2 Dividend Greats for Retirees Who Love Quarterly Income

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Retired investors who can afford to take on a bit more risk to pad their quarterly income stream may consider some of the ultra-high-yielders. For the most part, higher yields tend to accompany more challenges and greater risks. However, the lower valuations might make such high-yield bets less risky than most momentum plays others are inclined to chase for a shot at explosive growth.

Sure, there are some pretty towering yields out there with hard-hit names that are sailing through some pretty horrid headwinds. But many such headwinds are more than manageable, and with low expectations in place, perhaps it's time to consider punching a ticket to some of the dividend greats while they've been ignored by most other income investors and discounted heavily by the market.

Wendy's

If you're a fan of Wendy's (NYSE:WEN) food, you might also be a fan of the stock now that it's trading for less than $9 per share. Of course, the dividend cut was quite painful for early shareholders, many of whom are also sitting on substantial losses. Still, the dividend, as it exists today, looks well-covered, with room to grow, especially if the burger chain's turnaround plan starts to pay more dividends.

With shares down nearly 60% over just over two years, buying this dip seems rather reckless. And while it might be a better idea to wait for the negative momentum to subside (no signs of that yet!), I'd not be against initiating a small position here or just stashing the dividend payer on the radar. At the end of the day, Wendy's is a timeless brand that's stumbled amid very challenging industry conditions.

The broad fast-food scene is between a rock and a hard place, between an inflation surge and a somewhat mixed consumer environment. Indeed, in this so-called K-shaped economy, where some consumers are thriving while others are struggling to cope with rising prices, Wendy's finds itself in a rather peculiar position. The past few years of inflation and the potential for economic disruptions from AI could make consumers even more price-sensitive.

In any case, management is investing in various technologies to smooth its operations. If such big bets translate to cost savings and, in turn, lower prices for consumers, Wendy's might be poised for a comeback against some very low expectations and some easier year-over-year comparables.

In the meantime, uncertainties remain as the firm looks for a new CEO to guide it out of one of its worst-ever slumps. Personally, I'm a fan of the brand and think diners will return if the perceived value improves. With such a fat yield, I'm inclined to group Wendy's as one of the stocks deserving of investor patience.

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Chevron

For retired income investors who'd rather not jump into the deep end of the value waters, there's big oil kingpin Chevron (NYSE:CVX), which sports a 4.4% dividend yield alongside a relatively attractive 16.2 times forward price-to-earnings (P/E) multiple.

While oil prices have been quite volatile of late, I still think the $310 billion energy juggernaut is worth stashing away, not only for the cheap dividend, but for the lower beta (0.81), which could help portfolios withstand the next market correction a bit better. Of course, CVX stock hasn't done much in the past four years.

Still, the titan is on track to unlock operating efficiencies and potential synergies as it digests its latest Hess acquisition while keeping a close watch for other opportunities in the space. With a strong balance sheet and a shareholder-friendly management team, investors can expect more in the way of dividend hikes and share buybacks.

Sure, energy isn't an exciting place to be these days, but there's real value and big dividends to be had with some of the bigger blue chips in the space.

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