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. 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. 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. following the company’s first-quarter earnings report. PepsiCo, Inc. 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. 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. 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. 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. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally. The company offers medicines and vaccines in various therapeutic areas.
6. BP p.l.c. (NYSE:BP)
BP p.l.c. (NYSE:BP) ranks among the best retirement stocks to buy now. On May 11, Argus raised BP p.l.c. (NYSE:BP) to Buy from Hold with a $50 price target. BP’s adjusted net income for the first quarter of 2026 came in at $3.198 billion, a rise from $1.381 billion in the same period in 2025. The results outperformed Argus’ $1.14 per share expectation and the average projection of $0.91.
The stronger first-quarter earnings reflected higher upstream output, higher realized refining margins, and a significant contribution from oil trading. BP p.l.c. (NYSE:BP) predicts output to stay steady in 2026, in contrast to 2025, with capital expenditures ranging from $13.0 billion to $13.5 billion.
Meanwhile, on May 13, BP p.l.c. (NYSE:BP) stated that it had purchased a 40% stake in a production sharing agreement encompassing six oil and gas exploration zones in Uzbekistan’s Ustyurt area, indicating a return to conventional energy investments. The company had stepped away from exploration in the region back in 2021 as a consequence of a green energy policy.
BP p.l.c. (NYSE:BP) is an integrated oil and gas firm that 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.
5. TotalEnergies SE (NYSE:TTE)
TotalEnergies SE (NYSE:TTE) ranks among the best retirement stocks to buy now. On May 13, UBS revealed its top picks among European energy companies, with TotalEnergies SE remaining the firm’s favored large-cap integrated energy play due to its healthy mix of operational resilience, capital management, and return on equity.
UBS cited the company’s substantial downstream and trading exposure as a significant advantage in a turbulent commodity market. The firm also notes price support, citing the stock’s anticipated 11.6% organic free cash flow return for 2026 and fairly low leverage.
Moreover, on April 29, TotalEnergies SE published strong earnings results for Q1 2026, with an adjusted net income of €5.4 billion, a considerable rise over the prior year. The company’s upstream division experienced 4% organic growth in production, exceeding its yearly forecast. The integrated LNG division also experienced considerable growth, with a 12% quarter-over-quarter increase in output.
TotalEnergies SE also gave forward guidance, with EPS estimates for future quarters ranging from $2.49 to $2.95. The company expects significant returns from its LNG projects, especially in Mozambique and Papua, which are projected to increase portfolio stability by 2029.
In a separate vein, TotalEnergies SE has approved final commitment and obtained funding for a 1 GW wind farm and battery storage facility in Southeastern Kazakhstan. The ‘Mirny Project’ encompasses 150 wind turbines and a 600 MWh battery storage system provided by TotalEnergies’ associate Saft. According to the company, the project will yield 100 TWh of green power over a 25-year period.
TotalEnergies SE is a global multi-energy company that produces and markets oil, biofuels, natural gas, renewables, and electricity.
4. AT&T Inc. (NYSE:T)
AT&T Inc. ranks among the best retirement stocks to buy now. According to a news release on May 21, AT&T Inc. launched Build-A-Plan, a wireless service that allows users to customize their plan monthly depending on their requirements and budget.
The plan will be accessible online beginning May 27 at a base price of $15 per month, including taxes and other charges. The telecommunications operator noted that the idea fulfills customer demand for financial versatility in wireless coverage.
The day prior, AT&T Inc. declared that it would invest $19 billion in California’s wireless and fiber networks through 2030.
By the end of 2030, the telecom company intends to build over 1,200 new cell sites around the state and provide fiber internet to over 4 million more houses and companies. The investment is $3 billion higher than what the company spent in California over the preceding five years, from 2021 to 2025.
AT&T Inc. is a global telecommunications and technology services provider. It provides 4G/5G-enabled wireless, fiber ethernet, broadband, managed professional services, and business solutions. It has two distinct segments, i.e., Communications and Latin America.
