In this article, we discuss the 15 Best Stocks To Invest In For Retirement.
It is common knowledge that retirees with private sources of income, pension, or alternate employment are faring better than those relying only on social security. According to the Federal Reserve, Americans in the workforce were rather confident about their retirement savings in 2023. That year, 27% of adults had already retired in the United States, with 15% of them still working in some capacity. Retirees were working part-time rather than full-time. However, those with disabilities or low education were less prone to finding employment after retirement. 51% of adults retired to pursue passion projects or spend time with family, and 46% attributed their decision to retire to health issues, caregiving roles, or downsizing at work.
While social security remained the primary source of income for retirees, 80% of them had private sources of income as per the Fed’s 2023 report. 56% of them had pensions, 48% relied on investment income – which includes interest, dividends, or rental income, and 33% had labor income to fall back on. 92% of retirees in this 12-month survey were in the age bracket of 65 or above.
Over the last few decades, private companies have largely eliminated pension plans, shifting the onus of retirement savings to employees via 401(k)s. In 2022, only 15% of private industry workers had access to a pension. Retirement satisfaction has also dropped, with only 48% of retirees aged 62-75 commenting that they are very satisfied in 2023, down from 62% in 2020. Rising inflation has cut into retirees’ spending power, and 68% of them are burdened with credit card debt, up from 43% in 2020.
Sam Dogen, a millionaire who retired early and founded Financial Samurai, told CNBC that dividends are a source of reliable income. He commented:
“Stock dividends are my favorite passive income strategy because it is 100% passive.”
While young investors tend to reinvest dividend payouts, retirees can very well use it as a source of steady income. Dogen pointed out the consistent stock market growth over time and stated that dividend stocks are thus a dependable source of income over the long run. Given this, we will now take a look at some of the best stocks to buy for retirement.
Photo by Diana Parkhouse on Unsplash
Our Methodology
For this article, we used the Finviz stock screener to filter out stocks with dividend yields over 2% and dividend payout ratios under 30% as of February 19. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth over the years, and being financially stable to steer clear of yield traps. The list below is ranked in ascending order of the hedge fund sentiment as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
15. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)
Dividend Yield as of February 19: 2.20%
Number of Hedge Fund Holders: 12
Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) is a Japanese global bank holding company that provides banking, trust, securities, digital financial services, credit cards, M&A advisory, lending, and investment solutions. On February 17, MUFG’s subsidiary, MUMSS, launched MUFG Morgan Stanley Credit Solutions to expand its private credit business and offer better financing solutions to wholesale customers. With private credit booming in the US and Europe, the company sees big potential for growth in Japan, both as an alternative to traditional bank loans and as a new investment option. The new subsidiary aims to provide innovative solutions to support industry growth and financial reforms in Japan.
For the quarter ending December 31, 2024, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) saw record-breaking profits, with net operating profits hitting ¥1,714.6 billion, up ¥194.4 billion year-over-year, reaching 87% of its FY24 target. Net income surged to ¥1,748.9 billion, a ¥451.0 billion increase year-over-year, achieving 99% of the annual goal. This marks MUFG’s highest profits ever, driven by strong customer segment growth, gains from equity sales, and earnings from equity method investments. For the fiscal year ending March 2025, MUFG paid an interim dividend of ¥25 per share on December 5, 2024. It is one of the best stocks to buy for an income portfolio.
According to Insider Monkey’s Q4 data, 12 hedge funds held stakes in Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), compared to 18 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder in the company, with 7.8 million shares valued at nearly $92 million.
14. Radian Group Inc. (NYSE:RDN)
Dividend Yield as of February 19: 3.11%
Number of Hedge Fund Holders: 21
Radian Group Inc. (NYSE:RDN) is an American provider of mortgage and real estate services. The company specializes in private mortgage insurance, credit risk management, title services, underwriting, and brokerage. The stock has climbed 19% in the last 12 months, which makes it one of the best stocks to buy.
Radian Group Inc. (NYSE:RDN) closed last year strong with $1.3 billion in total revenue, up 4% from 2023, including $316 million in the fourth quarter. Its mortgage insurance in force hit a record $275 billion, growing 2% year-over-year. Net premiums earned reached $939 million, showcasing a 3% increase. Radian also returned $376 million to shareholders through buybacks and dividends, with $543 million still available for repurchases until June 2026.
On February 12, Radian Group Inc. (NYSE:RDN) announced a quarterly per-share dividend of $0.255, a 4.1% increase from the previous dividend of $0.245. The dividend will be distributed on March 11, to shareholders on record as of February 24. The stock offers a dividend yield of 3.11% as of February 19. It is one of the best stocks to buy for retirement.
