PNW - 3 Dividend Stocks Ideal for Retirees
For many people, retirement can be a period for pursuing new interests, taking long-desired vacations, and spending extra time with family. However, losing the security of steady, employment-generated income may lead to financial fears that can steal some of the luster from your golden years. Consequently, many investors turn to dividend stocks to provide a different type of income stream. But choosing the right ones can be daunting.
Through the power of compound growth, for example, monthly dividend-paying stocks which offer smaller but more frequent distributions may entice younger investors who have multidecade time horizons and are not in immediate need of the capital. Retirees, on the other hand, are in a different boat. They're more likely to be relying on those payouts to cover their immediate expenses and supplement their other sources of income, like Social Security checks and withdrawals from retirement accounts.
Given those specific needs, these three dividend stocks -- all hailing from the utilities sector -- may be good fits for retirees' portfolios: Consolidated Water (NASDAQ: CWCO), OGE Energy (NYSE: OGE), Pinnacle West Capital (NYSE: PNW).