3 high-yield dividend shares for your retirement portfolio

Credit: GotCredit

With interest rates at a record low and potentially staying that way for the whole of 2018, I believe that investors would be better off skipping savings accounts and term deposits in favour of some of the high yielding dividend shares on the local share market.

Here are three dividend shares which I think are great options for a retirement portfolio:

Super Retail Group Ltd (ASX: SUL)

Whilst I would suggest holding off an investment in Super Retail until after the release of its half-year result on February 20, if the result and its outlook are positive then I think Super Retail could be a great option for income investors. One thing in particular that I will be looking out for in that result is the impact that Amazon’s arrival in Australia is having on its business. I’m optimistic that the impact has been negligible and Super Retail remains positioned for growth. At present Super Retail’s shares provide a trailing fully franked 5.6% dividend.

Telstra Corporation Ltd (ASX: TLS)

This telco giant’s shares have fallen significantly over the last 12 months after it was forced to cut its dividend to 22 cents per share in FY 2018 in order to free up funds to reinvest in its business. Whilst the cut was a disappointment, I believe it was a necessary evil. The good news is that I think this dividend is sustainable for at least the next couple of years, after which a lot will depend on the success of its investments and cost controls. This 22 cents per share dividend equates to a fully franked 6.3% yield.

Westpac Banking Corp (ASX: WBC)

I think that Australia’s oldest bank is a great option for income investors due to the winning combination of value and yield its shares offer. According to a recent note out of Macquarie, its equity analysts expect Westpac to pay a fully franked $1.99 per share dividend in FY 2018, which equates to a 6.6% yield based on its last close price. Furthermore, the broker has a $35.00 price target on its shares, implying potential upside of almost 16% for its share price. Combined, this is a total potential return of approximately 22.5% over the next 12 months. I agree with Macquarie’s view and believe Westpac is the best option in the banking sector at the moment.

This fourth dividend share could be the best of them all. Is it in your portfolio yet?

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Super Retail 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.

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!