MENU

3 quality income shares for retirees

While exciting tech shares are great to have in some portfolios, these types of shares are largely unsuitable for retirees that are aiming to preserve their wealth and generate income.

I think the best shares for a retirement portfolio are the ones 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:

Australia and New Zealand Banking Group (ASX: ANZ)

Although the banks are having a hard time right now, I feel it is safe to say that in ten years there will be little change to the big four’s standing and expect them to still be paying out the vast majority of their earnings as dividends. Due to its high CET1 ratio, low bad debts, and recent out of cycle rate rise, I think ANZ Bank is one of the best options in the sector right now. Especially considering that its shares provide a trailing fully franked 5.7% yield.

National Storage REIT (ASX: NSR)

Another top option for retirees could be this real estate investment trust which is focused on self-storage assets. While it is by no means a high growth industry, I still believe population growth and downsizing means National Storage is capable of growing its earnings and distribution at a solid rate over the coming years. In FY 2018 the trust posted a strong result which saw underlying earnings grow 12.5% to $51.4 million. This was partly driven by a 3.8% increase in same-centre revenue per available square metre to $220 and a 330 basis points rise in occupancy levels to 80.8%. Its shares now offer a trailing yield of 5.6%.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate property trust which I feel would be another great option for retirees. It is focused on agricultural assets and has a diverse and quality portfolio which I believe has put it in a great position to continue delivering solid earnings and distribution growth over the next few years. In FY 2019 management plans to pay a distribution of 10.43 cents per unit, equating to a forward yield of 4.8%.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!