In the world of ASX investing, boring can often be beautiful. Especially when we're talking about ASX retirement shares.
In fact, retirees and those investors who prioritise dividend income (preferably with full franking credits) would typically appreciate a share that doesn't keep things too interesting.
Explosive growth stocks and swinging share prices might excite some investors in our markets. But I'd wager that income investors would much rather receive a solid, consistent, and reliable dividend paycheque every six months — even if others might find that 'boring'.
So, with that in mind, let's discuss three ASX dividend shares that some investors might find boring, but I think income investors would find beautiful.
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Three boring ASX retirement shares with beautiful results
Telstra Group Ltd (ASX: TLS)
If you ask any ASX investor what the most boring share they could think of might be, chances are you might hear Tesltra's name. While selling mobile phone plans and fixed-line internet connections might not sound too invigorating, Telstra is one retirement share that I think is perfect for anyone seeking maximal franked income.
Telstra has been paying large and fully franked dividends for decades. It has been remarkably consistent in doing so, which I think just goes to show how a boring industry can elicit beautiful results. Telecommunication services are highly inelastic, meaning that people don't tend to stop paying for them when economic times get tough. And that's great news for Telstra shareholders.
Remember, Telstra was a company that kept its dividends steady all through the pandemic. This inelasticity is partly why. And it's also why I'd have great confidence in continuing to receive a stable and steady (not to mention fully franked) dividend from Telstra going forward. At recent prices, Telstra shares were offering a dividend yield of 4.5%.
Coles Group Ltd (ASX: COL)
Next, we have another dividend star in Coles Group, which I view Coles as a near-perfect ASX retirement share.
This company's earnings base enjoys a similar level of inelasticity to Telstra's. Given Coles sells food, drinks and household essentials at highly competitive prices, it is also far more immune to inclement economic weather than your average ASX share. Regardless of whether the economy is growing or slowing or if inflation is high or low, we all need to keep buying what Coles is selling.
And again, that's great news for dividend investors. Coles has been steadily ratcheting up its shareholder payouts in recent years. Today, Coles shares offer a fully franked dividend yield of 3.68%.
iShares Global Consumer Staples ETF (ASX: IXI)
Our final ASX retirement share isn't really a share but an exchange-traded fund (ETF). Even so, I think this fund should be considered by anyone looking for a stable retirement investment.
IXI invests in a portfolio of global companies that are all big players in the consumer staples sector. Consumer staples stocks are companies that produce, manufacture and sell life essentials like food, drinks, cleaning supplies, personal hygiene products and more.
Again, these companies tend to be highly inelastic, given they sell us products we mostly need, not want. And that makes this ETF a valuable addition to an ASX retirement share portfolio in my view. Most of the iShares Global Consumer Stapels ETF's portfolio is made up of world-class companies, including Procter & Gamble, Coca-Cola, Walmart, Unilever and L'Oreal. Even Coles makes the cut.
For some diversification and portfolio ballast, I would also recommend this ETF to any retiree today.
