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4 Dow Stocks Every Retiree Should Own

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It's arguably the bluest of the blue-chip stock indexes, dating back to the 19th century. The Dow Jones industrial average is a bastion of large, stable companies that pay dividends and represent some of the very best firms in their respective industries. That's why a retiree looking for a high-quality company with a dependable income stream would be wise to consult the Dow. If we had to pick just four of the 30 stocks that make up the Dow, we would focus on names with some combination of high or fast-rising dividends and promising business prospects. Another requirement would be that the stock price be reasonable relative to the company's expected future earnings. And if management is sitting on loads of cash that can be returned to shareholders through dividend hikes and share buybacks, so much the better. Based on a mix of those criteria, these four Dow components stand out as must-have holdings for retirees.

All prices and other data are as of January 3, 2017. Price/earnings ratios are based on the average of analysts’ forecasts for calendar 2017, as compiled by Zacks Investment Research. Stocks are listed alphabetically.

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