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When investing for retirement, primary goals are long term capital appreciation and dividend income. I have a personal bias favoring dividend income because the yield gives a significant start on earning a target rate of return when growing money. Below are 10 S&P 500 (NYSEARCA:SPY) Dividend Aristocrats recommended for retirement accounts. The yields are above 2%, but not so high as to bring business risk associated with high yield stocks. Capital appreciation has been good, each stock has doubled in the last 10 years (a few approximated double).

McCormick (NYSE:MKC) sells a broad line of food products and the stock has more than doubled. The $1.12 dividend (increased annually for 26 years) provides a 3.2% yield and the $49 stock has a P/E under 10X with analysts forecasting EPS of $4.94 this year and $5.62 next year.

Exxon Mobil (NYSE:XOM), a Dow stock and the largest energy company (descended from Rockefeller's Standard Oil Company), has the largest market cap in the world. The dividend was just raised (29th consecutive annual increase) to $1.88, providing a yield of 2.2%. The stock has roughly doubled in the last 10 years and the $87 stock has a P/E of about 10X with analysts forecasting EPS of $8.39 this year and $8.98 next year.

Air Products (NYSE:APD) provides industrial gases, primarily oxygen in cylinders that weigh 5 times more than the gas itself. The $2.32 dividend (increased annually for 29 consecutive years) yields 2.4% and the stock has more than doubled. The $95 stock has a P/E of 16X with analysts forecasting EPS of $5.72 this year and $6.42 next year.

VF Corp (NYSE:VFC) is the largest apparel company in the world and has grown by purchasing popular brand names such as The North Face and Nautica. The $2.52 dividend has been increased annually for 39 consecutive years, providing a 2.4% yield. The stock has risen more than 150% in the last 10 years. The $108 stock price has a P/E of 15X with analysts forecasting EPS of $7.09 this year and $7.85 next year.

Emerson Electric (NYSE:EMR) is a global leader in process management, network power systems and climate technologies. The dividend has been increased annually for 55 years and the stock has more than doubled. The $1.38 dividend yields 2.3% and the $60 stock has a 17X P/E with analysts forecasting EPS of $3.29 this year and $3.85 next year.

Bemis (NYSE:BMS) sells flexible packaging products and pressure sensitive materials around the world. The 96¢ dividend (increased annually for the last 28 years) yields 3.0% and the stock has almost doubled. The $31 stock has a 12X P/E with analysts forecasting EPS of $2.39 and $2.68 next year.

Chubb (NYSE:CB) is one of the largest property and casualty insurance companies, selling to businesses and individuals around the world. The stock doubled with a $1.56 dividend (increased annually since 1966) and yields 2.5%. The $65 stock price has a P/E of 11X with analysts forecasting EPS of $5.65 this year and $5.82 next year.

McDonald's (NYSE:MCD), a Dow stock, has one of the most popular brand names in the world. Growth will come primarily from expanding in growing countries in Asia, Africa and Latin America. The stock has almost tripled (from depressed levels) in the last 10 years with a $2.44 dividend (increased annually since the first dividend was paid in 1976) yielding 3.2%. The $78 stock has a P/E of 14X with analysts forecasting EPS of $5.09 this year and $5.55 next year.

Clorox (NYSE:CLX) sells a variety of household products such as Clorox bleach, Armor All, STP, Kingsford, Hidden Valley, Brita and Glad bags around the world. The stock doubled and the $2.20 dividend (increased annually since 1977) yields 3.2%. A stock price of $69 gives a P/E of 17X with analysts forecasting $3.94 this year and $4.41 next year.

Procter & Gamble, a Dow stock, (NYSE:PG) has some of the best know brand names of popular household consumer products. It has paid a dividend every year since 1890 and has increased the dividend, just raised to $2.30, for 55 consecutive years with a target growth rate of 9½%. The stock has doubled in the last 10 years, the price of $64 gives a P/E of 16X with analysts forecasting EPS of $3.96 in this year and $4.34 next year.

The companies are investing in overseas markets to participate in global growth. These stocks have done well with capital appreciation and attractive yields, basic ingredients for successful retirement investing.

Disclosure: I am long VFC.

Source: 10 Stocks for Retirement