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Sabadell und Bankinter sollen sich angeblich Qivalis anschließen, einem europäischen Bankenkonsortium, das einen euro-gesicherten Stablecoin entwickelt. Weitere spanische Finanzinstitute wie Abanca, Kutxabank und Cecabank sollen ebenfalls teilnehmen. Qivalis plant den Launch eines MiCA-kompatiblen Euro-Stablecoins im zweiten Halbjahr 2026, vorausgesetzt, die niederländischen Aufsichtsbehörden stimmen zu. Das Projekt spiegelt Europas Bemühungen um die Entwicklung einer bankgestützten digitalen Geldinfrastruktur wider, während Dollar-Stablecoins die globale Kryptopayment-Markt dominieren.

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MADRID, 5. Mai (Reuters) - Die spanischen Kreditinstitute Sabadell und Bankinter planen, dem Konsortium Qivalis beizutreten, das eine euro-gesicherte Stablecoin in der zweiten Hälfte des Jahres 2026 lancieren soll, wie die spanische Zeitung Expansion am Dienstag berichtete. Nicht notierte spanische Unternehmen wie Abanca, Kutxabank und Cecabank würden auch dem Konsortium beitreten, wie das Blatt sagte, fügte hinzu, dass eine offizielle Ankündigung in den kommenden Wochen erwartet werde, während das Konsortium andere Beitritte abschließt. Die Kreditinstitute waren nicht sofort für einen Kommentar verfügbar. Stablecoins - ein Typ von Kryptowährungen, der darauf ausgelegt ist, einen konstanten Wert zu halten und durch traditionelle Währungen abgesichert wird - haben sich in den letzten Jahren stark entwickelt. Das Konsortium umfasst bereits eine Dutzend Institutionen wie ING, UniCredit und BNP, Caixabank und BBVA. Das Konsortium gilt als Schritt, um die Dominanz der USA im Bereich digitaler Zahlungen zu bekämpfen. Die Banken ringen mit dem schnell wachsenden Stablecoin-Branchen und der weiteren Expansion von Kryptowährungen, die von einigen als direkte Konkurrenz angesehen werden. Diese Entwicklung hat traditionelle Kreditinstitute unter Druck gesetzt, sich für die Verwendung von Blockchain-Technologie in ihren eigenen Geschäften zu interessieren.

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This article first appeared on GuruFocus.

Customer Volumes: Increased by 6.5% with customer lending up 5% and retail funds up 1%. Assets Under Management: Grew by 17%. Customer Margins: At 2.68%. Net Interest Margin (NIM): At 1.76%. Net Interest Income: Grew by 5.5% year-on-year to EUR571 million. Net Fees: Increased by 8% year-on-year to EUR203 million. Gross Operating Income: Grew by 6.5%. Cost-to-Income Ratio: Declined towards 35%. Non-Performing Loan (NPL) Ratio: Below 2%. Net Profit: Reached EUR291 million, up 7.6% year-on-year. Return on Tangible Equity (ROTI): At 20%. Retail Deposit Costs: Declined to 81 basis points. Digital Accounts: Increased by almost EUR2 billion during the quarter. Equity Method, Trading, and Dividend Income: Increased by 18% year-on-year. Credit Cost: At 32 basis points in the quarter. CET1 Ratio: Closed at 12.96%. Loan Growth: Up 8% in Spain, 20% in Ireland, and 8% in Portugal. Wealth Management Customer Wealth: Increased by EUR18 billion, up 13% year-on-year. Dividends: Up 25% year-on-year.

Warning! GuruFocus has detected 7 Warning Sign with BKNIY. Is BKNIY fairly valued? Test your thesis with our free DCF calculator.

Release Date: April 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Bankinter SA (BKNIY) reported a net profit of EUR 291 million, up 7.6% year-on-year, demonstrating strong profitability. Customer volumes increased by 6.5%, with customer lending up 5% and assets under management growing by 17%, indicating robust growth. The company maintained a low non-performing loan (NPL) ratio below 2%, showcasing strong asset quality. Net interest income grew by 5.5% and net fees by 8%, contributing to a 6.5% increase in gross operating income. Bankinter SA (BKNIY) achieved a cost-to-income ratio declining towards 35%, reflecting operational efficiency.

Negative Points

There was a notable slowdown in deposit growth during the quarter, attributed to a seasonally softer first quarter and active margin management actions. Retail funds declined by EUR 3 billion, indicating challenges in maintaining deposit volumes. The company faces ongoing geopolitical uncertainty, which could impact consumption and economic growth. New mortgage origination in Spain was lower during the quarter due to pricing discipline in a tight margin environment. The net interest margin (NIM) remained flat quarter-on-quarter, despite improvements in customer margins.

