In this article, we discuss the best retirement portfolio for a 65-year-old.
The American retirement system is feeling the strain, with challenges like shrinking fees, underfunded plans, and an aging population slowing down industry growth. Over the last decade, 401(k) expense ratios have declined by a third, according to a PwC report, and recordkeeping fees dropped 8% between 2015 and 2019, making it harder for retirement firms to stay profitable. Some companies have had to merge or shut down, but there is still a big opportunity. Businesses that offer better retirement benefits, financial advice, and affordable plans for small companies could attract more people and unlock an extra $5 trillion in retirement savings.
The urgency is real. A quarter of US adults have no retirement savings at all, and only 36% feel on track. Even those who are saving may not have enough. For people nearing retirement, between the ages of 55 to 64, the median savings of $120,000 might provide less than $1,000 a month for 15 years. This is hardly enough, especially with longer life expectancies and rising healthcare costs.
For most Americans, retirement means either living off of savings or finding ways to generate passive income. While some can count on Social Security or a pension, many have to plan their own financial future. Savings usually involve withdrawing money over time, while passive income could mean anything from rental properties to online businesses. Brian Bollinger, founder of Simply Safe Dividends, believes dividend-paying stocks can be a game-changer. Instead of selling stocks to make money, retirees can rely on regular dividend payments, helping stretch their savings.
Dividends have been a huge part of stock market returns, making up about 45% of the broader market’s total gains since 1900. But despite their importance, they are often overlooked when planning for retirement, especially as baby boomers look for reliable income sources. According to Thornburg Investment Management, retirees typically fund expenses through either a total return approach, investing for growth and selling assets as needed, or a high-income approach, relying on high-yield investments for steady income. The first risks selling in down markets, while the second limits portfolio growth. A better strategy combines both; investing in stocks that not only pay dividends but also increase them over time can provide a steady income while allowing retirees to grow their wealth. Unlike bonds with fixed returns, dividend stocks can grow income, offering both stability and long-term financial growth. Over 30 years, dividend income has outpaced bond payouts, making it a strong option for retirees. With that investing strategy in mind, let’s take a look at the best retirement portfolio for a 65-year-old.
Image by Carabo Spain from Pixabay
Our Methodology
For this article, we searched the internet for widely recommended retirement stocks and selected those with at least a decade of consistent dividend growth and an average 5-year return of 50% or more as of March 24. We also selected stocks from different industries to make a well-rounded portfolio. Additionally, we have mentioned the hedge fund sentiment for each stock, as per Insider Monkey’s database of Q4 2024, and ranked the list based on that data.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Agilent Technologies, Inc. (NYSE:A)
Number of Hedge Fund Holders: 55
Number of Consecutive Years of Dividend Growth: 13
Average 5-Year Share Price Returns: 81.69%
Agilent Technologies, Inc. (NYSE:A) develops solutions for life sciences, diagnostics, and applied chemical markets. The company provides lab instruments, automation technologies, genomics and pathology solutions, biomolecular and cell analysis tools, as well as maintenance, training, and consulting services. Agilent is one of the top choices for the best retirement portfolio. On March 24, the company helped Autolus Therapeutics get FDA approval for AUCATZYL, a CAR T therapy, by providing its xCELLigence Real-Time Cell Analysis technology.
Agilent Technologies, Inc. (NYSE:A) reported $1.68 billion in revenue for the first quarter of 2025 ending January 31, a slight increase of 1.4% from last year. GAAP net income came in at $318 million, down from $348 million in Q1 2024, while non-GAAP net income was $377 million, staying close to last year’s $380 million. For the full year 2025, Agilent expects revenue between $6.68 billion and $6.76 billion, with growth projections of up to 3.8%. Non-GAAP earnings per share are forecasted between $5.54 and $5.61.
On February 19, Agilent Technologies, Inc. (NYSE:A) declared a quarterly dividend of $0.248 per share, in line with the previous. The dividend is payable on April 23 to shareholders on record as of April 1. Agilent has consistently raised its dividend payouts for the last 13 years.
