If retirement is around the corner, having stable passive income sources can go a long way toward stress-free golden years. Dividend stocks are one such avenue for accomplishing this goal. Read on to learn how these 6 stocks can help generate regular income to retire with.
Best Dividend Stocks to Help Generate Regular Income
General Mills (NYSE: GIS)
General Mills opened its doors over 150 years ago to provide flour to the local area. The company has always focused on innovation, creating several popular brands other the years while acquiring others. Today General Mills has over 100 brands, including Pillsbury, Betty Crocker, and its namesake cereals.
Except for a slow patch last decade, General Mills' share price has seen steady growth. Above all, General Mills has a history of paying dividend yields quarterly, with a current rate of 2.94%. It has faithfully paid out dividends for the last 33 years, even through economic downturns.
Consolidated Edison, Inc. (NYSE: ED)
Consolidated Edison, also known as conEdison, has roots dating back to 1823. The company controls a large-scale delivery system, using steam, gas, and electricity to provide energy to over 10 million people in the greater New York City area.
Its service reaches homeowners, small businesses, and extensive industrial facilities alike. conEdison hopes to continue moving people away from oil-based operations, citing a commitment to have all of New York City using clean energy by 2024.
The energy provider has a long history of revenue growth, and share prices increased. It has paid out a dividend yield for the last 23 years, presently at the 3.16% mark.
Medical Properties Trust Inc. (NYSE: MPW)
Medical Properties Trust encompasses 440 hospitals in 10 countries on four different continents. MPW manages these properties, providing the necessary resources to save lives. The company is the second-largest owner of hospital beds globally, listing an asset value of over $22.2 billion.
Since hospitals aren't going anywhere soon, Medical Properties Trust is a less risky option to invest in. As a real estate investment trust (REIT), MPW must share at least 90% of its taxable income with shareholders as dividends. It's been paying them out faithfully for 15 years, with the current yield at 6.24%.
Realty Income (NYSE: O)
Realty Income has given itself the title “The Monthly Dividend Company,” with 622 consecutive dividends paid and 98 straight quarters of dividend growth. Its current dividend yield is a respectable 4.25% to boot.
Another REIT, Realty Income, rents out freestanding commercial properties in all 50 states and some of Europe. The company has over 11,000 locations under the agreement, covering 70 different industries. Investors won't complain about the 700% share price growth since going public.
American Electric Power Co Inc. (NASDAQ: AEP)
American Electric Power is one of the largest energy providers in the United States. The company appeared on the scene back in 1906, continuously innovating its practices to keep serving the community.
Today, AEP reaches some five million homes throughout the Midwest and as far south as Texas through various regulated companies. Seeking to build a sustainable energy future, American Electric Power is working hard to decarbonize and achieve net-zero emissions by 2050.
AEP's success translates to dividend yield payments for shareholders, which it has been paying since 1990. Dividend yields currently stand at 3.04% with constantly increasing payouts.
AT&T Inc. (NYSE: T)
AT&T is one of the leading mobile providers in the United States and one of the largest corporations in the world. The company's origins date to 1885, shortly after Alexander Graham Bell invented the telephone.
AT&T offers wireless, internet, and TV services to the masses. Due to its popularity, AT&T is firmly rooted in the telecommunications scene and shows no signs of departure any time soon.
Investors will be happy to note that AT&T does have long-term growth potential. The best source of passive income comes from its dividend yield, which it has paid for the last 33 years. Current rates sit at the 5.20% mark.
Should I Invest in Dividend Stocks For Retirement?
Companies do everything possible to avoid eliminating dividend payouts, lest they look bad to investors. As a result, dividend-paying stocks become a reliable income stream investors can count on even when the markets are choppy. Typically, companies that pay dividends tend to increase rates over time, allowing investors to generate income without doing anything.
While dividend stocks are a great source of passive income, it's unlikely that they alone will provide enough income for retirement. It's best to include passive investments with other forms of income in a diversified portfolio.
These 6 Stocks Can Help Generate Regular Income: Final Words
Dividend stocks have proven themselves dependable forms of passive income over the years. Whether monthly or quarterly dividends, these passive income opportunities don't require any maintenance and typically only grow over time.
However, nothing is guaranteed, and dividend-paying stocks work best as part of a more extensive retirement account. As with any investment, be sure to do your research before making any financial decisions.
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Noah Zelvis is an American copywriter on a mission to help clarify the nuances of the financial world. He is on staff with The Stock Dork (https://www.thestockdork.com/), where you'll frequently see him making stock picks and evaluating services. When he's not working, you'll likely find him running or traveling.