Australia has historically offered high dividend yields compared to global markets.
However, research shows the average yield is on the decline.
At the time of writing, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) sits at approximately 3.5%.
For retirees seeking passive income, this makes it all the more important to find strong companies with a track record of high dividends.
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A balanced retirement portfolio
Dividend-paying stocks are an important complement to superannuation in a retiree's investment portfolio because they provide an additional source of regular income outside of super pension payments.
While superannuation forms the foundation of retirement savings, a portfolio of quality dividend-paying Australian shares can generate cash flow that helps meet ongoing living expenses, reducing the need to draw down super balances as quickly.
This can help extend the longevity of retirement savings while also providing the potential for capital growth and tax-effective income through franking credits, making dividend stocks a valuable component of a well-diversified retirement strategy.
With that in mind, here are three options offering dividend yields above the 3.5% benchmark.
GQG Partners Inc (ASX: GQG)
GQG Partners has been a popular ASX dividend stock for many years.
It is a global boutique asset management company focused on active equity portfolios. The company offers investment advisory and portfolio management services for investors across three continents.
It has historically paid four unfranked shareholder dividends a year.
After seeing its share price fall significantly, it now offers a historically high dividend yield of over 13%.
It has also drawn positive outlooks from brokers, which could give retirees the chance to cash in on passive income and solid capital growth over the next few years.
Hearts and Minds Investments Ltd (ASX: HM1)
Hearts & Minds Investments has two goals aiming to maximise long-term shareholder returns.
It invests in high-conviction ideas and provides critical financial support to leading medical research institutes.
Its dividend has steadily increased since FY23, and is set to hover around 10% throughout the next financial year.
APA Group (ASX: APA)
APA Group is another ASX dividend share offering attractive yields.
It is Australia's largest energy infrastructure company, owning and/or operating an extensive portfolio of gas, electricity, solar, and wind assets.
The company is a major owner and operator of Australia's gas distribution network, including pipelines, gas-fired power stations, and storage facilities.
It has brought investors solid growth over the last 12 months, rising 25%.
Additionally, it is expected to yield nearly 6% by FY28.
