A retirement portfolio needs businesses that can keep rewarding shareholders long after the current market narrative fades. Dividends show how important those quieter sources of return can be: according to S&P Dow Jones Indices research cited in our coverage of Dividend Aristocrat stocks, dividends have accounted for roughly 31% of the S&P 500’s total return since 1926, with capital appreciation accounting for the remaining 69%. In the 1940s and 1970s, dividend income accounted for more than half of total returns. The lesson is not that every retirement investment must pay dividends, but rather that long-term shareholder gains can come from sources other than rising share prices.
Warren Buffett offers a useful test for that level of dedication. He has advised investors to buy only what they would “perfectly happy to hold if the market shut down for 10 years.” Rather than relying on the potential to sell tomorrow, investors should consider how much the underlying business may make over a decade. That business-owner perspective is the common thread running through Insider Monkey’s discussion of Warren Buffett’s best long-term stocks to buy.
For retirement investors, the distinction between a high starting dividend and an increasing dividend is crucial. The S&P 500 Dividend Aristocrats index requires components to have increased dividends for at least 25 years in a row. This is a record that spans numerous economic cycles, though it doesn’t guarantee future growth. Insider Monkey’s analysis of dividend growth stocks to buy and hold in 2026 looked at 68 such companies and evaluated their five-year average dividend growth rates.
Of course, financial strength is just as important as payout record. A dividend competes with debt repayments, capital spending, and other financial requirements. Liabilities are broader than debt, but the comparison shows the type of liquidity cushion worth considering alongside dividend yield.
Our Methodology
For this article, we looked through financial websites such as The Motley Fool, Seeking Alpha, Yahoo Finance, and 24/7 Wall St. for journalists and experts that say a stock is the one they are retiring on, building their retirement portfolio around, or plan on holding for life. We included a stock only if at least two different sources supported it, and for each stock, we explain who made the assertion and what their thesis is. We then rated the 10 stocks that satisfied this criteria in ascending order of hedge fund ownership. We also list each stock’s short interest and number of hedge fund holders as of Q2 2026, allowing investors to see whether hedge funds agree with these retirement picks.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Enbridge Inc. (NYSE:ENB)
Short Interest: 1.14%
Number of Hedge Fund Holders: 31
Enbridge Inc. is North America’s largest pipeline operator, and its stock is priced based on cash flow rather than earnings. The third-quarter results, released on November 6, were steady. Adjusted EBITDA increased by 4% to C$4.43 billion, while distributable cash flow (DCF) surged by C$123 million to C$2.69 billion. However, adjusted net income of C$1.07 billion fell short of the C$1.10 billion projection. Management reiterated its 2026 DCF guidance of C$5.70 to C$6.10 per share, expecting to finish at the midpoint.
The company’s income profile explains why Motley Fool contributor Matt DiLallo picked Enbridge among the companies he planned to buy in his retirement account in February 2025. His thesis focused on consistent dividend growth: a distribution of 60% to 70% of reliable cash flow, an investment-grade balance sheet, and retained cash for future expansion. He saw the combination as a way to increase retirement income without relying just on share price appreciation.
A few details soften the picture. Debt-to-EBITDA grew to 5.1x, exceeding the 4.5x to 5.0x target. Enbridge recently completed a $3 billion equity offering to fund $3.65 billion in acquisitions. CEO Greg Ebel will retire at the end of the year, with Michele Harradence taking over on January 1. The more serious issue is rising interest expenditure, which is a true cash cost and makes balance-sheet discipline critical to the dividend premise. Insider Monkey asked as to why the shares were trading roughly 18% lower than their high, despite the fact that revenue had nearly doubled prior to the report. Read about it here.
9. Brookfield Asset Management Ltd. (NYSE:BAM)
Short Interest: 5.49%
Number of Hedge Fund Holders: 32
Brookfield Asset Management Ltd. earns fees from a growing portfolio of infrastructure, energy, credit, and private equity capital. Fee-related earnings (FRE) rose 15% to $864 million, or $0.54 per share, in the third quarter, with trailing twelve-month FRE reaching $2.05 per share at a margin of 55%. Distributable earnings increased 15% to $763 million, while BAM earned $48 million in carried interest, the first significant amount since the spinout.
