Many investors at the retirement stage or nearing the retirement stage will want to generate as much income as possible in retirement. After all once a monthly or weekly pay cheque stops coming in you'll need income to meet your everyday expenses and to perhaps pay for a holiday or two every year.
As such you'll likely prefer stable dividend shares over the riskier growth end of the market. Although if you choose carefully you may be able to secure a regular income stream and a little capital growth along the way. So let's take a look at a couple of stocks that could offer this combination.
Rural Funds Group (ASX: RFF) is a real estate trust with a twist in that it doesn't own commercial real estate such as offices or shopping centres in major urban hubs. Rather it owns farmland across the livestock and agriculture industries. This is notable as the value of agriculture holdings commonly increases faster than inner city developments, with the group able to grow organically and by acquisition. In Australia for example it has an almost infinite list of potential acquisitions and management has a decent track record of capital allocation.
It pays dividends quarterly and is forecasting dividends of 10.43 cents in FY 2019 which places it on a 4.7% dividend yield.
Aventus Retail Property Fund (ASX: AVN) also pays quarterly dividends and offers a 4.8% trailing yield based on quarterly dividends totalling 16.3 cents per share over the last 12 months and today's share price of $.2.03.
Aventus is a market leader in the "large format retail" commercial real estate management business. This means it operates drive-in-style retail parks that offer multiple large retailer sites such as Harvey Norman Holdings Limited (ASX: HVN), Nick Scali Limited (ASX: NCK) and JB Hi-Fi Limited (ASX: JBH). It faces competition from online shopping, but has a steady track record of profit and dividend growth.
In FY 2019 it expects to payout 16.6 cents per share in dividends on a quarterly basis. Of course how often a dividend is paid won't make much difference to your cash flows over the medium term, but if you like to get paid regularly these two businesses are worth considering, with Rural Funds Group looking an especially good bet for regular income.
