Saving for retirement isn't easy. Even when being vigilant about planning, unexpected costs can easily delay well laid out intentions.
According to the Bureau of Labor Statistics, adults 65 and older spend about $46,000 a year on average. That could easily skyrocket depending on one's medical needs and if the country has an inflationary outbreak.
Hence, a steady source of income after you have stopped working is paramount, and high dividend paying stocks are a smart way to sit back and let your money work for you. Key point: the company has to be fundamentally solid in addition to offering a solid dividend payout.
Here are three names that caught TheStreet's attention.
Medtronic (MDT) is a medical device manufacturer whose portfolio includes pacemakers, defibrillators and other devices. The company's stock has a dividend yield of 2.24% for an annualized payout of $1.84 per share that is paid quarterly. The company's dividend has been growing for 40 years, so it must be doing something (or several things) right.
McDonald's (MCD) has raised its dividend every year since 1977. And even though Americans are eating healthier these days, less than a third of the company's revenue comes from domestic restaurants. In other words, the Golden Arches is diversified into countries that oftentimes can only afford to eat McDonald's even considering the calorie counts.
McDonald's has a dividend yield of 2.57% with an annualized payout of $4.04 per share that is paid out quarterly.
IBM's (IBM) business may seem in flux now, but the company has been around for over a century and has had uninterrupted increases in its dividend payout for 22 years. That stability is worth something to investors.
IBM has a dividend yield of 3.77% with an annualized payout of $6 per share that is paid quarterly.
Want to know more about retirement planning? TheStreet's Robert Powell is the country's foremost retirement expert. Listen to his latest podcast below.