In this article, we will take a look at the Top 15 Stock Picks for an Early Retirement Portfolio.
This week, Federal Reserve officials have the opportunity to discuss their views on interest rate trends, the effects of tariffs, and the economic effects of the Middle East crisis.
The Fed predicted two-quarter-percentage-point decreases this year at its most recent statement in March, which is consistent with current market pricing. However, the median projection would have dropped to one cut if only two participants had adjusted their strategy.
With President Donald Trump’s tariffs having had little effect on inflation thus far and an uncertain future, the meeting takes place against a complex geopolitical backdrop. Meanwhile, the President and other administration officials have increased their calls for the Fed to cut interest rates.
According to Bank of America, the Fed will primarily convey that it is still “comfortably in wait-and-see mode” at its June meeting on June 25. The bank further stated:
“For 2025, we think growth will likely be marked down and inflation will likely be revised up. Given elevated uncertainty, we don’t expect forecast changes for 2026 and beyond. Investors should focus on Powell’s take on the softening labor data, the recent benign inflation prints and the risks of persistent tariff-driven inflation.”
In an unpredictable environment, individuals who are saving for retirement frequently see dividend-paying stocks as reliable choices, as they can lower the risk of depleting their savings by relying on monthly dividend payments instead of capital gains from stock sales.
Our Methodology
We employed a screener to select dividend stocks for this list that are suitable for an early retirement stock portfolio, as they are diversified across multiple industries and have demonstrated robust and consistent payout policies. The stocks are ranked according to hedge funds having stakes in them as per Insider Monkey’s Q1 2025.
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).
15. Enbridge Inc. (NYSE:ENB)
Dividend Yield: 6.01%
Number of Hedge Fund Holders: 34
Enbridge Inc. (NYSE:ENB) ranks among the top stocks for an early retirement portfolio. UBS analysts maintained their price target for Enbridge Inc. (NYSE:ENB) at Cdn$75 and reaffirmed their Neutral rating on the company’s shares on June 5. The decision comes after several operational updates were discussed at a recent meeting with Enbridge management in New York City.
Concerns over fire hazards, particularly in the Christina Lake area, were part of the discussion. While there was a considerable risk at first, recent rain without lightning has significantly decreased the threat. Additionally, management observed that producers have improved their risk management over time.
The Rio Bravo pipeline project by Enbridge, which is positioned to facilitate future expansions at the Rio Grande LNG facility, was a key topic of discussion. Over the last two years, the company has committed between $2 billion and $2.5 billion in investments to increase its involvement in Permian gas expansion projects.
Enbridge Inc. (NYSE:ENB) is a midstream energy company that specializes in the distribution and transportation of natural gas, oil, and natural gas liquids.
14. Rio Tinto Group (NYSE:RIO)
Dividend Yield: 6.22%
Number of Hedge Fund Holders: 36
Rio Tinto Group (NYSE:RIO) ranks among the top stocks for an early retirement portfolio. Rio Tinto Group (NYSE:RIO) stated on June 12 that it planned to invest Cdn$7.6 million in an industrial demonstration project for evaluating ore sorting technology at its Lac Tio mine in Havre-Saint-Pierre, Quebec. A further Cdn$2.5 million is set to be contributed by the Quebec government through its support program for strategic mineral processing.
The project seeks to sift ore at the source based on its titanium and scandium levels. Through improved separation of commercially usable rock from waste rock, the procedure may minimize the amount of material transported between the mine and Rio Tinto’s Sorel-Tracy processing complex, which might lower transportation costs and greenhouse gas emissions.
The project will be carried out in two stages, with activities in 2025 centering on technological validation, engineering, and ore sorting circuit commissioning. Meanwhile, additional machinery will be added in 2026 to automate the procedure and generate several batches of enriched ore.
One of the largest mining companies in the world, Rio Tinto Group (NYSE:RIO), is known for its vast range of mineral resource exploration and extraction. The company’s mining portfolio includes lithium, aluminum, copper, iron ore, diamonds, gold, and molybdenum.
13. Evergy, Inc. (NASDAQ:EVRG)
Dividend Yield: 3.90%
Number of Hedge Fund Holders: 43
Evergy, Inc. (NASDAQ:EVRG) ranks among the top stocks for an early retirement portfolio. On June 10, Mizuho Securities reiterated its Outperform rating and $70 price target for Evergy, Inc. (NASDAQ:EVRG), maintaining its optimistic outlook. The backing follows recent events in a rate case involving Evergy subsidiary Kansas Central. The testimony of the Kansas Corporation Commission (KCC) Staff, which suggested a revenue requirement of roughly 58% of Kansas Central’s sought amount, has been positively viewed by Mizuho analysts.
