2 Dividend Stocks Ideal for Retirees

Industrial conglomerate 3M (NYSE: MMM) and water-treatment technology company Pentair (NYSE: PNR) both have solid dividends, good growth prospects, and attractive valuations in relation to their risk profile. All of which makes them good stocks for retirees to consider. Let's take a closer look.

The case for both stocks rests on the idea that they already pay useful dividends that are amply covered by free cash flow (FCF). In addition, they have the potential to significantly grow FCF, ultimately leading to long-term dividend increases. FCF is simply the cash that's left over from profits after the capital needed to run the business is stripped out alongside capital expenditures. 

Image source: Getty Images.

Continue reading

Source Fool.com