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2 Reasons Verizon and AT&T Are Great Stocks for Retirement

Stocks that are great for retirement aren't necessarily good for someone who's trying to build wealth. Lest there be any doubt about this, AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) serve as textbook examples.

In many respects, retirement serves as a clear inflection point in one's investment objectives. Before retiring, the goal is to accumulate wealth. This is often done by favoring growth stocks and having dividends automatically reinvested into the underlying security. After retirement, by contrast, the purpose is to replace lost income by investing in dividend stocks, bonds, and other income-generating alternatives.

It's for this reason that AT&T and Verizon are so well suited for a retiree's portfolio. Beyond being two of the highest-yielding blue chips, they also sport exceptionally low betas, meaning they're less volatile than even the S&P 500 (SNPINDEX: ^GSPC  ) . As Motley Fool contributor John Maxfield discusses in the following video, the net result is that these stocks are among the most popular for income-seeking retirees today.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


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  • Report this Comment On May 12, 2014, at 11:27 AM, Mathman6577 wrote:

    I'm retired now and have both in my portfolio. Hoping for more dividend growth over the long term.

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John Maxfield
JohnMaxfield37

John has been writing for The Motley Fool since 2011. As a senior banking analyst, he covers the financial industry and the nation's largest banks in particular. He has a bachelor's degree in economics from Lewis and Clark College and a juris doctorate from Southern Methodist University. He's a licensed attorney in the state of Oregon, and resides in Portland with his wife and twin sons. View John Maxfield's profile on LinkedIn

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Related Tickers

8/27/2014 4:28 PM
^GSPC $2000.12 Up +0.10 +0.00%
S&P 500 INDEX CAPS Rating: No stars
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AT&T CAPS Rating: ***
VZ $49.43 Up +0.18 +0.37%
Verizon Communicat… CAPS Rating: ***

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