The ASX is home to numerous dividend stocks that are suitable for a retirement portfolio. However, I think that any ASX investor looking to retire in the near future, or those who have already done so, shouldn't limit themselves to the Australian market.
Across the Pacific, the United States is home to many stocks that would supplement an ASX retirement portfolio very well. Although those stocks don't offer franking credits, they more than make up for it with unmatchable market dominance, and in some cases, incredible dividend track records.
Let's dive into three.
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Three US dividend stocks to boost an ASX retirement portfolio
Procter & Gamble Inc (NYSE: PG)
Procter & Gamble isn't a household name in Australia. However, it is the company behind a plethora of household brands that are likely in your cupboards right now. These span from Fairy dishwashing liquid and Oral-B toothpaste to Gillette razors and Pantene shampoo.
It goes without saying that these are some of the most well-known household names on the planet. And they are all made by this dominant multinational.
Procter & Gamble can also boast one of the best income track records in the world. This US dividend stock has increased its annual dividend every year for 69 consecutive years. That's a feat unheard of on the ASX. If that doesn't make this stock a contender for a retirement portfolio, I don't know what would.
McDonald's Corp (NYSE: MCD)
Next up, we have a company that needs no introduction. McDonald's is one of the most recognisable brands across the world, with only a handful of countries not hosting at least one set of golden arches.
McDonald's pioneered the fast-food business model, and 70 years later, it remains a leader in its space. This company is particularly valuable as a dividend share, given McDonald's recession-resistant nature and top-notch real estate portfolio. Those characteristics make for a good start if we are looking for a dividend stock to fund a long retirement.
But McDonald's also offers a stellar dividend track record. Although it's not quite on the level of Procter & Gamble, this company has increased its dividends for 48 consecutive years.
Microsoft Corporation (NASDAQ: MSFT)
Finally, we have a company that is not well-known as a dividend payer. Even so, Microsoft has been paying out dividends for decades and has been increasing them at a rapid clip to boot. Although it currently trades on a yield well below 1%, its last dividend increase represented a 10.67% boost over what shareholders received over the previous quarter.
Furthermore, its average annual increase over the past five years has been 10.23%.
If Microsoft maintains this rate (which is arguably likely, given its continuing profit growth), this US stock could become a valuable addition to a retirement portfolio, particularly for those with decades of retirement ahead of them.
