3 shares ideal for retirees

The current investment climate makes it difficult for retirees to know what to do with their money. Interest rates are at all time lows, volatility is picking up and house prices are starting to go down.

I think shares are the way to go, but investors need to be careful about what shares they choose.

Some people may be looking at getting an annuity from Challenger Ltd (ASX: CGF) but a better idea could be just to invest in the company itself. It is generating good growth each year as other retirees are looking for a reliable source of income from their capital.

Today, the company announced that its normalised profit was up 6%, its assets under management (AUM) was up 18% and the dividend increased by 3%.

Challenger has long-term tailwinds thanks to Australia’s ageing tailwinds and the growing superannuation pool due to the compulsory contributions.

Another good choice for retirees could be WAM Capital Limited (ASX: WAM). The way it operates makes it almost made for retirees. The investment team at Wilson Asset Management have a strong record of outperforming the market and paying a lot of that profit out as a growing dividend each year.

Earlier in the week, WAM Capital increased its dividend by 3.33%. It could be a good way to ride out the market because the investment team always keeps a good amount of cash on hand for protection and investment opportunities.

A third good choice could be Rural Funds Group (ASX: RFF). It owns farmland and leases it to high quality tenants whilst also providing water entitlements for them to use.

Farmland has always been a useful asset and should continue to be a good asset for decades to come. Rental indexation is built into all of Rural Funds’ contracts, so it should be able to keep growing its distributions.

Foolish takeaway

All three are excellent choices for retirees in my opinion. I also believe that all three will beat the market over the long-term, which is why I’m a shareholder in all three of them. At the current prices it’s hard to pick a winner, but it’s hard to look beyond WAM Capital’s dividend and investment pedigree.

Don’t Buy A SINGLE Stock Until You Read This

While conflict overseas is all media talking-heads seem to mention these days, the billionaire founder of Tesla is losing sleep over what he sees as a far bigger threat.

Elon Musk Warns: This has “vastly more risk than North Korea”

If you missed your opportunity to get in on Google, Microsoft, or Amazon in their early days, don't let it happen again. This emerging technology trend could offer a second chance for anyone who wishes they took part in these millionaire-maker stocks.

Click here to discover more!

Motley Fool contributor Tristan Harrison owns shares of Challenger Limited, RURALFUNDS STAPLED, and WAM Capital Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and RURALFUNDS STAPLED. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!