If you’re on the lookout for dividend shares for your retirement portfolio, then I think the three listed below could be worth considering.

All three have qualities that I think are attractive for retirees in search of both growth and income. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share that I think retirees ought to consider buying is BWP. It is a real estate investment trust with a focus on commercial properties. The majority of the company’s assets are large format retailing properties which are leased to Wesfarmers Ltd (ASX: WES) operated Bunnings Warehouse. I think this is a great tenant to have and the risk of rental defaults and store closures is low in comparison to other areas of the retail sector. In light of this, I believe BWP is well-positioned to continue growing its income and distribution at a solid and predictable rate for a long time to come. I estimate that BWP will pay investors an 18.5 cents per share distribution in FY 2021. This means that its shares currently offer a forward 4.9% distribution yield. I believe this is very attractive for income-focused investors in this low interest rate environment.

Goodman Group (ASX: GMG)

Another dividend share to consider buying is Goodman Group. It shares may not offer the biggest yield, but I believe the integrated commercial and industrial property group could still be a top option for retirees. I estimate that Goodman will pay a distribution of approximately 32 cents per share in FY 2021. This represents a modest forward yield of approximately 2.2% based on its current share price. However, given its exposure to the structural tailwinds of the ecommerce market, I believe this distribution could grow strongly over the next decade and drive solid total returns for investors.

More reading

• Got $5,000 spare? Consider Wesfarmers shares and these 2 other ASX companies
• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
• Why the Healius share price will be in the spotlight tomorrow morning
• 3 ASX blue chip shares that could give your portfolio a boost

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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.

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The Ardent Leisure Group Ltd (ASX: ALG) share price is bouncing around today following news that the entertainment company has sold a stake in its Main Event business in the US.

Investors initially reacted positively to the news, sending Ardent shares flying 20.41% in early morning trade. However, it appears sentiment has turned, with the Ardent Leisure share price now trading 4.08% lower at the time of writing.

As its name suggests, Ardent is in the business of leisure and entertainment. It is the owner and operator of Gold Coast theme parks Dreamworld and WhiteWater World. And over in the US, Ardent owns a portfolio of family entertainment assets under the Main Event brand. Main Event offers activities like bowling, laser tag, and arcade games across 44 locations throughout North America.

Details of the transaction

This morning, Ardent revealed that US-based private investment firm, RedBird Capital Partners, will invest US$80 million to acquire a 24.2% interest in Main Event Entertainment.

The transaction values Main Event at an implied enterprise value (EV) of US$424 million and an EV/EBITDA multiple of 8x based on CY19 adjusted EBITDA.

As part of the transaction, RedBird has also been granted an option to acquire an additional 26.8% interest in Main Event at a future date. The option is exercisable between July 2022 and July 2024. Valuation will be based on normalised pro forma EBITDA at the time of exercising the option, subject to a minimum equity floor price.

According to Ardent, RedBird’s invested capital will be used exclusively to support Main Event. The funds provide Main Event with the financial support and flexibility to adapt to the current challenging macro environment. What’s more, the transaction provides Ardent with potential capital in the future in the event that the option is exercised.

The company noted there are no conditions to the transaction, nor shareholder approval. Therefore, the initial investment is expected to settle on 15 June 2020.

Along with the transaction news, Ardent revealed that Main Event has secured support from its lenders, including near-term covenant relief. It also stated that 28 of 44 Main Event centres have reopened following COVID-19 restrictions.

Management commentary

Commenting on the deal, Ardent chair Dr Gary Weiss said:

“We are excited by this new partnership with RedBird which not only reinforces Main Event’s financial strength and liquidity, but also provides a value-added strategic partner who can help drive the Company’s growth and expansion plans in the United States.”

Meanwhile, Gerry Cardinale, managing partner of RedBird, said, “we have witnessed firsthand Main Event’s growth as a leading brand in a resilient and fast growing family entertainment market. RedBird’s focus on building high-growth companies in sports and entertainment and expertise in delivering premier content to consumers will be highly complementary to the Main Event platform as it looks to expand throughout the country.”

More reading

• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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I’m a big believer in taking small actions to help frame your mindset for larger ones. Whether it’s making your bed in the morning or starting your week off reading quotes from Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) Warren Buffett, I find small successes can feed into large ones.

Of the above examples, I’m more of a fan of the latter (although I find no issue with a made bed). Buffett is not only one of the greatest investors of all time, but he’s also one of the best investing educators. I think all ASX investors can learn something from a man with such an interesting and successful life.

So drawing from the comprehensive list of Buffett quotes that our Fool colleagues over in the US have knocked up, here are 3 Warren Buffett quotes to help you start your week off right!

Quote 1

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

This is a quote I love, especially its opening line, “I never attempt to make money on the stock market”. Buffett sees making money only as a consequence of successful investing – you get the horse right and the cart follows.

Viewing ASX shares through this mindset is a great way to think about investing in my view. Too often, hopeful investors get distracted by the day-to-day ructions of the share market and forget that real investing, Buffett-style, is about acquiring ownership of quality companies – not trading ticker symbols.

If you truly want to adopt this mindset, try imagining holding your ASX shares for the next 5 years and assess how comfortable it makes you!

Quote 2

“Success in investing doesn’t correlate with IQ … what you need is the temperament to control the urges that get other people into trouble in investing.”

Too often, people are put off from investing in shares because they think it’s something only ‘smart people’ do. But Buffett disproved this notion with just one line here, highlighting that successful investors are more likely to be emotionally detached than smart.

As Warren Buffett rightly points out, most aspiring investors slip up by acting with emotion – either selling their shares in a market crash out of fear, or buying overvalued shares out of greed. Mastering these emotions is the best way to invest successfully, not by getting 5 PhDs from university.

Quote 3

“Cash … is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.”

Here Buffett is talking about the importance of buying companies that invest their cash prudently and aim to never be caught short. The only thing that can really bankrupt a company is debt, at the end of the day. And no one really cares about debt until there’s a crisis. A company’s cash levels and debt burden should be the first things you look at when assessing a potential investment.

I also think this quote can be translated into your own cash position. Right now, the S&P/ASX 200 Index (ASX: XJO) is motoring along just fine. But if there happens to be another market crash in 2020, you’ll regret not putting aside some cash for any ASX shares that might go on sale.

More reading

• Shares up? Haven’t you seen the economy?
• These 5 ASX shares were last week’s worst performers
• Why the Reliance Worldwide share price is outperforming today
• Leading brokers name 3 ASX 200 shares to buy right now
• These 5 ASX shares were last week’s best performers

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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.

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