Investors living in retirement have vastly different needs and goals compared to their younger counterparts.
Their highest priority is passive income.
Not that they would shun capital growth, but if it means that's somewhat sacrificed for income, so be it.
But this doesn't mean just buying up the ASX dividend shares with the highest yields.
There is no point in nabbing a 20% dividend yield if the stock loses 40% of its value.
One needs to take care that, over the long term, the dividend stock will at least preserve capital and maintain its income payouts.
Let's take a look at two stocks that might fit that bill at the moment:
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Dividend shares going for 40% discount to assets
Growthpoint Properties Australia Ltd (ASX: GOZ) is not a name often heard of, but four out of six analysts surveyed on CMC Markets currently rate it as a strong buy.
The real estate investment trust (REIT) is the landlord of office and industrial properties, which has seen its share price halve since April last year.
The great news for income hunters is that that's brought Growthpoint's dividend yield up to a chunky 9.6%.
The stock has fallen so much that it's now trading about 40% below its last reported net tangible asset (NTA) value.
That is, the shares are going for way cheaper than the amount of assets the company owns. If Growthpoint was liquidated right now, you'd make an immediate profit.
With interest rates nearing their peak, the real estate sector is generally expected to boom in 2024.
10% dividend yield that could boom next year
Even though much of the world is reducing its dependence on carbon-intensive power generation, green energy sources will take years to build up to a point where they become dominant.
This is why Shaw and Partners portfolio manager James Gerrish reckons coal shares are "cheap cash cows" at the moment.
"Since COVID, the coal price has been on a rollercoaster ride, with the last 12 months [seeing] ~70% decline, taking prices back down to more sustainable levels," he said in his Market Matters newsletter.
"Market Matters is bullish on coal stocks through 2024/5."
And, for Gerrish's team, Whitehaven Coal Ltd (ASX: WHC) represents excellent value right now, paying out a whopping 10.1% fully franked dividend yield.
"Whitehaven Coal is trading on a PE of ~8x while being forecast to yield north of 6%," he said.
"We continue to like Whitehaven Coal for growth."
The Whitehaven share price is now about 33% lower than it was in October last year.
