Dividend Stocks

3 Powerful Dividend Stocks to Buy for a Stress-Free Retirement

There’s no such thing as a stress-free retirement, really. However, those looking to provide the financial footing for a lower-stress retirement may want to consider dividend stocks, for added passive income when the time comes to finally enter their next chapter.

Indeed, in this growth-focused world with cryptocurrencies and AI, little attention is paid to high-potential dividend stocks. But such companies can often provide superior total returns over the long-term. A solid base of dividends can provide portfolio stability in times of economic turmoil. For those thinking we could be headed into a recession, high-quality dividend stocks are where they’d want to position their portfolios right now.

Here are three of the best dividend stocks I think are worth buying right now for those nearing or entering retirement.

Realty Income Corporation (O)

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Realty Income Corporation (NYSE:O), a prominent real estate investment trust known as the “monthly dividend company,” offers income-focused investors a unique opportunity. 

Realty Income stands out as a reliable choice in an uncertain market for income-focused investors seeking stability and potential growth. With a strong portfolio of commercial properties and steady occupancy rates, the company consistently delivers dividends. Its ability to provide consistent income, along with the potential for capital appreciation, makes it an attractive option in a market affected by rising interest rates.

Realty Income is not the flashiest stock, but it offers remarkable consistency. Unlike most companies that pay dividends quarterly, Realty Income pays them monthly and has increased its dividend for 102 consecutive quarters, creating a streak that has lasted over 25 years. This means investors receive a modest raise four times a year. Adding Realty Income to a long-term portfolio can be advantageous for any investor seeking stability.

Devon Energy (DVN)

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Devon Energy (NYSE:DVN), a U.S.-focused independent oil and gas company, has faced a 13% decline due to falling oil prices. However, the outlook is optimistic as oil prices are expected to rise, coupled with a high dividend yield of 9.42%. Insider confidence is evident, with CEO Richard Muncrief purchasing 7,500 shares in March. Furthermore, management has expanded the share buyback program by 50% to $3 billion, emphasizing the attractive value of their shares.

Based in Oklahoma, Devon Energy is a leading U.S. onshore drilling company. It possesses a high-quality portfolio of shale basins in strategic locations including the Anadarko Basin, Delaware Basin, Powder River Basin, Williston Basin, and Eagle Ford. Devon Energy has outperformed its peers by excelling in good performance and cost efficiency. In Q1 2023, the company achieved a record-breaking production of 320,000 barrels per day.

Devon’s stock stands out for its exceptional operational efficiencies and secure production assets. Moreover, investors can take advantage of its appealing valuation and generous dividend yield. With a forward-looking earnings yield of 14%, Devon’s shares offer significant value compared to a risk-free asset like a 10-year U.S. Treasury bill.

Restaurant Brands (QSR)

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Restaurant Brands (NYSE:QSR) is a holding company that operates quick-service restaurants under its three main segments: Tim Hortons, Burger King, and Popeyes.

Restaurant Brands exceeded analysts’ expectations in Q1 with an EPS of 75 cents, beating the consensus forecast of 64 cents. Revenue reached $1.59 billion, a 9.6% YoY increase, and same-store sales grew by 10.3%, driven by strong performance at Burger King and Tim Hortons.

Despite a challenging market, Restaurant Brands outperformed the S&P 500. The company’s growth is supported by initiatives like Burger King’s “Reclaim the Flame,” “Fuel the Flame” investment plan, and the “Royal Reset” strategy to enhance franchisee training and upgrade restaurant locations.

Restaurant Brands offers investors the opportunity to benefit from growth potential, increasing dividends, and a focus on community and environmental responsibility. With a presence in international markets and the fast-food industry, the company’s expansion plans and operational improvements make it an attractive long-term investment option.

On the date of publication, Chris MacDonald held a long position in QSR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.