Retired investors still have numerous options to add to their passive income streak, while rates and yields are still on the high end of the recent historical range. Undoubtedly, we’re coming off an action-packed week, with the U.S. Presidential Election that went Donald Trump’s way and a Federal Reserve decision that wasn’t too surprising (it entailed a 25bps cut).

Undoubtedly, the big question going into 2025 is whether tariffs and other policies will limit the Fed’s ability to cut rates further. Undoubtedly, Trump’s a fan of tariffs, but he also prefers lower interest rates. It could prove challenging to get much lower rates if applied tariffs to China or Europe have an inflationary impact.

Either way, Fed chairman Jay Powell isn’t ready to step down, even if requested to by President-Elect Trump. Powell’s done a great job fighting the post-lockdown wave of inflation. And it looks like he’ll continue to do his job to the best of his ability. For Powell, that means finding the perfect balance between taming inflation and maintaining decent employment figures.

Only time will tell how many tariffs are on the horizon and how big they’ll stand to be. Either way, a more aggressive stance on tariffs may entail limited downside for rates. And perhaps a shift from rate cuts to a prolonged pause.

In any case, I believe there are some great investment options for retirees seeking to add a few basis points to their portfolio’s overall yield. That is, of course, one’s portfolio isn’t already positioned with yield maximization in mind.

Here are two solid high-yielders that could realistically yield far less in a year or two from now, regardless of what the Fed’s game plan is going into 2025 as they consider the significant changes to come under the Trump administration.

Key Points About This Article

• Lower interest rates and a return of inflation could make specific dividend stocks a great bet.
• T and KO shares stand out as resilient, cheap dividend plays to go after if you seek a steady passive income play.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

AT&T

Even after reducing its dividend in 2022 in response to profound industry pressures, AT&T (NYSE:T) stock still boasts a respectable 5% yield. Indeed, it’s not hard to imagine many retirees ditched the name after it ended its lengthy dividend growth streak. That said, things have been turning higher for the telecom lately.

Even after coming short on its latest third-quarter earnings reveal, the stock managed to nudge higher as investors focused on what went right.

Notably, AT&T stuck by its full-year earnings guidance, and that was enough to keep shares marching higher. Indeed, management is optimistic it can fare well as consumers look to upgrade their smartphones (could there be an AI phone supercycle on the horizon?).

Though there are risks to AT&T’s comeback, I do think the company is making a lot of right moves lately. The recent $1 billion deal with Corning (NYSE:GLW) to expand its next-generation internet network strikes me as one of many wise moves that could be on the horizon.

Either way, lower rates and less regulation under a Trump government opens the door to more such projects and spectrum deals — all major pluses for T stock as it comes back.

Coca-Cola

Coca-Cola (NYSE:KO) stock has been losing its fizz lately, now down close to 13% from its recent high. The correction seems like a great buying opportunity for retirees seeking a quality 3%-yielding consumer staple at a modest price.

At the time of writing, KO shares go for 21.5 times forward price-to-earnings (P/E). It’s not a steal, but it’s a relatively decent deal in today’s richly-valued market environment.

Up ahead, a slew of headwinds (currency and acquisition-related headwinds) could weigh mildly on earnings. That said, I do think management has the means to offset such headwinds as it doubles down on its “targeting” marketing approach while continuing to make smart moves to enhance operational efficiencies.

Perhaps the biggest reason to buy Coke stock on the dip is its proven pricing power amid inflationary times. If you’re worried about a return of inflation or the start of stagflation, KO stock stands out as a great safety play, especially while it’s cheap and sitting on a robust floor of support in the low-$60 range.

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