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2 ASX shares to buy for rock solid retirement income

If you’re in the retirement phase of your life you are probably living off the dividends of your investments and you need that income from your ASX shares to be rock solid.

I’m sure you don’t want the income to be volatile year to year, so it would probably be best to go for businesses that already have a reputation as being solid dividend payers and also operate in an industry that make it easier to keep increasing the dividend even in downturns.

That’s why I think these two ASX shares could be worth buying for rock solid income:

Brickworks Limited (ASX: BKW)

Brickworks is one of Australia’s largest construction businesses with a variety of subsidiaries including Austral Bricks, Austral Masonry, Austral Precast, Bristile Roofing, Auswest Timber, Bowral Bricks, Daniel Robertson, Nubrik and GB Masonry.

Construction is a long-term tailwind, cities are constantly changing and expanding over the years, even if there is the occasional short-term dip. Regeneration will continue for as long as people live in cities as older buildings need replacing over time.

Brickworks recently bought one of the largest brick businesses in the US, which opens up another large growth avenue for the company over time.

It has maintained or grown its dividend each year in the 21st century, with a fair bit of help from its large stake in investment business Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which currently sits at 39.4% after a small selldown to fund the US Glen Gery purchase.

Brickworks currently has a grossed-up dividend yield of 4.7%.

WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC), operated by the high-performing team at Wilson Asset Management (WAM).

A company structure means the business can build up profit reserves from dividends received and capital gains during the good times to smooth out dividend payments through the tougher times.

So it’s very useful when you combine the strong returns of WAM with a steadily growing dividend. It generates strong returns by finding undervalued growth companies where there’s a catalyst to improve the valuation, otherwise it sits in cash.

Over the past seven years WAM Research’s portfolio has outperformed the S&P/ASX All Ordinaries Accumulation Index by 7.6% per annum before fees and expenses. Plus, it has grown its dividend each year since the GFC.

It currently has a grossed-up dividend yield of 9.8%.

Foolish takeaway

Both of these businesses have the potential to keep growing their dividends for a long time to come, providing rock solid retirement income and pleasing total returns.

If you’re looking for other ideas for good income, these reliable ASX shares would also work in a defensive portfolio.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks. 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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