10 Best Stocks to Buy for Retirement

In this article, we discuss 10 best stocks to buy for retirement. If you want to read our detailed and historical performance of dividend stocks, go directly to read 30 Best Stocks to Buy for Retirement. 

10. Canadian Natural Resources Limited (NYSE:CNQ)

Dividend Yield as of February 9: 4.23%
3-Year Average Annual Dividend Growth Rate: 46.1%
Dividend Payout Ratio: 27.66%

Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian oil and natural gas company that specializes in crude oil. In January, Stifel initiated its coverage on the stock with a Buy rating and a C$97 price target. The firm sees significant value in oil and gas equities even during an inflationary environment.

Canadian Natural Resources Limited (NYSE:CNQ) pays a quarterly dividend of C$0.85 per share and has a dividend yield of 4.23%, as of February 9. The company has been raising its dividends consistently for the past 23 years and has a 3-year dividend growth of 46.1%. It’s one of the best stocks for retirement as its payout ratio stands at 27.6%.

Canadian Natural Resources Limited (NYSE:CNQ) was a popular buy among hedge funds in Q3 2022, as 41 funds owned stakes in the company, up from 33 in the previous quarter. These stakes are collectively valued at over $2 billion. Yacktman Asset Management was the company’s leading stakeholder in Q3.

9. Bank of Montreal (NYSE:BMO)

Dividend Yield as of February 9: 4.26%
3-Year Average Annual Dividend Growth Rate: 11.6%
Dividend Payout Ratio: 27.2%

Bank of Montreal (NYSE:BMO) is a Canadian multinational investment bank. The company offers a wide range of financial services to its consumers. On December 1, the company declared a 3% hike in its quarterly dividend to C$1.43 per share. In the past three years, the company has raised its payouts at an annual average rate of 11.6%, which places it as one of the best stocks for retirement. BMO has a solid payout ratio of 27.2%.

Desjardins raised its price target on Bank of Montreal (NYSE:BMO) in February to C$146 with a Buy rating on the shares.

As of the close of Q3 2022, 9 hedge funds in Insider Monkey’s database owned stakes in Bank of Montreal (NYSE:BMO), worth over $43 million collectively.

8. Fidelity National Financial, Inc. (NYSE:FNF)

Dividend Yield as of February 9: 4.27%
3-Year Average Annual Dividend Growth Rate: 12.00%
Dividend Payout Ratio: 30.8%

Fidelity National Financial, Inc. (NYSE:FNF) is a Florida-based insurance company that provides insurance and settlement services. In January, Barclays raised its price target on the stock to $53 with an Overweight rating on the shares, presenting a neutral stance on the US finance sector due to an expected recession this year.

In the past three years, Fidelity National Financial, Inc. (NYSE:FNF) raised its dividend at an annual average rate of 12%. The company pays a quarterly dividend of $0.45 per share and has a dividend yield of 4.27%, as of February 9.

At the end of September 2022, 30 hedge funds tracked by Insider Monkey reported owning stakes in Fidelity National Financial, Inc. (NYSE:FNF), with a total value of roughly $874 million.

Third Avenue Management mentioned Fidelity National Financial, Inc. (NYSE:FNF) in its Q3 2022 investor letter. Here is what the firm has to say:

“Fidelity National Financial, Inc. (NYSE:FNF) (2.4% of Fund Assets), which is planning to distribute a 15% stake in its wholly-owned life-insurance subsidiary (F&G Annuities & Life) having now established the segment at significant scale with approximately $40 billion of assets under management. This transaction will leave the FNF Group with a listed proxy for the value of its retained 85% stake in F&G, as well as a “net cash” balance sheet and market leading position in US title insurance (and other transaction-related activity) through its wholly-owned Fidelity National Financial subsidiary.”

7. United Bancorp, Inc. (NASDAQ:UBCP)

Dividend Yield as of February 9: 4.3%
3-Year Average Annual Dividend Growth Rate: 12.4%
Dividend Payout Ratio: 40.4%

United Bancorp, Inc. (NASDAQ:UBCP) is an Ohio-based bank holding company that offers various commercial and retail banking services. The company pays a quarterly dividend of $0.16 per share, having raised it by 1.6% in November 2022. Its 3-year annual average dividend growth rate stands at 12.4% and it has a payout ratio of 40.4%.

6. Dow Inc. (NYSE:DOW)

Dividend Yield as of February 9: 4.74%
3-Year Average Annual Dividend Growth Rate: 10.06%
Dividend Payout Ratio: 44.5%

Dow Inc. (NYSE:DOW) is an American multinational company that specializes in the production of chemicals. On February 9, the company declared a quarterly dividend of $0.70 per share, which fell in line with its previous dividend. The company is one of the best stocks for retirement as it has been paying uninterrupted dividends to shareholders since 1912. In the past three years, the company has raised its dividend by 10.06%.

Credit Suisse upgraded Dow Inc. (NYSE:DOW) to Outperform in February with a $68 price target. The firm mentioned that the company may experience high demand this year.

At the end of September, 43 hedge funds tracked by Insider Monkey had investments in Dow Inc. (NYSE:DOW), valued at nearly $710 million. With over 7.5 million shares, Pzena Investment Management was the company’s leading stakeholder in Q3.

