Investment priorities change

Q: What stocks should investors in their 50s buy?

A: As you get older, your investing priorities change. Instead of focusing on long-term growth, your aim should shift to preserving your nest egg and creating an income stream that can help cover expenses. If you’re in your 50s and a decade or so away from retiring, look for stocks that can help you do that.

A good place to start is with the Dividend Aristocrats, stocks that have increased their dividend annually for at least 25 consecutive years. A couple of favorites are consumer goods specialist Procter & Gamble, which pays a 3% yield and has increased its payout 60 consecutive years; and Exxon- Mobil, an oil and gas titan with a 34-year streak of increases and above-average 3.8% yield.

Of course, if you don’t want to choose individual stocks, an ETF such as the Vanguard High Dividend Yield ETF could be the best choice for you. This fund invests in more than 400 stocks. Procter & Gamble and ExxonMobil are among the fund’s top holdings.

Real estate investment trusts (REITs) can make excellent investments for older individuals, especially when held in tax-advantaged retirement accounts. Personal favorite Realty Income pays a 4.5% dividend and has increased its payout 93 times since its 1994 NYSE listing.

Matthew Frankel owns shares of Realty Income. The Motley Fool owns shares of ExxonMobil.