According to Insider Monkey’s fourth quarter database, 21 hedge funds were long Radian Group Inc. (NYSE:RDN), compared to 20 in the prior quarter. Billionaire Ken Griffin’s Citadel Investment Group was the leading position holder in the company, with a stake worth $24.8 million.
13. Avnet, Inc. (NASDAQ:AVT)
Dividend Yield as of February 19: 2.45%
Number of Hedge Fund Holders: 22
Avnet, Inc. (NASDAQ:AVT) is an Arizona-based provider of electronic components and technology solutions. The company supplies semiconductors, interconnects, electronic and industrial automation components, and testing equipment to engineers. It also provides embedded solutions for the automotive, medical, defense, and telecommunications industries. The company will participate in the 46th Annual Raymond James Institutional Investors Conference on March 3, 2025.
For the second quarter of fiscal year 2025, Avnet brought in $338 million in cash from operations. The company spent $29 million on capital projects, staying within its usual budget. Avnet, Inc. (NASDAQ:AVT) remains committed to rewarding shareholders, paying out a $0.33 per share dividend, or $29 million total, and buying back $51 million in shares. With $515 million still available for repurchases, Avnet is on track to reduce its outstanding shares by at least 5% this fiscal year. AVT is one of the best stocks to buy for retirement.
Among the hedge funds tracked by Insider Monkey’s Q4 data, 22 funds reported owning stakes in Avnet, Inc. (NASDAQ:AVT), compared to 26 funds in the prior quarter. Richard Pzena’s Pzena Investment Management is the biggest stakeholder in the company, with 7.2 million shares worth $380.3 million.
12. Aflac Incorporated (NYSE:AFL)
Dividend Yield as of February 19: 2.23%
Number of Hedge Fund Holders: 31
Founded in 1955, Aflac Incorporated (NYSE:AFL) is headquartered in Columbus, Georgia. The company provides supplemental health and life insurance. In Japan, it offers coverage for cancer, medical expenses, nursing care, and life insurance. In the United States, Aflac provides insurance for cancer, accidents, disability, critical illness, hospital stays, dental, vision, and life. The stock has climbed nearly 32% in the last 12 months and offers a dividend yield of 2.23% as of February 19. It is one of the best stocks to buy for retirement.
Aflac Incorporated (NYSE:AFL) had a strong Q4 2024, with revenue jumping to $5.4 billion from $3.8 billion last year. Net earnings came in at $1.9 billion, or $3.42 per share, a huge leap from $268 million, or $0.46 per share, in Q4 2023, driven largely by $1 billion in investment gains. The board announced a $0.58 quarterly dividend per share, payable on March 3, 2025. The company bought back $750 million in shares and still has authorization for repurchases of 47.3 million more shares.
Among the hedge funds tracked by Insider Monkey in Q4, 31 funds were long Aflac Incorporated (NYSE:AFL), compared to 32 funds in Q3.
11. APA Corporation (NASDAQ:APA)
Dividend Yield as of February 19: 4.24%
Number of Hedge Fund Holders: 34
Ranking 11th on our list of the best stocks to buy for retirement is APA Corporation (NASDAQ:APA), a Texas-based energy company that explores, develops, and produces natural gas, crude oil, and natural gas liquids. On January 7, 2025, the company announced that it plans to issue senior notes due in 2035 and 2055 through a private offering. The company intends to use the proceeds to repurchase up to $869 million of outstanding senior debt from its subsidiary, Apache Corporation, and for other general corporate needs. The debt buyback was settled on January 10, 2025. Since these notes are not registered for public sale in the United Sales, they will only be available to institutional investors and certain international buyers.
On February 6, 2025, APA Corporation (NASDAQ:APA) announced a quarterly cash dividend of $0.25 per share for its common stock. The dividend is payable on May 22, to shareholders on record as of April 22. The stock offers an attractive dividend yield of 4.24%.
According to Insider Monkey’s fourth-quarter data, APA Corporation (NASDAQ:APA) was found in 34 hedge fund portfolios, up from 29 in the last quarter. Harris Associates was the biggest stakeholder of the company, with 25.2 million shares valued at $582.3 million.
10. Bank OZK (NASDAQ:OZK)
Dividend Yield as of February 19: 3.27%
Number of Hedge Fund Holders: 37
Established in 1903 and headquartered in Little Rock, Arkansas, Bank OZK (NASDAQ:OZK) is an American bank offering a range of retail and commercial banking services. It offers checking and savings accounts, wealth management services, and loans for real estate, small businesses, and commercial financing. Bank OZK (NASDAQ:OZK) is one of the best stocks to invest in, with a dividend yield of 3.27% as of February 19.