According to Insider Monkey’s fourth quarter database, 55 hedge funds were bullish on Agilent Technologies, Inc. (NYSE:A), compared to 44 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management is the leading stakeholder of the company, with 4.15 million shares valued at $558.7 million.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
Number of Consecutive Years of Dividend Growth: 29
Average 5-Year Share Price Returns: 136.33%
International Business Machines Corporation (NYSE:IBM) delivers technology solutions worldwide, focusing on AI, cloud computing, consulting, and infrastructure. It also offers financing to help clients acquire its products and services. On March 18, the company announced that it is collaborating with NVIDIA to make AI more powerful and accessible for businesses. The plan is to integrate NVIDIA’s AI Data Platform into IBM’s hybrid cloud setup, helping companies better manage data and scale AI efficiently. IBM Consulting is also stepping in to help companies automate workflows using NVIDIA’s AI tools.
In 2024, International Business Machines Corporation (NYSE:IBM)’s revenue grew 3%, and the company generated $12.7 billion in free cash flow, the highest in years. Software was a major driver, growing 9%, while RedHat saw double-digit growth. Revenues in Infrastructure stayed on track, and although Consulting revenue fell slightly short of Wall Street estimates, IBM’s investments in AI and partnerships are expected to boost future growth. Software now accounts for 45% of the company’s business, with over $15 billion in recurring revenue. Q4 was particularly strong, with 11% revenue growth, led by RedHat’s 17% jump. The company’s generative AI business is also gaining momentum, reaching $5 billion in total contracts. IBM ended the year in a solid financial position, with $14.8 billion in cash, lower debt, and over $6 billion returned to shareholders.
On January 28, International Business Machines Corporation (NYSE:IBM) announced a quarterly cash dividend of $1.67 per share, which was paid on March 10, 2025. This continues the company’s tradition of consistent dividend payments, maintaining an unbroken streak that dates back to 1916. The company has also increased its payouts for 29 consecutive years, making it one of the top stocks for the best retirement portfolio.
According to Insider Monkey’s Q4 data, 60 hedge funds were bullish on International Business Machines Corporation (NYSE:IBM), compared to 56 funds in the last quarter.
8. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 63
Number of Consecutive Years of Dividend Growth: 29
Average 5-Year Share Price Returns: 197.18%
Cardinal Health, Inc. (NYSE:CAH) provides healthcare solutions worldwide, distributing pharmaceuticals, medical supplies, and over-the-counter products. The company manufactures surgical and laboratory items, manages hospital pharmacies, and delivers radiopharmaceuticals. With a strong industry presence since 1979, its stability and dividend growth make it a solid contender for the best retirement portfolio.
On January 14, Cardinal Health, Inc. (NYSE:CAH) announced that it is building a new distribution center in Fort Worth, Texas, to support its at-Home Solutions business, which delivers medical supplies to over 5 million patients each year. The 340,000 square-foot facility will replace two existing warehouses, adding more inventory space while keeping its current workforce. Once up and running, it will ship around 10,000 packages daily. The center is expected to be fully operational by summer 2025.
Cardinal Health, Inc. (NYSE:CAH) reported $55.3 billion in Q2 FY25 revenue, down 4% from last year but up 16% when excluding the impact of a major expired contract. GAAP operating earnings rose 9% to $549 million, while non-GAAP earnings grew to $635 million, driven by strong performance in the Pharmaceutical and Specialty Solutions segment. CEO Jason Hollar highlighted the company’s recent acquisitions, including a majority stake in GI Alliance and the full acquisition of Integrated Oncology Network, reinforcing its focus on specialty growth. As a result, the company raised its FY25 non-GAAP EPS forecast to $7.85-$8.
On February 3, Cardinal Health, Inc. (NYSE:CAH) approved a quarterly dividend of $0.5056 per share. The dividend will be paid on April 15, 2025, to shareholders recorded as of April 1. The company has a 29-year streak of consistent dividend increases.
