2 Dividend Greats for Retirees Who Love Quarterly Income

"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."

"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."

Retired investors with capacity to assume modest additional risk can consider ultra-high-yield dividend stocks to enhance quarterly income. Higher yields generally accompany greater challenges and risks, though depressed valuations can make some high-yield bets less speculative than momentum plays. Many high-yield names face significant headwinds, but several of those headwinds are manageable and expectations remain low. Wendy's trades below $9, suffered a painful dividend cut, and remains down nearly 60% over two years; the current dividend appears covered with potential room to grow if turnaround efforts succeed. Fast-food operators face inflation and a K-shaped consumer environment.

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