3 top dividend shares for your retirement portfolio

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%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and National Storage REIT. 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.

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