Redditors Recommend Top 5 Dividend Stocks and an ETF for 80-Year-Olds.

We are slowly but surely nearing the beginning of a monetary easing cycle as the Federal Reserve, in its latest meeting, indicated that the first-rate cut could be on the table in September. A new report from Ned Davis Research said dividend-paying stocks have historically outperformed non-dividend-paying companies in the first nine months of easing cycles in the past. While the AI-fueled rally in tech stocks has dampened the allure of dividends for many, safe dividend stocks are still attractive in the long run.

Since Reddit’s dividend and income investing communities are growing exponentially, many turn to the social media platform for advice. A Redditor recently asked about the best dividend stocks for his 80-year-old neighbor who wants to invest $14,000 he just got after selling his car. The comments section of this discussion thread saw several helpful responses and advice. We scanned this long discussion and picked some notable and frequently mentioned dividend stocks.

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Altria Group Inc. MO

Redditors overwhelmingly recommended Altria Group Inc. MO as a suitable dividend stock for people in their 80s. This is mainly due to the tobacco company's high dividend yield (8%) and over 50 years of consecutive dividend increases. Marlboro and Philip Morris cigarette brand owner posted second-quarter results last month, which were lower than expected as it transitions toward smoke-free products. Altria also narrowed its EPS guidance range for 2024 to $5.07 to $5.15.

Realty Income Corp. O

Many Redditors recommended Realty Income Corp. O for 80-year-olds because of its high yield and stellar dividend growth history. Realty Income is a monthly dividend REIT with a dividend yield of 5% and 29 years of dividend increases without a break. With the Federal Reserve reiterating the possibility of a rate cut in September, Realty Income is positioned well to benefit from a decline in borrowing costs and an improvement in consumer sentiment. Realty Income's tenants include major consumer and retail companies like Dollar General, Walgreens and 7-Eleven.

Ares Capital Corporation ARCC

Business development and investment company Ares Capital Corporation ARCC is another high-yield dividend stock Redditors recommend for 80-year-olds. Based on ARCC’s stock price of $20.94 and its dividend per share of $0.48, one can make about $106 monthly in dividend income with a $14,000 investment. A Redditor pointed out that this is not "life-changing" but it could still help anyone pay some bills.

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Procter & Gamble Co. PG

Even at the age of 80, you need safety and reliability when it comes to dividend investing. With 68 years of consecutive dividend increases, Procter & Gamble Co. PG is among the safest dividend stocks recommended by Reddit for 80-year-olds. The company recently posted weak quarterly results amid a demand slowdown and headwinds in China. But analysts believe since Procter & Gamble is diversified across various segments, it can rebound, especially with rate cuts on the horizon.

Pfizer Inc. PFE

Pfizer Inc. PFE was also recommended by a Redditor during the discussion on the best dividend stocks for 80-year-olds. PFE's dividend yield is over 5% and the stock is currently in the limelight after the company reported quarterly results and increased its full-year profit and revenue forecast. Pfizer now expects revenue growth in the range of 9% to 11% in the year.

BMO Capital recently published a list of its favorite high-yield dividend stocks which it expects to rebound. Pfizer was included in the list.

Schwab U.S. Dividend Equity ETF SCHD

During the discussion on dividend stocks for people in their 80s, most Redditors recommended dividend ETFs instead of individual stocks. The most common name that came up was Schwab U.S. Dividend Equity ETF SCHD, which yields over 3% and tracks the Dow Jones U.S. Dividend 100™ Index. The ETF gives you exposure to some of the top U.S. dividend stocks like AbbVie, Home Depot, Lockheed Martin, Coca-Cola and Chevron, among many others.

Another Option For The Over-80 Set?

Stocks aren't the only way to get yields at any age. The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.

Arrived Homes launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.