The world is stuck in a low interest rate environment. The interest you can earn in the bank doesn't beat inflation by much.
Investors, particularly retirees, still require investment income. I think shares are the best way to generate that income. Here are four shares that I think would be great to add to your income-focused portfolio:
Crown Resorts Ltd (ASX: CWN)
Crown is the largest entertainment business in Australia. Its casinos and hotels are big draws for locals and tourists alike.
The fall in VIP gaming income has hit the share price and James Packer selling shares isn't going to provide stability either, which creates a good opportunity to buy.
Crown has committed to paying 60 cents per share as a dividend, which equates to a partially franked dividend yield of 5.22%.
Clime Capital Limited (ASX: CAM)
Clime is a listed investment company (LIC) run by John Abernethy and his investment team. It has a diverse strategy of buying large, medium and small ASX stocks. It's also investing a small part of the portfolio into overseas shares.
Clime has grown its dividend every year since 2012 and currently has a grossed-up dividend yield of 7.96%.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that purely invest in agricultural property.
It has strong contracts agreed with most tenants such as Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE) where the rent will increase at 2.5% or consumer price index (CPI) inflation.
Rural Funds is trading with a trailing distribution yield of 4.91%.
WAM Research Limited (ASX: WAX)
WAM Research is a LIC that's run by Wilson Asset Management.
It has a strong history of outperforming the market and has a stated aim of providing a rising stream of fully franked dividends.
It's currently trading with a grossed-up dividend yield of 8.06%.
Foolish takeaway
I think all four options would be good choices for income. WAM Research is definitely my favourite choice for income, followed by Rural Funds.
WAM Research is trading at an expensive premium to NTA but it should still provide investors with the most income over the next five years.
