In this article, we will take a look at Retirement Stock Portfolio: 12 Low Risk Investments.
Planning for retirement often pushes investors to favor stability over big swings. As people move closer to retirement, protecting income and managing risk tend to take priority.
That caution is well placed. CNBC recently reported that more than 8 in 10 retiree households — about 83% — face unexpected expenses in a typical year, based on research from the Center for Retirement Research at Boston College. For those who do run into surprise costs, the average annual bill comes to around $6,000 over the course of retirement. Put another way, that’s roughly 10% of a household’s yearly income.
The problem is that many retirees don’t have that kind of cushion set aside. The research found that only about 58% of households have enough cash on hand to cover a year of unplanned expenses. Around 16% would need to dip into a 401(k) or other retirement accounts, while roughly 27% would still come up short even after using both their cash savings and retirement assets.
This is why advisors often stress the importance of building portfolios around lower-risk options. Richard Carter, vice president of fixed income products and services at Fidelity Investments, said diversification can help manage risk, even within investments that are generally seen as conservative. He noted that when looking at fixed income, investors should remember that “low risk” doesn’t mean “no risk,” as differences still exist in credit quality, price volatility, and when or how returns are paid.
Given this, we will take a look at some of the best options for a retirement stock portfolio.
Photo by Esther Tuttle on Unsplash
Our Methodology:
For this list, we screened for dividend companies with strong histories and sound financials. From that list, we identified stocks with dividend yields of at least 3%, as of January 25. Finally, we picked 12 stocks with a beta of less than 1.0 over the past years, using monthly price data. Beta lower than 1.0 shows that these stocks are less volatile than the overall market. The stocks were then ranked according to their beta.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. The Mosaic Company (NYSE:MOS)
Beta (5Y Monthly): 0.94
Dividend Yield as of January 25: 3.06%
The Mosaic Company (NYSE:MOS) is among the best stocks for a retirement stock portfolio.
On January 23, Wells Fargo analyst Michael Sison lowered The Mosaic Company (NYSE:MOS)’s price target to $27 from $28 and kept an Equal Weight rating on the shares. The change followed a softer view on fourth-quarter volumes, with Brazil turning weaker and SSP production being curtailed. Pressure is still evident in the near term, though Wells Fargo believes the picture looks steadier heading into 2026 as phosphate supply tightens and demand in Brazil improves.
That caution showed up earlier in the month as well. Mosaic said in mid-January that fertilizer demand fell off sharply in the fourth quarter, squeezing sales and cash flow and pushing the stock down about 4%. Farmers simply used less fertilizer as budgets tightened, and an early winter cut the application season short. Phosphates were hit the hardest. Prices made them less appealing than potash, and shipments in North America dropped by roughly 20% from a year earlier, while potash demand held up comparatively better.
The slowdown showed up clearly in volumes. Mosaic said both phosphate and potash sales in Q4 missed earlier expectations. Brazil did little to offset the weakness. Tighter credit, tougher competition, and imports from China pressured demand and margins, leaving volumes below internal targets. For full-year 2025, Mosaic reported sales volumes of about 9 million tonnes, basically unchanged from the prior year and consistent with a soft overall market.
The Mosaic Company (NYSE:MOS) is a major producer and marketer of crop nutrients, with operations focused primarily on phosphate and potash products.
11. Old Republic International Corporation (NYSE:ORI)
Beta (5Y Monthly): 0.81
Dividend Yield as of January 25: 3.06%
Old Republic International Corporation (NYSE:ORI) is one of the top stocks for a retirement stock portfolio.
On January 22, Piper Sandler downgraded Old Republic International Corporation (NYSE:ORI) to Neutral from Overweight. The firm also cut its price target to $38 from $51, following the company’s fourth-quarter earnings report. As previously reported, the firm said it generally steers investors away from companies facing loss cost reserve or loss trend issues. It added that it is “less optimistic” about Old Republic’s specialty underwriting business, pointing to ongoing challenges tied to commercial auto loss cost inflation.
Old Republic released its Q4 2025 results the same day, reporting consolidated pretax operating income of $236 million, down from $285 million a year earlier. The consolidated combined ratio also worsened, coming in at 96% compared with 92.7% previously. President, CEO, and Director Craig Smiddy said full-year pretax operating income totaled $1 billion, with a consolidated combined ratio of 94.7%. He also highlighted a 22% increase in book value per share, including dividends, crediting strong operating earnings, higher investment valuations, and disciplined capital management.
In the title segment, premium and fee revenue reached $789 million for the quarter, up 12% from the same period last year.
