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5 share picks for a blue-chip retirement

If retirement is on your horizon in the next decade then I feel now would be as great a time as ever to prepare your portfolio for it.

With interest rates at record lows and potentially going lower, I would suggest investors look for shares that provide growing and reliable dividends as a source income.

Five shares at the top of my list would be as follows:

Altium Limited (ASX: ALU)

Over the next decade I expect software company Altium to grow at a strong rate thanks to the rise of the Internet of Things market. As more every-day electronic devices become connected to the internet, the demand for its popular printed circuit board software is likely to increase. In FY 2017 Altium’s shares are expected to provide a 4.2% dividend according to CommSec.

Coca-Cola Amatil Ltd (ASX: CCL)

Although sugary drink sales may be on a downward trend as consumers become more health-conscious, I feel Coca-Cola Amatil has a wide ranging product assortment that will allow it to respond to ever-changing consumer tastes. As well as this the company’s Indonesian business is finally starting to show signs of promise. Earnings in the region grew 65% in the first-half of FY 2016 year on year.

Retail Food Group Limited (ASX: RFG)

The company behind the Gloria Jean’s brand has been one of the best dividend shares in the last decade and I expect this to be the case over the next decade. As the company expands internationally and revitalises many of its domestic brands, I feel Retail Food Group is positioned to continue to grow its dividend.

Ramsay Health Care Limited (ASX: RHC)

This private hospital operator may only be expected to provide a fully franked 2% dividend in FY 2017, but I believe its explosive growth means that the company will grow it substantially over the next decade. After all, the company has a long history of dividend increases. In the last 10 years Ramsay has grown its dividend by an average of 17% per annum.

SEEK Limited (ASX: SEK)

SEEK is forecast to pay a fully franked 2.9% dividend in the next 12 months. Much like Ramsay this isn’t the most generous yield out there, but I believe patient buy and hold investors will be rewarded handsomely in the future. Although its domestic business may be slowing a touch, I believe there’s a great deal of growth ahead internationally for SEEK.

As well as those five shares investors could give their retirement portfolio a huge lift with investments in these hot stocks.

Big, Fat, Dividends

This company's dividend is almost the stuff of legends. Its reliable cash flows support a high payout ratio, and the company's stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium and Retail Food Group Limited. 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.

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