Q & A Highlights

Q: There was a notable slowdown in deposit growth despite several digital campaigns. What was the reason, and how do you see the remainder of the year? A: (Gloria Ortiz Portero, CEO) We have very comfortable liquidity ratios, with an LCR over 100% and a loan-to-deposit ratio below 90%. This quarter, we prioritized changing the mix in our retail funds, reducing the duration of our deposits, and focusing on more optimized and less sensitive deposits. We will continue to work on the cost and sensitivity of our deposits in future months while maintaining a loan-to-deposit ratio below 100% and solid LCR ratios.

Story Continues

Q: Can you elaborate on your expectations for customer spreads for the remainder of the year? A: (Jacobo Diaz, CFO) We are committed to reaching an average client margin spread of 270 bps or above for the year. Lending yields are expected to improve due to positive repricing in corporate banking and mortgage activities. Deposit costs ended the quarter at 81 basis points, and while there might be room for reduction, volatility in rates could be challenging. We aim to ensure customer spread levels of 270 bps or above by managing deposit pricing proactively.

Q: Could you comment on the strategy and expected return on investment from your recent corporate transactions in alternative investments? A: (Jacobo Diaz, CFO) The alternative investment fund business generates high and sustained returns on equity. We aim to be the leader in alternative investments in Iberia, providing sustained high levels of fees in the long term. This strategic move brings in expertise from our partners, allowing us to develop new investment funds and distribute them effectively, tapping into the potential of real asset investments for retail clients in Spain and Portugal.

Q: How do you see credit risk evolving within the SME book given the increased macro uncertainty? A: (Gloria Ortiz Portero, CEO) We are not seeing any warning signs in asset quality across business segments. However, we are cautious with consumer credit, particularly in open markets, and are reducing exposure there. In SMEs, we focus on companies with turnover above EUR30 million and are cautious with smaller SMEs. We are also increasing exposure to the public sector, which is currently driving much of the investment in the economy.

Q: Can you provide more details on the floating rate loans and their impact on rate sensitivity? A: (Jacobo Diaz, CFO) In SME and corporate lending, working capital facilities tend to reprice faster due to their short-term nature. However, a significant portion of the SME lending book is backed by real estate guarantees, which means it takes longer to reprice. Our corporate banking book has a faster repricing rate, and we have a substantial portion of floating rate mortgages, which also contribute to rate sensitivity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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As global markets experience a boost in sentiment following the U.S.-Iran ceasefire agreement and a drop in oil prices, investors are eyeing opportunities amid the positive momentum. With major indices advancing and enthusiasm around technology stocks, dividend stocks remain an attractive option for those seeking steady income streams amidst fluctuating market conditions.

Top 10 Dividend Stocks Globally

Name Dividend Yield Dividend Rating Yeni Gimat Gayrimenkul Yatirim Ortakligi (IBSE:YGGYO) 3.17% ★★★★★★ Toukei Computer (TSE:4746) 3.89% ★★★★★★ Telekom Austria (WBAG:TKA) 4.40% ★★★★★★ Swiss Re (SWX:SREN) 4.84% ★★★★★★ SIGMAXYZ Holdings (TSE:6088) 3.96% ★★★★★★ NCD (TSE:4783) 4.42% ★★★★★★ Guangxi LiuYao Group (SHSE:603368) 4.37% ★★★★★★ GakkyushaLtd (TSE:9769) 4.46% ★★★★★★ CREEK & RIVER (TSE:4763) 3.62% ★★★★★★ Binggrae (KOSE:A005180) 4.42% ★★★★★★

Click here to see the full list of 1230 stocks from our Top Global Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Bankinter

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bankinter, S.A. offers a range of banking products and services to individuals, corporates, and small- and medium-sized enterprises across Spain, Luxembourg, Portugal, and Ireland with a market cap of €13.39 billion.

Operations: Bankinter, S.A.'s revenue is primarily derived from its Commercial Banking segment (€1.31 billion), followed by Corporate Banking (€982.93 million), BK Portugal (€348.16 million), BKCF Spain (€175.85 million), and BK Ireland (€106.45 million).

Dividend Yield: 4.1%

Bankinter's dividend payments are supported by a reasonable payout ratio of 50.1%, indicating coverage by earnings. Despite a history of volatility and unreliability in dividends, recent growth in earnings—14.4% over the past year—provides some support for sustainability. The stock trades at 29.2% below its estimated fair value, suggesting potential upside for investors seeking value. However, with a dividend yield of 4.07%, it remains lower than the top quartile of Spanish market payers (5%).

Navigate through the intricacies of Bankinter with our comprehensive dividend report here. Our expertly prepared valuation report Bankinter implies its share price may be lower than expected.BME:BKT Dividend History as at Apr 2026

Kedge Construction

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Kedge Construction Co., Ltd. is involved in the construction, development, leasing, and sale of housing and building properties in Taiwan with a market cap of NT$11.24 billion.

Operations: Kedge Construction Co., Ltd. generates revenue through its operations in constructing, developing, leasing, and selling residential and commercial properties in Taiwan.

Story Continues

Dividend Yield: 3.5%

Kedge Construction's dividend payments, though well-covered by earnings (payout ratio: 31.5%) and cash flows (cash payout ratio: 20%), have been volatile over the past decade. Despite a low yield of 3.49% compared to Taiwan's top payers, recent earnings growth of 42.1% offers some optimism for future stability. The stock trades significantly below its estimated fair value, presenting potential appeal for value-focused investors amidst its unstable dividend history.

Click to explore a detailed breakdown of our findings in Kedge Construction's dividend report. Our valuation report unveils the possibility Kedge Construction's shares may be trading at a discount.TWSE:2546 Dividend History as at Apr 2026

Cyber Power Systems

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Cyber Power Systems, Inc. designs, manufactures, and sells power protection products and computer peripheral accessories worldwide with a market cap of NT$16.90 billion.

Operations: Cyber Power Systems, Inc. generates revenue from its Electric Equipment segment, amounting to NT$11.87 billion.

Dividend Yield: 5.3%

Cyber Power Systems offers a dividend yield in the top 25% of the Taiwan market, with payments covered by earnings (payout ratio: 69.1%) and cash flows (cash payout ratio: 59.8%). However, its dividends have been volatile over the past decade. Recent financial results show a decline in sales to TWD 11.87 billion and net income to TWD 1.36 billion, raising concerns about future dividend reliability despite trading below estimated fair value.

Unlock comprehensive insights into our analysis of Cyber Power Systems stock in this dividend report. Insights from our recent valuation report point to the potential undervaluation of Cyber Power Systems shares in the market.TWSE:3617 Dividend History as at Apr 2026

Turning Ideas Into Actions

Take a closer look at our Top Global Dividend Stocks list of 1230 companies by clicking here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Looking For Alternative Opportunities?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BME:BKT TWSE:2546 and TWSE:3617.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.

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.

The tried - and - true retirement investing approach of yesterday doesn't work 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 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.

In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits 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.

One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.

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

Bankinter SA (BKNIY) is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.04%. This compares to the Banks - Foreign industry's yield of 2.86% and the S&P 500's yield of 1.51%. The company's annualized dividend growth in the past year was 14.52%. Check Bankinter SA dividend history here>>>

Story Continues

H&R Block (HRB) is paying out a dividend of $0.42 per share at the moment, with a dividend yield of 5.31% compared to the Consumer Services - Miscellaneous industry's yield of 0% and the S&P 500's yield. The annualized dividend growth of the company was 17.19% over the past year. Check H&R Block dividend history here>>>

Currently paying a dividend of $0.23 per share, Keurig Dr Pepper, Inc (KDP) has a dividend yield of 3.48%. This is compared to the Beverages - Soft drinks industry's yield of 0% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 6.98%. Check Keurig Dr Pepper, Inc dividend history here>>>

But aren't stocks generally more risky than bonds?

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.

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.

You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." 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.

Bottom Line

Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.

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

Bankinter SA (BKNIY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.

Why Bankinter Stock Is Drawing Attention Now

Bankinter (BME:BKT) has attracted interest after a mixed price pattern, with a 1 day decline and gains over the past week, set against negative returns over the past month and past 3 months.

See our latest analysis for Bankinter.

At a share price of €13.33, Bankinter has experienced short-term share price weakness, but it still has a very strong long-term total shareholder return record. This suggests that earlier optimism about its cash flows and risk profile remains influential.

If Bankinter has caught your eye and you want to see what else the market is pricing in, this is a good moment to broaden your search with 96 top founder-led companies

With Bankinter trading at €13.33, showing an indicated 36% intrinsic discount and a 13% gap to analyst targets, investors may ask whether this represents genuine value or whether the market is already pricing in future growth.

Most Popular Narrative: 12% Undervalued

With Bankinter last closing at €13.33 against a narrative fair value of about €15.10, the market is pricing in a clear gap that this widely followed view tries to explain.

Exceptional growth in wealth management and investment fund inflows, driven by rising affluence and financial sophistication in core Iberian markets, continues to boost recurring fee-based revenues, supporting higher net margins and revenue diversification.

Read the complete narrative.

Want to understand why this narrative sees more value than the current price suggests? The answer lies in a specific mix of projected revenue growth, fee income resilience, and future profit multiples that underpin that higher fair value.

