Filed under: Investing
What makes a dividend stock a good fit for a retirement portfolio? The answer is that it must have a healthy yield and it must be less risky, or volatile, than the average market.
It's for these reasons that McDonald's and ExxonMobil fit the bill. In McDonald's case, it yields 3.1% and has a beta of 0.34, meaning that it's 66% less volatile than the overall market. And in Exxon's case, it yields 2.7% and has a beta of 0.92.
Both of these stocks, in other words, yield more than the 10-Year Treasury -- which currently pays 2.61% -- while being less volatile than the general equities market. As Motley Fool contributor John Maxfield explains in the following video, these are the exact qualities that most retirees desire for stocks in their portfolio.
High-yielding dividend stocks that are safe to own today
Do you want a high-yielding dividend stock that's safe to own today? If so, our top analysts have created a list of high-yielding stocks that should be in any income investor's portfolio. To access this list instantly and for free, click here now.
The article 2 Safe Dividend Stocks That Are Great for Retirees originally appeared on Fool.com.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
Read | Permalink | Email this | Linking Blogs | Comments
