While many Baby Boomers have enjoyed a long bull market over the past 35 years, there is a point when income becomes more critical than stock appreciation. The reason is simple: those who leave their careers to enjoy a well-deserved retirement lose the benefits of a regular salary and their jobs, such as 401(k) matching and company-paid healthcare. In addition, many Baby Boomers use their retirement years to travel and enjoy the rewards they have worked hard to achieve throughout their lives. Choosing investments wisely is imperative, and at 24/7 Wall St., we continually seek the best ideas for Baby Boomers and retirees.
At 24/7 Wall St., we have closely followed dividend-paying stocks for over 15 years. With a growing audience of savvy Baby Boomers seeking safe income ideas that deliver more than the 10-year Treasury bond’s 4.1% bi-annual dividend, we have screened hundreds of stocks, looking for recurring dividend payouts and a degree of safety that allows for a good night’s sleep. While these stocks are not guaranteed like Treasury bonds or FDIC-insured high-yield money market accounts, Boomers with a slightly higher risk tolerance can make a significant difference in delivering dependable passive income streams. When combined with Social Security or pension payments, these streams can have a substantial impact.
Five top companies that are well known, have long track records of reliable dividend payments, and solid growth potential are the kind of companies you can add to your portfolio and forget about. All pay dividends higher than the 10-year Treasury note, and all have solid upside potential and somewhat limited downside. All are rated Buy at the top Wall Street firms that we cover.
Why do we cover dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Bristol Myers Squibb
Bristol Myers Squibb Co. (NYSE: BMY) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This top company remains a solid long-term pharmaceutical stock, offering an attractive entry point with a reliable 4.16% dividend. It is committed to discovering, developing, and delivering transformative medicines for patients with serious diseases across oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas.
Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.
Small-molecule drugs are typically administered orally in tablet or capsule form, although other drug-delivery mechanisms are also used. Biologics are usually administered by injection or intravenous infusion.
CAR-T cell therapies are administered by intravenous infusion.
Bristol Myers Squibb’s growth portfolio includes:
- Opdivo
- Opdivo Qvantig
- Yervoy
- Reblozyl
- Opdualag
Its legacy portfolio includes:
- Eliquis
- Revlimid
- Pomalyst/Imnovid
- Sprycel
- Abraxane
Guggenheim has a Buy rating with a $72 target price.
Comcast
This American multinational telecommunications and media conglomerate pays a reliable 4.15% dividend and remains a Wall Street favorite. Comcast Corp. (NYSE: CMCSA) is a global media and technology company operating through five segments.
The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.
The Business Services Connectivity segment provides connectivity services for small-business locations, including broadband, wireline voice, and wireless. It also offers connectivity services for medium-sized customers, large enterprises, and small businesses in the United Kingdom.
The Media segment operates NBCUniversal’s television and streaming business, including:
- National and regional cable networks
- The NBC and Telemundo broadcast networks
- Owned local broadcast television stations
- Peacock, a direct-to-consumer streaming service
It also operates international television networks, including the Sky Sports networks, as well as other digital properties.
The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.
The Theme Parks segment operates Universal theme parks in:
- Orlando, Florida
- Hollywood, California
- Osaka, Japan
- Beijing, China
TD Cowen has a Buy rating with a $39 target price.
Ford
This American automotive giant was founded in 1903 by Henry Ford and 11 associate investors. Ford Motor Co. (NYSE: F) pays shareholders a rich 4.33% dividend. This legacy carmaker develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.
It operates through five segments:
- Ford Blue
- Ford Model e
- Ford Pro
- Ford Next
- Ford Credit
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles, and it directly finances leases for new cars to retail and commercial customers, including leasing companies, government entities, daily rental companies, and fleet customers.
Furthermore, it offers wholesale loans to dealers to finance vehicle inventory purchases, as well as loans to fund working capital, enhance dealership facilities, purchase dealership real estate, and support other dealer vehicle programs.
J.P. Morgan has an Overweight rating with a $15 price target.
General Mills
This is one of the best values in the blue-chip group, with products that are always in favor and a hefty 4.98% dividend. General Mills Inc. (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods. Its segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment reflects business with a variety of:
- Grocery stores
- Mass merchandisers
- Membership stores
- Natural food chains
- Drug, dollar, and discount chains
- Convenience stores
- E-commerce grocery providers
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.
The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating and a $60 price objective.
Verizon
Verizon Communications Inc. (NYSE: VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and pays a 5.53% dividend. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5.0×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Citigroup has a Buy rating, as well as a $450 target price.
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