4 best retirement stocks as the Fed prepares to hike rates

Retirement can be a difficult period for most people because of the lack of a paycheck. Investing in quality companies can help ameliorate the pain of other illiquid assets. With interest rates set to rise this year, retirement stocks with good dividends are a great way to make a living. Here are some of the best retirement stocks to buy in 2022.

S&P Global

S&P Global (NYSE: SPGI) is one of the biggest financial services companies in the world. The company has a total market capitalization of over $97 billion and a forward dividend yield of about 0.74%

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S&P is a company that is well-known by most policy-makers and investors. The company offers a number of services like bond ratings, data analytics, and indices. It is a dividend aristocrat that has boosted its dividend in the past 25 years straight. 

The S&P stock price has declined by more than 14% from its YTD high as investors worry about growth. Still, it is a safe retirement stock because of its moat in key industries. 

CME Group

CME (NASDAQ: CME) is another great retirement stock to buy in a rising interest rate environment. It is a financial services company that offers a place to trade futures and derivatives. It offers assets like commodities, currencies, energy, and interest rates among others. 

CME has a dividend yield of about 1.57% and a healthy payout ratio of 54%. It has grown its dividend in the past 11 consecutive years. 

While CME is a boring company, it has a wide moat that is difficult to penetrate. Therefore, buying it for retirement means that you will keep earning for a long time. 

Altria

Altria (NYSE: MO) is one of the biggest tobacco companies in the world. The firm has a total market cap of over $90 billion, making it lower than Philip Morris, which is valued at about $160 billion. 

Altria has a high dividend yield of about 6.92%, making it a good retirement company. While the number of smokers is falling globally, the company will continue being a cash cow because of high prices of cigarettes. It has also invested heavily in tobacco-free products. 

The Altria stock price has risen by almost 20% from its lowest level in December and the trend will likely continue. 

Chevron

Chevron (NYSE: CVX) is the second-biggest oil and gas company in the United States after Exxon Mobil. It is a large company that is involved in all phases of oil generation. It has upstream, midstream, and downstream operations in the IS and other countries. 

Chevron has a dividend yield of more than 4% and is one of the few dividend aristocrats. It has boosted its dividends in the past 34 straight years. 

The Chevron stock price has jumped sharply, helped by the rising oil and gas prices. There is a likelihood that the stock will continue rising in the near term. 

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