Why Stocks for Retirement?
Compounding income
$10,000 invested in Johnson & Johnson 20 years ago now pays $790/year in dividends — a 7.9% yield on your original cost, even though the current yield is only 3.2%. The dividend grows every year, so your income grows too.
Inflation protection
Bond yields are fixed. Dividend growth stocks raise their payouts every year. After 20 years of 7% annual raises, a $1.80 dividend becomes $4.76. Your income keeps pace with — or beats — inflation.
Don't stop at stocks
Individual stocks carry company-specific risk. Pair 5-7 of these with a dividend ETF for broader coverage. Our dividend ETF picks are specifically chosen to complement a stock-based retirement portfolio.
See our best dividend ETFs →What Types of Stocks Are on This Page?
Dividend Kings — Companies with 50+ years of consecutive dividend raises. They've maintained payouts through every recession, war, and pandemic since the 1970s.
JNJ, PG, KO, PEP, WMT
High-yield plays — Higher current income than the Kings. ABBV yields 6%+ from pharma growth; Realty Income (O) pays monthly dividends from 600+ commercial properties.
ABBV, O
Growth + stability — Not traditional dividend stocks, but reliable cash generators with rising payouts. UNH benefits from an aging population; MCD is a real estate empire disguised as a restaurant; LMT has multi-year government contracts.
UNH, MCD, LMT
Dividend Kings
50+ years of consecutive dividend raises. The most battle-tested income stocks in the market.
JN
JNJ
Johnson & Johnson
The Dividend King — 60+ years of raises through every recession since 1963.
Yield
2.18%
Div. Years
60+
Beta
0.33
PG
PG
The Procter & Gamble Company
67+ years of raises. Brands you use daily: Tide, Pampers, Gillette.
Yield
2.91%
Div. Years
67+
Beta
0.40
KO
KO
The Coca-Cola Company
60+ years of raises. Warren Buffett's favourite forever stock.
Yield
2.66%
Div. Years
60+
Beta
0.36
PE
PEP
PepsiCo, Inc.
50+ years of raises. Snacks + beverages = two recession-resistant businesses in one.
Yield
3.62%
Div. Years
50+
Beta
0.41
MC
MCD
McDonald's Corporation
47+ years of raises. A real estate empire disguised as a fast food company.
Yield
2.38%
Div. Years
47+
Beta
0.53
WM
WMT
Walmart Inc.
50+ years of raises. The world's largest retailer — essential consumer spending.
Yield
0.75%
Div. Years
50+
Beta
0.66
Healthcare & Pharma
Aging populations drive demand. High yields and defensive positioning.
Alternative Income
Monthly REIT dividends and government-backed defence contracts.
Stability matters more than returns in retirement
A 50% portfolio drawdown at age 65 is catastrophic — you'd need a 100% gain just to break even while withdrawing from a smaller base. These stocks fell only 15-25% in the 2020 crash while the S&P 500 dropped 34%.
Not sure if a stock is right for you?
We answer three simple questions for every stock — so you don't have to read financial reports.
Am I paying too much?
8
Is this a good business?
7
Will it keep me up at night?
9
JNJ scores high across the board — fairly priced, profitable, and stable. Ideal for retirement.
Want to know how we calculate this? Every gauge expands to show the exact formulas on the stock detail page.
See it in action on JNJ →How Have They Performed?
Five-year view — retirement investing is a long game.
JN
JNJ
Johnson & Johnson
Johnson & Johnson
JNJ
$238.46-1.18%
Yield: 2.18%
PG
PG
The Procter & Gamble Company
The Procter & Gamble Company
PG
$145.16-1.02%
Yield: 2.91%
KO
KO
The Coca-Cola Company
The Coca-Cola Company
KO
$77.47-0.91%
Yield: 2.66%
O
O
Realty Income Corporation
Realty Income Corporation
O
$63.75+0.87%
Yield: 5.07%
AB
ABBV
AbbVie Inc.
AbbVie Inc.
ABBV
$208.05-2.05%
Yield: 3.20%
Where to Buy Retirement Stocks
Regulated platforms available in your country. Data from our broker comparison.
