Stocks That Pay Dividends Are A Good Bet For Retirement
Joseph Keating, chief investment officer at First American Asset Management, told CNBC’s “Squawk on the Street” that dividend stocks are a good bet in retirement.
“When you’re in retirement, you want a steady income stream so you want big, brand name companies that pay dividends,” Keating said Thursday. “The best of all worlds is to have that income grow while you’re in retirement and that’s why we think of lot of investors are moving toward these kinds of stocks right now and it will happen for the next ten years or so.”
Keating said he wouldn’t own General Motors in a dividend strategy and would be “adverse” to holding Merck or Pfizer because of their narrow revenue stream. But He likes Abbott Labs, Johnson & Johnson and Eli Lilly.
“I think those are good pharmaceutical companies to own given the diverse revenue streams they have,” Keating said.
He’s owned McDonalds in the past, but doesn’t hold it now because it’s a “tad expensive.”
He also likes Proctor & Gamble, Colgate Palmolive, VF, Citigroup and Bank of America.
Among smaller companies, he likes Citizen Communications, a rural telecommunications company.
