Aged investors can sleep easy owning these rock-solid income stocks which yield between 2% and 5.9%.
You probably don't need the reminder, but it's been a trying year for Wall Street and investors. Since each of the three major U.S. stock indexes hit their all-time highs between mid-November 2021 and the first week of January 2022, they've fallen as much as 22% to 34% from their respective peaks. In other words they're all officially in a bear market.
The unpredictability and velocity of downside moves that accompany bear markets can often make investors question whether they want to stick around This can be especially hard for retirees who have less tolerance for risking their principal investments.
But there's good news for aged investors Every bear market throughout history has proved to be a buying opportunity.
It's also a fantastic time to put your money to work in dividend stocks. Since most income stocks are profitable and time-tested, there's minimal worry about their survival during relatively short-lived bear markets And it certainly doesn't hurt that dividend stocks have a history of handily outperforming their peers that don't offer payouts over long periods.
What follows are three of the safest dividend stocks retirees can buy right now to continue growing their wealth.
Johnson & Johnson: 2.8% yield
The first exceptionally safe income stock retirees can confidently buy amid bear market volatility is healthcare-giant Johnson & Johnson (JNJ -0.31%). In April J&J, as Johnson & Johnson is more commonly known, increased its payout for a 60th consecutive year. Only a handful of publicly traded companies offer a longer streak of consecutive base annual-payout increases.
The great thing about healthcare stocks is their defensive nature. No matter how poorly the stock market or US. economy perform, there will always be demand for prescription drugs, medical devices, and healthcare services. This provides a steady and predictable level of cash flow for a healthcare behemoth like J&J.
On a more company-specific basis, Johnson & Johnson benefits from its operating segments perfectly complementing each other. For example, J&J has progressively generated more of its revenue from pharmaceuticals over the years.
Brand-name drugs can generate juicy margins but have finite periods of sales exclusivity. To counter these eventual patent losses, J&J can lean on its leading medical-device segment which is perfectly positioned to take advantage of an aging global population and improved access to preventative care.
if you need one more reason to trust J&J, consider this: It's one of only two publicly traded stocks listed on a major US. exchange to have a AAA credit rating from Standard & Poor's (S&P), a division of S&P Global. That's a grade higher than the US. government's AA rating. In short, S&P has more confidence Johnson & Johnson will make good on its debts than it does of the US. government doing the same.
York Water: 2% yield
Walgreens Boots Alliance: 5.9% y