If you are retired, then having a reliable income stream is probably one of your top priorities. Fortunately, this can be achieved by investing in a diversified portfolio of dividend shares.
I think diversification is important as this will help smooth out any bumps along the way and reduce the risk of a loss of capital. With that in mind, here are three shares that could be used to create an ideal portfolio for retired investors:
Rural Funds Group (ASX: RFF)
I think this agriculture-focused property group could be a great option for retirees. This is due to its positive long term growth prospects thanks to its high quality assets across a variety of industries and its long term leases that include periodic rent increases. Overall, I believe Rural Funds is well-placed to grow its distribution by at least its target of 4% per annum long into the future. Next year Rural Funds is expected to pay a 10.8 cents per share distribution, which equates to a forward 4.7% distribution yield.
Scentre Group (ASX: SCG)
Another top dividend share to consider buying is Scentre Group. It is the owner of all the Westfield buildings in the Australia and New Zealand market. Amongst its high quality assets are 7 of the top 10 retail centres in Australia and 4 of the top 5 centres in New Zealand. I believe this portfolio, its high occupancy levels, and rental increases have positioned Scentre perfectly to deliver solid FFO and distribution growth over the next few years. This year the company plans to pay a 22.6 cents per security distribution, which equates to a 5.8% yield.
Transurban Group (ASX: TCL)
Arguably one of the best dividend shares for retirees to consider buying is Transurban. This is because the toll road giant operates monopolistic assets that generate very strong and reliable levels of cashflow. In addition to this, acquisitions and development projects are likely to boost its income growth and ultimately its dividends over the next decade. At present the company's shares offer investors an estimated forward 4% distribution yield.
