3 Top Dividend Stocks To Maximize Your Retirement Income - Tuesday, June 16

Going beyond those familiar names, you can find excellent dividend-paying stocks by following a few guidelines. Look for companies that pay a dividend yield of around 3%, with positive annual dividend growth. The growth rate is key to help combat the effects of inflation.

Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.

Donegal Group (DGICA - Free Reportis currently shelling out a dividend of $0.15 per share, with a dividend yield of 4.38%. This compares to the Insurance - Property and Casualty industry's yield of 1.42% and the S&P 500's yield of 1.95%. In terms of dividend growth, the company's current annualized dividend of $0.6 is up 1.75% from last year.

General Mills (GIS - Free Reportis paying out a dividend of 0.49 per share at the moment, with a dividend yield of 3.22% compared to the Food - Miscellaneous industry's yield of 0.29% and the S&P 500's yield. Taking a look at the company's dividend growth, its current annualized dividend of $1.96 is flat compared to last year.

Currently paying a dividend of 1.07 per share, Kimberly-Clark (KMB - Free Reporthas a dividend yield of 3.08%. This is compared to the Consumer Products - Staples industry's yield of 0% and the S&P 500's current yield. Looking at dividend growth, the company's current annualized dividend of $4.28 is up 3.88% from last year.

But aren't stocks generally more risky than bonds?

Overall, that is true. But stocks are a broad class, and you can reduce the risks significantly by selecting high-quality dividend stocks that can generate regular, predictable income and can also decrease the volatility of your portfolio compared to the overall stock market.

A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income.

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