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5 Dividend Kings Provide Perfect Passive Income Streams for Retirement
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24/7 Wall St. Insights
While getting to retirement age can be a blessing and a curse, 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 from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67; for anyone born in 1960 or later, full retirement benefits are payable at age 67.
With the youngest baby boomers (Americans born between 1946 and 1964) approaching retirement age, it’s becoming increasingly important to focus on magnificent dividend stocks that will supply significant passive income either in or out of designated retirement accounts like IRAs.
Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. This makes it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The Dividend Kings are perfect for those seeking to maximize their retirement passive income needs.
The Dividend Kings are the 53 companies that have raised their dividends for 50 years, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue. Five companies provide perfect passive income streams, and all are rated Buy at top Wall Street firms.
This tobacco company offers value investors a great entry point now and a rich 7.56% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
With a strong 5.46% dividend and a highly safe sector, this company is a steal at current trading levels. Canadian Utilities Ltd. (OTC: CDUAF) engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally.
It operates through three segments:
The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:
This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta in Canada.
The ATCO EnPower segment provides:
The Corporate & Other segment retails electricity and natural gas and provides whole-home solutions.
Spun off from Johnson & Johnson Inc. (NYSE: JNJ) last year, this potential total return home run pays a solid 3.80% dividend. Kenvue Inc. (NYSE: KVUE) is a global consumer health company.
The company operates through three segments:
The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:
The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brands:
The Essential Health segment offers oral and baby, women’s health, and wound care products under these brands:
This top consumer staples stock posted mixed earnings for the quarter but will still supply all the goods for upcoming NFL football season tailgates and parties and pays a solid 3.08% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.
Its Frito-Lay North America segment offers
The company’s Quaker Foods North America segment provides:
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
With a diverse product base and a familiar and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical companies and pays a 3.06% dividend. It is one of the top market-cap stocks in the healthcare sector and raised the dividend for shareholders last year for the 61st consecutive year.
The company remains one of Wall Street’s most diversified health care names, with everything from medical devices to over-the-counter health items and prescription drugs.
The health care giant also has one of the most exciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding for conservative accounts with a long-term investment.
The company generates a little over half of its sales in international markets, which are expected to see higher spending on health care over the next ten years and beyond.
Five Dow Jones Industrials Blue Chip High-Yield Dividend Giants Are Still On Sale
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