If you're in retirement or getting close to it, it's just as crucial to protect your portfolio as it is to generate a modest return on it. That's because if there's a market downturn, you may not be as willing or able to wait out a recovery, which can sometimes span years.
The stocks listed below can be ideal options for risk-averse income investors, as they offer high yields and are less volatile than the overall market. Collectively, they can also help diversify your portfolio and make it safer. Here's why Realty Income (O 0.13%), PepsiCo (PEP 1.92%), and Chevron (CVX 1.51%) are stocks you may want to consider today, especially if you're a retiree.
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Realty Income
Realty Income is a top real estate investment trust (REIT) that generates stable recurring income from its tenants. REITs can make for great income-generating investments because, as long as their occupancy rates are high and their clients are diverse, the risk isn't terribly high. And that's the case with Realty Income, as it has a vast portfolio of over 1,700 clients in 92 industries, and its occupancy rate is a shade under 99%.
NYSE: O
Key Data Points
The REIT pays a highly attractive dividend that yields 5.1%, and Realty Income has been increasing its payout for decades. For buy-and-hold investors, it's the type of investment that you can comfortably rely on for recurring income without worrying about wild swings in the market. This year, it's up around 13%.
Its beta over the past five years is just under 0.80, indicating that it doesn't move in unison with the overall market (which is what a beta of 1.0 would indicate). Realty Income is the type of stock that can be crucial when you're looking to balance both safety and a high yield.
PepsiCo
PepsiCo is another top dividend stock to consider for your portfolio. Its food and beverage products are staples in households all over the world. While the company may not exactly be a growth machine, it can be counted on for some solid stability. In each of the past four years, its net income has totaled at least $8 billion. And in 2025, its profit margin was a solid 9% of revenue.
NASDAQ: PEP
Key Data Points
The stock's five-year beta is extremely low at just under 0.40, which may make it a good candidate for retirees to buy and hold. This year, the stock is up 8%, as it has been generating decent returns alongside above-average dividend payments; it yields approximately 3.7% (the S&P 500 average is just 1.1%). The company has also generously been increasing its dividend for an impressive 54 consecutive years.
PepsiCo's business is solid, and while it may not be flashy or fast growing, it can be a terrific option for retirees to hang on to.
Chevron
Yet another excellent stock for retirees is Chevron. Shares of the oil and gas giant have been surging 26% this year amid rising commodity prices. At a time when there's uncertainty in the market, and you want to hedge against inflation, holding a top oil and gas stock can be an excellent move to make. Back in 2022, when inflation was problematic and the stock market went into a tailspin, with the S&P 500 falling by more than 19%, Chevron's stock went in the other direction, rising by 53%.
Its low beta value of 0.50 confirms that this isn't the type of stock that normally follows the market. Its dividend yields 3.7%, and the company has been raising its payout for 39 straight years.
NYSE: CVX
Key Data Points
The financial strength and versatility of the business are what make the stock a top investment to buy and hold; Chevron has been able to do well when oil prices have been low and can be in an even better position when they're rising.
From a risk-reduction standpoint, this can be a fantastic stock to buy, even with it already generating some strong gains thus far this year. At just 19 times its projected future earnings (based on analyst estimates), it's not a terribly expensive stock to own.
