2 Safe Dividend Stocks That Are Great for Retirees

If you're trying to build a high-yielding dividend portfolio, then you could do a lot worse than McDonald's and ExxonMobil.

Jun 21, 2014 at 3:00PM


What makes a dividend stock a good fit for a retirement portfolio? The answer is that it must have a healthy yield and it must be less risky, or volatile, than the average market.

It's for these reasons that McDonald's (NYSE:MCD) and ExxonMobil (NYSE:XOM) fit the bill. In McDonald's case, it yields 3.1% and has a beta of 0.34, meaning that it's 66% less volatile than the overall market. And in Exxon's case, it yields 2.7% and has a beta of 0.92.

Both of these stocks, in other words, yield more than the 10-Year Treasury -- which currently pays 2.61% -- while being less volatile than the general equities market. As Motley Fool contributor John Maxfield explains in the following video, these are the exact qualities that most retirees desire for stocks in their portfolio.

High-yielding dividend stocks that are safe to own today
Do you want a high-yielding dividend stock that's safe to own today? If so, our top analysts have created a list of high-yielding stocks that should be in any income investor's portfolio. To access this list instantly and for free, click here now.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers