Boomers Flock to Dividend Stocks Amidst Rising Core PCE

As summer comes to an end and autumn approaches, retirees are looking for reliable sources of income. With core PCE at its highest level in years, real yield is once again a crucial factor in investment decisions. In this context, five dividend stocks stand out: Coca-Cola (KO), Verizon (VZ), Altria (MO), Johnson & Johnson (JNJ), and Realty Income (O). Each of these companies has a long history of paying dividends, with records dating back decades.

Coca-Cola is the classic anchor for retirees, with its quarterly dividend now at $0.53. The company's Q2 2026 earnings beat expectations, with revenue up 6.7% year over year and management raising guidance for organic revenue growth of around 5%. However, risks remain, including a decline in Asia Pacific price/mix and unresolved IRS tax litigation.

Verizon is another stalwart in the group, with its quarterly dividend yielding around 6%. The company's turnaround thesis has gained traction, with Q2 2026 delivering net postpaid phone adds and improved churn. However, total unsecured debt of $136.5B remains a concern.

Altria is the highest-yielding name on this list, with its quarterly dividend at $1.06. The company has delivered 60 dividend increases in the past 56 years and paid out over $7 billion in dividends last year. However, secular volume decline is real, with domestic cigarette volume falling 5%.

Johnson & Johnson is the Dividend King on this list, with its quarterly dividend raised to $1.34. The company's growth is finally showing up alongside income, with Q1 2026 revenue growing 9.9% year over year and several key products hitting new highs.

Realty Income rounds out the group, with its monthly dividend anchor providing a steady stream of income. The company has raised FY2026 AFFO/share guidance to $4.41-$4.44 and deployed $2.8 billion at a 7.1% initial weighted average cash yield.