3 Stocks Retirees Should Absolutely Love

Many retirees are investors for good reason: They can’t rely entirely on Social Security to fund their retirement. Investing wisely can help you retire comfortably.

Three Motley Fool contributors think they’ve found stocks to buy that retirees should absolutely love. All three offer juicy opportunities dividend yields. Here are their cases for AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY)And Gilead Sciences (NASDAQ:GILD).

Everything retirees need in one action from A to V

Keith Speights (AbbVie): Reliable income (the higher the better) and reasonable growth prospects are top items on retirees’ wish lists when choosing stocks. AbbVie offers both.

The big drugmaker’s forward dividend yield is nearly 3.3%. It was even higher earlier this year, but AbbVie’s stock price has jumped more than 20%. That’s not a big deal.

Few companies outperform AbbVie when it comes to dividend reliability. It’s a dividend king with 52 consecutive years of annual dividend increases (including when it was a Abbott Laboratories). Over the past five years, the company has increased its dividends by nearly 45%.

AbbVie’s strong results so far this year give a sense of the company’s growth prospects. The results may come as a surprise, given that the drugmaker’s revenue and profits have been falling because of the patent expiration on Humira, its flagship treatment for autoimmune diseases.

However, AbbVie has anticipated the loss of Humira exclusivity well. The company already has two worthy successors on the market that, together, are expected to eclipse Humira’s record sales in the coming years. AbbVie has also invested in research and development and made several strategic acquisitions that have improved its growth prospects.

This dividend stock is a good low-volatility investment

David Jagielski (Bristol Myers Squibb): If you’re retired, Bristol Myers Squibb is probably one of the stocks you’ll love. This healthcare company has an exceptional history of growth and acquisitions over the years, not to mention paying a solid dividend.

Although the stock has struggled this year, losing over 7% of its value so far, it is a fairly stable investment with a beta value of less than 0.5.

The company has struggled with the loss of exclusivity on several blockbuster drugs this decade, including Eliquis and Opdivo. But it has accumulated assets over the years to build its pipeline of new growth products.

In the most recent quarter, ended June 30, revenue from the growth portfolio increased 18% to $5.6 billion. And by 2026, Bristol Myers expects its new products to generate at least $10 billion in sales.

The story continues

Biopharmaceutical companies always carry risks, because patents on new drugs don’t last forever. But with Bristol Myers, the company has already prepared for exclusivity losses by strengthening its drug lineup and improving its product portfolio.

And it has paid off ever since…