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…
To keep reading, enter your email address or login below.
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.
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.
Finally, here is a third dividend share which could be a real star of the future for retirees.
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 NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank Limited and WiseTech Global. 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.