If you're in retirement and searching for a source of income, then I think the Australian share market is a great place to look.
The local market is home to a large number of quality dividend shares offering yields that are vastly superior to almost all other interest-bearing assets.
Three top dividend shares that I think would be great options for retirees are listed below:
Rural Funds Group (ASX: RFF)
I think that this agriculture-focused property group would be a top option for retirees. This is due to the quality of its assets and its favourable long-term distribution outlook. Thanks to its long-term tenancy agreements and periodic rent increases, I believe it is well-positioned to grow its distribution at a solid rate over the next decade. Another positive is that it pays its distribution in quarterly instalments, providing income investors with a regular source of income. Its units offer investors a 4.6% forward distribution yield.
Transurban Group (ASX: TCL)
Another top option for retirees could be this toll road operator. Due to the increasing number of vehicles using its roads and periodic toll increases, Transurban has been able to grow its distribution every year for over a decade. I expect this to remain the case for the foreseeable future, making it one of the better dividend shares on the local market. At present its units offer a trailing 4% distribution yield.
Westpac Banking Corp (ASX: WBC)
If you don't already have meaningful exposure to the banking sector then it could be worth considering an investment in the shares of one of the big four banks. Especially given the prospect of the housing market bouncing back in FY 2020, which could lead to solid mortgage loan growth. One of my favourite in the sector is Westpac due to its attractive valuation and generous trailing 6.6% dividend yield.
