When you're in retirement you don't want to be worrying about the volatility of the share market. You should want reliable income so you don't have to worry about buying and selling.
Bank interest used to provide enough income for safety, but term deposits from banks like Commonwealth Bank of Australia (ASX: CBA) just don't cut it any more. The yields presented from property are also very low.
Businesses make profits and they can then pay out some of those profits as a dividend. Share prices are naturally volatile – each day the share market is made up of different buyers and sellers.
Here are two ASX shares with long histories of paying reliable income:
Brickworks Limited (ASX: BKW)
Brickworks has grown or maintained its dividend every year since 1976 and it currently has a grossed-up dividend yield of 4.1%.
The diversified property businesses has a number of top building products businesses that operate across brickmaking, roofing, precast and so on. Australians will always be building or re-building property, so Brickworks is well positioned for earnings over the long-term.
It has also recently acquired a few brickmakers in the US which has catapulted into a market-leading position in the north east of the country. It's going to work on improving the profit margins there over the next few years. This has increased its earnings diversification.
Brickworks owns a 50% stake of an industrial property trust with Goodman Group (ASX: GMG). This is providing a growing stream of reliable rental earnings and valuation rises.
Finally, Brickworks still owns a large holding of long-term investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which is providing a growing source of earnings and dividends.
Diversified United Investment Limited (ASX: DUI)
Going back to FY93, listed investment company (LIC) has increased or maintained its dividend every year. It currently has a grossed-up dividend yield of 4.2%
It's invested in growing businesses – CSL Limited (ASX: CSL) and Transurban Group (ASX: TCL) make up more than 20% of its portfolio. It's also invested in globally-focused exchanged-traded funds (ETFs) which accounted for 13.7% of its portfolio at 31 January 2020.
Its dividend has been consistently growing over the past few years and I'd prefer to buy it compared to other old-school LICs.
Foolish takeaway
Both of these businesses have been solid dividend payers for a very long time and I think their dividends can continue to be more reliable than the overall market for the long-term. At the current prices I'd go for Brickworks, but DUI could be a solid pick today too.
