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Suncorp Group Ltd, APA Group, Sydney Airport Holdings Ltd: 3 high-yield companies to buy for your retirement

Planning for retirement brings up a lot of questions. One major uncertainty is having enough income after you retire. You may have superannuation income or some individual savings, but the money may not be sufficient still.

You can have money coming in like an income through dividend-paying stocks. They can help you build up wealth before you retire and they will continue to pay you for many years after that. Who wouldn’t want a big, fat dividend cheque coming in when they are in their 70s, 80s or beyond?

Here are three high-yield stocks that are the kinds of businesses you would still expect to be in business decades from now. They could be a reliable part of your retirement portfolio.

Suncorp Group Ltd (ASX: SUN) is an insurer with well-known brands like AAMI and GIO. Its current business restructuring is already reaping benefits and the company expects that in FY 2015 it should have cost savings of about $225 million.

The banking division is seeing more home loan business from the rising housing market, spurred on by low interest rates. As a well-established insurance company, there is little doubt its services will be in demand for many years to come. The dividend yield is 5.7% fully franked.

APA Group (ASX: APA) owns and manages an extensive network of oil and gas pipelines that extend over almost all of the states. This kind of infrastructure business may cost a lot to build, but the ongoing management and maintenance is relatively inexpensive, so the company can generate good earnings.

With the LNG gas industry set to boom from next year onwards, these pipelines become even more important to move gas from drilling sites to LNG plants. Needless to say, the pipelines will be there for a long time, so it could be a good dividend stock for investors preparing for retirement. It has a 4.6% yield unfranked.

Sydney Airport Holdings Ltd (ASX: SYD) operates the only international airport in Sydney, so as you can imagine, the business and travellers that go through it every day makes this infrastructure very valuable. There are plans for a second airport to be built and the company has the first right of refusal to build and operate a new airport. Analysts expect it will choose to maintain its monopoly on airport operations in Sydney. That means shareholders can be more assured about future dividend income over the following decades. Its yield is 5.3% unfranked.

A better investment than these 3

Of these three companies, I would prefer APA Group based on its easy-to-understand business and future dividend generation potential. There is also another stock with very strong growth prospects that you should know about. This little known ASX company has already delivered eight consecutive years of profit and dividend growth... but with even more growth ahead, the shares are still a firm "BUY" today! Discover The Motley Fool's #1 dividend pick in our newly updated report. Simply click here for your FREE copy right now.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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