For retirees and those nearing retirement, high-yield ASX shares can offer a valuable boost to cash flows. These shares provide a steady stream of passive income and, ideally, also demonstrate the potential for profit growth over time. As investors transition into retirement, focusing on generating reliable income becomes crucial, and high-yield stocks can play a significant role in achieving this.
A retirement portfolio often benefits from investments that not only deliver consistent dividends but also offer the potential for dividend growth. While maximizing dividend yields is not the sole objective, incorporating high-yield stocks can enhance the overall yield of the portfolio. Here are three high-yield ASX shares that may be well-suited for those looking to bolster retirement cash flows.
Shaver Shop Group Ltd (ASX: SSG) Shaver Shop is a leading retailer of hair removal products in Australia and New Zealand. With over 120 stores across these countries, Shaver Shop offers a range of essential products, including electric shavers, clippers, trimmers, and wet shave items. The company's product offerings also extend to oral care, hair care, massage, air treatment, and beauty categories.
For retirees seeking reliable income, Shaver Shop stands out due to its track record of stable and growing dividends. The company has consistently increased its dividend payments since 2017. Currently, Shaver Shop’s trailing grossed-up dividend yield is 11.9%, making it an attractive option for those seeking high dividend returns.
Charter Hall Long WALE REIT (ASX: CLW) Charter Hall Long WALE REIT is a real estate investment trust (REIT) that manages a diverse portfolio of properties, including distribution centers, pubs, bottle shops, telecommunication exchanges, and service stations. What sets this REIT apart is its focus on long-term rental agreements with tenants. As of December 31, 2023, the portfolio had a weighted average lease expiry (WALE) of 10.8 years, providing significant visibility into future rental income.
Commercial properties often provide a steady stream of passive income, with rental contracts that may include inflation-linked increases or fixed annual rises. While higher debt costs present a short-term challenge, Charter Hall Long WALE REIT is expected to deliver a distribution per security of 26 cents in FY24, translating to a distribution yield of 7.6%.
Metcash Ltd (ASX: MTS) Metcash operates as a diversified business, supplying food and drink products to retailers such as IGA supermarkets, IGA Liquor, Bottle-O, Cellarbrations, and Porters Liquor. Additionally, Metcash is involved in the hardware sector with brands like Mitre 10, Total Tools, and Home Timber & Hardware.
Metcash’s commitment to returning 70% of underlying net profit after tax (NPAT) as dividends supports its solid dividend yield. The company's diverse operations benefit from Australia’s growing population, which drives demand for both food and hardware products. According to forecasts, Metcash is expected to offer a grossed-up dividend yield of 8% in FY25, making it a noteworthy option for those seeking reliable income.
Incorporating these high-yield ASX shares into a retirement portfolio can provide a steady income stream, supporting financial stability during retirement years.