Retirees should only consider buying high-quality ASX dividend shares for their portfolio.
I think the below three shares are great ideas to consider:
Urb Investments Ltd (ASX: URB)
This is a listed investment company (LIC) which aims to generate growth for investors through capital and income growth by combining a portfolio of unlisted property assets and listed Australian shares which are all exposed to the theme of urban renewal.
That's why some of its top share investments are businesses like Transurban Group (ASX: TCL), Lendlease Group (ASX: LLC) and Goodman Group (ASX: GMG).
At the moment, cash and cash equivalents make up 34.3% of its assets, it has $0 debt and it's trading at a 17% discount to its underlying assets, which looks attractive.
The rolling 12-month grossed-up dividend yield is currently around 4.3%.
Brickworks Limited (ASX: BKW)
Brickworks is construction materials business that also has two other divisions of 'investment' and a 50% stake of a property trust which is focused on industrial logistics properties.
Brickworks' normal dividend has been maintained or increased every year since 1976, which is one of the best records on the ASX, it has provided excellent income reliability for shareholders.
Its investment in the US in large brick manufacturer Glen Gery could open up another large growth avenue.
It currently has a grossed-up dividend yield of 4.8%.
Rural Funds Group (ASX: RFF)
Rural Funds is a farmland landlord that operates in a real estate investment trust (REIT) structure.
It owns a variety of farmland including cattle, vineyards, almonds, macadamias, cotton and poultry. Rural Funds has built-in rental increases with its contracts, that's why management have been able to confidently predict that the distribution can grow by 4% a year for the foreseeable future.
It currently has a distribution yield of 4.7%.
Foolish takeaway
All three of these shares are high-quality and have decent yields. I think both Urb Investments and Brickworks are trading at attractive discounts to their underlying assets and are invested in growth ideas that have good tailwinds.
