MENU

3 top dividend shares for retirees to buy today

On Wednesday the Reserve Bank of Australia’s governor Philip Lowe spoke at the Australia-Israel Chamber of Commerce in Western Australia.

While Mr Lowe sounded reasonably optimistic on the outlook for the Australian economy, he once again ruled out a rate hike in the near term.

This may be good news for borrowers, but it certainly isn’t for savers who will have to contend with paltry interest rates from term deposits and savings accounts for some time to come.

The good news, though, is that the Australian share market has a number of great options for investors in search of a source of income.

Here are three dividend shares that I think would be great options for retirees:

Dicker Data Ltd (ASX: DDR)

I think that Dicker Data could be one of the best options for retirees in search of income. Not only does the founder-led computer software and hardware wholesale distributor have a robust business model and pay a generous dividend, it pays it in quarterly instalments. This makes it ideal for investors looking for more regular income in my opinion. In FY 2018 management expects Dicker Data to deliver a 6% increase in earnings and grow its dividend 10% year-on-year to 18 cents per share. This equates to a forward fully franked 6.3% yield based on its current share price.

WAM Capital Limited (ASX: WAM)

This listed investment company could be another great option for income investors. WAM Capital’s funds have been performing very well in recent years thanks to some astute stock picking. This strong performance has allowed management to increase its dividend for an impressive eight consecutive years. Considering the LIC raised its interim dividend in February, it seems inevitable that the dividend increase run will extend to nine years in FY 2018. At present its shares provide investors with a trailing fully franked 6.1% dividend, though they have gone ex-dividend this morning.

Westpac Banking Corp (ASX: WBC)

Westpac and the rest of the banking sector have come under pressure in recent weeks due largely to the Royal Commission. I believe the share price decline that Westpac has been subjected to has been overdone and has left it trading at a very attractive price with a compelling risk/reward. This could make it well worth considering the banking giant if you do not already have meaningful exposure to the banks. Especially as its shares now offer a trailing fully franked 6.5% dividend.

Finally, these companies are set to increase their dividends so don't miss out.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Scott Phillips.

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…

Including:

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!