Some S&P/ASX 200 Index (ASX: XJO) dividend shares may be leading ideas for retirees. Passive income yields have seen a boost as interest rates and inflation take their toll.
Dividend yields are simply a measure of the business income payout compared to the share price. With share prices lower, this could be a great time to boost retirement income.
While higher interest rates are a bit worrisome for some businesses, I think that the lower share prices more than makeup for it.
With that in mind, these are some of my preferred ASX 200 dividend shares.
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Charter Hall Long WALE REIT (ASX: CLW)
This is a real estate investment trust (REIT) that owns a diversified portfolio of properties that are all signed onto long leases, giving the business a long weighted average lease expiry (WALE).
The properties are spread across industrial, agri-logistics, retail, office, service stations, social infrastructure and so on. I think retirees can benefit from this diversification.
It says that 99% of its tenants are blue chips, being government, ASX-listed, multi-national or national tenants.
The ASX 200 dividend share says that its income growth is driven by annual rent increases in all leases. It revealed that half of its leases are linked to CPI, with a 7.2% weighted average increase in FY23.
This business pays its passive distribution income quarterly, so investors get pleasing regular cash flow.
Commsec numbers suggest that Charter Hall Long WALE REIT could pay a distribution yield of 6.7% in the 2024 financial year.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the largest (electronics) retailers in Australia (and New Zealand). It has sold a huge amount of goods during the COVID-19 pandemic period.
But, while the 2023 financial year and even the 2024 financial year could show earnings declines, I think the dividends will still remain solid.
I'd guess that phones and computers are essential enough for most people that this ASX 200 dividend share may be able to continue to provide good passive dividend income returns during this period, particularly after the fall of more than 20% since March 2022. Retirees can get a piece of this business at a much lower price.
In my opinion, the business can benefit from the ongoing growth of the Australian population which should mean more devices are bought in total in the coming years.
The FY24 grossed-up dividend yield from the ASX 200 dividend share could be 7.6%, according to Commsec. In FY25, the grossed-up dividend yield could be 7.8%, which is when the growth of the passive income and profit is expected to happen again.
