Early Retirement Portfolio: 5 Stocks to Live Off Dividends Revisited

In this article, we discuss 5 best dividend stocks for retirement. If you want to read our detailed analysis of the early retirement phenomenon and dividend stocks, go directly to read Early Retirement Portfolio: 15 Stocks to Live Off Dividends Revisited. 

5. Black Hills Corporation (NYSE:BKH)

Dividend Yield as of February 14: 3.92%

Black Hills Corporation (NYSE:BKH) is an American diversified energy company, based in South Dakota. On January 25, the company declared a quarterly dividend of $0.625 per share, which fell in line with its previous dividend. In 2022, it completed 52 consecutive years of dividend increases, which places it as one of the best dividend stocks for retirement. The stock’s dividend yield on February 14 came in at 3.92%.

In February, Wells Fargo maintained an Equal Weight rating on Black Hills Corporation (NYSE:BKH) with a $65 price target.

In Q4 2022, Black Hills Corporation (NYSE:BKH) reported revenue of $791.4 million, which showed a 40.7% growth from the same period last year. The company also presented a capital investment forecast of $3.5 billion through 2027.

At the end of Q3 2022, 16 hedge funds tracked by Insider Monkey reported owning stakes in Black Hills Corporation (NYSE:BKH), compared with 19 in the previous quarter. The collective value of these stakes is over $104.6 million. Among these hedge funds, Adage Capital Management was the company’s leading stakeholder in Q3.

4. Realty Income Corporation (NYSE:O)

Dividend Yield as of February 14: 4.44%

Realty Income Corporation (NYSE:O) is an American real estate investment trust company that pays monthly dividends to shareholders. BNP Paribas initiated its coverage on the stock in January with a Neutral rating and a $72 price target, appreciating its performance in 2022.

On January 10, Realty Income Corporation (NYSE:O) declared a monthly dividend of $0.2485 per share, consistent with its previous dividend. The company is one of the best dividend stocks for retirement as it has been raising its dividends consistently for the past 28 years. As of February 14, the stock has a dividend yield of 4.44%.

The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) grew to 28 in Q3 2022, from 19 in the previous quarter. These stakes are valued at $422.5 million collectively.

3. Pinnacle West Capital Corporation (NYSE:PNW)

Dividend Yield as of February 14: 4.63%

Pinnacle West Capital Corporation (NYSE:PNW) is an Arizona-based utility holding company that provides ESG-focused and innovative energy solutions to its consumers. In the past 12 months, the stock delivered a 7.72% return to shareholders, as of February 14.

Pinnacle West Capital Corporation (NYSE:PNW) currently offers a per-share dividend of $0.865 every quarter and has a dividend yield of 4.63%, as of February 14. In 2022, the company extended its dividend growth streak to 10 years.

Street analysts presented a positive outlook on the utility sector, even during market turmoil. In December, both Mizuho and Wells Fargo raised their price targets on Pinnacle West Capital Corporation (NYSE:PNW) to $78 and $82, respectively.

Pinnacle West Capital Corporation (NYSE:PNW) was a part of 27 hedge fund portfolios in Q3 2022, up from 21 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds have a value of $232.5 million.

2. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Dividend Yield as of February 14: 5.23%

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American company that owns retail pharmacy chains and other pharmaceutical manufacturing companies. Truist appreciated the company’s sales guidance in January and raised its price target on the stock to $42 with a Hold rating on the shares.

On January 27, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) declared a quarterly dividend of $0.48 per share, having raised it by 0.5% in July 2022. This was the company’s 47th consecutive year of dividend growth. The stock’s dividend yield on February 14 came in at 5.23%.

As of Q3 2022, 39 hedge funds tracked by Insider Monkey owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), compared with 40 in the previous quarter. These stakes are collectively worth over $712.6 million. With nearly 6 million shares, Arrowstreet Capital was the company’s leading stakeholder.

1. AT&T Inc. (NYSE:T)

Dividend Yield as of February 14: 5.76%

AT&T Inc. (NYSE:T) is a Texas-based multinational telecommunications company that provides mobile and telephone services to its consumers. The company is one of the best dividend stocks for retirement as it has raised its payouts for 12 consecutive years. It pays a quarterly dividend of $0.2775 per share and has a dividend yield of 5.76%, as of February 14.

At the end of Q3 2022, 61 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), up from 55 a quarter earlier. The collective value of these stakes is over $1.53 billion.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”

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

Follow Insider Monkey on Twitter