The ASX dividend stocks that we choose for our superannuation funds (particularly for a self-managed super fund (SMSF)) arguably need to offer slightly different attributes than those that might make up a general investing portfolio. Particularly for those past, at, or approaching retirement age.
In order to fund a comfortable retirement, ASX stocks should have stable, mature earnings bases, and preferably pay out large, fully franked dividends. This ensures that the retirees' investment is protected as much as possible, as well as providing a stream of income that can replace a salary.
With that in mind, let's discuss five ASX dividend stocks that I think can supercharge any superannuation fund or retirement portfolio.
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5 ASX dividend stocks to supercharge a super fund
BHP Group Ltd (ASX: BHP)
The 'Big Australian' could be an ideal choice for a diversified super fund. This mining giant may not be able to pay out a consistent dividend, thanks to its reliance on volatile commodity prices.
Even so, BHP has always prioritised funding as much as it can in fully-franked dividends to its shareholders, which can be incredibly lucrative if prices swing upwards.
Wesfarmers Ltd (ASX: WES)
Another top ASX dividend stock for superannuation investors to consider is this industrial and retailing conglomerate. Wesfarmers is famous for its retailing brands like Bunnings and Kmart, but owns a swag of other underlying companies too.
Wesfarmers uses the combined earnings from this portfolio to pay a reliable and fully franked dividend. Investors have received an annual pay rise from this company for five years in a row.
Coles Group Ltd (ASX: COL)
Since being spun out of Wesfarmers back in 2018, Coles has built up a formidable track record of funding large and rising dividends. In fact, it has increased its annual dividend, replete with full franking credits, every year since 2019.
This ASX 200 blue chip stock benefits from providing food and household essentials that we all need to buy regardless of the economic weather. That gives it a high degree of defensiveness, which is invaluable in a retirement portfolio.
Telstra Group Ltd (ASX: TLS)
Next up, we have Telstra Group. With ubiquitous smartphone use and stable internet connections being an essential requirement of modern life, this telco veteran has never been more relevant. Telstra benefits from its reputation of offering the best mobile network in the country. As such, it has significant pricing power, as well as a persistent lead in the telecommunications market share.
Like Coles, Telstra has a defensive earnings base, which has protected its fully-franked dividend from being cut for years now. In fact, shareholders have enjoyed a dividend pay rise every year since 2021.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Last but certainly not least, we have investing house and ASX dividend stock, Soul Patts. Soul Patts is ASX dividend royalty. It has the longest streak of annual dividend increases on our market, giving shareholders a pay rise every year since 1998. This company owns and operates a diversified underlying investment portfolio on behalf of its shareholders.
This includes a swathe of investments in other ASX shares, as well as venture capital, private credit and unlisted assets. It also houses the manufacturing and property portfolios of the former Brickworks, thanks to the recent merger.
There is arguably no better ASX dividend stock to supercharge a super fund than this one.