That said, growth is receding after a strong second quarter. FRE growth decreased from 20% to 15%, third-quarter fundraising fell to $25 billion from a record $30 billion a year earlier, and fee-bearing capital growth slowed to 13% at $682 billion, down from 19% in the previous quarter. Deployment also decreased to $18 billion from $23 billion. Year-to-date fundraising remains at $123 billion, while the Bloom Energy AI power framework has risen fivefold to $25 billion. Read about who takes the risk in the Bloom deal here.
In his March 2026 Seeking Alpha article, Leo Nelissen made the case for retirement. He picked Brookfield Asset Management for its asset-light fee income, its hard-to-replicate infrastructure exposure, and its capacity to double its business in five years. He contended that increasing fee-bearing capital may promote both income and capital appreciation.
8. Realty Income Corporation (NYSE:O)
Short Interest: 4.07%
Number of Hedge Fund Holders: 34
Realty Income Corporation owns over 15,000 net leased properties and pays dividends on a monthly basis. Third quarter AFFO increased 3.7% to $1.12 per share and the company updated its outlook for 2026 AFFO to $4.45 to $4.46. Realty Income invested $2.6 billion during the quarter at an initial cash yield of 6.8%, creating a spread of approximately 170 basis points over its cost of capital.
Matt DiLallo highlighted Realty Income as an anchor of his retirement portfolio in his October 2026 article. His case paired sustainable, rising dividends with historically low share price volatility, citing a beta of around 0.5. As he approaches retirement, he seeks assets that can help safeguard his accumulated wealth while also growing it, and he sees Realty Income as a great fit for that goal.
Growth is moderate, hence the yield accounts for the majority of the return. The AFFO outlook implies roughly 4% growth, the GAAP P/E of around 40x is not meaningful enough, and the shares are trading well below their 52-week high of $67.94. Moreover, the average analyst estimate of $62.7 implies a 6.2% gain. The €528 million KKR investment in a European property venture may provide a new source of capital and management fees, but it also transfers a portion of the rental economics to the partner. Whether this increases shareholder returns depends on how profitably Realty Income redeploys the capital. See whether a partner investment can boost returns here.
7. VICI Properties Inc. (NYSE:VICI)
Short Interest: 2.90%
Number of Hedge Fund Holders: 51
VICI Properties Inc. owns casino and experience properties under long-term triple-net leases. The company’s third-quarter AFFO increased 4.3% to $0.62 per share, with guidance raised to $2.47 to $2.48. The stock yields 7.3% on its $1.84 annual dividend, which was increased for the ninth straight year and is covered by approximately 75% of AFFO. The board also authorized a $2 billion buyback, a sign management sees the shares as cheap.
VICI is a stock that DiLallo has expressly linked to his retirement plans. In February 2025, he stated why he continued to buy it in his retirement account, claiming that its consistent rental income and ability to increase dividends may help him grow his retirement savings. The premise is not a bet on casino operator quarterly winnings, but rather an investment in the properties’ long-term rental obligations.
That said, GAAP results appear to be less favorable than cash flow. Net income per share declined to $0.31 from $0.71, owing to a non-cash credit loss allowance, missing the $0.72 average. Growth is moderate, at around 4%, and the portfolio is reliant on a limited number of casino operators, though the new Highfield tenant offers diversity. For retirement investors, the question is whether modest AFFO growth and dividend coverage effectively compensate for tenant concentration and financing risk, the trade-off behind Insider Monkey’s assessment of whether VICI’s dividend is a decent return for the risks.
6. Waste Management, Inc. (NYSE:WM)
Short Interest: 1.89%
Number of Hedge Fund Holders: 64
Waste Management, Inc. is North America’s largest waste hauler, and the premium it charges is based on pricing power and cash flow. Third-quarter revenue increased by 6.3% to $6.85 billion, adjusted operational EBITDA rose by 5.8% to $2.12 billion at a 31.0% margin, and free cash flow increased by 42% to $3.01 billion through the nine months. Guidance calls for $3.75 billion to $3.85 billion in free cash flow, roughly a 4% yield on a market capitalization of almost $94 billion.
