Two in three Americans have said that they are concerned about the prospects of their retirement savings, with the majority worrying more about running out of money than death, according to a 2024 Annual Retirement Study by Allianz Life.

For many would-be retirees, saving for their golden years has become increasingly challenging, with sticky inflation driving up prices and interest rates sitting stubbornly high after years of monetary tightening.

Not only have economic prospects started to change in the last couple of years, but political dynamics have further complicated matters for many soon-to-be retirees and those who have already exited the workforce.

The Power Of Dividend-Supported Income

Building a retirement portfolio takes many years of understanding market conditions and buying high-yielding assets that will provide you and your family with a useful source of income once you have entered retirement.

Dividend stocks have become a smart and effective way to supplement your income. These payouts can boost retirement savings or become an alternative source of retirement income when you are no longer working.

When buying dividend stocks, it’s important to consider that a higher yield, or dividend payout, is not always a better option and can sometimes create long-term instability or unreliable payout ratios.

Financial health indicators should provide you with an overview of the company’s financial condition, including debt levels, availability of free cash flow, and earnings stability. Second to this, having a strong balance sheet and consistent cash generation from business growth will help determine the possible advantages of adding a particular stock to your portfolio.

There are many benefits and drawbacks to owning dividend stocks. Market conditions change, consumer behavior shifts , and regulatory changes impact the performance of entire industries. Remember to look out for companies that can provide long-term sustainable performance with a strong track record and hold a competitive advantage over market peers.

Stocks with deep dividends

The universe of dividend-paying stocks stretches far and wide, but only a handful of them can present promising yield delivery in a vulnerable market.

AT&T (T)

Dividend Yield: 4.01%

Strong growth delivery in the first quarter of 2025 has shown that AT&T (T) continues to maintain solid momentum in capturing new profitability and increasing its footprint in the 5G and fiber delivery segments.

For Q1 2025, the telecommunications company generated $30.6 billion in revenue, a 2% increase from Q1 2024, and reported a diluted earnings per share (EPS) of $0.61 or adjusted EPS of $0.51. Besides the rosy revenue delivery, the company reported strong activity in new cash generation, with free cash flow at $3.1 billion, up $300 million year-over-year.

Elsewhere, AT&T (T) delivered firm insights into expanding its national presence. In total, the company garnered 324,000 postpaid phone net adds, while mobility services revenue increased 4.1% year over year to $16.7 billion. Adjusted EBITDA was $11.5 billion, showing an increase from $11 billion for the same period a year before.

AT&T (T) has become aware that available market share is steadily shrinking due to higher churn rates and more competition. However, this challenge presents the company with a new approach to further diversify its service and product delivery, and begin shifting expertise in wireless and fiber connectivity.

Hedge fund positions on T have been declining slightly. Hedge funds reduced their holdings by approximately 1.65 million shares, which dropped by 2.1% from 78.8 million shares in Q4 2024 to 77.2 million shares. Despite this, the stock had performed strongly with shares trading at $27.64 as of May 1, 2025, reflecting a year-to-date gain of 24.2%.

Verizon Communications

Dividend Yield: 6.26%

Another major telecommunications player is Verizon (VZ), and being in direct competition with AT&T the company showed impressive growth over the first quarter of 2025 and reported stronger-than-expected revenue and earnings.

For one, the company reported an improvement in operating revenue of 1.5% totaling $33.5 billion and net income of $5.0 billion. The company’s consolidated adjusted EBITDA was $12.6 billion versus $12.1 billion in Q1 2024. In line with expected results, Verizon showed resilience despite a challenging consumer spending market and elevated interest rates.

On a per-share basis, EPS of $1.15 in Q1 2025, up from $1.09 reported in the first quarter of 2024. Overall, the company estimates that stronger revenue was largely driven by wireless service revenue growth and the impact of higher upgrade volumes. On the downside, the company noticed a further decline in business wireless revenue for the period.

