Yesterday the Reserve Bank of Australia once again held interest rates at the record low of 1.5%. Whilst this is great news for borrowers, it certainly isn't for savers.
In light of this I think retirees should consider looking beyond term deposits and high interest savings accounts for income, and look to the local share market instead.
Three shares which I think could be great options for retirees today are listed below:
Mantra Group Ltd (ASX: MTR)
With the tourism boom in full swing and showing no signs of slowing, I believe this leading accommodation provider is in a great position to deliver above-average earnings growth for the next few years. Whilst the underperformance of its CBD portfolio has been a bit of a concern, I expect both management's plans and the increasing demand for rooms will help turn around the segment in FY 2018. Mantra's shares currently provide a trailing fully franked 3.6% dividend.
Telstra Corporation Ltd (ASX: TLS)
After a 20% drop in the Telstra share price in the last 12 months, the telco giant's shares now provide a trailing fully franked 7% dividend. Although there are concerns that increased competition in the telecommunications industry could impact Telstra, I feel confident that its market-leading position and best-in-class networks give it the edge over the competition. Furthermore, I expect the company to deliver significant cost-savings over the next few years that boost its margins and increases profitability.
WAM Capital Limited (ASX: WAM)
This listed investment company is one of my favourite dividend shares on the ASX. Currently WAM's shares are trading at 10x earnings and provide investors with a massive trailing fully franked 6.4% dividend. I've been very impressed with the way its portfolios have outperformed the market over the last few years and expect to see more of the same in the future. This could make it a great buy and hold investment option in my opinion.