GBM
4.5
Platform of the Grupo Bursátil Mexicano that facilitates investing from Mexico in stocks, funds, and ETFs through a digital, educational, and intuitive interface. Design your portfolio and grow your wealth step by step.
Fintual
4.3
Latin American fintech that democratizes investing through mutual funds, stocks, and ETFs. Start investing with no commissions and from USD 1.
Folionet
4.3
Established in Miami for the Latin American audience, Folionet provides you access to your own investment account in the U.S., wherever you are. Choose between a personal account or one with advisory services and start enhancing your capital in international markets.
Hapi
4.2
A platform originating from Peru, Hapi democratizes access to the U.S. Stock Market from Latin America, allowing you to invest in over 12,000 stocks, ETFs, and cryptocurrencies starting from just US$5. Begin building your portfolio today.
Should You Build a Retirement Stock Portfolio?
Potential benefits
- Decades of proven, rising income — these companies have paid through every crisis since the 1960s.
- Lower volatility than the broad market. Most of these stocks have a beta under 1.0.
- USD income acts as a currency hedge for LATAM investors against peso/real devaluation over 30-year horizons.
- Yield-on-cost grows over time — your effective yield in 20 years will be far higher than today's listed yield.
- Complements your AFORE or Previdência with a growth layer that government pensions can't provide.
Risks to understand
- Slow growth compared to tech or AI stocks. You won't see NVIDIA-like returns.
- Concentration risk with only 10 stocks — one company cutting its dividend hurts. Diversify with ETFs.
- No technology exposure. If tech drives the next 30 years of growth, this portfolio misses it.
- Dividend withholding tax drags returns — especially Brazil's 30%. Factor this into your yield calculations.
- Past dividend streaks don't guarantee future payouts. Companies can and do cut dividends in extreme crises.
How We Selected These Stocks
Decades of dividend growth
Every stock has raised dividends for at least 15 consecutive years. Six of the ten are Dividend Kings with 50+ year streaks.
Low volatility
We prefer beta under 1.0 — stocks that move less than the market. A 50% drawdown at 65 is catastrophic.
Recession-tested
These companies maintained dividends through 2008, 2020, and every downturn in between. Retirement money can't afford a dividend cut.
Investment-grade balance sheets
Strong financials ensure dividend sustainability. We excluded companies with unsustainable payout ratios or excessive debt.
Sector diversification
Consumer staples, healthcare, real estate, defence, and retail. No single sector can take down the portfolio.
Frequently Asked Questions
Ten to fifteen individual stocks across different sectors provides adequate diversification. Alternatively, combine 5-7 individual dividend stocks with a dividend ETF (like VYM or SCHD) for broader exposure. You don't need all 10 stocks on this page.
Reinvest until retirement to maximise compounding. Once you retire and need income, switch to taking cash payouts. Most brokers offer automatic dividend reinvestment (DRIP) that you can toggle on or off.
Stocks grow your wealth; bonds preserve it. You likely need both. A common approach: subtract your age from 110 to get your stock allocation percentage. At 40, hold 70% stocks and 30% bonds. At 60, hold 50/50. Dividend stocks bridge the gap — they provide income like bonds but grow like stocks.
A Dividend King is a company that has increased its dividend every year for at least 50 consecutive years. Only about 50 companies in the entire US market qualify. JNJ, PG, KO are all Dividend Kings. This 50-year streak means they maintained and grew dividends through every recession since the 1970s.
Think of it as a two-pillar strategy. Pillar one: your AFORE/Previdência provides a stable, conservative base (government bonds, local market). Pillar two: US dividend stocks provide growth, USD diversification, and rising income over time. The combination is stronger than either alone.
Continue Exploring
Best Dividend ETFs for Passive Income
ETFsBuild a reliable income stream with these high-yielding, diversified ETFs. Three strategies compared.
VYMHDVDVY+5
Mexican Stocks vs US Stocks: Which Should You Invest In?
StocksA data-driven comparison of Mexico's biggest companies against their US counterparts. Sector by sector, number by number.
WALMEX.MXWMTAMXB.MX+7