DiLallo listed WM as a key holding in his October 2026 retirement-portfolio discussion. He cited 23 years of dividend increases, an 8.7% compound annual dividend growth rate over the previous decade, and a 12.4% decrease in outstanding shares since 2015. Its A-/A3 credit ratings and beta of around 0.56 confirmed his belief that WM could combine wealth preservation and expansion, while its network of landfills and other specialized facilities bolstered the core business case.
However, the company’s multiple leaves little margin for mistake. Adjusted EPS of $2.15 missed by $0.03, and shares declined around 3% following the release, with management citing lower volumes and increased fuel costs. Free cash flow also flattered by a drop in capital spending. The bigger concern is whether WM’s pricing power, landfill network, recycling automation, renewable natural gas, and healthcare-waste expansion can justify a premium valuation despite moderate underlying volume growth. Insider Monkey looked into the trade-off and concluded that WM’s hard-to-copy infrastructure and capacity to extract more value from existing waste could support a steady-compounding thesis.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
Short Interest: 0.98%
Number of Hedge Fund Holders: 135
Berkshire Hathaway Inc. is a rare mega-cap company valued at book value. The third-quarter results, released on November 7, came in soft. Operating earnings fell 5.8% to $12.7 billion, while net earnings fell 28% to $22.1 billion due to lower investment gains. A the same time, insurance underwriting earnings fell 43% to $1.35 billion as a result of Geico losses. Berkshire responded with a record buyback for 2026. It repurchased $9.6 billion in the quarter, more than doubling the second quarter’s $4.5 billion, bringing the total for the year to $14.4 billion.
Keith Speights placed Berkshire in his January 2026 “forever” portfolio of equities that he doesn’t plan to sell. His conviction is based on the diversification afforded by Berkshire’s operating subsidiaries and public-equity investments, as well as his belief that Greg Abel will continue Buffett’s business and investing philosophy.
The risk is in the earnings engine rather than the balance sheet. Berkshire’s trailing twelve-month operating earnings are down 3.2%, insurance investment income dropped 14% due to lower short-term rates, and the company was a net seller of stocks again. The cash only helps if Abel can find places to put it. Read about whether the capital allocation mechanism can continue to compound after Buffett here.
4. Apple Inc. (NASDAQ:AAPL)
Short Interest: 0.90%
Number of Hedge Fund Holders: 169
Apple Inc. is valued as a quality compounder, trading at 32.87x forward earnings. The company’s fiscal fourth-quarter revenue increased 12% to $114.5 billion, while iPhone revenue climbed 17% to $57.6 billion, and Services reached a new high of $31.6 billion, up 10%. Speights’ January 2026 “forever” portfolio featured Apple as its largest individual stock holding. He stated that he regretted selling shares in the past and didn’t plan to repeat the mistake. His theory focuses on Apple’s tightly integrated ecosystem of products and services, with future devices and technologies offering opportunities to further consumer interactions.
That said, valuation depends on margins holding. CEO John Ternus referred to memory pricing as “unprecedented,” and Apple guided gross margin to 45% to 46%, below the roughly 46.3% consensus. The rise in services was the slowest since 2022, and shares dropped by around 2% the day following earnings before rising again. Insider Monkey looked at Apple’s role in helping the mega-cap recovery. Read the analysis here.
3. Taiwan Semiconductor Manufacturing Company (NYSE:TSM)
Short Interest: 0.57%
Number of Hedge Fund Holders: 249
Taiwan Semiconductor Manufacturing Company Limited makes the advanced chips behind most of the AI buildout. Despite 2-nanometer dilution, which accounts for 8% of wafer revenue, the company’s operating margin for the third quarter stood at 58.7% while its gross margin came in at 66.4%. Management expects a 44% increase in revenue for 2026 with capital expenditures of $60 billion to $64 billion, while the fourth-quarter estimate calls for $52.3 billion to $54.3 billion. The stock is trading at about 16.4x forward earnings, a discount for geopolitical risk that appears modest in comparison to that growth.
