Dividend stocks are retiree friendly for a few reasons. The first and most obvious is that dividend stocks provide income at yields that beat out cash deposits and some bonds.
Dividend stocks are also relatively stable for equities, which is comforting for the retired investor. The same factors that allow these companies to pay dividends annually contribute to lower volatility -- reliable cash flows, manageable debt levels, and disciplined leadership.
And lastly, longtime dividend payers tend to raise their shareholder payouts over time. Retirees need rising income to combat inflation. Dividend stocks can provide that.
The downside of dividend payers is that the income isn't guaranteed to continue forever. Retirees can address that risk by choosing stocks that have demonstrated a lasting commitment to their shareholder payouts. Read on for 11 stocks that could fit the bill.
5 Stocks Under $49
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