While getting to retirement age can be a blessing and a curse, the reality of counting on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born between 1943 and 1954. The full retirement age increases gradually if you were born between 1955 and 1960 until it reaches 67; for anyone born in 1960 or later, full retirement benefits are payable at age 67.
The bad news for millennials is that the age requirements will continue to increase as funds for social security are drying up, and their full retirement age will likely be 70 or perhaps even older.
What makes sense is having a 401-K or an IRA during your working career and contributing the maximum every year. When you reach retirement age, you take distributions to supplement your social security income.
We screened our 24/7 Wall St. research universe for safe growth stocks that pay a sizable and dependable dividend. Seven companies came up, and all make sense for retirement accounts. All are rated Buy at major Wall Street firms.
AbbVie
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This stock is one of the top pharmaceutical stock picks across Wall Street and pays a solid 4.51% dividend. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories.
The company develops and markets drugs in areas such as
- Immunology
- Virology
- Renal disease
- Dyslipidemia
- neuroscience.
One of the biggest concerns with AbbVie is what might eventually happen with the anti-inflammatory therapy Humira, which has some of the most significant sales for a drug ever recorded. The company was concerned, so in June of 2019, they announced they had agreed to pay $63 billion for rival drugmaker Allergan Plc, the latest merger in an industry where some of the biggest companies have been willing to pay a high price to resolve questions about their future growth. The purchase officially closed in May of 2020.
AbbVie may be nearing the limits of how far it can boost Humira’s price as cheaper competitors come to market. This is a problem Allergan is already grappling with as more alternatives to Botox emerge.
Chevron
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This integrated giant is a safer way for investors looking to get positioned in the energy sector and pays a rich 4.15% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
- Upstream
- Downstream.
The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant.
The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing renewable fuels; transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
This is one of the three energy holdings in Berkshire Hathaway, which holds 123 million shares of the integrated giant.
Colgate-Palmolive
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This top company is also a safe play for investors and retirees and pays a 2.54% dividend. Colgate-Palmolive Co. (NYSE: CL), together with its subsidiaries, manufactures and sells consumer products worldwide.
The company operates through three segments:
- Oral
- Personal, home care
- Pet nutrition
The Oral, Personal, and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items.
This segment markets and sells its products under various brands, which include:
- Colgate
- Darlie
- Elmex
- Hello
- Meridol
- Sorriso
- Tom’s of Maine
- Irish Spring
- Palmolive
- Protex
- Sanex
- Softsoap
- Lady Speed Stick
- Speed Stick
- EltaMD
- Filorga
- PCA SKIN
- Ajax
- Axion
- Fabuloso
- Murphy
- Suavitel
- Soupline, and
- Cuddly
The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under Hill’s Science Diet brand and a range of therapeutic products to manage disease conditions in dogs and cats under Hill’s Prescription Diet brand.
Emerson Electric
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This stock has rallied nicely off the lows posted in the spring but still offers a solid entry point for investors and pays a 2.38% dividend. Emerson Electric (NYSE: EMR) is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets.
The company’s Automation Solutions business helps process, hybrid, and discrete manufacturers maximize production and protect personnel and the environment while optimizing energy and operating costs.
The Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency, and create a sustainable infrastructure.
JPMorgan Chase
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This stock trades at a very reasonable 9.8 times estimated 2023 earnings and offers shareholders a 2.80% dividend. JPMorgan Chase & Co. (NYSE: JPM) is one of the leading global financial services firms and one of the largest banking institutions in the US, with about $2.6 trillion in assets. Today’s company was formed by merging retail bank Chase Manhattan and investment bank JP Morgan.
The firm has many operating divisions, including
- Investment and corporate banking
- Asset management
- Retail financial services
- Commercial banking
- Credit cards
- Financial transaction services
Top analysts across Wall Street are optimistic about the money center and investment giant, which are some of the many reasons they point to. Number one is that the industry titan faces a continued broad recovery in nearly every aspect of their business.
1) Leading M&A advisory and capital markets product set and market share
2) Massive footprint of corporate and commercial banking customers
3) Sizable wholesale payments businesses. JPM has proven to have the money to continually invest in people, products, and platforms to further its market share base, extending its competitive advantage.
Kimberly-Clark
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This consumer staples leader is a safe bet for nervous investors and pays a dependable 3.88% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.
The company operates through three segments:
- Personal Care
- Consumer Tissue
- K-C Professional
The Personal Care segment offers disposable diapers, swim pants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under these brand names:
- Huggies
- Pull-Ups
- Little Swimmers
- GoodNites
- DryNites,
- Sweety
- Kotex
- U by Kotex
- Intimus
- Depend
- Plenitud
- Softex
- Poise
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under these brands:
- Kleenex
- Scott
- Cottonelle
- Viva
- Andrex
- Scottex
- Neve
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under these brands:
- Kleenex
- Scott
- WypAll
- Kimtech
- KleenGuard
Lockheed Martin
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This company is one of the top aerospace and defense stocks to buy, has backed up nicely from the highs, and pays a dependable 2.83% dividend. Lockheed Martin Corporation (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates, and sustains advanced technology systems, products, and services.
The company operates in five principal business segments:
- Aeronautics
- Missiles and fire control
- Mission systems and training
- Space systems, information systems
- Global solutions (IS&GS)
Lockheed Martin also provides a wide range of defense electronics products and IT services.
As the Pentagon’s prime contractor, Lockheed Martin offers a diverse global aerospace, defense, security, and advanced technologies portfolio.
The company’s leveraged presence in the Army, Air Force, Navy, and IT programs guarantees a steady inflow of follow-on orders from the U.S. government and many foreign allies of the nation.
Target
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After suffering a horrible public relations gaffe with the merchandising of LGBTQ products earlier this year, the retail giant appears to be back and sports a 3.37% dividend. Target Corporation (NYSE: TGT) is a general merchandise retailer in the United States.
The company offers apparel for women, men, boys, girls, toddlers, infants, and newborns; jewelry, accessories, shoes, beauty and personal care; baby gear; cleaning and paper products; and pet supplies.
Target also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards, and party supplies, and other seasonal merchandise.
The company also sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. Further, it sells its products through stores and digital channels, including Target.com.
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