3 stars in retirement for growth and steady income

Retirement stocks are something every investor should look at, and when deciding which retirement stocks to buy, you can never go wrong with Dividend Kings. S&P 500 index constituents that have increased their dividends in each of the previous 25 consecutive years.

Dividend growers had 11.7% compounded annual returns from 1986 to 2016, while dividend payers had 9.9%. Dividend stocks are more resilient, so this performance is even greater during market volatility. This is great, as the markets are not yet fully in recovery mode; Continued inflation means there is only one rate cut this year, further showing where we sit.

However, recent evidence confirms the better performance of dividend stocks. Dividend stocks outperformed bonds in absolute returns over the past decade. of iShares Select Dividend ETF (NASDAQ:TWO) has returned 8.66% per year, compared to 1.5% of the aggregate bond index.

Additionally, a handful of top-performing stocks — often driven by industries like technology — have made big contributions to the larger market. Look no further than Nvidia (NASDAQ:NVDA) passing Microsoft (NASDAQ:MSFT) as the world’s most valuable company thanks to an AI boom.

Dividend companies, especially those in the value range, offer a compelling outlook for investors as the earnings growth gap between these leaders and the rest of the market closes. More importantly, they also give you a valuation advantage when researching retirement stocks.

AbbVie (ABBV)

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Dividend King AbbVie (NYSE:ABBV) has increased rewards over the past 52 years. It is one of the best health retirement investments. Its 3.53% dividend is significantly higher than the 1.5% average for the healthcare industry, even with the loss of its Humira patent.

Humira and its acquisition of botox maker Allergan are AbbVie’s best-known products. Humira lost its US exclusivity last year, but AbbVie is making up for the revenue loss with the addition of Skyrizi and Rinvoq.

Additionally, AbbVie initiated a Phase 3 trial of the multiple myeloma therapy ABBV-383. This experimental medication targets BCMA, which is found in plasma cells from multiple myeloma.

Additionally, under a worldwide licensing agreement with FutureGen Biopharmaceutical, AbbVie is developing FG-M701, a next-generation TL1A antibody for inflammatory bowel disease. This collaboration highlights AbbVie’s immunology and autoimmune therapeutics development.

For some cancer treatments, Elahere was granted full approval by the FDA; for relapsed/refractory follicular lymphoma was granted an Epkinly Priority Review. Good results were obtained for atopic dermatitis with Rinvoq in the SELECT-GCA trial and the LEVEL UP trial comparing Rinvoq to Dupixent.

On the financial front, citing operating progress, the business raised its 2024 adjusted diluted EPS estimate from $10.97-$11.17 to $11.13-$11.33. Up 285% since 2013, AbbVie has paid a dividend of $1.55 in cash per share, continuing its legacy of shareholder value, placing it well among retirement stocks.

Johnson & Johnson (JNJ)

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Investing in retirement stocks generally starts with Johnson & Johnson (NYSE:YNJ). Seniors who want reliable income may want to consider the company’s drug, medical device and consumer health products businesses, especially since shares are down more than 8% year-to-date due to a mixed quarterly report and narrower full-year expectations.

However, analysts expect JNJ to recover. Most analysts rate the business a Moderate Buy, with a 12-month target of $176. Strategic acquisitions such as Ambrx Biopharma and Shockwave Medical suggest a 20% gain.

Johnson & Johnson acquired a clinical-stage biopharma company Ambrx Biopharma. The acquisition enhances J&J’s oncology pipeline, including ADC research into metastatic castration-resistant prostate cancer.

J&J wins intravascular lithotripsy leader Shockwave Medical for the treatment of complicated arterial calcified diseases. Because of J&J’s position in high-growth countries with unmet demand, the transaction could be earnings-enhancing.

Financially, Johnson & Johnson’s first-quarter revenue rose 2.3% to $21.4 billion; Improved MedTech and Innovative Medicine fueled this growth. The business also announced regulatory approvals for TECVAYL, RYBREVANT and DARZALEX.

Essential Services (WTRG)

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Essential services (NYSE:WTRG) is down about 7% over the past year, with the latest quarterly earnings report contributing to the somewhat softened sentiment; WTRG topped analysts’ estimates of $0.77 with $0.97 EPS. With quarterly revenue of $612.07 million, the firm missed its forecast of $750.08 million. Adjusted natural gas operating income was below forecasts due to warmer-than-average temperatures

Primarily in controlled water, the company aims to invest $1.3 billion to $1.4 billion in 2024 and $7.2 billion by 2028 in infrastructure.

For 79 years the corporation has paid quarterly dividends; in 32 years, the payment has increased 33 times. In June, WTRG announced a quarterly cash dividend of $0.3071, up 7% from a year ago.

Essential Utilities is expanding by acquiring other businesses. WTRG is signing six agreements for new wastewater systems in Pennsylvania and Illinois, serving more than 215,000 people. WTRG is also buying OUTSTANDING for $276.5 million, a sewer authority serving 198,000 people in Philadelphia. The business wants to buy more businesses, which could bring in another 400,000 people.

Finally, Essential Utilities’ targets to reduce greenhouse gas emissions by 60% from Scope 1 and 2 by 2035 are important as ESG investments grow. The company wants to make sure its water meets the latest EPA pollutant requirements to appeal to those looking for sustainable retirement stocks.

At the date of publication, Faizan Farooque did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publication guidelines.

At the date of publication, the editor in charge did not hold (directly or indirectly) any position in the securities mentioned in this article.