In retirement I believe it is important for investors to reduce their risk profile to ensure that they don't risk the wealth they have spent decades building.
So this means less of the exciting but high risk shares such as Nextdc Ltd (ASX: NXT) and WiseTech Global Ltd (ASX: WTC), and more low volatility blue chip shares.
Two top dividend shares that I think are suitable for retirees are listed below. Here's why I think they are worth considering today:
National Australia Bank Ltd (ASX: NAB)
Earlier this month National Australia Bank released its first-quarter update which revealed a solid 3% increase in quarterly cash earnings to $1,650 million on a 1% increase in quarterly revenue. I expect more of the same over the remainder of FY 2018, potentially putting the banking giant in a position to raise its dividend ever so slightly. At the current share price National Australia Bank's shares provide a trailing fully franked 6.8% dividend, well above the market average of 4%. I think this and its relatively cheap price make it a great option for retirees today.
Telstra Corporation Ltd (ASX: TLS)
I thought that the telco giant's half-year result last week was reasonably positive and gave me confidence to believe that its dividend was secure at 22 cents per share for at least the next couple of years. After which, I think a lot will depend on the investments it makes, its cost cutting program, and the arrival of 5G internet in Australia. I suspect that 5G could revolutionise the internet in the country and even make the NBN close to redundant. Based on the last close price, Telstra's shares provide investors with a forward fully franked 6.4% dividend. I think this makes Telstra a great option for income investors and retirees.