Old Republic International Corporation (NYSE:ORI) is a specialty insurer with operations spanning property and casualty insurance as well as title insurance.
10. United Bankshares, Inc. (NASDAQ:UBSI)
Beta (5Y Monthly): 0.80
Dividend Yield as of January 25: 3.67%
United Bankshares, Inc. (NASDAQ:UBSI) is among the best stocks for a retirement stock portfolio.
On January 23, Stephens analyst Russell Gunther raised his price target on United Bankshares, Inc. (NASDAQ:UBSI) to $44 from $40 and kept an Equal Weight rating on the stock. He said operating EPS came in ahead of both consensus and his own estimates. In his view, the company’s returns stack up well against peers, and its excess capital, which is being put to work through share buybacks, helps support the stock’s premium valuation.
United reported fourth-quarter 2025 earnings on January 22, and the company posted $128.8 million in net income, or $0.91 per diluted share. Profitability remained solid, with annualized returns of 1.52% on average assets, 9.31% on average equity, and 14.86% on average tangible equity. Results for the quarter and the full year reflected the impact of the Piedmont Bancorp acquisition, which closed on January 10, 2025, and lifted average balances, income, and expenses compared with the prior year.
Share repurchases were another key theme in 2025. United bought back roughly 3.6 million shares under its existing programs at an average price of $35.24 per share. The company did not repurchase any shares in 2024.
United Bankshares, Inc. (NASDAQ:UBSI) is the parent company of United Bank and operates primarily through its community banking business.
9. Black Hills Corporation (NYSE:BKH)
Beta (5Y Monthly): 0.74
Dividend Yield as of January 25: 3.77%
On January 23, BofA raised its price target on Black Hills Corporation (NYSE:BKH) to $72 from $70 and maintained a Neutral rating. The firm said the update reflects a roll-forward of its valuation to 2028 EPS, along with revised peer P/E multiples.
Earlier in the month, on January 7, Black Hills announced it had completed construction and energized its 260-mile Ready Wyoming electric transmission expansion. The $350 million project was placed into service on schedule in December 2025 and now links the company’s electric systems across South Dakota and Wyoming.
Management said the project is designed to support long-term cost stability for customers, improve system reliability, and expand access to regional power markets. It is also expected to support local economic activity and help enable future energy development in Wyoming. About $300 million of the investment will be recovered through the Wyoming Transmission Rider, while roughly $50 million tied to distribution upgrades is expected to be recovered through base rates in the next rate review.
Black Hills Corporation (NYSE:BKH) is a regulated utility focused on steady growth and customer service, providing natural gas and electric service to about 1.35 million customers across eight states.
8. Archer-Daniels-Midland Company (NYSE:ADM)
Beta (5Y Monthly): 0.69
Dividend Yield as of January 25: 3.02%
On January 21, JPMorgan raised its price target on Archer-Daniels-Midland Company (NYSE:ADM) to $60 from $59. The firm kept an Underweight rating on the stock. The move came as the firm updated valuations across the agricultural products group ahead of fourth-quarter earnings. The analyst said the ag products industry “seems to be experiencing an improved environment,” pointing to soybean board crush futures that suggest margins could improve as 2026 approaches.
ADM has navigated a challenging period for the global food system in recent years, with the war in Ukraine adding strain to already stretched supply chains. More recently, the company has had to contend with falling prices for certain crops as oversupply weighed on markets.
The company has also been focused on rebuilding investor confidence following developments in 2024, when management disclosed multiple accounting errors. These included the improper recording of sales between business segments, which led ADM to restate financial results and reduce its profit outlook.
Archer-Daniels-Midland Company (NYSE:ADM) operates a global agricultural supply chain, processing and transporting crops while helping meet food demand by linking local markets with global resources.
7. Chevron Corporation (NYSE:CVX)
Beta (5Y Monthly): 0.69
Dividend Yield as of January 25: 4.10%
Chevron Corporation (NYSE:CVX) is one of the best stocks for a retirement stock portfolio.
Morgan Stanley cut its price target on Chevron to $174 from $180 on January 23. However, the firm reiterated an Overweight rating on the stock. The adjustment followed an update to the firm’s 2026–2027 oil price assumptions, based on futures pricing as of January 7, and was released alongside its fourth-quarter preview for E&P companies, oil majors, and Canadian producers. The analyst said Chevron’s fourth-quarter operational update should be “fairly clean,” though cash flow is expected to come in lighter due to weaker price realizations.
