In this article, we will take a look at some of the best dividend stocks for a retirement stock portfolio.

Dividend-paying stocks are often considered a dependable option for retirement portfolios. According to Brian Bollinger, founder of Simply Safe Dividends, structuring a portfolio around these stocks can be a valuable strategy. He explained that relying on regular dividend payments, rather than depending solely on capital gains from selling stocks, can help reduce the risk of exhausting one’s savings. He also pointed out that, unlike managing rental properties, collecting dividends requires little to no effort.

Bollinger made the following comment:

“You could be setting yourself up quite nicely. Because not only do stocks pay a dividend, but they might increase the dividend, and they could benefit from price appreciation as a result of improving earnings outlook and so forth.”

However, like any investment approach, dividend investing carries its own set of risks. Stocks with higher yields are generally more vulnerable, as the companies behind them must allocate a larger share of their resources to maintain those payouts. If one of these companies decides to significantly reduce or cancel its dividend, investors could face both a drop in share value and a cut in income.

Given this, we will take a look at some of the best dividend stocks for a retirement 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 Q1 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. National Fuel Gas Company (NYSE:NFG)

Number of Hedge Fund Holders: 35

National Fuel Gas Company (NYSE:NFG) is among the best stocks for a retirement stock portfolio. On June 12, the company declared a 3.9% hike in its quarterly dividend to $0.535 per share. Through this increase, the company stretched its dividend growth streak to 55 years.

In addition to this strong dividend growth, National Fuel Gas Company (NYSE:NFG) has also paid regular dividends to shareholders for 123 years in a row.

The company’s steady dividend growth is largely due to its solid cash reserves. In the latest quarter, it generated $473.8 million in operating cash flow, while its levered free cash flow over the past twelve months totaled $50.3 million.

National Fuel Gas Company (NYSE:NFG) offers a dividend yield of 2.54%, as of June 13, and it will trade ex-dividend on June 30.

The stock has surged by over 37% since the start of 2025.

National Fuel Gas Company (NYSE:NFG) is a diversified energy firm with a fully integrated portfolio of natural gas and oil operations. Its business is divided into four key segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility.

9. American Water Works Company, Inc. (NYSE:AWK)

Number of Hedge Fund Holders: 44

American Water Works Company, Inc. (NYSE:AWK) is one of the best stocks for a retirement stock portfolio. The stock was recently added to CNBC’s ‘All-Weather Stock List’ because of its defensive qualities. Before this, it was also featured in a list by Trivariate Research highlighting the top-performing S&P stocks during the tariff-related market correction from February 18 to April 8.

According to the firm, led by former Morgan Stanley chief strategist Adam Parker, American Water Works Company, Inc. (NYSE:AWK) gained over 10% during that period. Parker shared defensive stock ideas as a precaution, even though many of his clients expected the market to continue its upward trend.

American Water Works Company, Inc. (NYSE:AWK) likely attracted attention during the correction because its revenue is entirely domestic, making it unaffected by tariffs. In addition, its earnings are seen as stable even in a potential recession.

American Water Works Company, Inc. (NYSE:AWK) is a strong dividend stock, having raised its payouts for 17 consecutive years.

With a dividend yield of 2.34%, the water utility provides investors with steady income and a buffer against market volatility tied to trade tensions. As seen in April, traders quickly turned to this stock, and would likely do so again in similar conditions.

AWK has surged by over 14% since the start of 2025.

American Water Works Company, Inc. (NYSE:AWK) stands as the largest regulated provider of water and wastewater services in the US. Founded in 1886, the company serves over 14 million people through its regulated operations across 14 states and 18 military bases, delivering safe, clean, dependable, and affordable water and wastewater solutions.