5 income-generating stocks to help you enjoy retirement  

When it comes to retirement a steady stream of income is required to be able to enjoy life’s luxuries while resting easy knowing that your capital is invested in some the the S&P/ASX 200 Index’s (INDEXASX:XJO) strongest companies. Here are five off the best offering fully franked dividends and the security that comes from defensive earnings streams and large economies of scale.

Toll Holdings Limited (ASX: TOL) is an infrastructure, transport and road haulage business that has a dominant market share in Australia to provide security, and an Asian expansion strategy to provide growth. The fully franked yield is 5.3% with analysts’ forecasts being for dividends to grow steadily out to 2016.

Although oil and gas companies are not traditionally known for their yields, Woodside Petroleum Limited (ASX: WPL) currently offers a fully franked 5.8%, while selling for just 12.3 times projected earnings. Although the payout is forecast to drop in coming years, Woodside remains the ASX’s premier energy business. They don’t call oil the black gold for nothing and with additional leverage from rising LNG prices, Woodside now has two significant commodities to cash in on long into the future.

In the financials sector Bank of Queensland Limited (ASX: BOQ) also offers a fully franked 5% yield with analysts forecasting steady dividend and earnings per share growth out to 2016. With a strong regional customer base and reasonable outlook for the residential property market, Bank of Queensland may be able to kick on from the multi-year highs it has been touching recently.

Utilities are another excellent source of income and one of the biggest and best is electricity and gas provider AGL Energy Ltd (ASX: AGK). It’s a defensive cash-generating machine forecast to grow profits steadily out to 2016. The fully franked 4% yield is more than handy, as investors benefit from steadily rising energy prices.

In the property sector it’s worth considering Mirvac Group (ASX: MGR), which sells on a forward price earnings of 15.2 and unfranked yield of 4.8%. Involved in both property investment and construction, it offers organic growth on the back of defensive revenue streams – just the kind of business to own for a comfortable retirement.

It's no secret that companies like the above have great income streams - and the market prices them accordingly. In comparison, this growing small-cap is relatively unknown.

Indeed, the share price of this growing company is still only about 5% above the price 2 directors paid quite recently. Better yet, the CEO owns over 15%! However, the share price is up over 5% in three weeks so discover this stock now, before it's too late.

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Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. You can find him on Twitter @tommyr345

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