65 or older? 3 shares you should consider buying

Credit: NAB

In Australia the average life expectancy is around 82 years old now with that number growing all the time which is good news for readers, but at that age you’re unlikely to want to be working at your local Coles supermarket to earn extra income.

That’s why you should aim to build a nest egg that pays you a sustainable and preferably growing income stream in retirement. If you’re aged 60 or over your SMSF income will be tax free as all income received by the fund (including dividends) is tax free to the fund when the member is taking a pension.

This is a superb bonus for retirees, although of course you’ll want the big dividends of today not tomorrow if you want to enjoy the luxuries in life like nice hotels, lunches, dinners, and business class travel.

By their later years many individuals and couples will have hefty superannuation balances and will probably prefer larger companies to invest the lion’s share of their income-seeking funds in.

Below, I have three high-income dividend payers that could help you enjoy a blue-chip retirement.

National Australia Bank Ltd (ASX: NAB) is a Big 4 bank that has recently divested itself of underperforming operations to focus on its core work of business and home loan lending in Australia. The bank is also leveraged to the strength of Australia’s resilient and politically-supported residential property markets, with a decent outlook based on the likelihood that base lending rates in Australia are likely to move higher over the medium term.

The NAB is forecast to pay $1.95 in dividends per share in FY 2017 which places it on a fully franked yield of 6% when selling for $32.12. Given its almost unassailable competitive position investors can also rest easy knowing the NAB should be successfully operating long into the future.

Retail Food Group Limited (ASX: RFG) is the fast food and coffee franchisor that is now growing overseas, as its coffee outlets like Gloria Jean’s in particular are increasingly popular in some of the world’s emerging markets. The stock has been sold off recently over concerns that doubtful debts as a percentage of receivables are growing.

However, this issue could be short-term in nature and with the stock selling for 13x trailing earnings with 20% profit growth forecast I believe the risks are currently reflected in the price of $5.50. Investors buying today would receive a 5.4% fully franked yield, with this well managed company having delivered 21 consecutive dividend increases.

Suncorp Group Ltd (ASX: SUN) is the general insurance and banking services business that offers investors some defensive earnings streams and strong dividend income. Its most recent half-year dividend was 33 cents per share, up 10% over the prior corresponding period and representing a payout ratio of 72% of cash earnings. Selling for $13.28 the shares offer a trailing fully franked yield of 5.35% and this is a company with dominant competitive position that is likely to provide investors strong income streams long into their retirements.

Many people in or planning for retirement like to look to the quality end of the marker, which is why we've just named 3 Top ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson owns shares of Retail Food Group Limited.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of 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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