With rates not going higher any time soon, if I were a retiree I would look to the share market to grow my wealth and generate a source of income.
Three shares that I believe would be suitable for retirees right now are listed below:
Coles Group Ltd (ASX: COL)
One top option for retirees to consider buying is this supermarket giant. I expect Coles to become a real favourite with income investors thanks to its defensive qualities, solid growth prospects, and plans to pay out between 80% and 90% of its earnings as dividends. Based on this, I estimate that its shares are currently offering investors a fully franked forward 3,5% dividend. Whilst this isn't the biggest yield on the market, I expect it to grow strongly over the next decade.
National Storage REIT (ASX: NSR)
Another top option for retirees could be this self-storage-focused real estate investment trust. National Storage is one of the largest self-storage operators in the ANZ region and has plans to grow even larger in the coming years through development projects and its growth through acquisition strategy. I expect this to allow National Storage to increase its distribution at a solid rate for a long time to come. At present the company's shares provide a 5.4% trailing distribution yield.
Transurban Group (ASX: TCL)
My favourite dividend share for retirees is this toll road operator. Over the last decade the company has been able to grow its distribution by an average of 11% per annum thanks to its high quality assets, increasing demand, toll increases, and acquisitions and developments. I believe it is well-placed to continue increasing its distribution over the next decade. This certainly is the case in FY 2020 with management intending to grow its by 5.1% to 62 cents per security. This equates to a forward 4.25% forward yield.