Bank OZK (NASDAQ:OZK) concluded another strong quarter, posting a record $178.1 million in net income for Q4 2024, a 4.1% increase from last year and its ninth consecutive quarterly record. For the full year, net income hit $700.3 million, up 3.8% from 2023. Earnings per share also increased, reaching $1.56 for the quarter and $6.14 for the year. OZK continued its streak of dividend increases, raising its quarterly payout to $0.42 per share. The dividend was paid on January 21, 2025. With 58 straight quarters of dividend growth, Bank OZK (NASDAQ:OZK) remains a favorite stock of retirees.
Among the hedge funds in Insider Monkey’s fourth quarter database, Bank OZK (NASDAQ:OZK) was part of 37 stock portfolios, up from 27 in the third quarter. Cliff Asness’ AQR Capital Management was the biggest stakeholder of the company, with 2.8 million shares worth $125 million.
9. The Mosaic Company (NYSE:MOS)
Dividend Yield as of February 19: 3.24%
Number of Hedge Fund Holders: 41
The Mosaic Company (NYSE:MOS) is one of the top American producers of phosphate and potash-based crop nutrients. MOS sells its products for agricultural and industrial use. On December 24, 2024, the company officially concluded its deal with Saudi Arabian Mining Company (Ma’aden), trading its 25% stake in Ma’aden Wa’ad Al Shamal Phosphate Company for 111 million Ma’aden shares. The shares were valued at about $1.5 billion at the time the deal was finalized. With this move, Mosaic becomes a Ma’aden shareholder and expects to report a pre-tax gain of roughly $500 million in Q4 2024.
On December 20, 2024, The Mosaic Company (NYSE:MOS) declared a $0.22 per share quarterly dividend, reflecting a 4.8% increase from its last dividend of $0.21. The dividend is distributable on March 20, 2025, to shareholders on record as of March 6. It ranks 9th on our list of the best stocks to buy for a retirement portfolio.
According to Insider Monkey’s fourth quarter database, 41 hedge funds held stakes in The Mosaic Company (NYSE:MOS), up from 34 funds in the preceding quarter. D E Shaw was the biggest stakeholder in the company, with nearly 5.4 million shares worth $132.6 million.
8. Lincoln National Corporation (NYSE:LNC)
Dividend Yield as of February 19: 4.62%
Number of Hedge Fund Holders: 41
Lincoln National Corporation (NYSE:LNC) is a Pennsylvania-based insurance and retirement services company that has four main segments – Life Insurance, Annuities, Group Protection, and Retirement Plan Services. It is one of the best stocks to buy for an income portfolio upon retirement. On February 19, 2025, Wells Fargo analyst Elyse Greenspan raised the price target on LNC from $28 to $36 and maintained an Equal Weight rating on the stock.
On February 6, Lincoln National Corporation (NYSE:LNC) reported a Q4 non-GAAP EPS of $1.91 and a revenue of $5.06 billion, outperforming Wall Street estimates by $0.17 and $340 million, respectively. Lincoln finished the year strong, with its risk-based capital (RBC) ratio exceeding 430%. Even with a $100 million loss in life earnings from the Fortitude transaction, the company recorded its highest adjusted operating earnings in three years. LNC also boosted its free cash flow conversion from 35% in 2023 to 39% in 2024.
Lincoln National Corporation (NYSE:LNC) declared a $0.45 per share quarterly dividend on November 14, 2024. The dividend was distributed to shareholders on February 3, 2025. The stock offers a dividend yield of 4.62% as of February 19. It is one of the best stocks to buy for a retirement portfolio.
Among the hedge funds tracked by Insider Monkey, 41 funds reported owning stakes in Lincoln National Corporation (NYSE:LNC) at the end of Q4 2024, compared to 38 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors was the largest stakeholder of the company, with 2 million shares valued at $66 million.
7. HF Sinclair Corporation (NYSE:DINO)
Dividend Yield as of February 19: 5.20%
Number of Hedge Fund Holders: 41
Headquartered in Dallas, Texas, HF Sinclair Corporation (NYSE:DINO) is an independent energy company that produces and markets fuels, lubricants, and specialty chemicals. On February 11, the company announced that it is set to redeem $195 million of its 5.875% Senior Notes due 2026 on February 21, 2025. The redemption price will be either 100% of the principal or a make-whole premium, in addition to any accrued interest. The company plans to finance this using proceeds from its $1.4 billion senior notes offering completed on January 23, 2025. After the redemption date, the notes will no longer accrue interest or be considered outstanding.
