As a result, the partnership has paid higher distributions every year since 2001. More than 300 tenants across America and Europe rent the firm's properties under long-term lease agreements. That's what separates companies such as Oneok from other energy plays like exploration-and-production companies and oil-services firms, which can sway based on the direction of oil and gas prices. Pembina's pipelines, processing plants, storage facilities and other energy infrastructure are concentrated in western Canada and span several basins. Kevin Brown, equity analyst at Morningstar, writes that Realty's "line of business and operating metrics make its dividend one of the most stable sources of income for investors.". Senior housing's main appeal among investors seeking out retirement stocks is the long-term demand growth expected from America's aging population. Wireline accounts for the rest of the business and includes high-speed internet, home phone and cable TV services. Research firm Simply Safe Dividends published an in-depth guide about living on dividends in retirement here.
All Rights Reserved. Unlike other oil majors, the company plans to invest well more than $200 billion between 2019 and 2025 to potentially more than double its operating cash flow. As a physician group becomes established in an area and builds a client base, it often grows more reluctant to relocate. In fact, AT&T expects to generate $28 billion of free cash flow in 2020 and expects its dividend to consume less than 50% of free cash flow in 2022. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Distributions are similar to dividends but are treated as tax-deferred returns of capital and require different paperwork come tax time. Combined, Telus, Rogers Communications (RCI) and BCE Inc. (BCE) are estimated to dominate about 90% of the market. The company's Dave's Killer Bread is the nation's largest organic bread brand, and Canyon Bakehouse is the fastest-growing gluten-free bread brand in the country. It did this by retaining more internally generated cash flow and running the business with less leverage. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Most importantly, they generate reliable cash flow, with 95% of the firm's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) generated by regulated or long-term contracts. Morningstar senior equity analyst Andrew Bischof writes that Duke's regulatory environment is supported by "better-than-average economic fundamentals in its key regions." Most people in olden days worked until they physically couldn’t or were forced out of a job as they aged. Dividend stocks, like other equities, provide meaningful long-term price appreciation potential as well. Quotes delayed at least 15 minutes. "We think NNN is more insulated from retailer woes compared to peers as most of NNN's tenants are either restaurants or retailers focused on necessity-based shopping such as convenience stores, auto parts/service centers and banks," he writes. Exxon hopes to double down on its scale and efficiency advantages in the years ahead.
However, only about 15% of the company's earnings are directly affected by commodity prices. Matthew Dolgin, an equity analyst at Morningstar, writes that Telus is one of only three major national competitors in wireless. Besides its defensive qualities, the telecom industry is also a good one for dividends due to its mature nature and high capital intensity, which makes it more difficult for new competitors to enter the market and steal subscribers. Given National Retail's diversified portfolio, strong balance sheet, online-resistant locations and reasonable payout ratio, this top-flight retirement stock should have no trouble extending its dividend growth streak for the foreseeable future. (Stephen Brashear/Getty Images) Investment performance often is tied to the health of the economy, so managing risk is critical to Main Street's ability to generate reliable cash flow over a full economic cycle. Cheaper shares had investors clamoring once again for growth stocks. This has historically been a durable business. Morningstar equity analyst Yousuf Hafuda notes that the "average customer receiving a rent increase letter for 8%-10% will rarely find it beneficial to research a new facility, rent a moving truck, and spend a day relocating to a different facility to save $10-$15 per month.". Even if the price of oil falls to $40 per barrel, management expects cash flow to rise 50%. Combined with Pembina's BBB credit rating and ability to self-fund its growth projects rather than rely on fickle equity markets, PBA seems poised to continue delivering safe, growing dividends for years to come. Coupled with storage facilities' low maintenance needs and the recession-resistant nature of demand, Public Storage is a durable cash cow. If you don't have access to a 401(k) retirement account through your workplace, the next best thing may be an IRA. Impressively, Magellan has issued equity just once in the last decade. This business model generates reliable cash flow. Now there are safety concerns, CA Notice at Collection and Privacy Notice, http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. The corporation will not deal with partnership taxes, as investors will instead receive common dividend reporting slips. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices What's more certain is that AT&T's various businesses generate excellent cash flow thanks to their large subscriber bases, recurring revenue and economies of scale. That's more than acceptable for investors seeking out retirement stocks that can provide both current income and dividend growth. Approximately 95% of Dominion's operating income is generated from regulated or "regulated-like" activities, which provides more predictable earnings and reduces the company's risk profile. It's no wonder why CCI is a holding in Bill Gates' dividend portfolio. However, the pace of those hikes has been moderate. The company has raised its payout each year since it began distributing dividends in 2002. While there are few barriers to entry, the overall economics still support dependable cash flow for Public Storage. And that's why OKE and other pipeline companies are among the best retirement stocks to buy in 2020. Specifically, rather than rely on issuing new units to raise capital, the firm in 2019 began self-funding the equity portion of its capital investments. The firm's occupancy rate stands at 99.1%. As a result of these strengths, Duke has profitably grown its business over the years. That's especially true in the company's core wireless services market. As a result of these investments, the telecom giant has been rated by RootMetrics as the best overall network in terms of reliability, data and call performance for 12 years in a row.
Combined with Verizon's investment-grade balance sheet and payout ratio near 50%, the firm's dividend should remain a safe bet going forward. Meanwhile, the firm eliminated its incentive distribution rights in 2002, enjoys one of the highest credit ratings of any midstream business, and maintains a very conservative distribution coverage ratio of 1.7. Compared to many fixed-income investments, dividend stocks also can generate higher current income in today's low-interest-rate environment, growing their payouts each year to help preserve one's purchasing power. 1-selling loaf bread brand; Wonder Bread, which enjoys 98% consumer awareness; and TastyKake, among others. The difference? Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor. With nearly 10,000 miles of pipelines, more than 50 terminals, as well as various storage facilities, Magellan boasts the longest refined petroleum products pipeline system in the country. The utility has paid dividends for 93 consecutive years – a track record that stands out among even the best retirement stocks. The firm has grown its payout each year since it converted to the REIT business structure in 2014. National Health Investors has navigated these challenges by diversifying its portfolio and focusing on private-pay senior housing properties. The 20 stocks on this list appear to have safe dividends, yield between 3.5% and 6.9%, and have solid potential to continue growing their payouts in the long term. Management expects FFO per unit (the master limited partnership equivalent of shares) to grow 6% to 9% going forward, driven by volume upside from GDP growth, inflationary price increases (75% of the firm's EBITDA is indexed to inflation) and a large backlog of projects. As a result, Verizon generates predictable cash flow to continue funding its dividend, which it and its predecessors have paid without interruption for more than 30 consecutive years. Assuming everything goes as planned, Duke's dividend likely will grow at a low-single-digit pace during this period and should remain secure given the firm's reasonable payout ratio below 80% and its investment-grade credit profile. Nonetheless, Main Street's discipline and conservatism seem likely to keep the stock a safe bet for retirement income. The best retirement stocks to buy in 2020 (or any other year), then, assuredly must be dividend-paying ones.
He thinks "these three firms have solid moats that protect them from any current or future competition." Argus analyst Bill Selesky notes that the energy giant continues to benefit from its diverse asset base and low cost structure, which has helped preserve the dividend despite volatile oil and gas prices over the years.