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These ASX dividend shares could be perfect for your retirement portfolio

James Mickleboro
couple of retirement age embracing

If you’re in search of a source of income in retirement then I think the share market is a great place to look.

Especially given the ultra-low interest rates on offer with traditional income-generating assets.

Three dividend shares that I think would be great options for retirees are listed below. Here’s why I like them:

Coles Group Ltd (ASX: COL)

One of my favourite dividend shares is this supermarket giant. I think it would be a great option due to its defensive earnings, strong market position, and its refreshed strategy. In respect to the latter, it is aiming to deliver $1 billion in cumulative savings by FY 2023. This will be achieved through the use of automation and efficiencies. Combined with expansions and same store sales growth, I expect this to support solid earnings growth over the next five years. This should put the Coles board in a position to increase its dividend at a decent rate over the next few years. For now, I estimate that its shares offer a forward fully franked 3.7% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another option for your retirement portfolio could be Sydney Airport. I think the airport operator would be a good option due to its strong market position and pricing power, and its positive long term outlook. The latter is thanks to improvements in the domestic travel market, increasing international tourism, and its position as Australia’s busiest airport. At present Sydney Airport’s shares offer a trailing 4.4% dividend yield.

Transurban Group (ASX: TCL)

Transurban is a leading toll road operator which owns a collection of key roads in Australia and North America. These roads continue to report the perfect mix of increasing traffic and higher toll prices. I expect this trend to continue for the foreseeable future. Which, combined with acquisitions and developments, should put Transurban in a position to continue growing its income and distributions at a solid rate over the next decade. In FY 2020 management intends to grow its distribution by 5.1% to 62 cents per security. This equates to a forward 4.1% forward yield.

The post These ASX dividend shares could be perfect for your retirement portfolio appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019