When you're young and first start investing you might focus on growth shares that offer potentially strong returns like Appen Ltd (ASX: APX). After all, if things don't go to plan, you have plenty of time to recover your losses.
But as you enter retirement I believe it would be prudent to put these types of investments on the backburner in favour of those that offer income and capital preservation.
Three shares which I think are great for retirees right now are as follows:
Coles Group Ltd (ASX: COL)
I think this supermarket giant could be a good option for retirees. This is due to its defensive qualities, solid growth prospects, strong market position, and favourable dividend policy. The Coles board has committed to paying out between 80% and 90% of its earnings to shareholders. Based on this, I estimate that its shares currently offer investors a fully franked forward 3.5% dividend.
National Storage REIT (ASX: NSR)
Another top option for retirees could be this self-storage operator. National Storage has been growing its network at a solid rate over the last few years, leading to solid income and distribution growth. Pleasingly, management continues to see plenty of room for further network growth, which I believe bodes well for its distribution growth over the next decade. Another positive is the improving housing market, which should support demand for its services. At present the company's shares provide a 5% trailing distribution yield.
Transurban Group (ASX: TCL)
A third dividend share for retirees to consider buying is Transurban. I continue to believe the toll road operator is one of the best dividend shares on the local market. This is due to its world-class portfolio of roads, defensive qualities, and solid long-term growth potential. Another positive is its long track record of distribution increases, which looks set to continue in FY 2020. This year the Transurban board intends to increase its distribution to 62 cents per security, which equates to a forward 4.1% distribution yield.
