Looking For Retirement Cash Flow? These 3 Dividend Aristocrats Could Be Your Ticket

I have identified three home-run cash-flow recommendations.

These stocks belong to a rare group called the dividend aristocrats. Meaning they are frequent payers that have been increasing their dividends for over 25 years.

Moreover, their business growth has been consistent, even during recessions, making them a perfect investment for today’s environment.

Here they are…

Like many Western countries, the United States is addressing challenges associated with an aging population.

In the last 50 years, the median age of U.S. residents has increased
by 36%.

And 10,000 baby boomers are retiring every day.

The demand for health care products and services is increasing dramatically and will continue to do so for years.

As the third-largest pharmaceutical distributor in the United States, Cardinal Health is well-positioned to profit from this important demographic shift.

Moreover, the company boasts an impressive 3.76% dividend yield, making it an ideal stock for investors seeking cash flow.

Finally, a stock like Cardinal Health should fare well during a recession. Consumers will spend on health care no matter what.

Another cost consumers can’t do without, no matter the state of the world, is, of course, food.

Meaning food producers don’t experience revenue declines during economic downturns, making them a very stable investment option.

Archer-Daniels Midland is one such company. It is a major processor of oilseeds, corn, wheat, and other agricultural commodities.

As we move closer to recession, this company becomes ever more attractive.

In addition, the stock’s current dividend yield of 3.51% is at the high end of the company’s historical average.

The final recommendation on my list is AT&T.

I like this stock for three reasons.

One, it is a utility company. After food, water, and electricity, access to information is our most important requirement. Wireless communication is AT&T’s largest revenue generator. Therefore, I expect it will do well during a recession.

Two, AT&T has excellent growth projections. In 2020, the company will launch two exciting new products: 5G—the next-generation wireless technology—and HBO MAX—a video streaming service to join the likes of Netflix and Disney.

Finally, I like AT&T because it’s an undervalued company. The negativity surrounding the Time Warner acquisition has significantly decreased its price. This means that AT&T now pays out a 5.40% dividend yield, almost three times as much as other companies in the S&P 500 index.

Good investing,

Leon Wilfan