Here’s how I’d do it. <\/p>\n
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Image source: Getty Images<\/p>\n
Reliable earnings and payouts <\/p>\n
I’d start with $25,000 in APA Group Ltd (ASX: APA<\/a>). The infrastructure giant currently offers a dividend yield <\/a>of about 6.1%, backed by essential gas pipelines and electricity assets that generate long-term contracted cash flow. That kind of reliability is ideal for retirees seeking a consistent retirement income.\u00a0 <\/p>\n Next, I’d allocate $20,000 to ANZ Group Holdings Ltd (ASX: ANZ<\/a>). While the yield is a little below your original 5% screen at roughly 4.5%, the partially franked dividend and resilient banking earnings still make it highly attractive for income investors. Banks remain some of the most dependable dividend payers on the ASX.\u00a0<\/p>\n For a third direct shareholding, I’d put $15,000 into Transurban Group (ASX: TCL<\/a>).<\/p>\n Like APA, it owns hard-to-replicate infrastructure assets, with toll roads across Sydney, Melbourne, and North America. Traffic-linked revenue provides inflation pass-through over time, which can help preserve purchasing power in retirement.<\/p>\n High-yielding blue chips and bonds <\/p>\n Now for the ETFs in the retirement portfolio.<\/p>\n I’d allocate $25,000 to the Vanguard Australian Shares High Yield ETF (ASX: VHY<\/a>). This ETF gives instant exposure to a basket of Australia’s highest-yielding blue-chip shares, including banks, miners, and telcos. It reduces single-stock risk while keeping the income focus front and centre.<\/p>\n The final $15,000 would go into the Vanguard Australian Fixed Interest ETF (ASX: VAF<\/a>). Bonds might not be exciting, but they add portfolio stability and help smooth out volatility when equity markets get rough.<\/p>\n