Separately, a January 22 report from Reuters said Chevron is moving closer to a deal to sell its oil refining and distribution assets in Singapore. The company is said to be in final-stage talks with Japanese refiner Eneos and commodities trader Glencore, according to four sources familiar with the matter, with a transaction expected to close in the first quarter.
The assets under discussion include Chevron’s stake in a Singapore refinery, along with a terminal and retail fuel stations in the country. One source added that retail stations in Cambodia and Malaysia could also be part of the deal. Two of the sources said the package is valued at $1 billion or more.
The sale is part of Chevron’s broader effort to exit certain refining and storage assets in Asia as it restructures its global footprint to simplify operations and cut costs. Chevron owns a 50% stake in Singapore Refining Co, with the remaining interest held by PetroChina through its Singapore Petroleum unit. SRC operates a 290,000-barrel-per-day refinery in Singapore.
The deal would also include Chevron’s Penjuru terminal, which has more than 400,000 cubic meters of oil storage capacity. According to the company’s website, the terminal is used to blend and supply transportation fuels, base oils, marine fuels, and finished lubricants.
Chevron Corporation (NYSE:CVX) is an integrated energy company with operations spanning oil and gas production, refining, chemicals, and technology development.
6. McCormick & Company, Incorporated (NYSE:MKC)
Beta (5Y Monthly): 0.63
Dividend Yield as of January 25: 3.16%
BofA lowered its price target on McCormick to $80 from $89 on January 23. However, the firm kept a Buy rating in place. The analyst said the market reacted negatively to the earnings report after several misses in the quarter. Organic sales in Q4 fell short of expectations, mainly due to weaker performance in Americas Flavor Solutions. Gross margin also missed consensus by roughly 150 basis points, and the company’s outlook pointed to slower EPS growth in fiscal 2026 than investors had been expecting. In response, BofA cut its FY26 EPS estimate to $3.09 from $3.21, reflecting the margin pressure seen in the fourth quarter.
The day before, McCormick warned that profits are likely to be under pressure in fiscal 2026 as higher costs from tariffs and commodities weigh on margins. The company said trade uncertainty has pushed commodity prices higher, while ongoing investments in production facilities and brand marketing have added to cost pressures.
Speaking on the post-earnings call, CEO Brendan Foley said inflation, volatile commodity costs, and broader macro conditions drove incremental costs that hurt margins. He added that about 50% of the incremental tariffs on McCormick products remain in place, and related inflationary pressures continue.
McCormick expects tariffs to add about $50 million in incremental costs in fiscal 2026. The company imports several spices, including pepper and herbs, leaving it exposed to higher input costs. Deutsche Bank analyst Steve Powers said the stock may face near-term pressure after the weak quarter and cautious outlook, but noted that McCormick could still benefit longer term from steady demand and its acquisition of McCormick de Mexico.
McCormick & Company, Incorporated (NYSE:MKC) makes and sells spices, seasoning mixes, condiments, and other flavor products worldwide.
5. American Electric Power Company, Inc. (NASDAQ:AEP)
Beta (5Y Monthly): 0.62
Dividend Yield as of January 25: 3.26%
American Electric Power Company, Inc. (NASDAQ:AEP) is among the best stocks for a retirement stock portfolio.
Barclays, on January 22, raised its price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $121 from $117. The firm kept an Equal Weight rating. The update came as the firm refreshed valuations across the power and utilities group ahead of fourth-quarter earnings.
AEP has also been getting more attention from investors. In a recent CNBC segment, Sean Russo of Ritholtz Wealth Management pointed to the company as a standout within the utility space. American Electric Power is carrying out one of the largest grid modernization programs in the US, with a focus on expanding transmission capacity and improving reliability. Management has said demand expectations continue to climb, driven by electrification and the rapid growth of data centers, underscoring the need for ongoing investment across its regulated assets.
The company’s five-year capital plan totals $72 billion and includes customer commitments for about 20 gigawatts of additional power by 2030. That demand is being fueled by data centers, manufacturing reshoring, and broader economic development. AEP also pays a dividend yield of roughly 3.26%.
American Electric Power Company, Inc. (NASDAQ:AEP) is a regulated electric utility holding company whose subsidiaries provide electricity generation, transmission, and distribution services.
4. The Clorox Company (NYSE:CLX)
Beta (5Y Monthly): 0.57
Dividend Yield as of January 25: 4.37%
Deutsche Bank lifted its price target on The Clorox Company (NYSE:CLX) on January 23 to $114 from $110. The firm maintained a Hold rating on the stock.