5. Farmers National Banc Corp. (NASDAQ:FMNB)

Dividend Yield as of February 9: 4.81%
3-Year Average Annual Dividend Growth Rate: 19.5%
Dividend Payout Ratio: 36.3%

Farmers National Banc Corp. (NASDAQ:FMNB) is an Ohio-based bank holding company. In December, Piper Sandler raised its price target on the stock to $16 with a Neutral rating on the shares.

Farmers National Banc Corp. (NASDAQ:FMNB), one of the best stocks for retirement, has been raising its dividends for the past eight years, with a 3-year dividend growth rate of 19.5%. The company pays a quarterly dividend of $0.17 per share for a dividend yield of 4.81%, as of February 9. It has a healthy payout ratio of 36.3%.

As per Insider Monkey’s Q3 2022 database, 13 hedge funds owned stakes in Farmers National Banc Corp. (NASDAQ:FMNB), up from 10 in the previous quarter. The collective value of these stakes is over $13.5 million.

4. LyondellBasell Industries N.V. (NYSE:LYB)

Dividend Yield as of February 9: 4.83%
3-Year Average Annual Dividend Growth Rate: 33.6%
Dividend Payout Ratio: 35.8%

LyondellBasell Industries N.V. (NYSE:LYB) is a Netherland-based multinational chemical industry company that specializes in the production of polyethylene. The company pays a quarterly dividend of $1.19 per share and has a dividend yield of 4.83%, as of February 9. It has been raising its dividends consistently for the past 12 years and in the past three years, its dividend has grown at an annual average rate of 33.6%.

In February, Wells Fargo raised its price target on LyondellBasell Industries N.V. (NYSE:LYB) to $109 with an Overweight rating on the shares. The firm believes that the company’s operating rates would improve along with its margins.

At the end of September, 38 hedge funds tracked by Insider Monkey reported owning stakes in LyondellBasell Industries N.V. (NYSE:LYB), compared with 37 in the previous quarter. The collective value of these stakes is over $825.7 million.

Miller Howard Investments shared its outlook on LyondellBasell Industries N.V. (NYSE:LYB) in its Q3 2021 investor letter. Here’s what the firm said:

“We initiated a position in LyondellBasell (LYB). Chemical markets are currently robust given the combination of 2020 plant shutdowns and strongly recovering demand. Despite the tailwinds, Lyondell trades at a low valuation and yields just under 5%.”

3. CVR Energy, Inc. (NYSE:CVI)

Dividend Yield as of February 9: 4.97%
3-Year Average Annual Dividend Growth Rate: 59.1%
Dividend Payout Ratio: 23.8%

CVR Energy, Inc. (NYSE:CVI) specializes in petroleum refining and also manufactures nitrogen fertilizers. The company pays a quarterly dividend of $0.40 per share and has a dividend yield of 4.97%, as of February 9. In October, it also paid a special dividend of $1.00 per share. In the past three years, the company raised its dividend at an annual average rate of 59.1%. The company has a payout ratio of 23.8%.

At the end of September 2022, 21 hedge funds in Insider Monkey’s database owned stakes in CVR Energy, Inc. (NYSE:CVI), compared with 22 in the previous quarter. The collective value of these stakes is over $2.15 billion. With over 71 million shares, Icahn Capital LP was the company’s leading stakeholder in Q3.

2. M.D.C. Holdings, Inc. (NYSE:MDC)

Dividend Yield as of February 9: 5.26%
3-Year Average Annual Dividend Growth Rate: 21.6%
Dividend Payout Ratio: 26.08%

M.D.C. Holdings, Inc. (NYSE:MDC) is an American home construction company, based in Colorado. On January 24, the company announced a quarterly dividend of $0.50 per share, consistent with its previous dividend. It’s one of the best stocks for retirement because of its seven-year-long dividend growth streak. The stock’s dividend yield on February 9 came in at 5.26%.

M.D.C. Holdings, Inc. (NYSE:MDC) has raised its payouts at an annual average rate of 21.6% in the past three years. The company has a strong payout ratio of 26.08%.

As of the close of Q3 2022, 18 hedge funds in Insider Monkey’s database owned stakes in M.D.C. Holdings, Inc. (NYSE:MDC), up from 17 in the preceding quarter. The total value of these stakes is nearly $40 million.

1. Medifast, Inc. (NYSE:MED)

Dividend Yield as of February 9: 6.01%
3-Year Average Annual Dividend Growth Rate: 24.7%
Dividend Payout Ratio: 47.9%  

Medifast, Inc. (NYSE:MED) is a marketing company that specializes in weight loss and health-related products. The company is based in Maryland, US.

Medifast, Inc. (NYSE:MED) has been raising its dividends consistently since 2015 and it currently pays a quarterly dividend of $1.64 per share. The stock has a dividend yield of 6.01%, as of February 9. Its 3-year annual average dividend growth stands at 24.7%. The company has a payout ratio of 47.9%.

At the end of Q3 2022, 18 hedge funds tracked by Insider Monkey owned stakes in Medifast, Inc. (NYSE:MED), growing from 14 in the previous quarter. These stakes have a total value of over $120.1 million.

You can also take a look at 10 Companies Likely to be Dividend Kings in the Future and Dividend Capture Strategy: 10 High-Yield Stocks to Buy in February

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