Based on a 9.70% return on equity, the KCC Staff’s proposal calls for about $114 million in revenue, which falls short of Kansas Central’s request for a 10.50% ROE. Furthermore, the rate base of $6.78 billion is somewhat higher than the company’s $6.73 billion proposal. These suggestions, according to Mizuho’s analysts, are indicative of favorable regulatory changes in Kansas, which may be encouraging for Evergy.
Evergy, Inc. (NASDAQ:EVRG), formed in 2018 from the merger of Great Plains Energy and Westar Energy, provides 16,000 megawatts of generating capacity across more than 40 power plants, serving 1.7 million customers in Kansas and Missouri.
12. General Mills, Inc. (NYSE:GIS)
Dividend Yield: 4.49%
Number of Hedge Fund Holders: 43
General Mills (NYSE:GIS) ranks among the top stocks for an early retirement portfolio. On June 18, BofA Securities maintained its Buy rating on General Mills (NYSE:GIS), but decreased its price target to $63 from $68.
BofA’s updated earnings projections, which now take into consideration the impending sale of General Mills’ U.S. yogurt division, are reflected in the price target cut. After share repurchases, the transaction is anticipated to be completed at the end of June with a net impact of about $0.18 per share.
BofA also lowered its organic sales estimates from a 2.2% loss to a 3.6% decline for the current quarter, mostly as a result of poor North American retail scanner data. That said, the firm maintained its adjusted earnings per share estimate of $0.71.
General Mills, Inc. (NYSE:GIS) is a prominent American multinational corporation known for manufacturing and promoting branded processed consumer foods that are extensively marketed through retail channels. The company stands out with its impressive portfolio of well-known brands like Nature Valley, Häagen-Dazs, and Cheerios.
11. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield: 2.74%
Number of Hedge Fund Holders: 52
Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the top stocks for an early retirement portfolio. On June 20, Wells Fargo raised Mondelez International, Inc. (NASDAQ:MDLZ) to Overweight with a price target of $78. The firm cited the company’s strong risk-reward analysis and better fundamentals in comparison to its staples peers.
Wells Fargo outlined three main justifications for its optimistic outlook. First, despite record prices, chocolate elasticities are enduring well. The firm reported that “Europe chocolate elasticities are -0.25 YTD,” which is in line with historical norms and better than Mondelez’s estimated range of -0.4 to -0.5.
“Commodities appear neutral to 2026,” according to Wells Fargo’s commodity model, boosting confidence in margin improvement. Last but not least, Wells Fargo projects that in 2026, Mondelez International, Inc. (NASDAQ:MDLZ) would generate algorithm EPS with +3% organic sales and a 100bps increase in gross margin.
Mondelez International, Inc. (NASDAQ:MDLZ), often known as Mondelēz International, is a Chicago-based international firm that specializes in confectionery, cuisine, drinks, and snacks.
10. Dover Corporation (NYSE:DOV)
Dividend Yield: 1.16%
Number of Hedge Fund Holders: 53
Dover Corporation (NYSE:DOV) ranks among the top stocks for an early retirement portfolio. Mizuho maintained its Outperform rating on Dover Corporation (NYSE:DOV) while increasing its price target from $215 to $225 on June 13.
The research firm’s more optimistic view was attributed in large part to “accelerating secular trends” and a “derisked 2025 guide” in Dover’s portfolio. Dover Corporation (NYSE:DOV) has been enhancing its portfolio, according to Mizuho, by employing a systematic approach to investing that involves organic investments across attractive vertical markets, divestitures, and mergers and acquisitions.
It’s anticipated that Dover Corporation (NYSE:DOV) will continue to streamline its portfolio, which should further simplify the company’s corporate structure, according to Mizuho. The firm added that tariff headwinds have been “meaningfully reduced” for Dover in the foreseeable future.
Dover Corporation (NYSE:DOV) provides an array of industrial products, including data cooling, fuel systems, clean energy, biopharma, and vehicle maintenance. It operates across five business divisions with an emphasis on precise engineering, automation, and sustainability.
9. Medtronic, Inc. (NYSE:MDT)
Dividend Yield: 3.30%
Number of Hedge Fund Holders: 63
Medtronic, Inc. (NYSE:MDT) ranks among the top stocks for an early retirement portfolio. On June 18, RBC Capital reiterated a $101 price target and an Outperform rating on Medtronic, Inc. (NYSE:MDT), emphasizing the company’s renal denervation system as an undervalued market opportunity.
The firm assessed the potential of Medtronic’s Symplicity Spyral renal denervation system, which treats hypertension, using a private survey with forty-four respondents. The survey results will be made public in advance of the crucial Centers for Medicare & Medicaid Services (CMS) National Coverage Determination, which is scheduled for July 11, 2025, at the latest.
