In this article, we will take a look at the Top 15 Stock Picks for a retirement portfolio.
The Federal Reserve is decreasing its benchmark rate after holding them stable for most of the year despite President Donald Trump’s demands to do so. At its September 17 meeting, the Federal Open Market Committee voted to cut the federal funds rate by a quarter percentage point to a target of between 4% to 4.25%.
Some retirees may be satisfied with the rate reduction, but not all senior citizens will benefit from it. According to Sebastián Leguizamón, director of Western Kentucky University’s Center of Applied Economics:
“The effect is mixed and very portfolio-specific. So rather than cheering or booing, it’s better to think in terms of trade-offs that depend on debt levels and how a retiree’s assets are allocated.”
In an unpredictable climate, individuals preparing for retirement usually view dividend-paying stocks as reliable options, as they can reduce the danger of depleting their funds by depending on monthly dividend payments rather than capital gains from stock sales.
Photo by Max Harlynking on Unsplash
Our Methodology
We employed a screener to select dividend stocks for this list that are suitable for a 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 Q2 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. Evergy, Inc. (NASDAQ:EVRG)
Dividend Yield: 3.51%
Number of Hedge Fund Holders: 34
Evergy Inc. (NASDAQ:EVRG) ranks among the top picks for a retirement portfolio. UBS maintained its Buy rating and $81 price target for Evergy, Inc. (NASDAQ:EVRG) on September 19. Analyst William Appicelli believes that at its fourth quarter update, Evergy could boost its growth rate from the current 4-6% to 6-8%.
UBS attributed its higher capital expenditure projections and higher earnings per share estimates to the anticipated generation capacity to handle about 2GW of additional load from data centers.
According to UBS, Evergy, Inc. (NASDAQ:EVRG) is wrapping up deals for two major data center projects, with the possibility of further projects that might result in a capital expenditure of about $5 billion.
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.
14. Edison International (NYSE:EIX)
Dividend Yield: 5.99%
Number of Hedge Fund Holders: 42
Edison International (NYSE:EIX) ranks among the top picks for a retirement portfolio. UBS maintained its Buy rating and $66 price target for Edison International (NYSE:EIX) on September 19, following the conclusion of the electric company’s rate case. According to UBS, Edison International obtained 91% of its desired rate base and 62% of sought revenue increases.
The firm anticipates that in the upcoming weeks or on the third quarter earnings call, Edison International (NYSE:EIX) would reiterate its midpoint 6% EPS growth rate projection.
Additionally, UBS states that Edison International (NYSE:EIX) is currently trading at 9 times its projected $6.47 2027 EPS. The firm says that the rate case verdict, risk reduction steps under wildfire legislation, and a Woolsey paid claims recovery settlement will all contribute to the EIX stock.
Based in California, Edison International (NYSE:EIX) is a public utility company that specializes at generating power from a variety of sources, including renewable energy, nuclear energy, and natural gas.
13. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield: 3.20%
Number of Hedge Fund Holders: 49
Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the top picks for a retirement portfolio. On September 26, Evercore ISI maintained its Outperform rating on Mondelez International, Inc. (NASDAQ:MDLZ) but lowered its price target from $73 to $72. One of the main reasons for the snack food giant’s slower sales growth, according to the firm, is increasing price elasticity across Europe.
As a result, Evercore ISI has reduced its projection for third-quarter consolidated organic sales to 3.5%, which is less than the 4.5% consensus expectation. In addition, the firm lowered its expectation for organic sales growth in 2025 from 5% to 4.4%. Analysts cautioned that short-term sales risk might push Mondelez International, Inc. (NASDAQ:MDLZ) stock down 5–10%, putting it at the lower end of its 10-year price-to-earnings range of 18x.
Even with these immediate worries, Evercore ISI still considers Mondelez International, Inc. (NASDAQ:MDLZ) to be “a solid long-term growth story at a reasonable price.”
Mondelez International, Inc. (NASDAQ:MDLZ), often known as Mondelēz International, is a Chicago-based international firm that specializes in confectionery, cuisine, drinks, and snacks.
