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4 steady dividend stocks to buy for a worry-free retirement

The last thing you want as you approach retirement is to be worrying about a portfolio of volatile companies or those with temperamental earnings.

You’re retired! You’ve already put in the hard hours and now is the time to sit back and enjoy the fruits of your labour. With that in mind there are four companies with steady, reliable dividends to help you plan for a worry-free retirement:

ERM Power Ltd (ASX: EPW)

Dividend Yield 6.2% (fully franked)

Shares in ERM Power have fallen 22% this year after failing to win a bid for Macquarie Generation assets, but in my view this only makes the company more attractive. The company now sells for a moderate 16 times trailing (underlying) earnings and is forecasting electricity sales growth of 28% in 2014 and 20% in 2015.

Telstra Corporation Ltd (ASX: TLS)

Dividend Yield 5.3% (fully franked)

Telstra makes up the backbone of much of Australia’s telecom infrastructure, which has been estimated to be worth tens of billions of dollars over the coming half century. This is a comfortably long growth horizon for investors buying today, and backed up by its famed, fully franked dividend, you’ll be sleeping easy.

Insurance Australia Group Limited (ASX: IAG)

Dividend yield 6.4% (fully franked)                                        

I like insurance companies because of the steady, reoccurring cashflows they receive which can be invested over time. The returns from investment activities can vary with economic cycles, but generally balance out over the long term and support strong regular dividends.

IOOF Holdings Limited (ASX: IFL)

Dividend yield 5.4% (fully franked)

IOOF Holdings is likely to benefit from the increasing number of people seeking financial services to manage their superannuation and retirement funds. The company’s 5.4% fully franked dividend is a great sweetener.

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While each of these dividend payers will help keep the cash rolling in so you can go out and enjoy a worry-free retirement, there is one dividend stock that I think is even better; The Motley Fool's #1 dividend stock for 2014 - 2015.

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Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned in this article.

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