In this article, we will take a look at the Dividend Stock Portfolio For Retirement: Top 12 Stock Picks.
In April, CNBC reported that financial experts viewed working longer as one of the most effective ways to deal with a retirement funding shortfall.
According to the annual Retirement Confidence Survey released on April 21 by the Employee Benefit Research Institute, 46% of people who retired in 2025 left the workforce earlier than expected. Experts said many of those retirements were driven by unexpected circumstances such as health problems, layoffs, or the need to care for a loved one.
The report highlighted several financial benefits tied to delaying retirement. People who continue working can avoid drawing down savings because they are still receiving a paycheck. They also have more time to save and potentially grow their investments. Delaying retirement may also allow them to postpone claiming Social Security benefits, which can result in higher monthly payments later in life.
On May 7, CNBC also reported that stocks remain an important long-term growth driver for retirement portfolios and can help investors keep ahead of inflation. The report pointed to two widely used target-date funds managed by Vanguard Group and Fidelity Investments. For investors planning to retire in 2025, those funds held stock allocations of about 48% and 55%, respectively.
Financial advisor Carolyn McClanahan said some retired clients maintained portfolios with around 80% allocated to bonds and 20% to stocks. She said the key goal was making sure an investor’s cash flow needs and overall financial plan matched their lower tolerance for risk.“If they’re happy with that, we’re happy with that,” she said.
Given this, we will take a look at some of the best stocks for a dividend stock portfolio.
Our Methodology:
For this list, we screened for companies that have raised their dividends for at least 10 consecutive years. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among hedge funds and analysts.
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).
12. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 31
On May 11, Freedom Broker analyst Zhiger Kurmet upgraded Realty Income Corporation (NYSE:O) to Buy from Hold and assigned a $69 price target. The analyst said Q1 AFFO of $1.13 per share came in above both the firm’s estimates and consensus expectations. The upgrade was made “on a tactical basis,” with the firm pointing to better near-term upside potential for the shares.
During the Q1 2026 earnings call, President, CEO & Director Sumit Roy said the company entered 2026 with solid momentum and posted AFFO per share of $1.13, up 6.6% from the same period last year. He added that Realty Income invested nearly $2.8 billion during the quarter at an initial weighted average cash yield of 7.1%. That included around $1 billion directed toward credit and structured investments.
Roy also connected the quarter’s results to the company’s expanding private capital strategy. He highlighted a $1.7 billion cornerstone capital raise for the Perpetual Life U.S. Core+ fund, a strategic partnership with GIC focused on construction financing and takeout commitments, and $1 billion in equity from Apollo Global Management aimed at the insurance and annuity market.
He also said the company raised its full-year AFFO guidance following a strong start to 2026. Management increased the midpoint of its full-year AFFO per share outlook by $0.025 and maintained its goal of delivering consistent double-digit total operational returns.
Realty Income Corporation (NYSE:O) is a real estate investment trust focused on acquiring, owning, and managing freestanding commercial properties. The company leases these properties under long-term net lease agreements to a diversified group of operators that includes investment-grade and investment-grade-equivalent clients.
11. Aflac Incorporated (NYSE:AFL)
Number of Hedge Fund Holders: 51
On May 21, Morgan Stanley analyst Bob Huang raised the firm’s price target on Aflac Incorporated (NYSE:AFL) to $125 from $120 and maintained an Equal Weight rating on the stock. The analyst said results for life insurance companies were “generally strong” in Q1 and expected earnings momentum to continue through the rest of 2026. He pointed to steady business momentum in international operations and continued improvements in mortality trends as key drivers.
On May 1, Piper Sandler lowered its price recommendation on Aflac to $125 from $130. It reiterated an Overweight rating on the shares. The firm said the company reported earnings below both its estimates and consensus expectations, mainly because of weaker performance in Japan, where the pre-tax margin came in lower than Piper had projected. The firm also noted that earnings growth faced pressure for the second straight quarter. Even so, it highlighted underlying improvement in Aflac’s benefit ratio in Japan and said the company’s distribution business remained strong.
Aflac Incorporated (NYSE:AFL) provides financial protection products to policyholders and customers through its subsidiaries in the United States and Japan. Its main business centers on supplemental health and life insurance products.
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