12. Altria Group, Inc. (NYSE:MO)
Dividend Yield: 6.42%
Number of Hedge Fund Holders: 54
Altria Group, Inc. (NYSE:MO) ranks among the top picks for a retirement portfolio. Altria Group, Inc. (NYSE:MO) and KT&G Corporation, a South Korean tobacco company, signed a non-binding memorandum of understanding on September 23 to work together on novel oral nicotine products, non-nicotine products, and conventional tobacco operating efficiency.
The agreement includes plans to grow nicotine pouch products across the globe, including the possible extension of Altria’s on! and on! PLUS brands into select nations. In the non-nicotine segment, an Altria Group, Inc. (NYSE:MO) subsidiary and Korea Ginseng Corporation, KT&G’s subsidiary, will look for prospects within the US energy and wellness markets.
The collaboration also includes traditional tobacco products, with both companies looking for methods to improve their operations and increase competitiveness in their own markets. This is consistent with Altria’s adjacent growth targets stated in March 2023 for international smoke-free goods and non-nicotine categories.
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
11. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield: 3.37%
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) ranks among the top picks for a retirement portfolio. On September 26, Amgen Inc. (NASDAQ:AMGN) unveiled a $650 million upgrade to its manufacturing facility in Juncos, Puerto Rico, which is estimated to create around 750 additional jobs. The investment will help to improve medicine production capacities and incorporate innovative technology across the operations process.
The announcement builds on Amgen’s recent investments, which include a $1 billion expansion in North Carolina, a $900 million factory expansion in Ohio, and a $600 million science and innovation center in California.
In support of its local manufacturing and research investments, the company pointed to the Tax Cuts and Jobs Act of 2017 and the One Big Beautiful Bill Act of 2025.
Amgen Inc. (NASDAQ:AMGN) is a global biopharmaceutical company that focuses on human treatments for cardiovascular, hematology, inflammation, cancer, and bone health.
10. Starbucks Corporation (NASDAQ:SBUX)
Dividend Yield: 2.88%
Number of Hedge Fund Holders: 66
Starbucks Corporation (NASDAQ:SBUX) ranks among the top picks for a retirement portfolio. On September 26, Starbucks Corporation (NASDAQ:SBUX) retained its Buy rating at Stifel, with the firm reiterating its $105 price target as the coffee giant launched a major restructuring endeavor.
Starbucks Corporation (NASDAQ:SBUX) announced a $1 billion restructuring plan that involves shop closures across North America, resulting in a projected 1% decrease in net unit growth for FY2025. As part of its attempts to improve operations and redirect resources toward its key goals, the company will reduce around 900 additional corporate positions, adding to the 1,100 positions it terminated in February.
According to Stifel, while the $600 million cash impact from restructuring fees ought to have little impact on lease-adjusted leverage, U.S. comparable sales will keep facing industry-wide pressures in the near term, despite optimism about Starbucks’ innovation pipeline, improved labor execution, and upcoming smart queue technology.
Starbucks Corporation (NASDAQ:SBUX) is an American multinational chain of coffee shops and roastery reserves with operations in more than 80 countries. It is well-known for its roasted whole beans and ground coffees, ready-to-drink beverages, and range of food products.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield: 5.50%
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the top picks for a retirement portfolio. Bristol-Myers Squibb Company (NYSE:BMY) reported on September 23 that its Phase 3 EXCALIBER-RRMM trial using iberdomide combined with daratumumab and dexamethasone showed strong improvement in minimal residual disease negativity rates among individuals with relapsed or refractory multiple myeloma.
Iberdomide belongs to a new class of drugs known as cereblon E3 ligase modulators (CELMoDs), which capitalize on Bristol Myers Squibb’s expertise in controlled degradation of proteins.
According to the company, the trial will proceed according to plan to assess the other dual-primary objective of progression-free survival, as well as crucial secondary endpoints like survival rate and safety.
A multinational biopharmaceutical corporation, Bristol-Myers Squibb Company (NYSE:BMY) is engaged in product discovery, research, licensing, manufacturing, marketing, and distribution.