A day earlier, Clorox announced plans to acquire privately owned GOJO Industries for $2.25 billion in cash, a move aimed at strengthening its footprint in the health and hygiene space. GOJO, best known for its Purell hand sanitizer, saw demand surge during the pandemic before returning to more typical levels. Back in September, sources told Reuters the company was weighing several options, including a full sale or the sale of a minority stake.
The transaction values GOJO at $1.92 billion, with roughly $330 million tied to anticipated tax benefits, bringing the total deal value to $2.25 billion. Clorox expects to finance most of the purchase with debt and plans to close the deal before the end of its fiscal 2026. Management said the acquisition should deliver at least $50 million in annual cost synergies once fully integrated. GOJO will continue to be headquartered in Ohio and will be absorbed into Clorox’s existing operations.
Clorox is a global producer of consumer and professional products, operating across four main segments: Health and Wellness, Household, Lifestyle, and International.
3. The Southern Company (NYSE:SO)
Beta (5Y Monthly): 0.45
Dividend Yield as of January 25: 3.38%
On January 23, RBC Capital analyst Stephen D’Ambrisi raised his price target on The Southern Company (NYSE:SO) to $105 from $99 and kept a Sector Perform rating in place. The move came in a broader note previewing Q4 earnings for the utilities sector. The analyst pointed out that the capital spending picture for utilities has been in flux for much of the past year and a half. With investment plans shifting more quickly than usual, several companies that typically wait until Q4 to update their outlooks instead shared early or off-cycle details around capital plans. Those disclosures prompted RBC to revisit and update its models across the group.
Southern Company’s operations are concentrated in the southeastern US, though it also owns wind, solar, and natural gas assets elsewhere in the country. More than 90% of its earnings come from state-regulated electric and gas utilities, which keep the business relatively stable and easy to follow.
Through subsidiaries such as Alabama Power, Georgia Power, and Mississippi Power, the company supplies electricity and gas to customers across its service areas. Rates are set in coordination with regulators, aiming to protect consumers while allowing The Southern Company (NYSE:SO) to recover its costs and invest in maintaining and expanding its infrastructure.
2. Consolidated Edison, Inc. (NYSE:ED)
Beta (5Y Monthly): 0.38
Dividend Yield as of January 25: 3.27%
On January 23, BofA raised its price target on Consolidated Edison, Inc. (NYSE:ED) to $99 from $96. The firm reiterated an Underperform rating. BofA said the stock’s risk and reward still look tilted to the downside compared with peers, even after the New York Public Service Commission unanimously approved Con Edison’s three-year electric and gas rate plan covering 2026 through 2028. While the agreement adds some near-term clarity, the analyst said few new catalysts would push the stock meaningfully beyond its long-term 5% to 7% EPS growth outlook, especially as affordability policies continue to gain traction.
Looking ahead, Consolidated Edison plans to invest about $72 billion over the next decade to support its core utility operations, expand cleaner energy use, and strengthen climate resilience. That level of spending is expected to underpin annual earnings growth in the 5% to 7% range, with dividend growth likely running in the low-to-mid single digits through at least 2030. With the stock yielding around 3.3%, that combination points to the potential for roughly 7% or higher average annual total returns over time.
Con Edison’s business is built around steady, predictable revenue. Demand for its services remains resilient, and rates are set through a regulated process that allows the company to recover capital invested in maintaining and expanding its utility network.
Consolidated Edison, Inc. (NYSE:ED) is an energy delivery company that, through its subsidiaries, provides electricity, gas, and related energy services to customers across its service territories.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Beta (5Y Monthly): 0.29
Dividend Yield as of January 25: 4.61%
Janux Therapeutics said on January 22 that it has partnered with Bristol-Myers Squibb Company (NYSE:BMY) to develop a new cancer treatment, according to Reuters. The announcement was well received by the market, with Janux shares jumping more than 12% in premarket trading. The therapy is aimed at solid tumors, cancers that grow as masses in organs like the lung, breast, colon, or pancreas. Janux said the drug is designed to target a tumor marker that shows up across several cancer types, which could give it wider use if development is successful.
Chief executive David Campbell described the agreement as a major step forward for the company. He said the collaboration combines Janux’s proprietary technology with Bristol Myers’ experience in advancing drugs through clinical development and bringing them to market.
Janux will be responsible for completing preclinical testing before handing off the program to Bristol Myers for clinical trials. Bristol will then lead later-stage development and global commercialization. Janux will remain involved during the early clinical phase.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company focused on discovering, developing, and delivering medicines for patients facing serious diseases.
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