Result: Fair Value of €15.10 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on Spain staying supportive and credit quality holding up, since a weaker domestic backdrop or higher loan losses could quickly challenge that fair value story.

Find out about the key risks to this Bankinter narrative.

Next Steps

With sentiment split between the potential rewards and the flagged risks, this is a moment to move quickly and test the numbers yourself with 3 key rewards and 2 important warning signs

Looking for more investment ideas?

Before moving on, take a moment to widen your view, the next opportunity you regret missing often starts with a simple screen that others ignore.

Target quality at a discount by scanning companies that combine fundamentals and pricing power using the 234 high quality undervalued stocks. Prioritise resilience first and check which companies stand out for balance sheet strength through the solid balance sheet and fundamentals stocks screener (382 results). Hunt for potential future favourites hiding in plain sight by reviewing the screener containing 600 high quality undiscovered gems.

Story Continues

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BKT.MC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

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.

The tried - and - true retirement investing approach of yesterday doesn't work today.

For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.

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.

In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits 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.

Bankinter SA (BKNIY) is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.03%. This compares to the Banks - Foreign industry's yield of 2.74% and the S&P 500's yield of 1.46%. The company's annualized dividend growth in the past year was 14.52%. Check Bankinter SA dividend history here>>>

Story Continues

Fifth Third Bancorp (FITB) is paying out a dividend of $0.40 per share at the moment, with a dividend yield of 3.48% compared to the Banks - Major Regional industry's yield of 2.94% and the S&P 500's yield. The annualized dividend growth of the company was 5.71% over the past year. Check Fifth Third Bancorp dividend history here>>>

Currently paying a dividend of $0.32 per share, Norwood Financial Corp. (NWFL) has a dividend yield of 4.39%. This is compared to the Banks - Northeast industry's yield of 2.22% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 3.33%. Check Norwood Financial Corp. 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.

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 interested in investing in dividends, but are thinking about mutual funds or ETFs rather than stocks, beware of fees. Mutual funds and specialized ETFs may carry high fees, which could lower the overall gains you earn from dividends, undercutting your dividend income strategy. Be sure to look for funds with low fees if you decide on this approach.

Bottom Line

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.

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

Bankinter SA (BKNIY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

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.

In today's economic environment, traditional income investments are not working.

For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.

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

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.

So what's a retiree to do? You could cut your expenses to the bone, and take the risk that your Social Security checks don't shrink. Or you could find an alternative investment that provides a steady, higher-rate income stream to replace dwindling bond yields.

Invest in Dividend Stocks

As we see it, dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplant low risk, low yielding Treasury and fixed-income alternatives.

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.

Bankinter SA (BKNIY) is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.04%. This compares to the Banks - Foreign industry's yield of 2.68% and the S&P 500's yield of 1.47%. The company's annualized dividend growth in the past year was 14.52%. Check Bankinter SA dividend history here>>>

Story Continues

Fifth Third Bancorp (FITB) is paying out a dividend of $0.40 per share at the moment, with a dividend yield of 3.64% compared to the Banks - Major Regional industry's yield of 3.04% and the S&P 500's yield. The annualized dividend growth of the company was 5.71% over the past year. Check Fifth Third Bancorp dividend history here>>>

Currently paying a dividend of $0.32 per share, Norwood Financial Corp. (NWFL) has a dividend yield of 4.58%. This is compared to the Banks - Northeast industry's yield of 2.32% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 3.33%. Check Norwood Financial Corp. dividend history here>>>

But aren't stocks generally more risky than bonds?

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.

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 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.

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

Bankinter SA (BKNIY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

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

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.

In today's economic environment, traditional income investments are not working.

For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.

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.

In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.

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.

Invest in Dividend Stocks

We feel that these dividend-paying equities-as long as they are from high-quality, low-risk issuers-can give retirement investors a smart option to replace low-yielding Treasury bonds (or other bonds).

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

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.

Bankinter SA (BKNIY) is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.08%. This compares to the Banks - Foreign industry's yield of 2.62% and the S&P 500's yield of 1.46%. The company's annualized dividend growth in the past year was 14.52%. Check Bankinter SA dividend history here>>>

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Urban Edge Properties (UE) is paying out a dividend of $0.21 per share at the moment, with a dividend yield of 3.68% compared to the REIT and Equity Trust - Retail industry's yield of 3.93% and the S&P 500's yield. The annualized dividend growth of the company was 11.76% over the past year. Check Urban Edge Properties dividend history here>>>

Currently paying a dividend of $2.21 per share, UnitedHealth Group (UNH) has a dividend yield of 3.19%. This is compared to the Medical - HMOs industry's yield of 0% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.24%. Check UnitedHealth Group 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.

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.

You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." 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.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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