8. Abbott Laboratories (NYSE:ABT)
Dividend Yield: 1.76%
Number of Hedge Fund Holders: 69
Abbott Laboratories (NYSE:ABT) ranks among the top picks for a retirement portfolio. UBS maintained Abbott Laboratories (NYSE:ABT) as a top choice in the Medical Supplies and Devices industry on September 23, reaffirming its Buy rating on the company’ shares with a price target of $154. The firm expressed strong confidence in the company’s future trajectory, with particular focus on Abbott’s MedTech division, which it believes can maintain growth rates of 10% or more.
UBS expects Abbott Laboratories (NYSE:ABT) to outperform its competitors in terms of margin expansion and earnings per share growth. The firm pointed out that Abbott’s stock currently trades at roughly 23 times the consensus earnings per share for 2026. Compared to the large-cap MedTech category, which has a higher rate of growth and trades at an average of roughly 28 times projected earnings, this valuation offers a discount.
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.
7. RTX Corporation (NYSE:RTX)
Dividend Yield: 1.63%
Number of Hedge Fund Holders: 71
RTX Corporation (NYSE:RTX) ranks among the top picks for a retirement portfolio. The US Department of War reported that on September 26, RTX Corporation (NYSE:RTX) received several defense contracts worth about $352.6 million for a range of missile systems and associated services.
The most substantial award is a $160.9 million contract modification for the AIM-9X missile program that was previously approved. This upgrade involves producing a second source solid rocket motor assembly and WDU-17/B warhead for AIM-9X production.
Additionally, RTX Corporation (NYSE:RTX) was awarded a modification for the Maritime Strike Tomahawk program worth $80.2 million. This contract supports the continual advancement of seeker processor hardware and integration assets, which includes the purchase of 8 Ultra 1.1+ units and updated processor stacks.
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.
6. PG&E Corporation (NYSE:PCG)
Dividend Yield: 0.66%
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) ranks among the top picks for a retirement portfolio. With a stable outlook, Fitch Ratings raised PG&E Corporation (NYSE:PCG) from BB+ to investment grade “BBB-” on September 26. The improvement is in line with the company’s efforts to lower the risk of wildfires and the recent passage of California Senate Bill 254, which establishes a $18 billion continuing account to cover participating utilities’ catastrophic wildfire liabilities.
In order to provide more liquidity to handle possible claims from the Eaton Fire in Southern California earlier this year, the new fund will be added to the $21 billion Assembly Bill 1054 fund that was already in place in 2019.
PG&E’s financial metrics have also strengthened, with funds from operations leverage rising to 4.6x in 2024 from 6.9x a year before. Fitch expects this statistic to rise at about 4.8x and 4.6x in 2025 and 2026, respectively.
PG&E Corporation (NYSE:PCG), through its subsidiary Pacific Gas & Electric Company, serves over 16 million persons in Northern and Central California.
5. Pfizer Inc. (NYSE:PFE)
Dividend Yield: 6.75%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) ranks among the top picks for a retirement portfolio. BMO Capital reaffirmed its Outperform rating and $30 price target for Pfizer Inc. (NYSE:PFE) on September 23 in response to the company’s announcement of a new agreement in the obesity treatment market.
Following disappointments with its lotiglipron and danuglipron programs, the pharmaceutical giant has now made what BMO Capital refers to as a “thoughtful re-entry into the obesity metabolic space” with its partnership with Metsera.
With contingent value rights (CVRs) built into the deal, BMO Capital considers it as “one of Pfizer’s better BD opportunities,” allowing the company to lower risk and regain its competitive position in the market for obesity treatments.
Pfizer Inc. (NYSE:PFE) is a leading global pharmaceutical company that develops, produces, and sells biopharmaceutical medicines worldwide.
4. AbbVie Inc. (NYSE:ABBV)
Dividend Yield: 2.83%
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) ranks among the top picks for a retirement portfolio. The FDA received a New Drug Application from AbbVie Inc. (NYSE:ABBV) on September 26 for tavapadon, an experimental oral medication used once daily to treat Parkinson’s disease.
