While exciting tech shares like Appen Ltd (ASX: APX) are great to have in some portfolios, these types of shares are largely unsuitable for retirees that aim to preserve wealth and generate income.
I think the best shares for retirement portfolios are the ones that you can put in the bottom drawer and collect dividends from every six months.
Three shares that tick a lot of boxes for me in this regard are listed below. Here's why I like them:
Dicker Data Ltd (ASX: DDR)
I think that Dicker Data would be a great option for retirees. The founder-led computer hardware and software wholesale distributor has a robust business and a favourable dividend policy. In fact, the company is one of only a handful that pays its dividend out in quarterly instalments. This year management advised that it intends to pay a fully franked 18 cents per share dividend, which is the equivalent of a 6% yield based on its last close price.
National Storage REIT (ASX: NSR)
Another top option for retirees could be this storage giant's shares. Although its shares are trading within sight of their all-time high, they still offer an above-average trailing distribution yield of approximately 5.5%. I believe this distribution could grow at a decent rate in the future thanks to rising demand for its services and management's plan to expand and redevelop its network.
Rural Funds Group (ASX: RFF)
I'm a big fan of this real estate investment trust which has a focus on agricultural assets. This is especially the case after it recently announced plans to acquire cattle feedlots located in Queensland and New South Wales from JBS Australia for $52.7 million. The facilities have a combined capacity of 150,000 Standard Cattle Units which represents approximately 15% of Australia's lot fed cattle capability. I believe this acquisition could be a boost to its earnings, allowing the company to increase its dividend at a solid rate over the coming years. Currently its shares offer a 4.8% yield.
