3 top ASX dividend shares for retirees to buy today

Coles Group Ltd (ASX:COL) shares are one of three that could be great options for retirees…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With rates not going higher any time soon, if I were a retiree I would look to the share market to grow my wealth and generate a source of income.

Three shares that I believe would be suitable for retirees right now are listed below:

Coles Group Ltd (ASX: COL)

One top option for retirees to consider buying is this supermarket giant. I expect Coles to become a real favourite with income investors thanks to its defensive qualities, solid growth prospects, and plans to pay out between 80% and 90% of its earnings as dividends. Based on this, I estimate that its shares are currently offering investors a fully franked forward 3,5% dividend. Whilst this isn't the biggest yield on the market, I expect it to grow strongly over the next decade.

National Storage REIT (ASX: NSR)

Another top option for retirees could be this self-storage-focused real estate investment trust. National Storage is one of the largest self-storage operators in the ANZ region and has plans to grow even larger in the coming years through development  projects and its growth through acquisition strategy. I expect this to allow National Storage to increase its distribution at a solid rate for a long time to come. At present the company's shares provide a 5.4% trailing distribution yield.

Transurban Group (ASX: TCL)

My favourite dividend share for retirees is this toll road operator. Over the last decade the company has been able to grow its distribution by an average of 11% per annum thanks to its high quality assets, increasing demand, toll increases, and acquisitions and developments. I believe it is well-placed to continue increasing its distribution over the next decade. This certainly is the case in FY 2020 with management intending to grow its by 5.1% to 62 cents per security. This equates to a forward 4.25% forward yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. 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.

More on ⏸️ Dividend shares for retirement

letter blocks spelling out the word retire
⏸️ Dividend shares for retirement

2 star stocks for your ASX retirement portfolio

Coles Group Ltd (ASX:COL) and this ASX share could be great options for a retirement portfolio in 2021 instead of…

Read more »

⏸️ Dividend shares for retirement

3 top ASX dividend shares for a better retirement

Looking to use ASX dividend shares to retire? Here are 3 income shares to consider, including Telstra Corporation Ltd (ASX:…

Read more »

piles of coins increasing in height with miniature piggy banks on top
Investing Strategies

Are ASX growth shares the new way to get yield?

Experts say the days of 'set and forget' income investing is over. Now you have to be active and willing…

Read more »

letter blocks spelling out the word retire
⏸️ Dividend shares for retirement

Why I would buy Wesfarmers (ASX:WES) and this ASX share for a retirement portfolio

Here's why I would add Wesfarmers Ltd (ASX:WES) and this ASX share to a retirement portfolio today...

Read more »

⏸️ Dividend shares for retirement

Is the WAM Global (ASX:WGB) share price a buy for dividends?

Is the WAM Global Limited (ASX:WGB) share price a buy for income? It currently offers a grossed-up dividend yield of…

Read more »

⏸️ Dividend shares for retirement

2 ASX shares to buy for rock solid retirement income

I think the two ASX shares in this article can provide rock solid retirement income, 1 is Australian United Investment…

Read more »

⏸️ Dividend shares for retirement

Investors wanting safe income should own these 3 ASX shares

If you’re seeking safe income then I think you should go for one of the three ASX shares in this…

Read more »

⏸️ Dividend shares for retirement

Is the AFIC share price a buy?

Is the Australian Foundation Investment Co.Ltd. (ASX:AFI) share price a buy? The LIC has recently declared another steady dividend.

Read more »