Furthermore, Medtronic plc (NYSE:MDT) declared that it would spin off its diabetes division into a separate company named MiniMed. About 8% of Medtronic’s overall revenue comes from the diabetes segment, and the spin-off is anticipated to streamline operations.
A prominent name in medical technology, Medtronic plc (NYSE:MDT) focuses on the creation, production, and marketing of device-based therapeutics. With notable breakthroughs in spine and minimally invasive treatments, the company ranks as a leader in robotic-assisted surgery technology.
8. Lowe’s Companies, Inc. (NYSE:LOW)
Dividend Yield: 2.20%
Number of Hedge Fund Holders: 68
Lowe’s Companies, Inc. (NYSE:LOW) ranks among the top stocks for an early retirement portfolio. Mizuho upheld its $280 price target and Outperform rating on Lowe’s Companies, Inc. (NYSE:LOW) on June 13 following an investor meeting at the company’s Tech Hub in Charlotte, North Carolina.
According to Mizuho, the home improvement company must contend with a “complex and evolving consumer backdrop.” Affordability concerns continue to exert pressure on the sector, and tariff-related worries may postpone the home improvement market’s recovery.
Despite these obstacles, Lowe’s Companies, Inc. (NYSE:LOW) is making significant strides in its professional customer base and continues to enhance its business strategy. To improve its market delivery capabilities for appliances and reduce its cost profile, the company is also putting Perpetual Productivity Improvement (PPI) measures into action. Lowe’s Companies, Inc. (NYSE:LOW) has also been enhancing its supply chain and digital operations, with its newly launched Tech Hub now employing over 1,000 people.
Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer that provides an extensive selection of products and services to both professionals and everyday customers.
7. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield: 5.29%
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the top stocks for an early retirement portfolio. On June 12, Cantor Fitzgerald maintained its price target of $55 and its rating of Neutral for Bristol-Myers Squibb Company (NYSE:BMY).
The company’s Cobenfy’s ADEPT-2 top-line data in Alzheimer’s Disease Psychosis is anticipated in 2025, possibly as early as the second half of that year. According to Cantor Fitzgerald, this information reflects “the highest-impact remaining catalyst for BMY shares this year.”
Cantor believes that Cobenfy will surpass Opdivo and Reblozyl as the company’s third-largest-selling medicine by 2030, making the treatment crucial to Bristol-Myers’ future revenue profile.
Despite its potential significance, Cantor Fitzgerald characterized ADEPT-2 as “challenging to handicap” because of the varied older group being treated, the lack of clinical data, and the substantial heterogenous in neuropsychiatric investigations.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company that discovers, produces, and supplies prescription medications for severe illnesses in fields including cancer, hematology, immunology, cardiovascular disease, and neuroscience.
6. Starbucks Corporation (NASDAQ:SBUX)
Dividend Yield: 2.64%
Number of Hedge Fund Holders: 70
Starbucks Corporation (NASDAQ:SBUX) ranks among the top stocks for an early retirement portfolio. On June 18, UBS maintained its $95 price target and Neutral rating on Starbucks Corporation (NASDAQ:SBUX), pointing to the company’s China business’s projected progress through fiscal year 2026.
According to the investment firm, Starbucks Corporation (NASDAQ:SBUX) is still under pressure from local competitors and declining customer spending in China. With almost 8,000 outlets already open, the nation ranks as the company’s second-largest market worldwide.
Starbucks Corporation (NASDAQ:SBUX) is expected to seek a partnership in China, possibly selling a portion of its operations there, according to UBS. A move like this would boost regional growth by drawing in local expertise, fresh connections, and more targeted marketing resources.
Starbucks Corporation (NASDAQ:SBUX) is an American multinational chain of coffee shops and roastery reserves with operations in more than 80 countries. is well-known for its roasted whole beans and ground coffees, ready-to-drink beverages, and an array of food products.
5. Abbott Laboratories (NYSE:ABT)
Dividend Yield: 1.77%
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) ranks among the top stocks for an early retirement portfolio. On June 18, Oppenheimer reaffirmed its $140 price target and Outperform rating on Abbott Laboratories (NYSE:ABT), noting growing confidence in the company’s Volt system and future glucose-ketone monitoring technology.
Following the observation of live PFA (pulsed field ablation) case viewings of rival systems, such as Varipulse/CARTO and Farapulse/Opal, the research firm voiced increasing optimism concerning Volt. Varipulse’s uptake has been “subdued” despite price parity with Farapulse, according to Oppenheimer.
Oppenheimer found two significant catalysts for Abbott Laboratories (NYSE:ABT) that might boost the company’s performance in the second half of 2025. First, if Abbott leverages cost as a competitive advantage, the possible approval of Volt PMA might result in “significant gains” in electrophysiology.
