Dividend stocks are a great source of passive income. But like any equity, they can come with a heavy dose of risk that’s frankly unsuitable for older investors.
Keeping this theme in mind, we asked three of our contributors which dividend stocks they think might bereliable sources of income for senior citizens. They suggestedPfizer (NYSE: PFE),Cisco Systems(NASDAQ: CSCO), andMattel(NASDAQ: MAT).Read on to find out more about thesetop dividend stocks, and why they might be a perfect fit for older investors.
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This Big Pharma is a reliable source of passive income
George Budwell(Pfizer): I thinkPfizeris a perfect stock for senior citizens because it offers a better than average yield within its peer group, it has a rock-solid balance sheet, and, most importantly, it has several key growth drivers coming online right now.
More specifically, Pfizer’s 3.88% yield is not only slightly better than the 3.44% average among major drug manufacturers, but the drugmaker also has close to $18 billion in cash reserves and has consistently generated cash flows in excess of $14.6 billion over the past the three years running. Suffice it to say, this top drugmaker’s juicy dividend is in no real danger of a sizable reduction or a suspension anytime soon. And that’s the kind of safety net you want as an older investor.
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