The ASX shares I'm buying for a stress-free retirement

I'm confident about the future of these stocks.

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ASX dividend shares with the potential to pay good dividends and deliver growth could be attractive for a stress-free retirement.

In retirement, I want to own a core group of names that can send me pleasing cash flow each year, and own them for the long term. With that in mind, these are three of the S&P/ASX 300 Index (ASX: XKO) I own.

Rural Funds Group (ASX: RFF)

This business is a real estate investment trust (REIT) that owns farmland across a variety of sectors including almonds, macadamias, cattle, vineyards and cropping.

Over the long term, the business aims to grow its distribution by 4% per annum. This can be driven by the rental indexation which is built into most of its contracts, with some having fixed annual increases and some being linked to CPI inflation.

The business is regularly investing in productivity improvements which can improve the rental and capital value of the farms.

The ASX dividend share is expecting to pay a distribution yield of 5.6% for FY24. I think this is a good stock for retirement – the yield is good and it pays quarterly.

Metcash Ltd (ASX: MTS)

Metcash supplies a number of independent businesses, including IGA supermarkets, IGA liquor, Cellarbrations, The Bottle-O, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

The segment that excites me the most is the hardware division which includes Mitre 10, Total Tools and Home Timber & Hardware. This division has shown the ability to deliver good profit growth in the last few years. I think that long-term profit growth can continue as the economy recovers.

Metcash aims to pay out 70% of its underlying net profit after tax (NPAT) as a dividend payout ratio. In FY24 it's expected to pay a grossed-up dividend yield of 7.8%, according to Commsec. That's a strong yield for retirement.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is a diversified investment house that is invested in a wide variety of sectors including resources, building products, property, agriculture, swimming schools, financial services, telecommunications and so on.

Some of the ASX shares it's invested in include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Brickworks Limited (ASX: BKW), Pengana Capital Group Ltd (ASX: PCG), Tuas Ltd (ASX: TUA) and BHP Group Ltd (ASX: BHP).

The business has paid a dividend every year since 1903 and it has grown its dividend each year since 2000. There's no guarantee this streak will continue, but it's attractive for investors in retirement looking for consistent income.

As the portfolio grows, I think the diversification and earnings can keep improving.

The ASX dividend share has a trailing grossed-up dividend yield of 3.6%.

Motley Fool contributor Tristan Harrison has positions in Brickworks, Metcash, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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