The second driver is Abbott’s glucose-ketone dual sensor system, which was recently revealed to be integrated with the insulin pump from Tandem Diabetes Care.
Abbott Laboratories (NYSE:ABT) is a leading global healthcare company that manufactures a wide range of branded generic medications, medical devices, diagnostics, and nutritional items.
4. American Express Company (NYSE:AXP)
Dividend Yield: 1.09%
Number of Hedge Fund Holders: 75
American Express Company (NYSE:AXP) ranks among the top stocks for an early retirement portfolio. Keefe, Bruyette & Woods kept its Outperform rating and $360 price target on American Express Company (NYSE:AXP) shares on June 17 following the announcement that the company would be updating its Platinum Cards, claiming it would be its largest card refresh expenditure ever.
The firm noted that the announcement follows reports that rival Chase intends to revamp its Sapphire Reserve card this summer. An annual fee rise for the Platinum card may be part of the card refresh, which KBW analysts think would contribute to the growth of card fee income in the upcoming years. The firm also proposed that adjustments might lead to increased card account growth and engagement levels.
Although there are competition pressures from Chase’s anticipated Sapphire Reserve changes, KBW regarded AXP’s the announcement as “incrementally positive” for the company, adding that competitor card launches have historically had little effect on American Express Company (NYSE:AXP).
American Express Company (NYSE:AXP) is a leading bank holding company that provides a comprehensive digital payment network, including credit cards, charge cards, and financing options.
3. RTX Corporation (NYSE:RTX)
Dividend Yield: 1.87%
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) ranks among the top stocks for an early retirement portfolio. On June 17, the US Department of Defense announced awarding RTX Corporation (NYSE:RTX) a $299.7 million contract modification for the Evolved SeaSparrow Missile Block 2 program.
According to the DoD statement, the test equipment, spares, and options for Guided Missile Assemblies will be funded through a firm-fixed-price amendment to a previously awarded contract.
The deal is primarily funded by $283.7 million of Navy weapons procurement funds for fiscal year 2025. $3.5 million will come through fiscal 2024 other customer funds, $5.4 million from fiscal 2024 Navy weapons procurement funds, and $7 million from fiscal 2025 other customer funds. the Department of Defense expects the work to be completed by 2030.
RTX Corporation (NYSE:RTX) offers services and technologies to government, military, and commercial customers. The company operates through three main divisions: Collins Aerospace, Pratt & Whitney, and Raytheon.
2. Chevron Corporation (NYSE:CVX)
Dividend Yield: 4.66%
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) ranks among the top stocks for an early retirement portfolio. On June 18, Barclays maintained its Equalweight rating on Chevron Corporation (NYSE:CVX) with a $152 price target.
Given Chevron’s organic growth since 2023, the research firm stated that the Hess acquisition is now “modestly accretive to CVX’s cash flow multiples and leverage albeit still dilutive on FCF yield.” According to the firm’s analysis, the Hess deal, which has drawn attention from investors, now offers Chevron Corporation (NYSE:CVX) a marginally better financial picture than previous projections.
Chevron Corporation (NYSE:CVX) has also acquired over 125,000 net acres of lithium-rich property in Southwest Arkansas and Northeast Texas, marking a strategic entry into the lithium market. The company took the first step toward building a domestic lithium company on a commercial scale with the acquisition of TerraVolta Resources and East Texas Natural Resources LLC.
Chevron Corporation (NYSE:CVX), based in San Ramon, California, is a major American global energy company that specializes in the oil and gas industry. Founded as the Standard Oil Company of California, it is the second-largest direct descendant of Standard Oil.
1. Johnson & Johnson (NYSE:JNJ)
Dividend Yield: 3.44%
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) ranks among the top stocks for an early retirement portfolio. On June 13, Johnson & Johnson (NYSE:JNJ) announced that patients with relapsed or refractory large B-cell lymphoma (LBCL) showed strong response rates to its investigational dual-targeting CAR T-cell treatment.
According to results given at the 2025 European Hematology Association Congress, the Phase 1b study of JNJ-90014496, a treatment that targets both CD19 and CD20 proteins on cancer cells, showcased complete response rates of 75-80% among assessed patients at the recommended Phase 2 dose. This addition broadens J&J’s pharmaceutical portfolio, which has contributed to the company’s annual revenue in excess of $89 billion.
Moreover, the suggested Phase 2 dose group showed no signs of Grade 3 or 4 cytokine release syndrome, indicating a favorable safety profile.
Johnson & Johnson (NYSE:JNJ) is a notable name in the healthcare industry, which includes sub-sectors like pharmaceuticals, medical equipment, and consumer health products. The company is known for creating medications to treat a variety of conditions and diseases, including cancer, diabetes, and HIV/AIDS.
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Disclosure: None.
