It's getting harder for retirees to make enough income from their capital.
The Reserve Bank of Australia (RBA) just cut its Australia's interest rate to 0.25%. Having $1 million in the bank would only make $2,500 with that rate. That's no good!
Coronavirus came out of nowhere to knock 3% off the ASX (at the time of writing). Some shares have been hurt more than that.
Here are two ASX shares that can help with long-term income:
WAM Global Limited (ASX: WGB)
The group of Wilson Asset Management (WAM) listed investment companies (LICs) are known for paying high dividend yields.
The job of a LIC is to invest in other shares on behalf of its shareholders. It can turn capital gains and dividends received from investments into a stable (and growing) dividend stream for shareholders.
WAM Global, as the name may suggest, invests in international undervalued growth shares. It owns a wide variety of shares in different industries. As examples, it the end of February 2020 it had holdings in: HCA Healthcare, CME Group, Logitech, Ubisoft, S&P Global and Hasbro.
Why is WAM Global a good buy now? Firstly, I think it's trading at a large discount to its underlying assets. Its share price is down 31%, but its underlying value is likely to have fallen less because of the cash holding and weakening Australian dollar.
The other reason to buy WAM Global is that over time it's going to pay out a lot of dividends to shareholders. I'm not sure what WAM will do with the dividend in the short-term, but over the long-term it will keep growing that dividend.
Brickworks Limited (ASX: BKW)
Brickworks is one of the biggest building products companies on the ASX with a variety of offerings. It's the country's largest brickmaker.
At the moment the short-term outlook for construction in the US and Australia doesn't look so good. However, things will return to normal over time.
However, Brickworks is also invested in defensive, high-quality property and investments that provide it reliable earnings and dividends. The underlying value of these assets alone backs up the value of Brickworks' market capitalisation and they also fund the dividend.
In the half-year result which was announced this week, Brickworks increased its interim dividend by 5%.
It has maintained and grown its dividend every year for over 40 years. It currently has a grossed-up dividend yield of 6.1%.
Foolish takeaway
Both of these businesses are looking very attractively priced to me. I think Brickworks will be a great pick for a 3-year buy, but I like the fact that WAM Global can change its investments and increase its cash level however the investment team likes.
