If you're a retiree, you might be looking for some dividend shares to boost your income.
After all, term deposits from Commonwealth Bank of Australia (ASX: CBA) (and the rest of the big four) offer interest rates that are barely keeping up with inflation.
Three top dividend shares that I think are great options for retirees in these unprecedented times are listed below. Here's why I like them:
Coles Group Ltd (ASX: COL)
This supermarket giant is one of only a handful of companies that are benefiting from the coronavirus crisis. This is due to panic buying from consumers, increasing consumption at home, and the pricing power this growing demand is gifting it. In light of this, I expect Coles to deliver stronger than expected earnings and dividend growth in FY 2020 and FY 2021. Based on this, I estimate that its shares offer a forward fully franked ~4% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Telstra is one of the only ASX 200 shares that has been able to retain its guidance for FY 2020. And while certain coronavirus initiatives, such as temporary job openings, mean it now expects to hit the low end of its guidance range, this should still be sufficient for it to maintain its 16 cents per share dividend. This equates to a fully franked 5.3% yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying is Transurban. Whilst work from home and stay at home initiatives are likely to impact the number of vehicles on its toll roads, I expect a sharp rebound in traffic once the crisis passes. In the meantime, I'm optimistic that Transurban will still pay its 62 cents per unit distribution in FY 2020. This distribution equates to a 5.2% yield. However, a small cut could be necessary in FY 2021 depending on how long the crisis drags on for.