In Q3 2024, HF Sinclair Corporation (NYSE:DINO) brought in $707.6 million in cash from operations. By September 30, the company had $1.23 billion in cash and equivalents, down $124.3 million from the end of 2023. It returned $95.3 million to shareholders through a $0.50 per share dividend and spent $126.5 million on stock buybacks. The company last paid a dividend on December 4, 2024. At the end of the third quarter, its total debt stood at $2.64 billion.
According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on HF Sinclair Corporation (NYSE:DINO), compared to 25 funds in the preceding quarter. Mason Hawkins’ Southeastern Asset Management was the largest stakeholder in the company, with 2.74 million shares worth $96.3 million.
6. Lamb Weston Holdings, Inc. (NYSE:LW)
Dividend Yield as of February 19: 2.57%
Number of Hedge Fund Holders: 47
Lamb Weston Holdings, Inc. (NYSE:LW) is an American food processing company that offers frozen potato products, catering to restaurants, grocery stores, wholesalers, and food service distributors. The company’s Q2 results fell short of expectations, mainly due to higher manufacturing costs and lower sales. CEO Tom Werner expects challenges to continue into 2026 as global demand for frozen potatoes remains weak and industry capacity grows. To stay profitable, the company is cutting costs, shutting down some production lines, and looking for more ways to streamline operations. Lamb Weston is still aiming to protect profitability and shareholder value.
On December 19, 2024, Lamb Weston Holdings, Inc. (NYSE:LW) declared a $0.37 per share quarterly dividend, a 2.8% increase from the last dividend of $0.36. The dividend is payable on February 28, to shareholders on record as of January 31. Lamb Weston also increased its share repurchase authorization by $250 million. The company remains committed to raising dividends annually since going public eight years ago, keeping its payout target at 25% to 35% of earnings per share. It ranks 6th on our list of the best stocks to buy for retirement.
According to Insider Monkey’s Q4 data, 47 hedge funds were bullish on Lamb Weston Holdings, Inc. (NYSE:LW), up from 37 funds in the prior quarter. JANA Partners was the biggest position holder in the company, with 7.13 million shares worth $476.5 million.
5. Halliburton Company (NYSE:HAL)
Dividend Yield as of February 19: 2.54%
Number of Hedge Fund Holders: 49
Founded in 1919, Halliburton Company (NYSE:HAL) is headquartered in Houston, Texas. It is a leading American energy services company and the world’s second-largest oilfield service provider, specializing in fracking, drilling, and production optimization. Halliburton also offers well-stimulation, cementing, digital solutions, and reservoir management.
Halliburton Company (NYSE:HAL) raked in $22.9 billion in revenue for 2024. While international business grew 6%, led by an 8% growth in the Middle East and Asia, North America saw an 8% decline. The company generated $3.9 billion in cash from operations and $2.6 billion in free cash flow. Shareholders saw a 60% return on free cash flow, with $1 billion spent on stock buybacks and $600 million paid out in dividends.
On February 12, 2025, Halliburton Company (NYSE:HAL) announced a $0.17 per share quarterly dividend. The dividend is set to be paid on March 26, to shareholders on record as of March 5. It is one of the best stocks to buy for a retirement portfolio.
According to Insider Monkey’s fourth quarter database, 49 hedge funds were long Halliburton Company (NYSE:HAL), up from 38 funds in the earlier quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with 6.64 million shares valued at $180.7 million.
4. Ovintiv Inc. (NYSE:OVV)
Dividend Yield as of February 19: 2.70%
Number of Hedge Fund Holders: 51
Ovintiv Inc. (NYSE:OVV) ranks 4th on our list of the best stocks to buy for a retirement portfolio. It is a Denver-based energy company specializing in natural gas, oil, and natural gas liquids across the United States and Canada. Ovintiv finalized its $2.38 billion deal to acquire Montney assets from Paramount Resources on January 31, 2025. The purchase adds 70,000 BOE/d of production, 900 well locations, and 109,000 acres, boosting its presence in the region with solid infrastructure access.
On November 8, Ovintiv Inc. (NYSE:OVV) declared a $0.30 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on December 31. Ovintiv pulled in $507 million in net earnings and $978 million in cash flow during Q3 2024, outperforming Wall Street expectations. The strong cash flow came from higher-than-expected production and lower costs, with output topping guidance across all products. Free cash flow hit $440 million, an improvement from Q2, even with lower oil prices. OVV distributed $240 million to shareholders, including $162 million in share buybacks and $78 million in base dividends.