Broadband, mobility, and net consumer additions maintained steady momentum over the quarter, and the company reported wireless service revenue growth for the 18th consecutive quarter. In total, wireless revenue was up 2.7% to $20.8 billion, and driven by new pricing implementations.

Outlook for the year ahead delivers promising growth, with management expecting free cash flow of $17.5 billion to $18.5 billion. In addition, cash flow from operations is forecasted to increase between $35.0  billion to $37.0 billion, with adjusted EPS estimated to rise over the next 12 months.

Insider hedge fund holdings show Alyeska Investment Group and Millennium Management taking an increasingly bullish stance on VZ by boosting holdings by 3,602% and 337%, respectively. Share performance has been trending upward at $43.61 as of May 2, 2025, gaining approximately 8% since the turn of the year.

Realty Income Corp (O)

Dividend Yield: 5.64%

Investors looking to diversify their portfolios with property have seen impressive yields from Realty Income (O), a real estate investment trust that largely operates in the development and investment of free-standing single-tenant commercial properties. Most of their portfolio consists of properties in the U.S., the United Kingdom, and Europe.

Due to the most recent findings in Q4 2024, the company delivered strong results showing net income available to investors to common stocks being $199.6 million, or $0.23 per share. Additionally, the report delivered an adjusted fund from operations (AFFO) of 4.0% per share or $1.05 compared to the same period in 2023.

The REIT had a particularly strong quarter, raising $947.8 million from the sale of common stock, which was primarily driven by at-the-market (ATM) programs. Stock prices averaged around $58.12 per share.

Despite the seemingly rocky real estate market in the U.S., Realty Income reported owning or holding interests in 15,621 properties, leased to 1,565 clients. Their diverse real estate portfolio of commercial properties is mainly signed under long-term net lease agreements, with average remaining lease terms of approximately 9.3 years.

Realty Income promises steady growth over the long term, holding a mix of clients that operate across multiple industries. This performance would provide the REIT with long-term buoyancy and the ability to continuously increase its portfolio holdings while returning more cash to investors through dividends and share buybacks.

Chevron Corp (CVX)

Dividend Yield: 5.02%

Investors have given the energy sector a more bullish outlook following Trump’s victory at the polls in November last year. Under Trump’s pro-business economic agenda, Wall Street is expecting key energy players such as Chevron (CVX) to experience improved operational expansion.

Reduced regulations and the removal of Biden-era red tape could play in favor of major fossil fuel exploration companies, as Trump and his cabinet look to bolster investment and market activity in the fossil fuels markets, including the onshoring of key exploration projects, and further reducing export restrictions.

Chevron would likely benefit from new energy and exploration policies under Trump. Reported Q1 2025 earnings showed the company returned $6.9 billion in cash to shareholders. Furthermore, the company kept its quarterly dividend at $1.71 per share.

In terms of production, Chevron has averaged its global production output with the equivalent of 3.35 million barrels of oil per day. Other key financial metrics had shown that reported earnings for the quarter of $3.5 billion were equal to $2.00 per share (diluted), down from $6.6 billion or $3.46 per share (diluted) in Q1 2024.

Outside of domestic improvements, the company’s earnings were reduced by $138 million due to foreign currency effects. Although it still showed adjusted earnings of $3.8 billion, $2.18 per share (diluted).

Insider hedge fund holdings remain steady. Berkshire Hathaway (BRKB) is still the largest shareholder with a total holding value of $19.8 billion as of Q1 2025, with Citadel Investment Group placing a call on CVX and increasing their holdings by 21%. The stock trades up 6.4% year-to-date at $137.10 as of May 2, 2025.

Building Stability

Dividend-yielding stocks provide investors with long-term stability, helping them hedge inflationary pressures and economic downturns. For retirees, dividend stocks make for an attractive option to diversify their portfolio holdings, but further boost retirement income or supplement their finances as weaker economic performance lowers the purchasing power of their retirement savings.

Disclosure: I own BRK.B, no positions in any other stocks mentioned.