3 Solid Dividend Stocks to Consider for Investors in Their 50s

UK investors continue to gravitate towards dividend stocks, and for good reason. These investments offer the potential for capital gains And a steady stream of passive income.

Here I’ll highlight three dividend stocks that 50-something investors might consider. These stocks are all slightly defensive in nature, but still have the potential to provide attractive total returns (capital gains and income) over the long term.

Constant growth of dividends

First of all, Coca Cola HBC (LSE: CCH), a bottling partner of the Coca-Cola business.

I think this action is well suited to people aged 50 and over for several reasons. First, I don’t think people are going to stop drinking Coke (and related products) in the near future. Therefore, it is unlikely that the stock price will suddenly drop.

Second, the yield is healthy at 3.1%, and the company has an excellent track record of dividend growth. It has increased its payout every year since paying its first dividend in 2013.

Of course, it is possible that consumer tastes and preferences will change in the future. But with a price-to-earnings ratio of 14.5 (versus 22 for Coca-Cola), I like the risk/reward ratio.

It should be emphasized that Barclays has just raised its price target from 3,000 to 3,100 p. This represents around 15% more than the current share price.

A long-term winner

then, we have Bunzl (LSE: BNZL). It is an underestimated phenomenon FTSE 100 company specializing in supplying businesses with essential items such as safety equipment, hygiene products and disposable tableware.

The yield is only 2.3%. But I don’t see that as a hindrance. When it comes to creating wealth for shareholders, this company has a phenomenal track record. Investing in this company 20 years ago would have returned about $1.5 billion. Seven times gain (and also received regular dividends).

Of course, past performance is not an indicator of future returns. And an economic downturn is a risk for this company.

Taking a long-term view, I think Bunzl will continue to do well. Analysts at HSBC I have just upgraded the stock from Hold to Buy and set a price target of 3,460p.

Growth and defense

Finally, discover Unilever (LSE: ULVR). It is the owner of Dove, Hellmann’s, Domestosand a pile of other household brands.

In my opinion, this stock offers a nice mix of growth potential and defensive character, so it could be very suitable for those in their fifties.

On the growth side, the company has significant exposure to high-growth emerging markets. It also has a new management team determined to get the company back on track.

In terms of defense, Unilever products tend to be purchased throughout the economic cycle, so sales are unlikely to suddenly drop.

As for the yield, it’s around 3.5% today. That’s not very high, but it’s another company with a great track record of dividend growth.

It’s worth noting that many consumers have been switching to cheaper brands in recent years. If this trend continues, the stock could deliver disappointing returns.

However, I believe that the new management team should be able to revive interest in the company’s “flagship brands.”