When you’re in your 60s you don’t really want to be worrying about which ASX shares to buy and sell regularly based on their share prices.
I’d want to stick with the same businesses for the long-term and receive a good, reliable dividend.
With that in mind, here are three ASX shares that I think could fit the bill:
Vitalharvest Freehold Trust (ASX: VTH)
One of the most common goals for a retiree is to own a farm. So why not invest in a farmland real estate investment trust (REIT) instead?
Vitalharvest owns four berry properties and three citrus properties that are leased by Costa Group Holdings Ltd (ASX: CGC), which Vitalharvest has a profit-share agreement with. Vitalharvest plans to diversify its farm holdings away from Costa in the future.
The REIT is currently targeting a distribution yield of 8% and could be a good long-term investment.
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is a LIC that invests in leading Australian fund managers which focus their investing on the ASX. However, the fund managers don’t charge management fees or performance.
Future Generation doesn’t charge any fees either, instead it donates 1% of its net assets to youth charities.
The reason why I think it could be a good idea for retirees is that it aims to increase its dividend every year and its portfolio has outperformed the ASX index since inception.
It currently has a grossed-up dividend yield of 5.4%.
BetaShares Australia 200 ETF (ASX: A200)
Perhaps you just want a way to invest in the entire ASX share market for a very low annual management fee – this one only costs 0.07% per annum, it’s the lowest-costing ASX exchange-traded fund (ETF) in the world.
With this ETF you get a solid dividend yield and it is also demonstrating long-term capital growth.
According to BetaShares, it has a dividend yield of around 4.7%, not including the franking credits.
All three of these shares are attractive for their dividend yields and mostly-defensive earnings. Although the Australian ETF seems diversified it may be the one most at risk in a recession because of its exposure to the banks. I would prefer to buy shares of Vitalharvest at the current prices.
But, they’re not the only good dividend shares on the ASX, these rock-solid ASX income stocks could be worth a place in your portfolio.
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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO and FUTURE GEN FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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.