The 8.7% cost-of-living adjustment (COLA) published earlier this month will result in a welcome increase in Social Security claimants’ monthly payments in 2023. According to the Social Security Administration, payouts will rise by an average of more than $140 per month in 2023.
While many seniors need the funds to deal with the rising cost of living, others may have the resources to invest in some or all of them. That can be a little nerve-wracking in the present bear market, especially if you’re living on a fixed income. However, some potential equities have lower risk levels than others.
If you’re thinking of investing your COLA raise in the stock market, search for well-established, reliable businesses that distribute dividends regularly. Dividends are particularly significant since they ensure a return of some kind, even during bear markets for stocks.
These five stocks are worth checking out.
Walgreens Boots Alliance (WBA)
According to The Motley Fool, the pharmacy industry has grown its yearly base payout for the previous 47 years and continuously paid a dividend for nearly nine decades.
We will always need prescription pharmaceuticals, healthcare services, and medical equipment. Hence, Walgreens is less vulnerable to market and economic fluctuations because it primarily operates as a healthcare business rather than a retail stock. The corporation has also made significant investments in its direct-to-consumer and online businesses.
Icahn Enterprises (IEP)
Icahn Enterprises is a holding company run by renowned investor Carl Icahn and his son Brett, which focuses on investing in steady performers rather than high flyers.
Pep Boys, a chain of automotive service centers with a long history, is an example of one of its investments. Icahn Enterprises has a “sky high” dividend yield of 14.86% as of October 23, according to Investor Place, and its stock price has managed to post a slight increase in 2022 despite the bear market.
JPMorgan Chase (JPM)
According to The Motley Fool, JPMorgan Chase has been the largest and most dependable performer among major U.S. banks in recent years. Unlike many of its competitors, JPMorgan did not require a bailout during the financial crisis, and it has generally stayed clear of the problems that have dogged Wells Fargo and Citibank.
Even better, JPMorgan has been paying a dividend yearly for the last 50 consecutive years. As of October 23, it offers a dividend yield of 3.5%, but this figure should rise over time.
Central Securities (CET)
Although this closed-end investment company has existed since 1929, it may not be as widely known as the others on this list. According to Investor Place, Central Securities “basically functions as a holding company.” Insurer Plymouth Rock, oil and gas company Hess, and credit card juggernaut American Express are among its interests.
Some of Central Securities’ current investments have been held by the company for 40 years. On October 23, Central Securities announced a dividend yield of 10.6%, which is paid every six months. The payoff at the end of the year is usually the largest.
Target (TGT)
Like many businesses, Target is susceptible to economic fluctuations. This year, as consumer spending has slowed due to consumers’ weariness with inflation, its earnings and stock price have suffered. With a share price that has increased by roughly 170% over the previous five years, Target continues to be a top performer in the long run.
According to The Motley Fool, it also has considerably higher operating margins than competitors like Amazon, Walmart, and Costco. As of October 24, Target had a dividend yield of 2.7% and had increased its payout for 50 consecutive years.
Conclusion
Due to their income distributions, dividend stocks appeal to investors, particularly seniors. However, before purchasing a stock, investors should do their homework to ensure that the dividend payout is sustainable. This is especially true in an unstable financial environment.
All five stocks discussed in this article hold industry leadership positions and have substantial competitive advantages. Additionally, they have solid profitability that can sustain their high dividends, ensuring dividend security even during a recession. These are the best stocks to purchase with your COLA increase.
Contact Information:
Email: [email protected]
Phone: 8139269909
Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.
Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.
