3 Retirement All-Stars for Steady Growth and Income

Retirement stocks are a crucial investment for every investor, and one of the best choices in this category are Dividend Kings, companies that have increased their dividends for at least 25 consecutive years. These stocks have shown a significant outperformance compared to the broader market, especially during periods of market volatility. From 1986 to 2016, dividend growers had a compound annual return of 11.7%, while dividend payers had a return of 9.9%.

Dividend stocks have also outperformed bonds during the last decade. The iShares Select Dividend ETF (NASDAQ:DVY) has returned 8.66% annually, compared to the aggregate bond index’s 1.5%. This performance is due to a limited number of highly performing mega-cap stocks, often from technology industries, that have significantly contributed to the market’s growth.

One such Dividend King is AbbVie (NYSE:ABBV), a healthcare company that has increased its dividend for the last 52 years. Its dividend of 3.53% is higher than the 1.5% average for the health industry. Despite losing its Humira patent, AbbVie’s most well-known product, the company is making up for the revenue loss with the addition of Skyrizi and Rinvoq. The company is also conducting Phase 3 trials for the multiple myeloma therapy ABBV-383 and collaborating with FutureGen Biopharmaceutical on FG-M701, a next-generation TL1A antibody for inflammatory bowel disease.

Another retirement stock to consider is Johnson & Johnson (NYSE:JNJ). Despite a recent dip in its stock price due to a mixed quarterly report and narrowed full-year expectations, analysts expect JNJ to rebound. Johnson & Johnson has also made strategic purchases, such as Ambrx Biopharma and Shockwave Medical, which may improve its revenue and pipeline in high-growth markets.

Finally, Essential Utilities (NYSE:WTRG) is a regulated water and natural gas utility company that has paid quarterly dividends for 79 years and increased them 33 times in the last 32 years. The company is investing in infrastructure and expanding by buying other businesses to serve more customers. Essential Utilities is also committed to reducing its greenhouse gas emissions and meeting the latest EPA pollutants requirements, making it an attractive option for ESG investors looking for sustainable retirement stocks.

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