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.
8. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 43
Canadian National Railway Company (NYSE:CNI) is engaged in the rail and related transportation business. The stock has fallen 20% over the past year, pressured by strikes, wildfires, and rising costs that weighed on profits in 2024, even though revenue saw a slight uptick. In 2025, US tariffs are reducing trade volumes in key markets, creating uncertainty around demand and making it harder for the company to provide guidance through 2026. CN runs a 20,000-mile rail network linking Canadian ports on both coasts with the US Gulf Coast.
Despite facing challenges, Canadian National Railway Company (NYSE:CNI) has continued to show strong operational performance. Its second-quarter results highlighted this strength, as the company managed to boost profitability even in a slow trade environment. The operating ratio improved to 61.7% in the quarter, a 2.3% decrease from the previous year, underscoring the company’s efficiency in converting revenue into profit.
In addition, Canadian National Railway Company (NYSE:CNI) is popular among investors because the company holds a 29-year track record of consistent dividend growth. The company offers a quarterly dividend of C$0.8875 per share and has a dividend yield of 2.76%, as of September 21.
7. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 45
Sysco Corporation (NYSE:SYY) is the largest foodservice distributor in North America, serving restaurants, hospitals, schools, and hospitality businesses. Its main operations revolve around delivering and selling fresh, frozen, and packaged foods, as well as equipment and supplies, to commercial clients.
Success in this industry depends on holding and expanding share in the highly fragmented US foodservice market, valued at $360 billion in 2023. Sysco Corporation (NYSE:SYY) controlled roughly 17% of that market in 2023, competing with both regional and national players in a sector with low barriers to entry. Efficiency in supply chain management, competitive pricing, compliance with regulations, and effective workforce management are all essential. At the same time, investments in employee retention, technology, customer service, and international growth strategies help the company strengthen its leadership in the industry.
Sysco Corporation (NYSE:SYY) is one of the best stocks for a dividend stock portfolio, as the company is a Dividend King with 55 consecutive years of dividend growth. The company offers a quarterly dividend of $0.54 per share and has a dividend yield of 2.62%, as of September 21.
6. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 59
Colgate-Palmolive Company (NYSE:CL) is a major name in the consumer goods industry, offering products in oral care, personal care, home care, and pet nutrition. Its well-known brands include Colgate toothpaste and Hill’s Science Diet pet food, which have helped secure its strong position in the global market.
In recent years, Colgate-Palmolive Company (NYSE:CL) has worked to broaden its product portfolio and strengthen brand appeal. Efforts in sustainability and innovation have been central to this strategy. Initiatives like developing recyclable packaging reflect both global market trends and evolving consumer expectations.
Colgate-Palmolive Company (NYSE:CL) has paid regular dividends to shareholders since 1895. In addition, it has increased its payouts for 62 years straight, which makes CL one of the best retirement stocks for a dividend stock portfolio. The company currently offers a quarterly dividend of $0.52 per share and has a dividend yield of 2.56%, as of September 21.
5. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 67
Morgan Stanley (NYSE:MS) is an American multinational financial services company that offers a wide range of related services and products to its consumers. The company’s core businesses include wealth management for individuals and institutions, investment banking services such as capital raising and mergers, and securities trading across equities and fixed income. In recent years, the firm has placed greater emphasis on expanding its wealth management platform, leveraging technology-driven solutions, and strengthening client relationships.
Morgan Stanley (NYSE:MS)’s strategic priorities center on five areas: staying competitive against traditional banks and fintech challengers, adapting to evolving regulations, advancing technology, developing and retaining talent, and maintaining rigorous risk controls. These initiatives enable the company to attract new client assets, safeguard operations, and enhance returns. Strong asset growth, ongoing technology investments, and disciplined cost management remain vital to delivering on its long-term objectives.
In addition, Morgan Stanley (NYSE:MS) has been returning value to shareholders in the form of dividends for years. Currently, it offers a quarterly dividend of $1.00 per share, having raised it by 8.1% in July. The stock has a dividend yield of 2.50%, as of September 21.
4. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 69
Abbott Laboratories (NYSE:ABT) operates a broad business spanning four main areas: medical devices, established pharmaceuticals, diagnostics, and nutrition. With a strong global presence, its diversified structure helps balance performance when one segment experiences weakness.
Abbott Laboratories (NYSE:ABT) also sees several major long-term growth opportunities. Among the most promising is its FreeStyle Libre product line, a continuous glucose monitoring system that allows people with diabetes to track blood sugar levels. This has been a leading growth driver for Abbott and still has considerable room to expand. In addition, the company continues to advance through ongoing innovation and by securing approvals for new medical devices.
Abbott Laboratories (NYSE:ABT) is a solid dividend company. On September 19, the company declared a quarterly dividend of $0.59 per share, which was in line with its previous dividend. Overall, it has been rewarding shareholders with growing dividends for 53 consecutive years, which makes ABT one of the best stocks for a dividend stock portfolio. As of September 21, the stock has a dividend yield of 1.73%.
3. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ), a leading US wireless and broadband provider, has regained attention from income-focused investors following another annual dividend hike and a stable outlook for 2025. In late July, the company reported stronger-than-expected second-quarter earnings and raised its full-year guidance, giving investors more confidence in its ability to balance growth initiatives with shareholder returns.
Verizon Communications Inc. (NYSE:VZ) recently marked its 19th consecutive year of dividend increases, the longest ongoing streak in the US telecom industry. The company is expected to sustain dividend growth as it continues investing in the transition to 5G, offering faster data speeds to customers. In addition, its $20 billion acquisition of Frontier Communications in 2024 will expand its fiber network and support earnings growth.
Verizon Communications Inc. (NYSE:VZ) currently offers a quarterly dividend of $0.69 per share and has a dividend yield of 6.35%, as recorded on September 21.
2. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) develops products that power wireless connectivity, computing, and edge artificial intelligence (AI). Its technologies are widely used in cellular and networking infrastructure, automobiles, smartphones, smart audio devices, and other connected applications.
QUALCOMM Incorporated (NASDAQ:QCOM) currently trades at a forward P/E ratio of 13.79, which is relatively inexpensive compared to the technology sector average of 29.8. This discount reflects the company’s heavy dependence on the smartphone market, which is no longer expanding at the pace it once did. Adding to the challenge, major customers like Apple and Samsung are increasingly designing their own chips, making them both clients and competitors.
That said, QUALCOMM Incorporated (NASDAQ:QCOM) has always grabbed the attention of income investors because of its stable dividend history. The company has raised its dividends for 21 consecutive years, which makes QCOM one of the best stocks for a dividend stock portfolio. It currently pays a quarterly dividend of $0.89 per share and has a dividend yield of 2.13%, as of September 21.
1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotech company. The last three years have been challenging for its investors. The company’s COVID-19 vaccine and treatment initially sent the stock soaring during the pandemic, but once demand peaked, the share price followed suit. The stock has declined by nearly 50% over the past three years.
Looking ahead, Pfizer Inc. (NYSE:PFE)’s pipeline offers potential for future growth even though it has not yet translated into new revenue. Among its most notable candidates are Elrexfio (elranatamab-bcmm) and Sigvotatug vedotin. Elrexfio is already approved for certain multiple myeloma patients, and ongoing phase 3 trials could significantly expand its use. Sigvotatug vedotin, an antibody-drug conjugate acquired through Pfizer’s 2023 purchase of Seagen, has shown strong results in phase 3 trials as a treatment for advanced lung cancer.
In total, Pfizer Inc. (NYSE:PFE)currently has 18 oncology drugs in phase 3 development, with eight of them projected to potentially generate over $1 billion in annual sales each by 2030. Moreover, the company’s dividend is keeping it afloat in times like these. It has been growing its dividends for 15 consecutive years and currently pays a quarterly dividend of $0.43 per share. As of September 21, the stock has a dividend yield of 7.16%.
While we acknowledge the potential of PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about this cheapest AI stock.
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