According to Insider Monkey’s fourth-quarter database, 51 hedge funds held stakes worth $1.27 billion in Ovintiv Inc. (NYSE:OVV), compared to 44 funds in the prior quarter, worth $932 million. Arrowstreet Capital was the largest stakeholder of the company.
3. FedEx Corporation (NYSE:FDX)
Dividend Yield as of February 19: 2.06%
Number of Hedge Fund Holders: 65
FedEx Corporation (NYSE:FDX) is one of the best stocks to buy for a retirement portfolio. It is a global transportation and logistics company providing express shipping, ground delivery, freight transportation, and business services. FedEx CEO Raj Subramaniam commented that he is confident the company can navigate supply chain disruptions, due to its massive global network. He acknowledged potential trade challenges, like tariff hikes, but pointed out that FedEx serves 99% of global commerce and can shift capacity as needed.
In Q2 of fiscal year 2025, FedEx Corporation (NYSE:FDX) spent $820 million on capital expenditures, keeping its full-year capital expenditure steady at $5.2 billion. The company also continued delivering strong free cash flow and bought back $1 billion in shares, bringing total repurchases for the year to $2 billion, with another $500 million planned for the second half. On February 14, FedEx Corporation (NYSE:FDX) declared a quarterly dividend of $1.38 per share. The dividend is payable on April 1, to shareholders on record as of March 10.
According to Insider Monkey’s Q4 data, 65 hedge funds were bullish on FedEx Corporation (NYSE:FDX), compared to 55 funds in Q3. Bill & Melinda Gates Foundation Trust was the largest stakeholder of the company, with 2.5 million shares worth $713 million.
2. Hewlett Packard Enterprise Company (NYSE:HPE)
Dividend Yield as of February 19: 2.39%
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) is a technology solutions provider that offers computing infrastructure, networking solutions, cloud services, and financing options. The US Department of Justice is trying to block the company’s $14 billion acquisition of Juniper Networks, arguing that it would hurt competition. According to the DOJ, the deal would give Cisco and HPE dominance over more than 70% of the US networking equipment market. Despite this, both companies have decided to fight the lawsuit, insisting the merger will strengthen their portfolio and make them more competitive on a global scale.
Hewlett Packard Enterprise Company (NYSE:HPE) ended Q4 of fiscal 2024 with $8.5 billion in revenue, marking a 15% increase from last year. Earnings per share came in at $0.58, beating expectations and climbing 12% year-over-year. Free cash flow totaled $1.5 billion, down $821 million from 2023. HPE also gave back $219 million to shareholders through dividends and stock buybacks. The quarterly dividend per share of $0.13 was paid on January 16, 2025.
Among the hedge funds tracked by Insider Monkey in the fourth quarter, 66 funds reported owning stakes in Hewlett Packard Enterprise Company (NYSE:HPE), compared to 64 funds in the last quarter. Slate Path Capital was the largest stakeholder of the company, with 12.6 million shares worth $271 million.
1. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of February 19: 3.63%
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA), a Pennsylvania-based media and technology giant, is one of the best stocks to buy for a retirement portfolio. On January 7, 2025, Paramount Global and Comcast announced an extended multi-year partnership, keeping Paramount’s networks and streaming services available on Xfinity platforms.
Comcast Corporation (NASDAQ:CMCSA) returned $3.2 billion to shareholders in Q4 2024, through $1.2 billion in dividends and $2 billion in share buybacks. For the full year, total shareholder returns reached $13.5 billion, including $8.6 billion in repurchases, reducing outstanding shares by 5%. The company also announced a 6.5% dividend increase to $1.32 per share for full year 2025, indicating its 17th year of consecutive growth, and lifted its share repurchase authorization to $15 billion. For 2025, the first dividend payment of $0.33 per share will be distributed on April 23, to shareholders on record as of April 2.
According to Insider Monkey’s fourth quarter database, 80 hedge funds held stakes in Comcast Corporation (NASDAQ:CMCSA), compared to 72 funds in the third quarter. Jean-Marie Eveillard’s First Eagle Investment Management was the biggest stakeholder in the company, with 34 million shares worth $1.28 billion.
Overall, Comcast Corporation (NASDAQ:CMCSA) ranks first on our list of the best stocks to invest in for retirement. While we acknowledge the potential of CMCSA to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CMCSA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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