’s return to its oil and gas priorities following what Melius called “operational missteps and an aggressive push into clean energy.”
Melius claims that as part of its operational changes, BP’s updated strategy places more emphasis on responsible capital allocation.
Furthermore, on August 14, Scotiabank highlighted how the Bumerangue Block discovery might influence the company’s upstream operations. According to the firm, the discovery “could transform the company’s long-term upstream profile, addressing one of investors’ biggest concerns.”
BP p.l.c. (NYSE:BP) is an integrated oil and gas firm offers carbon-related goods and services. Its operations are separated into three segments: Customers and Products, Oil Production and Operations, and Gas and Low Carbon Energy.
3. Altria Group, Inc. (NYSE:MO)
Dividend Yield: 6.38%
Number of Hedge Fund Holders: 54
Altria Group, Inc. (NYSE:MO) ranks among the best stocks to buy for retirement. BofA Securities reiterated its Buy rating on Altria Group, Inc. (NYSE:MO), and raised its price target for the company’s shares from $64 to $72 on August 22. The price target rise coincides with the fact that tobacco and nicotine stocks have performed substantially better than the overall market this year, with the S&P 500 Tobacco index up 40% so far.
According to BofA Securities, a number of factors contributed to the tobacco sector’s recovery, including the March 2024 ruling to postpone the menthol ban and the Republican-dominated national election, which eased the regulatory environment for tobacco companies.
Other factors supporting Altria’s profitability include its absence of tariff vulnerability, ongoing cost optimization projects, and reports indicating progress in lowering illegal trade at ports of entry, although data collected by scanners has yet to reflect these gains.
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield: 5.25%
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the best stocks to buy for retirement. The U.S. Food and Drug Administration awarded Bristol-Myers Squibb Company (NYSE:BMY) and SystImmune a Breakthrough Therapy Designation on August 18 for their experimental medication iza-bren, which is intended to treat advanced EGFR-mutant lung cancer.
The designation is meant for patients with EGFR exon 19 or 21 mutations whose disease has worsened following treatment with EGFR tyrosine kinase inhibitors (TKIs) in addition to platinum-based chemotherapy.
The FDA’s ruling was backed by information gathered from three current clinical trials: two in China run by Biokin and a global study run by SystImmune. These trials provided preliminary data showing enhanced efficacy with a manageable safety profile.
A multinational biopharmaceutical corporation, Bristol-Myers Squibb Company (NYSE:BMY) is engaged in product discovery, research, licensing, manufacturing, marketing, and distribution.
1. Pfizer Inc. (NYSE:PFE)
Dividend Yield: 6.90%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) ranks among the best stocks to buy for retirement. Cantor Fitzgerald reiterated its Neutral rating on Pfizer Inc. (NYSE:PFE) on August 13 and set a $24 price target. The firm recognized Pfizer’s potential to beat peers with slower growth and generate earnings per share. In particular, Cantor Fitzgerald highlighted Pfizer’s performance in light of Bristol Myers Squibb’s difficulties with ADEPT-2 and Merck’s unclear fiscal year 2025 guidance.
That said, Cantor Fitzgerald believes that the pharmaceutical company’s long-term growth issues will limit the potential increase in value of Pfizer’s shares, even with its solid execution.
Despite this, the firm estimates that Pfizer’s EPS projections for 2025 and 2026 could go up, exceeding the market’s current forecasts for those years.
Pfizer Inc. (NYSE:PFE) is a leading global pharmaceutical company that develops, produces, and sells biopharmaceutical medicines worldwide.
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