<div id="readability-page-1"><div><p>Strange but true: seniors fear death less than running out of money in retirement.</p><p>And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That\s because the traditional ways people manage retirement may no longer provide enough income to meet expenses- and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period.</p><h2>Your parents' retirement investing plan won't cut it today.</h2><p>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.</p><p>The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million.</p><p>Today's retirees are getting hit hard by reduced bond yields-and the Social Security picture isn't too rosy either. Right now and for the near future, Social Security benefits are still being paid, but it has been estimated that the Social Security funds will be depleted as soon as 2035.</p><p>How can you avoid dipping into your principal when the investments you counted on in retirement aren't producing income? You can only cut your expenses so far, and the only other option is to find a different investment vehicle to generate income.</p><h2>Invest in Dividend Stocks</h2><p>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.</p><p>Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.</p><p>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.</p><p>Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.</p><p><b>Bar Harbor Bankshares (BHB)</b> is currently shelling out a dividend of $0.32 per share, with a dividend yield of 4.29%. This compares to the Banks - Northeast industry's yield of 2.09% and the S&amp;P 500's yield of 1.46%. The company's annualized dividend growth in the past year was 6.67%. Check Bar Harbor Bankshares dividend history here&gt;&gt;&gt;</p><p><b>COPT Defense (CDP)</b> is paying out a dividend of $0.31 per share at the moment, with a dividend yield of 3.97% compared to the REIT and Equity Trust - Other industry's yield of 4.46% and the S&amp;P 500's yield. The annualized dividend growth of the company was 3.39% over the past year. Check COPT Defense dividend history here&gt;&gt;&gt;</p><p>Currently paying a dividend of $0.53 per share, <b>Community Trust Bancorp (CTBI)</b> has a dividend yield of 3.82%. This is compared to the Banks - Southeast industry's yield of 2.02% and the S&amp;P 500's current yield. Annualized dividend growth for the company in the past year was 2.17%. Check Community Trust Bancorp dividend history here&gt;&gt;&gt;</p><h2>But aren't stocks generally more risky than bonds?</h2><p>The fact is that stocks, as an asset class, carry more risk than bonds. To counterbalance this, invest in superior quality dividend stocks that not only can grow over time but more significantly, can also decrease your overall portfolio volatility with respect to the broader stock market.</p><p>An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time.</p><h2>Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.</h2><p>You may be thinking, &#34;I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF.&#34; This approach can make sense, but be aware that some mutual funds and specialized ETFs carry high fees, which may reduce your dividend gains or income, and defeat the goal of this dividend investment approach. If you do wish to invest in a fund, do your research to find the best-quality dividend funds with the lowest fees.</p><h2>Bottom Line</h2><p>Whether you select high-quality, low-fee funds or stocks, seeking the steady income of dividend-paying equities can potentially offer you a path to a better and more stress-free retirement.</p><p>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report</p><p>Bar Harbor Bankshares, Inc. (BHB) : Free Stock Analysis Report</p><p>This article originally published on Zacks Investment Research (zacks.com).</p><p>Zacks Investment Research</p></div></div>

CTBI

<p>Traditional retirement income sources may no longer suffice due to lower bond yields and potential Social Security depletion. Dividend-paying stocks from low-risk, high-quality companies can provide a steady income stream. Recommended stocks include Bar Harbor Bankshares, COPT Defense, and Community Trust Bancorp, each offering attractive dividend yields. Investing in these stocks can help offset inflation and reduce portfolio volatility. Caution is advised with dividend-focused mutual funds or ETFs due to potential high fees.</p>

3 Top Dividend Stocks to Maximize Your Retirement Income