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3 top shares for your retirement portfolio

Credit: GotCredit

Arguably one of the best ways to set yourself up for an early retirement is by having a passive income stream that is reliable and has the potential to grow over time.

I believe that dividend shares are one of the best investments to achieve this and are especially useful in retirement thanks to the benefit of franking credits.

The good news is that the ASX offers a number of reliable dividend shares that investors can consider as part of a diversified investment portfolio. Three that I like are listed below:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a leading computer software and hardware wholesale distributor which I rate very highly thanks to its robust business model, solid long-term growth prospects, and founders with plenty of skin in the game. Not only does Dicker Data pay a good portion of its profits out to its shareholders, it does so on a quarterly basis making it a great source of regular income. This year management intends to increase its full-year dividend to a fully franked 18 cents per share, which means a yield of approximately 6% currently.

Super Retail Group Ltd (ASX: SUL)

Super Retail is a retail conglomerate behind brands including Macpac, Rebel, and Super Cheap Auto. At present its shares offer investors a trailing fully franked 5% dividend. Pleasingly, I believe that this dividend could grow at a solid rate in the future due to the potential turnaround of its Leisure segment. That segment has dragged on its overall business in recent years and management has taken action through the acquisition of the popular Macpac brand.

WAM Capital Limited (ASX: WAM)

This year this listed investment company is on course to raise its dividend for a ninth year in a row. This means that it now provides a trailing fully franked 6.3% dividend at present. And thanks to the strong performance of its funds, I believe there’s a high probability that next year the company will make it ten years in a row of dividend increases. This certainly does put it in a position to successfully deliver on its objective of delivering investors a stream of fully franked dividends, capital growth, and capital preservation.

Finally, this fourth dividend share and its growing yield could be just as good for long-term investors.

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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 owns shares of Super Retail Group 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.

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