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These dividend shares are great options for retirees

On Tuesday the Reserve Bank of Australia will meet once again and is widely expected to keep rates on hold for yet another month.

This is likely to be the case for many months to come as well. In fact, a recent Westpac Banking Corp (ASX: WBC) weekly economic report revealed that its analysts expect rates to remain on hold at the record low of 1.5% until at least December 2019.

While this is great news for borrowers, it certainly isn’t for savers or retirees that aim to live off the interest generated from savings accounts or term deposits.

The good news is that the Australian share market is here to save the day with a plethora of dividend shares offering generous dividend yields.

Two which I think would be great for retirees are listed below. Here’s why:

National Storage REIT (ASX: NSR)

This storage giant’s shares could be a great option for retirees thanks to its generous yield and solid growth outlook. Due to the expansion of its store network, the redevelopment of existing site, and the growing demand for storage facilities, I believe National Storage can grow earnings and its dividend at a solid rate for at least the next few years. Its shares currently offer a trailing yield of approximately 5.8%.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust with a focus on agricultural assets. The diverse farming assets in its portfolio include cotton, cattle, poultry, grape, macadamia, and almond production, and have tenancy agreements long into the future. At the last count its tenancy agreements had an average of 12.5 years left to run and had rental indexation built in. I believe this provides a lot of visibility on its future cash flows and ability to grow its dividend in the future. At present its shares provides a trailing yield of 4.9%.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended 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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