If you're a retiree (or hoping to become one in the near future), chances are you are looking for two things from your Australian dividend shares.
One would naturally be a substantial, and preferably fully franked, dividend yield. The other would be faith that said dividend yield is sustainable and reliable, given that retirees, by definition, have no primary source of income to fall back on anymore.
Today, let's discuss three Australian dividend shares that I think tick both of these boxes.
Image source: Getty Images
3 Australian dividend shares to buy and own for income in retirement
National Australia Bank Ltd (ASX: NAB)
Let's start with a favourite of income investors right around the country. NAB, as one of the big four ASX bank stocks, is a favourite for retirees. Like the other major ASX banks, this dividend share has a long history of paying out fat, fully franked dividends. Although we often see the banks reduce their payouts during recessions, they tend to make up for it with reliable income during the good economic times.
Recent share price appreciation has reduced the dividend yield that NAB shares trade on. But even so, buying this Australian dividend share today will get you a not-insignificant trailing dividend yield of 3.85%.
Telstra Group Ltd (ASX: TLS)
Next up is another favoured Australian dividend share in Telstra. This telco is another dividend stalwart, with its own reputable track record of doling out large fully franked income payments to shareholders.
Telstra offers investors one of the most reliable dividend track records on the ASX. It has paid out a steadily increasing yield for many years now, including during the tumultuous COVID period. Given the essential nature of mobile and fixed-line internet connections in our modern world, Telstra's earnings base is highly defensive, which tends to insulate the company's profits from economic maladies.
Telstra shares are currently trading on a fully franked dividend yield of 3.9% today.
Coles Group Ltd (ASX: COL)
Our final Australian dividend share, which could be perfect for retirement income, is Coles Group. Coles, another well-known household name, has built up an impressive dividend track record since listing on the ASX back in 2018.
Since then, it has paid a substantial and fully franked dividend, one that has increased every single year.
Like Telstra, Coles enjoys a remarkably defensive earnings base, resilient to both recession and inflation. After all, we all have to eat and stock our households with life's essentials on a regular basis. As long as Coles is a convenient and affordable place to enable that, it should see success.
Coles shares are currently trading on a fully franked dividend yield of 3.13%.
