3 blue-chip dividend shares for your retirement portfolio

Every investor has a different strategy depending on what their end goal is. Those with longer time horizons may invest in a growth share such as Domino’s Pizza Enterprises Ltd (ASX: DMP). It could provide investors with strong share price gains over the next few years.

But for those that are enjoying their retirement and searching for income, Domino’s might not be for them. As a growth share it does carry an extra element of risk and pays only the smallest of dividends.

In my opinion, investors ought to look for stable companies with growing and market-beating dividends. Luckily, the Australian Stock Exchange has plenty and these three in particular are worth considering:

G8 Education Ltd (ASX: GEM)

Currently the shares of childcare operator G8 Education have an estimated FY 2016 fully franked dividend of 6.7%.

Not only is that fantastic, but according to CommSec analysts are expecting this dividend to grow by a good 10% per annum for the next couple of years.

Thanks to sustained demand in the industry the company has been able to grow its revenue for nine consecutive years. I expect this to continue to be the case as the company continues its growth through acquisition strategy. I believe this should make it a great long-term investment today.

Suncorp Group Ltd (ASX: SUN)

Another share which I think income investors should consider is banking and insurance giant Suncorp. The operator of insurance brands such as AAMI, Apia, and GIO, is expected to pay a fully franked dividend of 5.3% in FY 2016.

The company expects recent changes to its operating model will deliver cost efficiencies and enhance the company’s profitability in the future. These changes include the ability for customers to manage their financial products seamlessly across all its channels and brands.

It is also aimed at increasing customer satisfaction levels. If it does achieve this then I imagine it will help with retention levels and could positively impact the company’s bottom line.

I expect both its earnings and dividend to grow modestly over the next decade, potentially making it a good candidate for a retirement portfolio.

Telstra Corporation Ltd (ASX: TLS)

After a decline of over 14% in the last 12 months I believe Telstra is great value today, especially for income investors.

The telecommunication behemoth’s mobile network may not have been too reliable in recent months, but one thing that I believe investors can definitely count on is its dividend.

Telstra has not cut its dividend in almost a decade and considering earnings are expected to grow positively through to FY 2018, I wouldn’t expect a cut to come anytime soon. This means investors could expect to earn a fully franked dividend of 5.8% in FY 2016.

Foolish takeaway

I expect these three shares to provide market-beating dividends for the foreseeable future, potentially making them must-buys today. If you’re still searching for even more income ideas then do not miss out on these shares. There are a couple of dividend shares on that page which I believe are worthy of your attention today.

Could these just released franked dividend picks turn $15,000 into over $30,000?

When renowned dividend investing pros like Andrew Page issue buy alerts, it pays to listen. Because investors who followed Andrew's recommendation of Australian Pharmaceuticals in early 2015 could've doubled their money in just over a year, turning $15,000 into over $30,000 by the time he recommended they sell and lock in their profits. Chances are you won't want to miss uncovering the names of Andrew's newest share recommendation and short list of 3 dividend Best Buys Now Shares.
So click here to learn more about these potentially life-changing shares.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.