What is the 2026 Social Security COLA?

The 2026 COLA is only 3%, a modest increase that pushes retirees to seek additional income from stocks.

Are these stocks suitable for all investors?

Not necessarily; they target income-seeking investors, especially retirees. However, individual stock risks should be evaluated.

5 Safe Monthly Pay Dividend Stocks Boomers Love in July

As the 10-year Treasury yield drops to 4% after hitting 5% in May, and the 2026 Social Security COLA comes in at just 3%, income investors are shifting back to monthly dividend stocks. We highlight 5 stocks favored by Baby Boomers.

July 5, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

10 year Treasury yield

May peak yield

Social Security COLA 2026

Income investors heading into July face a friendlier setup than they did just six weeks ago. The 10-year Treasury yield sits at 4%, down from a May peak of 5%, while the 2026 Social Security COLA came in at just 3%. That combination—lower risk-free rates plus a modest cost-of-living bump—pushes retirees back toward monthly dividend stocks.

Details

The convergence of lower bond yields and a small increase in Social Security benefits makes monthly dividend stocks an attractive source of regular income for retirees, especially Baby Boomers. These stocks offer predictable cash flows that can help cover living expenses.

Context

Monthly dividend stocks had lost some appeal when the 10-year yield surged to 5% in May, making bonds a competitive alternative. With yields now back to 4%, dividend stocks regain their luster.

What This Means for Investors

For income-focused investors, monthly dividend stocks can provide steady cash flow in a low-yield environment. However, it's important to evaluate each stock's dividend sustainability and overall risk profile.

Frequently Asked Questions

Because the 10-year Treasury yield fell from 5% in May to 4%, making dividend stocks more competitive compared to bonds.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.