Retirees, including those with self-managed superannuation funds (SMSFs), are a group of investors whose needs differ from others.
Whilst those of us who are still working might seek to maximise the overall returns of our portfolios, retirees typically want to extract as much dividend income, preferably franked, out of their portfolios as possible.
This makes sense. Once you've given up your day job and your primary income has evaporated, the passive income from your investment portfolio, or super fund, is probably going to be one of the only ways that you'll have to pay the bills.
But which stocks are ideal for an SMSF? Well, that's the million-dollar question. Like with any investment portfolio, diversification remains an important consideration. So I'd never actually recommend anyone holds just three ASX shares in their SMSF.
If you're looking to pad out your portfolio with some of the safest dividend shares (at least in my view) on the ASX, make sure you check out this piece (and this one) too.
But today, here are three stocks I'd recommend to anyone looking for some solid foundations for their SMSF.
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3 stocks I'd buy and hold in a superannuation fund today
Plato Income Maximiser Ltd (ASX: PL8)
Plato Income Maximiser is a listed investment trust (LIT). It holds a portfolio of other ASX shares within its portfolio, which it uses to fund generous dividends for its investors. I like Plato for a self-managed superannuation fund as it's specifically built with income in mind.
It pays out fully franked dividends every single month, thanks to holding income heavyweights like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
Plato has given investors some impressive returns since its inception in 2017, and today offers a fully-franked trailing yield of over 6%.
Lottery Corporation Ltd (ASX: TLC)
Next up we have Lottery Corp. This ASX 200 share is an interesting one. It holds exclusive licenses to operate lotteries and Keno in almost every Australian state and territory.
I love the defensive and reliable cash flows that these licenses enable Lottery Corp to collect year in, and year out. These gaming vices are popular no matter the economic weather. After all, there's an awful lot of us who can't escape the allure of potentially winning a jackpot.
Lottery Corp shares have only been on the ASX for less than two years. But since the company's listing, we've already seen some solid dividends coming out for investors. I reckon these will only go up over time, and thus make Lottery Corp a great stock to hold in a superannuation fund.
You can expect a fully-franked dividend yield of roughly 2.75% from Lottery Corp shares today.
iShares Global Consumer Staples ETF (ASX: IXI)
Finally, let's talk about an exchange-traded fund (ETF) in the iShares Global Consumer Staples ETF.
Consumer staples stocks are one of the best sectors for any retiree to invest capital in my view. These companies produce goods like food, drinks, and household essentials that none of us can live comfortably without.
As such, these companies tend to be some of the most defensive businesses out there and are resilient to all kinds of economic maladies ranging from recessions to inflation. That's the kind of peace of mind that I think any self-managed superannuation fund owner would value.
Another benefit of this particular ETF is that it gives our superannuation fund some serious international diversification. IXI holds companies that are based in the United States, United Kingdom, Europe, Japan, and Mexico, just to name a few.
Your cash will go into world-famous companies like McDonald's, Coca-Cola, Walmart, Procter & Gamble, Nestle and L'Oreal.
