3 high-yielding dividend shares I would buy in retirement

The G8 Education Ltd (ASX:GEM) dividend is one of three that I would buy in retirement. Here's why I like these high-yielding dividend shares…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Unfortunately for many retirees the interest provided by term deposits and supposedly high interest savings accounts just doesn't provide enough income to live comfortably on.

Thankfully, with its average dividend yield of 4.2%, I believe the Australian share market is the place to be for investors in search of income.

Three shares which smash the market average with their high-yielding dividends are listed below. Here's why I would buy them in retirement:

Dicker Data Ltd (ASX: DDR)

This wholesale computer hardware company's share price may have rallied strongly in the last 12 months, but it still provides one of the most generous yields on the market. Management plans to pay a fully franked 16.4 cents per share dividend this year, which equates to a whopping yield of 7.6% at the current share price. Another bonus is that the company pays its dividend in quarterly instalments.

G8 Education Ltd (ASX: GEM)

G8 Education is a leading childcare operator with 490 centres in operation in Australia. It also has 20 centres in Singapore, bringing its total licenced places to a massive 38,713. These places are likely to get a boost in the year ahead thanks to its placement of shares with China First Capital. The company raised $212.8 million, at a premium, from the investment company in order to fund its future growth opportunities. G8 Education provides investors with a trailing fully franked 6% dividend which is also paid in quarterly instalments.

Suncorp Group Ltd (ASX: SUN)

An investment in this insurance giant would provide investors with a trailing fully franked 5.5% dividend at the current share price. Not only is this the biggest yield amongst its peers, but at 15x earnings its shares are also the cheapest in the industry. I believe this is a great time to pick up shares, especially with its new operating model gathering pace. I thought its recent half-year result showed a huge improvement and expect things to get even better in the second-half.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »