As investors transition from their peak earning years to retirement, capital preservation becomes more important than growth. A time-tested place to park hard-earned savings is in blue chip dividend stocks .
Investing in equal parts of Union Pacific (NYSE: UNP) , NextEra Energy (NYSE: NEE) , and Essential Utilities (NYSE: WTRG) produces a dividend yield of only around 2.1%. However, each company makes up for its somewhat low yield with a proven track record for growing earnings and dividends over time. Here's what makes each stock a great buy now.
Lee Samaha (Union Pacific) : Owning your own infrastructure and operating as an effective duopoly in your core market is usually a good recipe for success. It's also a good combination for investors looking for a secure source of income. On top of that, Union Pacific also has a margin expansion opportunity from the ongoing implementation of precision scheduled railroading (PSR).
For further details see:
3 Reliable Blue Chip Dividend Stocks to Generate Passive Income in Retirement