The NASDAQ Dividend Stocks Retirees Are Loading Up On Before the Next Rate Cut

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Quick Read

• People don’t think PepsiCo (PEP) would be in the NASDAQ but it actually is, and the company pays a hefty 3.47% dividend.

• Texas Instruments (TXN) stock is a solid technology-sector pick offering a nearly 3% yield.

• American Electric Power (AEP) provides an attractive 2.85% dividend yield and recently grew its quarterly revenue to more than $5 billion.

• Cisco’s (CSCO) 2.08% dividend yield and record quarterly revenue of $15.3 billion are capturing the attention of retirement investors in 2026.

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U.S. Treasury bonds paid decent yields for a while, but that’s very likely to come to an end soon. This year and in 2027, retirees should prepare their portfolios for one or more interest-rate cuts.

If government bond yields are poised to fall, retirement investors will probably want to get passive income from other sources. Dividend-yielding stocks in the NASDAQ 100 index could fill the void left by bonds when interest rates get cut.

You might not think that NASDAQ stocks provide big enough yields for retirees and near-retirees. Surprisingly, there are a handful of NASDAQ 100 companies offering good yields without too much share-price volatility. I’ll reveal four of them today so you can fit them into your income-producing strategy.

PepsiCo (PEP)

It’s a common misconception that the NASDAQ 100 only includes technology stocks. Also, some people might assume that you can’t get good dividend yields from the NASDAQ. These assumptions are proven wrong when you look at companies like PepsiCo (NASDAQ:PEP).

A famous purveyor of beverages and snack foods, PepsiCo happens to be a member of the NASDAQ 100 index. Furthermore, PepsiCo pays a very healthy annual dividend yield of 3.47%.

Retirement investors will often own Coca-Cola (NYSE:KO) stock because they heard that Warren Buffett likes it. Yet, they’re also buying PepsiCo stock because its dividend yield beats Coca-Cola’s 2.64% yield.

Besides, there’s a measure of comfort in knowing that PepsiCo is a well-known company with no shortage of revenue. In fact, PepsiCo reported net revenue of $93.925 billion in 2025, up 2% when compared to $91.854 billion in 2024.

This isn’t to suggest that PepsiCo shares are exactly as safe as U.S. Treasury bonds. Nevertheless, retirees are likely to do better with PEP stock’s dividend distributions since bond yields are probably about to get slashed.

Texas Instruments (TXN)

We wouldn’t have a complete NASDAQ 100 dividend stocks list without at least one technology firm. Retirement investors don’t need to shy away from tech stocks as Texas Instruments (NASDAQ:TXN) is a solid choice for yield seekers.

Long gone are the days when Texas Instruments wasn’t mainly known for designing handheld calculators. Nowadays, the company generates a great deal of revenue from selling semiconductors.

The data from 2025’s first quarter supports this contention. During that quarter, Texas Instruments’ revenue grew 11% year over year to $4.069 billion.

Plus, here’s another eye-opening fact about Texas Instruments. Amazingly, the company’s Q1 2025 free cash flow (FCF) surged 82% on a trailing 12-month basis to $1.715 billion.

All of a sudden, Texas Instruments doesn’t look like a so-called “legacy tech” firm anymore. Texas Instruments is not a dinosaur at all, and retirement investors are flocking to this great opportunity as TXN stock offers a hefty 2.81% annual dividend yield.

American Electric Power (AEP)

Electric/utilities companies are usually not listed on the NASDAQ 100, but there’s a notable exception and retirees are paying attention in 2026. American Electric Power (NASDAQ:AEP) is, indeed, NASDAQ-listed and you’ll surely appreciate this electric company’s dividend.

It’s easy to see why retirement investors would feel sure taking a share position in American Electric Power. It’s a firmly established utilities company that was incorporated way back in 1906.

American Electric Power also happens to be a revenue grower, by the way, so retirees don’t need to worry about the company falling into financial ruin anytime soon. In 2025, American Electric Power recorded $5.314 billion in revenue, as opposed to $4.696 billion in 2024.

Pardon the pun, but AEP stock is truly a power-packed pick for passive income collectors. If you’re ready, you might consider purchasing a few shares and capitalizing on American Electric Power’s generous 2.85% dividend yield.

Cisco (CSCO)

It would be practically impossible to compile a list of NASDAQ 100 members that pay good dividends without including Cisco (NASDAQ:CSCO). Investors who are in or near retirement are buying Cisco shares to get technology-sector exposure in 2026 while also getting a decent dividend yield.

As a provider of networking/communications equipment and services, Cisco is right in the thick of modern technology. It’s a large and financially successful business that grew its second-quarter fiscal 2026 revenue by 10% year over year to $15.3 billion — a record quarter for Cisco.

Granted, the 2.08% annual dividend yield that Cisco offers isn’t as high as what you’d get from PepsiCo, Texas Instruments, or American Electric Power. Still, CSCO stock pays decent dividends for a large technology firm in the 2020s.

Most importantly, Cisco is on the cutting edge of high tech and is in great financial condition. Consequently, retirement investors are loading up on CSCO stock in anticipation of interest-rate cuts, and you might want to add a few shares to your income-producing portfolio.

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