3. AbbVie Inc. (NYSE:ABBV)
AbbVie Inc. (NYSE:ABBV) ranks among the best retirement stocks to buy now. Piper Sandler increased its price target for AbbVie Inc. to $298 from $294 on May 14, retaining an Overweight rating on the company’s shares. The firm mentioned AbbVie’s extensive inflammatory bowel disease pipeline as a major source of investor interest.
AbbVie Inc. submitted 18 abstracts on inflammatory bowel illnesses at the 2026 Digestive Disease Week Annual Meeting, which was held in Chicago from May 2 to 5. The research centered around real-world evidence and long-term results for the company’s Crohn’s disease and ulcerative colitis therapies, SKYRIZI and RINVOQ.
The presentation featured 52-week follow-up results from the ASPIRE-CD study, which demonstrated that risankizumab-treated individuals with moderately to highly active Crohn’s disease had long-lasting improvements in liquid stools, bowel urgency, and abdominal pain.
Piper Sandler stated that management’s pursuit of novel combination methods in IBD is a positive development, considering the competitiveness of the IBD medication development landscape. According to the firm, one factor that makes AbbVie Inc. appealing is the variety of R&D shots-on-goal that stay beneath the radar of the general investment market.
AbbVie Inc. is a research-based biopharmaceutical company that researches & develops, manufactures, commercializes, and sells medicines and therapies worldwide.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the best retirement stocks to buy now. On May 4, BMO Capital restated its Market Perform rating for Bristol-Myers Squibb Company while keeping a $60 price target on the company’s shares. The firm stated that near-term clinical results will affect market assumptions post-legacy product loss of exclusivity incidents.
The rating came after Bristol-Myers Squibb’s first-quarter revenue and earnings exceeded analyst projections. The company’s EPS of $1.58 exceeded market projections of $1.42, while its revenue of $11.49 billion crossed the consensus estimate of $10.92 billion. Year-over-year, total revenue increased by 3%, or 1% when currency effects are ruled out.
The company’s Growth Portfolio earned $6.2 billion, up 12%, primarily driven by Camzyos, Breyanzi, and Reblozyl.
BMO Capital now forecasts 2026 revenue of $16.4 billion, up from $16.1 billion previously, indicating slower depreciation. That said, the company’s pipeline to bridge revenues is under some pressure due to the generic entry of Revlimid and Pomalyst, Eliquis’ loss of exclusivity, and losses in IRA-related revenue.
Bristol-Myers Squibb Company is a global biopharmaceutical company focused on discovering, developing, and delivering medicines for patients with serious diseases, including cancer, blood disorders, immune conditions, cardiovascular disease, and neurological disorders.
1. Chevron Corporation (NYSE:CVX)
Chevron Corporation (NYSE:CVX) ranks among the best retirement stocks to buy now. On May 5, RBC Capital maintained its Outperform rating on Chevron Corporation and set a $220 price target. The firm pointed out that although considerable free cash flow was projected in the coming months, Chevron decided to stick with its current strategy, capital structure, and payouts.
Meanwhile, UBS boosted Chevron Corporation’s price objective to $220 from $218, maintaining a Buy rating on the company’s shares. The firm referenced Chevron’s first-quarter 2026 earnings, which exceeded estimates despite timing-related hurdles.
The Middle East crisis had no direct impact on Chevron’s assets, and operations temporarily suspended for safety reasons have since resumed. Beyond the reversal of timing effects, UBS highlighted a number of possible earnings upside catalysts for the second and third quarters of 2026.
Notably, because the Tengiz-Chevroil project exceeds nameplate capacity, the firm anticipates volumes from Kazakhstan and Eurasia to increase by 60% in Q2 compared to Q1.
Chevron Corporation is a multinational energy company that explores, produces, refines, and sells oil and natural gas products, including transportation fuels and lubricants.
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