With term deposits offering only paltry returns I think the Australian share market is the best place for retirees to invest their hard-earned money.
With an average dividend yield of approximately 3.9%, there certainly are a good number of quality options for income investors to choose from.
Three top dividend shares that I think retirees ought to consider are as follows:
Aventus Retail Property Fund (ASX: AVN)
I think that this retail property group is a great option for investors and less likely to be impacted by a downturn in the retail sector due to its strong retail park property portfolio which includes blue chip tenants such as Domayne, Harvey Norman Holdings Limited (ASX: HVN), and Nick Scali Limited (ASX: NCK). In February Aventus reported a 3.4% increase in half-year funds from operations (FFO) on the corresponding period to $45 million. Based on its guidance for 2% to 3% growth in full-year FFO and its current distribution policy, I estimate that its shares provide a full-year 7.5% yield at this price.
Dicker Data Ltd (ASX: DDR)
I think this software and hardware wholesale distributor is perfect for income investors due to its strong business that continues to deliver solid profit growth and support a generous dividend yield. Furthermore, Dicker Data pays its dividend out in quarterly instalments, making it a great option for investors in search of more regular income. In FY 2018 the company intends to lift its dividend by 10% to 18 cents per share, which equates to a forward fully franked 6% yield.
National Storage REIT (ASX: NSR)
It may not be the most exciting investment but I think this leading self-storage operator could be a great long-term pick. Demand for storage services has been growing and National Storage aims to capture this demand through a development pipeline which includes 11 new developments and several new expansion projects. This year the company plans to pay a distribution of between 9.6 cents and 10 cents per share in FY 2018, which equates to a forward yield of around 6%.
