Unfortunately for many retirees the interest provided by term deposits and supposedly high interest savings accounts just doesn't provide enough income to live comfortably on.
Thankfully, with its average dividend yield of 4.2%, I believe the Australian share market is the place to be for investors in search of income.
Three shares which smash the market average with their high-yielding dividends are listed below. Here's why I would buy them in retirement:
Dicker Data Ltd (ASX: DDR)
This wholesale computer hardware company's share price may have rallied strongly in the last 12 months, but it still provides one of the most generous yields on the market. Management plans to pay a fully franked 16.4 cents per share dividend this year, which equates to a whopping yield of 7.6% at the current share price. Another bonus is that the company pays its dividend in quarterly instalments.
G8 Education Ltd (ASX: GEM)
G8 Education is a leading childcare operator with 490 centres in operation in Australia. It also has 20 centres in Singapore, bringing its total licenced places to a massive 38,713. These places are likely to get a boost in the year ahead thanks to its placement of shares with China First Capital. The company raised $212.8 million, at a premium, from the investment company in order to fund its future growth opportunities. G8 Education provides investors with a trailing fully franked 6% dividend which is also paid in quarterly instalments.
Suncorp Group Ltd (ASX: SUN)
An investment in this insurance giant would provide investors with a trailing fully franked 5.5% dividend at the current share price. Not only is this the biggest yield amongst its peers, but at 15x earnings its shares are also the cheapest in the industry. I believe this is a great time to pick up shares, especially with its new operating model gathering pace. I thought its recent half-year result showed a huge improvement and expect things to get even better in the second-half.
