Brixmor Property Group Inc : Truist Securities Raises Target Price To $31 From $28

Strange but true: seniors fear death less than running out of money in retirement.

Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies.

Retirement investing approaches of the past don't work today.

For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.

That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.

And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.

Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?

Invest in Dividend Stocks

Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.

Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.

One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend growth. Many stocks increase dividends over time, helping to offset the effects of inflation.

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

Brixmor Property (BRX)

is currently shelling out a dividend of $0.29 per share, with a dividend yield of 3.79%. This compares to the REIT and Equity Trust - Retail industry's yield of 3.61% and the S&P 500's yield of 1.49%. The company's annualized dividend growth in the past year was 4.81%. Check Brixmor Property dividend history here>>>

FNF Group (FNF)

is paying out a dividend of $0.5 per share at the moment, with a dividend yield of 3.19% compared to the Insurance - Property and Casualty industry's yield of 0.13% and the S&P 500's yield. The annualized dividend growth of the company was 6.67% over the past year. Check FNF Group dividend history here>>>

Currently paying a dividend of $0.36 per share,

Southside Bancshares (SBSI)

has a dividend yield of 4.01%. This is compared to the Banks - Southwest industry's yield of 0% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 2.86%. Check Southside Bancshares dividend history here>>>

But aren't stocks generally more risky than bonds?

Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.

An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.

Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.

If you prefer investing in funds or ETFs compared to individual stocks, you can still pursue a dividend income strategy. However, it's important to know the fees charged by each fund or ETF, which can ultimately reduce your dividend income, working against your strategy. Do your homework and make sure you know the fees charged by any fund before you invest.

Bottom Line

Regardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement.

Zacks Investment Research

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is BlackRock Finance (BLK) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

BlackRock Finance is a member of our Finance group, which includes 872 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. BlackRock Finance is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for BLK's full-year earnings has moved 4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, BLK has gained about 25% so far this year. In comparison, Finance companies have returned an average of 19.3%. This means that BlackRock Finance is performing better than its sector in terms of year-to-date returns.

Another Finance stock, which has outperformed the sector so far this year, is Brixmor Property (BRX). The stock has returned 21.8% year-to-date.

For Brixmor Property, the consensus EPS estimate for the current year has increased 0.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, BlackRock Finance belongs to the Financial - Investment Management industry, a group that includes 37 individual companies and currently sits at #20 in the Zacks Industry Rank. On average, this group has gained an average of 31.7% so far this year, meaning that BLK is slightly underperforming its industry in terms of year-to-date returns.

Brixmor Property, however, belongs to the REIT and Equity Trust - Retail industry. Currently, this 20-stock industry is ranked #91. The industry has moved +8.5% so far this year.

Investors interested in the Finance sector may want to keep a close eye on BlackRock Finance and Brixmor Property as they attempt to continue their solid performance.

Zacks Investment Research

Strange but true: seniors fear death less than running out of money in retirement.

And retirees have good reason to be worried about making their assets last. People are living longer, so that money has to cover a longer period. Making matters worse, income generated using tried-and-true retirement planning approaches may not cover expenses these days. That means seniors must dip into principal to meet living expenses.

Your parents' retirement investing plan won't cut it today.

Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over.

The impact of this rate decline is sizable: over 20 years, the difference in yield for a $1 million investment in 10-year Treasuries is more than $1 million.

And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.

So what can retirees do? You could dramatically reduce your expenses, and go out on a limb hoping your Social Security benefits don't diminish. On the other hand, you could opt for an alternative investment that gives a steady, higher-rate income stream to supplant lessening bond yields.

Invest in Dividend Stocks

As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.

Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.

A rule of thumb for finding solid income-producing stocks is to seek those that average 3% dividend yield, and positive yearly dividend growth. These stocks can help combat inflation by boosting dividends over time.

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

Brixmor Property (BRX)

is currently shelling out a dividend of $0.29 per share, with a dividend yield of 3.9%. This compares to the REIT and Equity Trust - Retail industry's yield of 3.71% and the S&P 500's yield of 1.56%. The company's annualized dividend growth in the past year was 4.81%. Check Brixmor Property dividend history here>>>

Morgan Stanley (MS)

is paying out a dividend of $0.93 per share at the moment, with a dividend yield of 3.19% compared to the Financial - Investment Bank industry's yield of 0.5% and the S&P 500's yield. The annualized dividend growth of the company was 8.82% over the past year. Check Morgan Stanley dividend history here>>>

Currently paying a dividend of $0.69 per share,

Shell (SHEL)

has a dividend yield of 4.06%. This is compared to the Oil and Gas - Integrated - International industry's yield of 1.62% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 3.93%. Check Shell dividend history here>>>

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.

Combating the impact of inflation is one advantage of owning these dividend-paying stocks. Here's why: many of these stable, high-quality companies increase their dividends over time, which translates to rising dividend income that offsets the effects of inflation.

Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.

If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.

Bottom Line

Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks.

Zacks Investment Research