Dividend stocks are a perfect fit for a retiree's portfolio considering the supplemental income they provide, which also adds to investor returns in the long run as compounding works its magic.

However, not all dividend stocks are ideal for retirees. In retirement, it's ideal to own stocks that don't just pay out stable and regular dividends, but also increase them regularly for greater long-term returns. Here are three great stock to consider. 

Invest in the future of renewable energy 

A utility stock is an obvious choice for a retiree given the defensive nature of the business of utilities, which enables them to generate stable cash flows and pay regular dividends. But the stock I'll recommend today isn't just a traditional utility; it's one of the top renewable energy stocks you could own. Because clean energy is the future of energy, investing in a top company in the field, like NextEra Energy (NEE -0.11%), should pay off.

NextEra is the world's largest producer of wind and solar energy. It operates two electric companies, Florida Power & Light (FPL) and Gulf Power Company, that together serve millions of customers in Florida.

A jar of coins with a retirement note pasted on it.

Image source. Getty Images.

NextEra's recent quarterly earnings report and medium-term financial goals announced in April were hugely encouraging. To start, NextEra aims to increase dividends by 10% per year off of its 2020 dividend base of around $5.60 per share, through "at least" 2022, backed by 6% to 8% targeted compound annual growth in adjusted earnings per share for 2021 and 2022.

With billions of dollars lined up in expansion, committed dividend increases, and the stock yielding a decent 2.4%, NextEra should keep minting money for retirees.

This top healthcare stock won't disappoint you

AbbVie (ABBV -0.89%) is a great choice for retirees for two big reasons: Its incredible dividend track record and clout in healthcare, another defensive sector.

AbbVie is a pretty young company in the sense that it was formed in 2013 after separating from Abbott Laboratories, but its expertise in pharmaceuticals runs deep. The company specifically targets its research and development toward "difficult-to-cure" diseases and specializes in oncology, rheumatology, dermatology, and gastroenterology.

There have been concerns about competition eating into key drug Humira's edge in the world, but AbbVie's latest quarterly report suggests sales for the drug are still strong even as it prepares to acquire Allergan (AGN) to diversify revenues beyond Humira.

Management expects the combined company to produce strong cash flows in coming years to support dividends. Since inception in 2013, AbbVie's dividend has grown 195%, including the 10% dividend increase it announced in February 2020. With the stock yielding a solid 5.7% currently, I think AbbVie should deliver good returns for retirees.

These dividends should help you during tough times

Johnson & Johnson (JNJ -0.94%) increased its dividend by 6% in April, marking its 58th consecutive year of annual dividend increases. That dividend streak alone makes J&J a top retiree stock.

Also a healthcare company, J&J is more diversified than AbbVie as it runs three broad segments. Pharmaceutical contributed roughly 42%, medical devices 26%, and consumer healthcare 14% to J&J's total sales in 2019.

The diversified portfolio, innovation, prioritization of growth opportunities through internal pipeline development and opportunistic acquisitions, and commitment to return capital to shareholders through regular share repurchases and dividends make J&J a great stock to own. An example of innovation is J&J's race to develop a COVID-19 vaccine. With its rich pipeline, globally renowned brands, and a decent dividend yield of 2.7%, J&J is a stock retirees would love to own.