7 Best Income Producing Retirement Stocks to Consider in 2021

Retirement is a high impact event. While you are a part of the workforce, you can take risks and absorb financial setbacks to your portfolio by earning more income. After retirement, you will no longer have this luxury. If you do, count it as a bonus and continue saving.

Approximately 25% of people who retire in the U.S. have no retirement savings or pensions. Investing and saving should be a requirement not a luxury.

Your investments have to last for the duration of your life. Deciding on which stock to add to your retirement portfolio is a critical step. While there are many mid-cap companies that look promising for massive returns, a suitable candidate for a retirement fund should have a healthy record of paying dividends, good dividend growth history, and good long-term business prospects. Here are a few of our top retirement stock picks.

Public Storage (NYSE: PSA)

PSA has a market value of$41.3 billion, market capitalization of over $230, and a dividend yield of 3.43%; it is a self-storage real estate investment trust (REIT). While this is an alarmingly bland option to kick off this list, it makes logical sense. Self-storage is becoming increasingly important as real estate becomes expensive, and people opt for smaller living spaces. During economic downturns, self-storage demand and business typically grow as people live in smaller places and need to store their extra stuff. Public Storage owns 2,500 storage spaces in 38 states, and significant areas in Europe. Over the past 20 years, PSA dividend payouts have increased over 900%.

LTC Properties (NYSE: LTC)

LTC Properties, with a market price of $33, the market capitalization of $1.8 billion, and a dividend payout of 6.55%, stands for Long-Term Care. LTC is a REIT that holds a varied selection of nursing and assisted living residences. About 51% of its properties comprise assisted living homes, with the significant remaining chunk comprising skilled nursing homes.

LTC is a recommended buy, based on its track record of dividend growth, which has grown even more than PSA. LTC also stands to grow further as the aging population increases, and the declining healthcare system forces even more seniors into assisted living. Over the past 20 years, LTC dividend payouts have increased by over 950%.

Prologis Inc (NYSE: PLD)

Trading at $102, with a $50.4 billion market value and dividend payout of 2.7%, Prologis is a REIT with warehouse properties. It wholly or partially owns properties spanning 770 million square feet in 19 countries. Some of PLD’s more famous clients are United Parcel Service (UPS), FedEx (FDX), and Home Depot (HD). Prologis has a vastly differentiated portfolio, with US-market making up 60% of its portfolio, with Europe, Asia, and the Americas making up the rest. The investments are quite diversified: the company’s top 25 clients presenting only 19% of its overall net -income. Over the past 20 years, PLD dividend payouts have increased by over 250%

Waste Management (NYSE: WM)

Waste Management trades for $115.29, a market value of $49.0 billion, and a dividend yield of 1.9%. In comparison, WM caters to a diversified customer base of 21 million clients in the U.S. and Canada. All large clients contribute less than 2% of sales. Waste management requirements will only grow over time, and WM is a green business with over 103 salvaging and 130 landfill gas-to-energy areas. Over half of Waste Management’s route trucks fueled by alternate energy. WM dividend shows steady growth with a future-oriented business plan WM is a smart choice for a steady income.

Home Depot (NYSE: HD)

Home Depot, with a share price of $285, a market value of $231.4 billion, and a dividend yield of 2%, has survived Amazon’s explosion. It has shown resilience under the expansion of eCommerce. Home improvement plans require tools, equipment, and guidance, which HD staff provides. The company is also tech-savvy with an eCommerce presence. With sound financial and technical indicators and a steady dividend payout, HD should be an immediate add to your retirement plan.

CVS Health (NYSE: CVS)

The pharmacy chain trading at $59 with a market capitalization of $77 billion and a dividend yield of 3.36 % has thrived based on increasing healthcare costs. Its innovative introductory health clinics are now morphing into a more advanced healthcare offering that is cheaper and quicker than going to a hospital, increasing footfall in the pharmacy, and boosting sales. With a steady dividend payout, CVS is a good stock to hold for long-term earnings.

Walt Disney (NYSE: DIS)

While the hospitality industry has been brought to its knees with airline restrictions, hotel vacancies, timeshare cancellations, and restaurant closures, Disney’s product diversification will allow it to weather the storm. The theme and amusement park chain trading at $126 with a market capitalization of $228 billion and a dividend yield of 1.4% has been suffering from other tourism and travel businesses but looks to bounce back as more people are looking for experiential holidays to push back the lockdown memories. DIS has also launched its streaming service, which is doing well due to the content it already owns. Other streaming networks are facing quality declines due to a shortage of content because of the pandemic. Disney seems poised to take off again, and its payout has been steady in terms of both growth and regularity.

Making up a portfolio of stocks to generate a steady income is a massive exercise and one that involves significant research, understanding market cap by company, and market analysis. Once you get this done right, you can settle down to enjoy a life of leisure with minimal need to tweak your accounts.

The stocks mentioned here all have a strong history of paying dividends, and their future business plans also look solid for the long term. Temporary setbacks and exceptional circumstances like the pandemic aside, these recommendations should prove to be sound choices for a long time.