Among the hedge funds tracked by Insider Monkey, 63 funds were bullish on Cardinal Health, Inc. (NYSE:CAH) at the end of Q4 2024, up from 40 funds in the prior quarter. Israel Englander’s Millennium Management was the largest stakeholder of the company, with nearly 3.4 million shares worth $401.6 million.
7. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 64
Number of Consecutive Years of Dividend Growth: 21
Average 5-Year Share Price Returns: 140.24%
Analog Devices, Inc. (NASDAQ:ADI) designs and sells integrated circuits, software, and subsystems for industries like automotive, healthcare, and consumer electronics. Its products include data converters, power management solutions, and MEMS technology. On March 10, ADI launched new tools to simplify development and enhance data security. The CodeFusion Studio System Planner streamlines project setup, while the Data Provenance solution ensures data integrity with secure metadata. These innovations pave the way for AI and machine learning in embedded systems.
Analog Devices, Inc. (NASDAQ:ADI) commenced fiscal 2025 with over $2.4 billion in revenue, seeing growth across Industrial, Automotive, and Communications, plus solid demand in the Consumer segment. Over the past year, the company pulled in $3.8 billion in operating cash flow and $3.2 billion in free cash flow. CEO Vincent Roche noted that despite economic and geopolitical challenges, ADI outperformed expectations because of cyclical recovery and new customer wins. CFO Richard Puccio added that bookings are steadily improving, especially in the Industrial and Automotive segments, setting the stage for continued growth in fiscal year 2025.
On February 18, Analog Devices, Inc. (NASDAQ:ADI) boosted its quarterly dividend by 8% to $0.99 per share, marking 21 straight years of increases. The dividend was paid on March 17 to shareholders on record as of March 4, 2025. The company also added $10 billion to its stock buyback program, bringing the total available for repurchases to $11.5 billion. Over the years, ADI has paid out more than $13 billion in dividends and bought back around $16 billion in stock. It is among the top stocks for the best retirement portfolio.
According to Insider Monkey’s Q4 data, 64 hedge funds reported owning stakes in Analog Devices, Inc. (NASDAQ:ADI), compared to 63 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management was the largest position holder in the company, with 2.85 million shares worth $607 million.
6. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Number of Consecutive Years of Dividend Growth: 38
Average 5-Year Share Price Returns: 139.53%
Chevron Corporation (NYSE:CVX), a leading oil and gas company, is a great fit for the best retirement portfolio because of its strong financial foundation, 38-year track record of dividend growth, and nearly 140% average 5-year returns as of March 24. Chevron and Engine No. 1 disclosed on January 28 that they are launching a new company together, focused on providing reliable, large-scale power solutions for US data centers using natural gas. Partnering with GE Vernova, they plan to build a multi-gigawatt power plant and data center, set to be operational by 2027. The project aims to generate up to 4 GW of power, which can cater to 3-3.5 million homes without straining the existing grid.
Chevron Corporation (NYSE:CVX) reported its Q4 results at the end of January 2025, with $3.2 billion in earnings, an increase from $2.3 billion in the same quarter last year. Adjusted earnings came in at $3.6 billion, a notable drop from $6.5 billion in Q4 2023. The quarter included $715 million in severance costs and $400 million in impairments, while foreign currency gains added $722 million. The company made significant plays in the Gulf of Mexico and Kazakhstan, initiated the high-pressure Anchor project, and repurchased over $15 billion in shares. Chevron also wrapped up asset sales in Canada, the Republic of Congo, and Alaska while pushing forward with its acquisition of Hess Corporation.
On January 31, Chevron Corporation (NYSE:CVX) declared a $1.71 per share quarterly dividend, a 4.9% increase from its earlier dividend of $1.63. The dividend was distributed on March 10.
According to Insider Monkey’s Q4 data, Chevron Corporation (NYSE:CVX) was part of 81 hedge fund portfolios, compared to 63 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway was the biggest stakeholder of the company, with 118.6 million shares valued at $17.2 billion.
