Why I think retirees should buy ANZ and 2 other ASX dividend shares

With rates unlikely to go higher for a couple of years, if I were a retiree I would look to the share market for a source of income.

After all, with an average dividend yield of approximately 4%, the Australian share market offers income investors far better potential returns than savings accounts and term deposits put together.

Three shares that I believe would be suitable for retirees in search of income are listed below:

Australia and New Zealand Banking Group (ASX: ANZ)

If you don’t already have meaningful exposure to the banking sector, then I think it could be well worth considering an investment in ANZ’s shares. Even after a strong run since Christmas Eve the bank’s shares offer a generous trailing fully franked 6% yield. I believe ANZ is well-positioned to at least maintain this dividend in FY 2019 thanks to the bank’s strong capital position, cost cutting opportunities, low bad debt charges, and overweight exposure to business lending.

Dicker Data Ltd (ASX: DDR)

I think that this wholesale distributor of computer hardware and software would be a great option for retirees. This is because I believe Dicker Data has a robust business model which is well-positioned for growth over the medium term. Furthermore, the company pays its dividends in quarterly instalments, which is ideal for those looking for a regular source of income. Dicker Data recently provided guidance for 10% revenue and profit growth and a 22 cents per share dividend in FY 2019. This dividend equates to a forward fully franked 5.9% yield.

National Storage REIT (ASX: NSR)

Another top option for retirees could be this self-storage-focused real estate investment trust. I believe its defensive qualities and generous dividend yield make it a good option for investors in search of low risk income shares. National Storage is the ANZ region’s largest self-storage operator with 146 centres and a growing pipeline of development and acquisition opportunities. Management is positive on its prospects in FY 2019 and recently advised that it plans to pay a full year distribution of 9.6 cents to 9.9 cents per unit. This equates to a yield of between 5.4% and 5.6%.

JUST RELEASED: Our Top 3 Dividend Picks for March

NEW! The Motley Fool’s team of crack analysts has just released a timely report revealing the names and codes of their top 3 dividend share recommendations for 2019. Be among the first investors to get access—FREE, for a strictly limited time. You’ll discover the names of 3 hefty dividend paying companies with what our analysts consider to be solid growth prospects for the year ahead…

The first two currently offer fat, fully franked yields and the third is a surprising REIT offering you the chance to become a landlord with none of the hassle! If you’re looking for hot new ideas, look no further. But you do need to hurry. Snap up your free copy now, before supplies run out!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our top 3 dividend share recommendations right away.

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 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…


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!