When it comes time to hang up your hat and enjoy your retirement, wouldn’t it be nice to own something high-yield S&P/ASX 200 Index (ASX:XJO) dividend Stocks to Increase Your Retirement Income?
If you’re still with me, I’ll assume your answer, like mine, is a resounding ‘yes’.
To give you an idea of how important dividends can play in putting some extra cash in your pocket in retirement, over the past five years, the ASX 200 has gained a respectable 22.8%.
however, S&P/ASX 200 Aggregate Total Return Index (ASX:XJT) – which includes all cash dividends reinvested ex dividend Date – has more than doubled those returns, to 48.6% over five years.
Now, I suspect that when you choose to retire, you won’t reinvest all (or perhaps even anything) of the passive. Income You are gaining from ASX 200 dividend stocks.
Which, generally, is the idea.
With that in mind, here are two high-yield, blue-chip stocks you may want to buy to boost retirement income.
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Drilling at Fortescue Ltd (ASX: FMG) Shares for Passive Income
The first ASX 200 dividend stock you might want to start accumulating for retirement-enhancing passive income is Fortescue.
The Australian mining giant has a long track record of paying two full-frank dividends a year. And the Fortescue share price has declined.
At Thursday’s closing price of $21.72, shares are up 34.66% in the last 12 months.
While the future is naturally unknown, I believe Fortescue is well positioned to continue to deliver long-term capital gains and dividends.
Last year Fortescue paid a fully-franked final dividend of 60 cents a share on September 26. The ASX 200 miner paid a full 62 cent per share interim dividend on March 30.
This equates to a total of $1.22 per share in fully-franked dividends.
At Thursday’s closing price, Fortescue shares are trading at a 5.6% fully-franked trailing dividend yield. Taking those franking credits into account, this equates to about an 8% gross-up yield.
Which brings us to the second ASX stock you might want to buy to boost your retirement income in retirement.
Buy the dip on this ASX 200 dividend stock
that’s stock Qantas Airways Limited (ASX: QAN).
At Thursday’s closing price of $8.71, Qantas shares are down 14.69% in the last 12 months.
But I don’t find that retracement too worrying.
That’s because most of those losses have occurred since the outbreak of the Middle East conflict on February 28 and the resulting rise in jet fuel costs. And although the Iran war may last longer than we expect, it will eventually end.
To add to the super-boosting passive income on offer from this ASX 200 dividend stock, Qantas paid a final fully-franked dividend of 26.4 cents per share on 15 October. And the airline paid a fully-franked interim dividend of 19.8 cents per share on April 15. This equates to a full-year payout of 46.2 cents per share.
At Thursday’s closing price, Qantas shares are trading at a 5.3% fully franked trailing dividend yield. Or an increased yield of 7.6% with those franking credits in play.