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3 quality ASX dividend shares for your retirement portfolio

Retirement shares

If you’re in search of a source of income in retirement then I think the share market is a great place to look.

Especially given the ultra-low interest rates on offer with traditional income-generating assets.

Three dividend shares that I think would be great options for retirees are listed below. Here’s why I like them:

National Storage REIT (ASX: NSR)

One of my favourite options for income investors is National Storage. It is one of the region’s largest self-storage operators with a total of 168 centres in the ANZ market. Through this growing network the company currently provides tailored storage solutions to over 60,000 residential and commercial customers. The good news is that the company still sees plenty of room to grow through acquisitions and developments. I believe this should support solid distribution growth over the next decade. At present the company’s shares provide a 5.25% trailing distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another good option for a retirement portfolio could be Sydney Airport. I like the company due to its strong market position, pricing power, and long track record of dividend increases. In respect to the latter, I believe it is well-positioned to continue this thanks to increasing international tourism and its position as the main gateway into Australia. At present Sydney Airport’s shares offer a trailing 4.7% dividend yield.

Transurban Group (ASX: TCL)

Finally, my top pick for a retirement portfolio is Transurban. The leading toll road operator has a collection of important roads in Australia and North America. Due to the quality of these assets and their strong pricing power, I believe Transurban is well-placed to increase its dividend at a solid rate over the next decade. In FY 2020 management intends to grow its distribution by 5.1% to 62 cents per security. This equates to a forward 4.15% forward yield.

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Returns As of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and 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.

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