The application is based on data from the Phase 3 TEMPO clinical trial, which assessed tavapadon across the Parkinson’s disease spectrum. The program comprised of two trials in early Parkinson’s disease (TEMPO-1 and TEMPO-2) along with a trial (TEMPO-3) that tested tavapadon as an additional therapy to levodopa in patients with motor irregularities.
At week 26, TEMPO-1 and TEMPO-2 showed a significant increase in the Movement Disorder Society’s Unified Parkinson’s Disease Rating Scale Parts II and III combined score compared to baseline.
AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company that specializes in developing, manufacturing, and marketing therapies for complicated and chronic illnesses. Its next-generation immunology medications, Rinvoq and Skyrizi, continue to drive growth.
3. Costco Wholesale Corporation (NASDAQ:COST)
Dividend Yield: 0.56%
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDAQ:COST) ranks among the top picks for a retirement portfolio. With a price target of $1,205, UBS maintained its Buy rating on Costco Wholesale Corporation (NASDAQ:COST) on September 26. The firm stated that market anxieties that preceded Costco’s fourth-quarter earnings announcement will likely migrate to new issues that arose after the results were released.
UBS added that it is confident Costco Wholesale Corporation (NASDAQ:COST) will continue to have similar sales momentum given a number of factors, including its extended hours of operation and new products aimed at the holiday season.
The firm cited the growth of its Kirkland Signature brands and prospects in digital commerce as additional aspects of Costco’s business strategy. Moreover, UBS highlighted Costco’s ability to maintain its core-on-core margin progress and its adeptness at managing tariffs as elements that ought to keep the stock’s valuation intact.
A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.
2. Johnson & Johnson (NYSE:JNJ)
Dividend Yield: 2.80%
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) ranks among the top picks for a retirement portfolio. On September 26, Johnson & Johnson (NYSE:JNJ) reported that the US FDA had approved a subcutaneous induction protocol of TREMFYA (guselkumab) for the treatment of individuals with moderate to severe active ulcerative colitis. With this approval, TREMFYA becomes the first IL-23 inhibitor to provide both subcutaneous and intravenous induction alternatives for UC and Crohn’s disease medication.
The Phase 3 ASTRO trial’s findings served as the foundation for the approval. In comparison to patients receiving a placebo, a considerably higher percentage of patients receiving TREMFYA 400 mg subcutaneously every four weeks experienced clinical remission and endoscopic improvement at Week 12.
Johnson & Johnson (NYSE:JNJ) was previously approved by the FDA in September 2024 for TREMFYA with intravenous induction for ulcerative colitis, and in March 2025 for both subcutaneous and intravenous induction methods to treat Crohn’s disease.
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.
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Dividend Yield: 0.35%
Number of Hedge Fund Holders: 117
Thermo Fisher Scientific Inc. (NYSE:TMO) ranks among the top picks for a retirement portfolio. On September 22, following talks with management, Bernstein reaffirmed its Outperform rating and $570 price target for Thermo Fisher Scientific Inc. (NYSE:TMO). Rafael Tejada, Head of Investor Relations at Thermo Fisher, took part in a non-deal roadshow in Toronto and Montreal with the firm’s analyst team.
According to Bernstein, although Thermo Fisher’s messaging was consistent with earlier discussions, the general atmosphere of these talks was “quite positive,” which made analysts “incrementally more positive” regarding the stock.
That said, the firm’s primary takeaway focused on investor attitude toward Thermo Fisher’s future performance, noting that, while most investors seem to be satisfied with the company’s 2025 forecast, some continue to question its projections for 2026 and 2027.
One of the top biotech and life sciences companies in the United States, Thermo Fisher Scientific Inc. (NYSE:TMO) offers a broad range of products and services. The company has grown significantly since its founding, mostly as a result of a number of well-timed acquisitions, such as those of Affymetrix and Life Technologies.
While we acknowledge the potential of TMO 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 TMO and that has 100x upside potential, check out our report about this cheapest AI stock.
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