In this article, we will take a look at the 8 Best Retirement Stocks to Buy Now.
A great many people struggle to determine how much money they will need to live comfortably in retirement, especially as retirement expenses rise annually. According to the Bureau of Labor Statistics, retirees spent an average of $59,616 in 2025, or approximately $5,000 per month.
Years ago, people nearing retirement could invest in fixed-income securities and rely on attractive yields to produce consistent, steady income sources to fund a comfortable retirement. Unfortunately, the days of relying solely on Treasury returns for retirement income have passed.
Analysts find stocks that provide steady growth and dividends without getting caught up in the market’s chaotic ups and downs to be especially appealing in light of the current state of unpredictability. Notably, dividend aristocrats, a segment of S&P 500 companies that have increased their dividends each year for at least 25 consecutive years, have outperformed the broader index so far this year. In a note to clients, analysts at Wolfe Research described the group as their “favorite dividend strategy in periods of market turmoil.”
That said, retirees should monitor the broader equity market as well. According to FactSet, the S&P is predicted to achieve 15% earnings growth in 2026, marking the third consecutive year of double-digit increase. Earnings are expected to rise in all 11 industries, with technology leading the way at 29%.
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 above 3% and returns on equity above 15%. We also focused on less volatile stocks with betas between 0 and 1.0 and strong hedge fund sentiment.
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).
8. PepsiCo, Inc. (NASDAQ:PEP)
PepsiCo, Inc. (NASDAQ:PEP) ranks among the best retirement stocks to buy now. On May 20, Piper Sandler analyst Michael Lavery reaffirmed a Buy rating on PepsiCo, Inc. (NASDAQ:PEP) with a price target of $181. Previously, on April 20, Piper Sandler held an Overweight rating on the company’s shares, stating that inflationary concerns are increasing but remain manageable for the company, even in 2027.
PepsiCo, Inc. (NASDAQ:PEP) retained its 2026 targets to allow for potential upside reinvestment. According to Piper Sandler, PepsiCo’s drive for cleaner ingredients is finding headway and luring former consumers back to its products.
Meanwhile, UBS reiterated its Buy rating and $186 price target on PepsiCo, Inc. (NASDAQ:PEP) following the company’s first-quarter earnings report. PepsiCo, Inc. (NASDAQ:PEP) announced a first-quarter beat owing to greater organic revenue growth and reduced selling, general, and administration costs, which far outweighed a decreased gross margin.
According to UBS, the quarter was a positive step forward. The firm added that investors using a wait-and-see strategy could ask for greater confidence that recent trend improvements would continue and accelerate.
One of the most well-known names in the world, PepsiCo, Inc. (NASDAQ:PEP) is an American multinational company involved in the food, snack, and beverage sectors.
7. Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE:PFE) ranks among the best retirement stocks to buy now. On May 5, BofA Securities boosted its price objective for Pfizer Inc. (NYSE:PFE) to $27 from $26, retaining a Neutral rating on the company shares. Following Pfizer’s first-quarter performance, the firm raised its fiscal 2026 revenue and earnings per share forecasts.
The pharmaceutical giant reported adjusted earnings per share of $0.75, 4.17% more than the consensus forecast of $0.72, while revenue of $14.5 billion exceeded expectations of $13.84 billion by 4.77%. Ignoring COVID-related products, Pfizer’s core business increased by 7% operationally.
BofA remarked that Pfizer’s long-term revenue CAGR target for 2028-2033 is significantly higher than the consensus. BofA sees meeting this aim as questionable and potentially skewed toward obesity therapies, where the market landscape is very competitive.
Additionally, Pfizer Inc. (NYSE:PFE) revealed details regarding a 35-valent pneumococcal conjugate vaccine that is ready for Phase 1. According to BofA, the absence of supporting data and the capacity to resolve protein carrier suppression, a major concern regarding ultra-high valent pneumococcal vaccines, still need to be determined.
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally. The company offers medicines and vaccines in various therapeutic areas.
