I think one of the best ways to set yourself up for a comfortable retirement is by having a passive income stream that is reliable and has the potential to grow over time.
In my opinion dividend shares are one of the best ways to achieve this and are especially useful once you reach retirement thanks to their regular pay checks.
The good news is that the ASX offers a number of reliable dividend shares that investors could consider as part of a diversified retirement portfolio.
Three that I like are listed below:
Coles Group Ltd (ASX: COL)
When I think about the qualities of the shares that I would want in a retirement portfolio, longevity springs to mind. One company that certainly fits the bill in that regard is supermarket giant Coles. It has been around for over a century and I don't see it going away any time soon. Another quality that I want from a share in a retirement portfolio is an above-average dividend yield where possible. I expect Coles to provide a yield of approximately 5.5% this year, giving its shares another tick of approval.
Dicker Data Ltd (ASX: DDR)
I think that this computer software and hardware distributor could be a good option for a retirement portfolio. Especially given the fact that the company pays its dividends in quarterly instalments. This could make it a great source of income in retirement. Another positive is that this year the Dicker Data board intends to increase its dividend to a fully franked 18 cents per share, which equates to a yield of approximately 6.3%.
Webjet Limited (ASX: WEB)
Although Webjet only provides a dividend of approximately 2% at present, I believe this has significant long term growth potential that makes it worthy of including in a retirement portfolio. The online travel agent has been growing at an impressive rate over the last decade and I expect similarly strong growth over the next ten years thanks to its strong brands and the shift to online booking.
