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How to earn more frequent retirement income from ASX shares

Depending on your retirement situation, you may be finding it more difficult to manage your finances. One reason may be the absence of a consistent weekly, fortnightly or even monthly paycheck. 

The certainty and frequency of your previous paycheck certainly helps to organise your expenditures. While you could place your retirement savings into an annuity to provide a fixed and periodic payment, the returns often leave much to be desired. 

However, there is an alternative. I believe ASX shares can offer retirees a relatively reliable and frequent income through dividend payments. Despite most companies paying dividends twice a year, there are some which spread out dividend payments even further, offering quarterly dividend payments.

Below are 3 ASX shares which I believe currently offer attractive quarterly dividend payments. 

Rural Funds Group (ASX: RFF)

Rural Funds is one of my favourite dividend-paying ASX shares. It owns and leases a diversified portfolio of agricultural farmland and feedlots which are geographically diversified across Australia.

Most of its leases are from quality listed and corporate entities such as Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE). In addition, its leases have a weighted average lease expiry of 11.5 years and are structured to include rental growth. This gives management the ability to consistently increase its dividend payments – something it has done every year since listing in 2014, even recently during the coronavirus pandemic.

Another benefit is its quarterly dividend. Rural Funds’ dividend is paid on the last day of January, April, July and October. At the time of writing, Rural Funds shares have a forward dividend yield of 5.8%.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price has performed strongly recently. After making a positive announcement to the market on Wednesday, its shares are up over 10% just this week. 

With so many Australians currently working from home, Dicker Data has been benefiting from the spike in demand for remote working solutions. In fact, it even recorded its highest-ever revenue in March – when coronavirus panic was peaking. At this stage, the company intends to pay a full-year dividend of 35.5 cents per share, which represents a 31.5% increase over FY19.

Dicker Data pays its shareholders quarterly distributions in the months of March, June, September and December. It has a policy of paying 100% of after-tax profits to shareholders in dividends. While this may make its distributions more erratic than others, it has done a great job in the past of growing its payments.

Dicker Data currently offers an FY20 grossed-up dividend yield of 7.3% (at the time of writing).

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another great dividend option on the ASX, one which offers a diversified yield paid 4 times a year, is the Vanguard Australian Shares High Yield ETF. This ETF provides exposure to a range of high-yielding dividend shares. BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS) are all part of its top 10 holdings. 

This is a great diversified option as its dividend payments are financed by a group of high-yielding ASX shares, with no more than 40% of the total ETF invested in any one industry.

Paid in January, April, July and October, this ETF currently trades with a forecast grossed-up dividend yield of 7.0%.

Foolish takeaway

Each of the above ASX shares offers quarterly dividends, further spreading your income throughout the year. However, the trick is how you group them. Look to combine them with other ASX shares which pay out dividends at different times, in different months. By combining a basket of the right dividend-paying shares, you could build yourself a portfolio that provides an income every 2-4 weeks. 

For an example of combining 4 companies to provide a monthly income, check out my article: How to earn $5,000 every month from ASX shares.

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Motley Fool contributor Michael Tonon owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited, RURALFUNDS STAPLED, Telstra Limited, and Treasury Wine Estates Limited. 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.