Although central banks around the world have been raising interest rates, I think it will still be some time until we see the Reserve Bank of Australia doing the same here.
Whilst this is great for borrowers, it is disappointing news for retirees who use the interest from their savings as a source of income.
So with interest rates likely to remain at a record low for some time, I think retirees should look to the share market for a source of income.
Three high-yielding dividend shares which I believe are worth considering today are listed below:
Dicker Data Ltd (ASX: DDR)
This wholesale distributor of computer hardware and software could be perfect for retirees. As well as providing investors with a generous trailing fully franked 5.4% dividend, Dicker Data pays it in quarterly instalments. This makes it a great source of income in my opinion. Furthermore, thanks to the addition of new vendors and strong demand from the cloud market, I expect Dicker Data to be in a position to increase its dividend in FY 2018.
Telstra Corporation Ltd (ASX: TLS)
Although the long-term future of Telstra's dividend is a matter of debate, I remain confident that the telco giant will be able to payout at least 22 cents per share for the next couple of years. At the current share price this equates to a fully franked 6.1% dividend. Further to this, I believe there is a lot of bad news already built into its share price. If things are better than expected this year then there's the potential for its shares to be rerated higher.
WAM Capital Limited (ASX: WAM)
Unlike Telstra, I expect this listed investment company to increase its dividend this year thanks to the strong performance of its funds. If it does, it will be the ninth year in a row that WAM Capital has increased its payout. At present WAM Capital's shares provide investors with a trailing fully franked 6% dividend.
