With term deposits offering paltry returns at the moment I believe the share market is the best place for retirees to invest their hard-earned money.
Whilst there are a good number of quality options for income investors, three high-yielding dividend shares in particular jump out at me today. They are as follows:
Accent Group Ltd (ASX: AX1)
Although this footwear retailer's shares have been on a tear over the last 12 months and are up almost 48%, I still believe they are great value for both value and income investors. Especially given the solid performance of its Athlete's Foot and HYPE brands despite the arrival of Amazon in Australia. I remain confident that this strong run can continue for the foreseeable future thanks to the strength of its licensed brands which only it can sell. At present Accent's shares offer a trailing fully franked 4.4% dividend.
Dicker Data Ltd (ASX: DDR)
This computer software and hardware wholesale distributor could be a great option for retirees in search of a regular source of income. Not only does it provide a solid dividend yield, but Dicker Data pays its dividend out in quarterly instalments. Despite its New Zealand business coming under pressure following the loss of a key contract, management still expects the company to achieve a 6% increase in earnings in FY 2018. If this proves to be the case, it intends to lift its dividend by 10% year-on-year to 18 cents per share. This equates to a forward fully franked 6.4% yield based on its last close price.
Telstra Corporation Ltd (ASX: TLS)
While income investors will no doubt be a little wary of investing in Telstra after its slashed its dividend last year, I think it is time to reconsider the telco giant. Especially as its proposed 22 cents per share fully franked dividend in FY 2018 equates to a generous yield of over 7% today. As I have said previously, I believe this dividend is secure for at least the next couple of years. After which there are a number of variables that will dictate whether it is maintained, reduced, or even increased. I remain optimistic that the arrival of 5G internet and the potential write down of the NBN by the Federal Government will allow Telstra to at least maintain this 22 cents per share pay out.
