3 Solid Dividend Stocks to Keep in Your Retirement Portfolio

  If you're planning to start saving for retirement, you should make sure to have quality dividend-paying stocks in your portfolio. Offering reliable and predictable returns as well as long-term growth potential, stocks can help you generate income when you need it most during your golden years. According to research provided by the S&P Dow Jones Indices, since 1926, dividends have accounted for about 32% of the S&P 500's total returns, while capital appreciation represents 68%.

1.Johnson & Johnson

Johnson & Johnson stock can provide retirees with a steady and growing stream of income. The healthcare industry provides services that are needed even during a recession. Also, economic fluctuations often do not prevent the introduction of new drugs and medical devices. Global pharmaceutical company Johnson & Johnson stands out in this field. New Jersey-based JNJ is exactly the kind of dividend stock that retirees or those planning to retire should buy. "I think the company's health is very strong. We are in a better position today than at the start of the pandemic," Chief Financial Officer Joseph Wolk told Bloomberg TV in July.

2.PepsiCo

Food companies may not provide high capital gains, but stocks in some companies in this group offer a steady stream of income for retirees. Snack and beverage giant PepsiCo (NASDAQ:PEP) is one of our favorites in this group. In recent quarters, Pepsi has reported stronger-than-expected sales figures, aided by home-bound consumers stocking up on snacks during the pandemic. Pepsi is well positioned to take advantage of its evolving consumption habits, as it has a diversified portfolio of snack products such as Tostitos, Fritos, Ruffles and Cheetos. Yesterday, Pepsi raised its sales forecast for this fiscal year on the back of increasing demand for beverage and snack foods. The company, which previously predicted 6% growth, said its full-year revenue should increase by 8% on an organic basis. The company also said it will reach its target of at least $6.20 per share of basic earnings. Pepsi is a reliable dividend provider as well as a diversified product portfolio. Showing that the company's dividend is very secure, it has increased its payout for the 49th consecutive year, making it a comfortable choice for risk-averse income investors.

3.Target

When choosing dividend-paying stocks for a retirement portfolio, the biggest concern to address is whether the company will be able to generate strong cash flows in both good and bad times. Minneapolis-based retailer Target (NYSE:TGT) certainly fits that description. The company has steadily increased its dividend annually over the past 50 years, a period that spanned crises such as the dot-com crash of the early 2000s, the financial crash of 2008-2009, and last year's covid-19 outbreak. Target is paying $0.9 per share quarterly, with a 1.58% annual dividend yield, after announcing a 32% increase in payout in June this year.     3 Solid Dividend Stocks to Keep in Your Retirement Portfolio Source: Investing.com You may also be interested in: Low-Performing Technology Stock to Buy at Year-End Rally-Amazon