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
Number of Consecutive Years of Dividend Growth: 16
Average 5-Year Share Price Returns: 84.28%
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer offering building materials, décor, tools, and installation services. Serving both DIYers and professionals, HD operates online and in stores across the United States and internationally. On March 19, the company became the exclusive big-box retailer for KILZ primer products in the United States and Puerto Rico, strengthening its partnership with Behr Paint. This move ensures Pros have better access to trusted primers in stores, online, and through delivery.
The Home Depot, Inc. (NYSE:HD) closed out Q4 2024 with $39.7 billion in sales, up 14.1% from the previous year, due in part to an extra 14th week that added $2.5 billion. US comparable sales grew by 1.3%, and net earnings reached $3 billion, or $3.02 per share. Home Depot’s full-year revenue in 2024 was boosted by the $18.25 billion acquisition of SRS Distribution in June, contributing $6.4 billion in sales. In just seven months, SRS expanded with over 20 new locations and four tuck-in acquisitions. The company is also looking into cross-selling opportunities to drive further growth.
On February 25, The Home Depot, Inc. (NYSE:HD) declared a $2.30 per share quarterly dividend, a 2.2% increase from the last dividend of $2.25, bringing the annual payout to $9.20. The dividend will be paid on March 27 to shareholders on record as of March 13. This marks the 152nd consecutive quarter of dividend payments, and the company has grown its payout for the last 16 years.
According to Insider Monkey’s fourth quarter database, 88 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD), compared to 82 funds in the last quarter. Ken Fisher’s Fisher Asset Management was the biggest stakeholder of the company, with 9.5 million shares worth $3.7 billion.
4. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Number of Consecutive Years of Dividend Growth: 52
Average 5-Year Share Price Returns: 107.76%
American retail giant Walmart Inc. (NYSE:WMT) ranks 4th on our list of stocks for the best retirement portfolio. In December 2024, the company completed the acquisition of VIZIO for $2.3 billion, bringing its SmartCast Operating System into the mix. This deal gives Walmart new ways to enhance customer shopping experiences and offers advertisers more ways to connect through Walmart Connect since VIZIO has a strong ad business with over 19 million active accounts.
Walmart Inc. (NYSE:WMT) had a strong fourth quarter, with revenue coming in at $180.6 billion, up 4.1% from last year. eCommerce sales jumped 16%, and US comparable sales grew by 4.6%, driven by solid performance in general merchandise. Operating income was up 8.3%, helped by better margins and increased membership revenue. Walmart’s advertising business also saw big growth, rising 29% globally. Looking ahead, the company expects 3-4% net sales growth in FY26 and plans to grow adjusted operating income by 3.5-5.5%.
On February 20, Walmart announced a dividend of $0.94 per share for FY 2026, a 13% increase from last year’s $0.83. This marks the 52nd consecutive year of dividend growth. The dividend will be shelled out in four quarterly installments of $0.235 per share, with the first payout scheduled for April 7 to shareholders on record as of March 21.
Among the hedge funds tracked by Insider Monkey, 116 funds were bullish on Walmart Inc. (NYSE:WMT) at the end of Q4 2024, up from 88 funds in the last quarter. Rajiv Jain’s GQG Partners was a prominent stakeholder of the company, with 11.8 million shares worth $1 billion.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Number of Consecutive Years of Dividend Growth: 14
Average 5-Year Share Price Returns: 730.78%
A mega semiconductor player, Broadcom Inc. (NASDAQ:AVGO) is one of our top picks for the best retirement portfolio. With steady financial growth, annual dividend increases, and an impressive 700% return over the past five years, it stands out as a solid long-term investment. On March 25, the company launched two new chips, Sian3 and Sian2M, to improve AI network connections. These chips help speed up data transfer in advanced fiber-optic networks while using less power.
Broadcom Inc. (NASDAQ:AVGO) had a record-breaking first quarter of FY 2025, earning $14.9 billion in revenue, a 25% increase from the same period last year. AI semiconductor sales skyrocketed 77% to $4.1 billion, while infrastructure software sales grew 47% to $6.7 billion. The company expects AI revenue to hit $4.4 billion in Q2 as demand for AI data centers keeps rising. Broadcom also saw a 41% boost in adjusted EBITDA, reaching $10.1 billion, with free cash flow up 28% to $6 billion. The firm closed the quarter with $9.3 billion in cash, generated $6.1 billion from operations, spent $100 million on capital expenditures, and shelled out $2.77 billion in dividends.
