The best stock for retirees may not be what you think.
Articles on retirement investing often focus on dividend stocks, and rightfully so: Reliable dividend payers can help provide retirees a steady stream of income. But as renowned investor Warren Buffett pointed out in his 2012 annual letter, shareholders can create their own cash streams simply by selling off some of the shares they own over time. For businesses that can reinvest their earnings at high rates of return, this strategy can help to generate greater overall profits for shareholders. It's in this regard that I urge investors to consider the following excellent -- if non-dividend paying -- stock for their retirement portfolios.
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Source: Fool.com