In this article, we will take a look at some of the best retirement stocks for a dividend stock portfolio.
Experts note that while many people may want to leave the workforce earlier, achieving that goal is often challenging.
A recent Empower survey of 1,001 adults on June 2 found that Americans, on average, consider 58 to be the ideal retirement age. That figure is notably younger than the actual averages in 2024, when men typically retired at 64 and women at 62, according to the Center for Retirement Research at Boston College.
Even so, many workers don’t retire on their own terms. Data from the 2024 Transamerica Center for Retirement Studies, in partnership with Transamerica Institute, revealed that 58% of Americans retired earlier than planned. Among them, 46% pointed to health problems, 43% to job-related challenges, and 20% to family obligations. Only 21% stepped away early because they felt financially prepared.
One of the most important parts of retirement is having enough financial security. Investing in companies that offer strong and steadily rising dividend income can help support a portfolio facing regular withdrawals. This approach not only provides retirees with a reliable and growing income stream but also offers the potential for long-term capital gains. Given this, we will take a look at some of the best stocks for a dividend stock portfolio.
Our Methodology
For this list, we used a screener to select dividend stocks that have shown strong and consistent dividend policies and are spread across various industries, making them suitable for a retirement stock portfolio. From the initial selection, we chose ten stocks, each from a different industry, that were famous among the hedge fund investors, as per Insider Monkey’s Q2 2025. The stocks are ranked according to hedge funds having stakes in them.
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).
10. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Realty Income Corporation (NYSE:O) is an American real estate investment trust company. It is well-positioned to keep delivering a consistent and gradually increasing dividend. The company holds a broad mix of commercial properties— including retail, industrial, and gaming facilities— backed by long-term triple net (NNN) leases. These agreements place the responsibility of operating expenses, such as maintenance, taxes, and insurance, on the tenants rather than the landlord.
This structure provides Realty Income Corporation (NYSE:O) with highly predictable rental income, of which about 75% is distributed as dividends. The remaining cash flow is reinvested into acquiring more income-producing properties. On top of that, the company maintains one of the strongest balance sheets in the REIT industry, giving it added flexibility to fund new acquisitions. For the current year, the company plans to invest around $5 billion in additional properties.
On September 9, Realty Income Corporation (NYSE:O) declared a 0.2% hike in its monthly dividend to $0.2695 per share. This was the company’s 132nd dividend increase since the company went public in 1994. With a dividend yield of 5.47%, as of September 21, O is among the best stocks for a dividend stock portfolio.
9. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 42
General Mills, Inc. (NYSE:GIS) is a leading packaged-food company, with a broad portfolio of brands that makes it an important partner for grocery retailers around the world. Its capabilities in marketing, product innovation, and distribution allow it to compete effectively with other major players in the industry.
General Mills, Inc. (NYSE:GIS) is currently facing some headwinds. Organic sales declined by 2% in the fiscal fourth quarter of 2025, and the company has issued cautious guidance for fiscal 2026.
Despite these challenges, analysts remain positive about the company’s long-term outlook because of its consistent record of dividend growth. The dividend was raised by 2% at the time of the fiscal fourth-quarter 2025 earnings release, which signals that management and the board are confident in the future prospects of the business.
General Mills, Inc. (NYSE:GIS) has been growing its payouts for five consecutive years and has paid regular dividends for 127 years in a row. Currently, it pays a quarterly dividend of $0.61 per share and has a dividend yield of 4.85%, as of September 21.
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