3 Dividend Stocks Retirees and Yield Lovers Should Own

Market Overview - In 2025, the S&P 500 remains near record levels despite slowing economic momentum and cooling inflation, with the Federal Reserve expected to implement gradual rate cuts [1] - Market volatility has increased, yet many mega-cap stocks are trading close to their all-time highs, indicating a broadly positive investor sentiment [1] - A growing number of investors are preparing for a more challenging 2026 characterized by slower growth and tighter consumer spending [1] Defensive Investment Opportunities - For investors seeking defensive portfolio positioning, there are numerous blue-chip dividend-paying stocks available, which typically exhibit stronger balance sheets and consistent cash flow growth [2] - These long-term investments are appealing, especially in a market with many companies showing unfavorable balance sheets and high valuations [2] Company Spotlight: PepsiCo - PepsiCo (NYSE: PEP) is highlighted as a leading Dividend Aristocrat, demonstrating reliability during economic downturns due to its essential product offerings [4] - The company's strong brand equity provides significant pricing power, making it a compelling investment thesis [4] - PepsiCo boasts a dividend yield of 3.9% and has a remarkable track record of increasing dividends for 53 consecutive years, earning it the title of Dividend King [5][6]