On March 6, Broadcom Inc. (NASDAQ:AVGO) declared a $0.59 per share quarterly dividend. The dividend will be paid on March 31 to shareholders who own the stock as of March 20. The company has a 14-year streak of dividend growth under its belt.
According to Insider Monkey’s fourth quarter database, 161 hedge funds reported owning stakes in Broadcom Inc. (NASDAQ:AVGO), up from 128 funds in the previous quarter.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Number of Consecutive Years of Dividend Growth: 13
Average 5-Year Share Price Returns: 280.86%
Apple Inc. (NASDAQ:AAPL) is one of the top dividend stocks for the best retirement portfolio. On February 24, the company announced its biggest investment yet in the United States, amounting to more than $500 billion, spread out over the next four years. This massive push will support AI development, silicon engineering, manufacturing, and job training. As part of the plan, the company is opening a new manufacturing facility in Houston, doubling its Advanced Manufacturing Fund, and expanding research and development. It will also invest in its suppliers across all 50 states and boost infrastructure for Apple Intelligence.
For the first quarter of fiscal 2025, Apple Inc. (NASDAQ:AAPL) reported $124.3 billion in revenue, a 4% increase from last year, and earnings per share of $2.40, up 10% year-over-year. CEO Tim Cook credited the record-breaking quarter to Apple’s best-ever lineup of products and services, along with advancements in Apple Intelligence, which will roll out in more languages this April. The company recorded an all-time high of 2.35 billion active devices. Apple also returned over $30 billion to shareholders, including $23.3 billion in stock buybacks, while generating $29.9 billion in operating cash flow.
AAPL’s last quarterly dividend payment of $0.25 per share was made on February 13. The company has consistently increased its dividend for 13 years. Over the past five years, its stock has delivered an impressive 280% return on average.
Among the hedge funds tracked by Insider Monkey, 166 funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q4 2024, compared to 158 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway was the leading stakeholder of the company, with 300 million shares valued at over $75 billion.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Number of Consecutive Years of Dividend Growth: 17
Average 5-Year Share Price Returns: 107.76%
A global payment technology company, Visa Inc. (NYSE:V) ranks 1st on our list of stocks for the best retirement portfolio. The company’s Tap to Phone technology is taking off nicely, with usage exceeding 200% in the past year, especially in the US, UK, and Brazil. This innovation lets businesses turn their smartphones into payment terminals, making it easier for small businesses to accept contactless payments. Nearly 30% of users are new small businesses. Visa expects even more growth as people and businesses continue to embrace the convenience of tap payments.
Visa Inc. (NYSE:V) announced $9.5 billion in revenue for the first quarter of fiscal year 2025, up 10% year-over-year. The growth came from higher payments volume, more cross-border transactions, and an increase in processed transactions. Net income was recorded at $5.1 billion or $2.58 per share on a GAAP basis, while adjusted earnings reached $5.5 billion or $2.75 per share, growing 11% from the last year. Visa Inc. (NYSE:V) also processed 63.8 billion transactions, marking an 11% year-over-year increase. By the end of the quarter, the company had $16.1 billion in cash and investments.
On January 30, Visa Inc. (NYSE:V) declared a $0.59 per share quarterly dividend. The dividend was distributed on March 3, to shareholders on record as of February 11. The company has maintained a 17-year streak of growing dividends.
According to Insider Monkey’s fourth quarter database, Visa Inc. (NYSE:V) was part of 181 hedge fund portfolios, compared to 165 in the earlier quarter. Chris Hohn’s TCI Fund Management was the biggest position holder in the company, with 16.8 million shares worth $5.3 billion.
Overall, Visa Inc. (NYSE:V) ranks first on our list of the best retirement portfolio for a 65-year old. While we acknowledge the potential of V 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 V 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