Motley Fool writer Keithen Drury chose TSMC in January 2026 as the single stock he would buy and hold if forced to own only one. He contends that since TSMC produces advanced chips for competing clients and stands to gain as overall demand rises, investors don’t have to correctly predict which chip designer would take the lead in the AI race. He highlighted the company’s manufacturing scale and technological prowess while clearly noting reliance on continued AI spending and the possibility of dispute over Taiwan.
That risk is genuine, as Taiwan hosts the vast bulk of advanced-node capacity. Margins are also under pressure from the 2-nanometer ramp and overseas factories, while capital spending continues to climb. For a retirement investor, the question is whether TSMC’s manufacturing size and technological leadership are durable enough to outlast those fundamental risks over time. Bell Global Equities Fund believes they are, and Insider Monkey looked into why the fund continues to favor the stock.
2. Alphabet Inc. (NASDAQ:GOOGL)
Short Interest: 1.34%
Number of Hedge Fund Holders: 275
Alphabet Inc. has become cheaper while its business accelerated. The company’s third-quarter revenue climbed by 25% to $127.6 billion, while Google Cloud revenue more than doubled to $30.7 billion with a 36.2% operating margin, and Cloud backlog reached $561 billion. Search grew 12%, with the fastest query growth in five years, and the Gemini app reached one billion users. Analyst targets for GOOGL sit around 41% over the stock’s current price.
Lyle Daly made the retirement connection directly in his May 2026 piece. He named Alphabet the top stock in his retirement portfolio, claiming that it provided the best long-term value in technology. His conviction stemmed from its portfolio of proven businesses, including Search and Google Cloud, rather than pure AI enthusiasm. At the time, he cited first-quarter Search growth of 19% and Cloud growth of 63% as proof that the operating businesses were doing well.
The market is punishing spending. Capex was $51.4 billion in the quarter, while free cash flow came in negative $9.1 billion. Capex for 2026 is expected to be between $195 billion and $205 billion, with an increase in 2027. The reported EPS of $2.12 missed the $3.01 consensus, while Other Bets, which includes Waymo, lost $2 billion. Long-term shareholders face the issue of distinguishing between investments that can boost future earnings and those that may take years to yield a satisfactory return. Waymo catches this trade-off: it offers another potential growth business, but it needs funding before its economics can be validated. Insider Monkey asked whether the valuation reflects Waymo’s potential. Read the analysis here.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Short Interest: 0.95%
Number of Hedge Fund Holders: 369
Amazon.com, Inc.’s valuation is based on operating profit and AWS rather than earnings per share. The company’s third-quarter revenue rose 12% to $201.9 billion, while operating income surged 61% to a record $28.1 billion, representing a 13.9% margin. AWS revenue increased 39.3% to $46.0 billion, the fastest growth in nearly five years, with a 38.7% operating margin and a run rate of $184 billion. CEO Andy Jassy predicted AWS growth of more than 40% in both 2027 and 2028.
Speights selected Amazon as the first company for his “forever” portfolio in January 2026. He ascribed its long-term attraction to Jeff Bezos’ “Day 1” culture, which encourages the company to continue chasing new opportunities rather than defending an outdated business model. AWS was his prime example of that culture serving as a major profit engine, while satellite internet and consumer robotics indicated potential future opportunities. Separately, Leo Nelissen identified Amazon as one of three stocks around which he would create an entire portfolio, citing AWS demand and a projected path to $150 billion in annual free cash flow by 2030.
The sell-off was based on cash. Amazon expects $220 billion in capex in 2026 and “meaningfully more” in 2027, with trailing free cash flow turning negative and EPS of $1.89 missing forecasts. The fourth-quarter projection of $240 billion to $247 billion in sales and up to $33.5 billion in operating income fell short of the consensus midpoint. For long-term shareholders, the question is whether increasing operating profits will eventually convert into cash left over after investment. That conflict extends beyond AI infrastructure to projects like Zoox, which drove Insider Monkey’s analysis of whether Amazon’s cloud and retail cash engines can continue to fund its robotaxi ambitions.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
