Forget the State Pension or a Cash ISA! I’d live off these 10% dividend yields for my retirement

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Andy Ross | Wednesday, 6th May, 2020 | More on: RIO SLA Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! In a time of dividend cuts, I think these shares, with their 10% dividend yields, could provide vital income for those looking to fund retirement. Keeping the dividend and a 10% yieldThere can be no doubt it’s been a tricky few years for FTSE 100 asset manager Standard Life Aberdeen (LSE: SLA). In 2018, the business was loss-making before leaping back into profit last year. Shareholders have been on a rollercoaster ride, which you might not expect from a mature business in a high-margin, stable industry.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So this isn’t the easiest share to live with. But would you expect it to be when it yields 10%? I’d argue not. The high yield is a sign that many investors are nervous about the business. Yet I’m optimistic.The dividend has been held flat in the last year and is covered by earnings. It looks like management is keen not to cut it. So as long as the business doesn’t worsen from here, then investors should get income.There’s the potential for future growth if the business recovers. But I think the main attraction is the dividend.There are some glimmers of hope that this is happening. In 2019, gross inflows rose, as did earnings per share. The group is also keen to cut costs, which should drive value for shareholders in the long term.Demand from China to keep dividends flowing Shares in miner Rio Tinto (LSE: RIO) look very cheap. They also offer a 10% dividend yield when special dividends are included. I expect the firm will be able to keep providing this high level of income for investors as long as there’s not a deep and prolonged recession following the Covid-19 outbreak.The shares trade on a P/E of less than seven. Indicating that they can be picked up on a low multiple of earnings, which is good for investors.Rio Tinto has experience of coming through difficult times, like when prices collapsed in 2015/16 when demand from key growth markets like China dried up. This led to a deep round of cost-cutting, which is likely to be of benefit to the business today.With the Chinese economy now opening up again, and with lost ground to make up after factories shut down, iron ore demand could shoot up. As Rio’s main product, that could deliver a massive boost for the miner.Before the shutdown, revenues from iron ore were soaring, driven by demand from China. This is why I’m confident in the outlook for the company.Of course Rio is sensitive to commodity prices. But its strict control of costs and world-class mining assets give it better protection against fluctuating prices and the impact of coronavirus.I think the income should be secure. Even if cut, it’s likely to remain at a high level of yield, which would also grow back over the coming years. I’d be inclined to invest now in order to generate income for retirement. 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In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Simply click below to discover how you can take advantage of this. Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Forget the State Pension or a Cash ISA! 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