Boost Retirement Income with High-Yielding Dividend Stocks and Funds.

Investing for retirement through dividend stocks and funds can be a lucrative strategy. Four key options for generating passive income include investing in dividend stocks and funds with a proven track record of sustainability and growth. These options can provide a steady stream of income and help turbocharge retirement savings.

Investing for retirement through dividend stocks and funds can be a lucrative strategy, providing a steady stream of passive income to bolster retirement savings. Four key options stand out for their proven track record of sustainability and growth. These options can offer a blend of income and capital appreciation, making them ideal for long-term investors.

1. CVS Health (CVS)
CVS Health, a healthcare staple, offers a 4.2% dividend yield and a robust stock performance of +42.7% year-to-date [1]. The company's focus on efficiency and strategic pivots, such as expanding into digital health and cost-reducing partnerships, positions it well for long-term growth. Despite economic headwinds, CVS has maintained its dividend, ensuring a payout ratio of ~45%. This combination of dividend sustainability and growth potential makes CVS a strong candidate for retirement portfolios.

2. Franklin Resources (BEN)
Franklin Resources, a Dividend Aristocrat with 45 consecutive years of dividend growth, offers a 5.3% yield and a year-to-date stock performance of +20% [1]. The company's conservative payout ratio of ~35% ensures dividend security, while its innovation in blockchain-based trading tools and high-conviction strategies signals adaptability to a rapidly evolving market. Franklin Resources' long-term capital flows make it a strategic choice for income-focused investors.

3. Ford Motor Company (F)
Ford Motor Company offers a 6.5% dividend yield and a year-to-date stock performance of +17% [1]. The company's focus on electric vehicles (EVs) and supply chain resilience, coupled with its commitment to shareholder returns, positions it for long-term growth. Ford's payout ratio of ~40% ensures dividend security, making it a compelling option for investors seeking income and thematic growth.

4. Coca-Cola (KO)
Coca-Cola, a mature company with a proven track record of dividend growth, offers a 2.9% yield [2]. The company's steady top-line gains and consistent dividend increases, supported by a 77% payout ratio, provide a secure income stream. Coca-Cola's global presence and brand recognition ensure long-term growth potential, making it a strong candidate for retirement portfolios.

5. Home Depot (HD)
Home Depot, a leader in home improvement retail, offers a 2.5% dividend yield [2]. While its sales can fluctuate with economic conditions, the company's strong brand recognition and economies of scale position it for long-term growth. Home Depot's ability to raise dividends annually since 2010, supported by a 61% payout ratio, ensures a secure income stream. Patient investors may benefit from its lower valuation during cyclical downturns.

Investing in these dividend stocks and funds can provide a resilient passive income portfolio, offering both income and growth potential. However, it is essential to conduct thorough research to ensure these investments align with your risk tolerance and time horizon. Diversification across sectors and monitoring macro trends can further enhance portfolio resilience.

References:
[1] https://www.ainvest.com/news/3-high-yield-dividend-stocks-essential-building-resilient-passive-income-portfolio-2507/
[2] https://www.fool.com/investing/2025/07/15/2-dividend-stocks-to-hold-for-the-next-10-years/