Brokers name 2 ASX 200 shares to buy for a retirement portfolio

When you first start investing, you might look for high risk, high reward growth shares. You can do this because if things don’t go to plan, you have plenty of time to recover from your losses.

But when you’re in retirement or approaching it, investors may be better focusing on income and capital preservation.

With that in mind, listed below are two ASX shares that could be good options for retirees. Here’s what you need to know about them:

Telstra Corporation Ltd (ASX: TLS)

The first option for investors to consider for a retirement portfolio is Telstra. After a difficult decade of falling earnings and dividend cuts, the tide is finally turning for the telco giant. In fact, last month the company’s results for FY 2022 revealed a return to growth and a surprise dividend increase.

Looking ahead, with its T25 strategy now in place, management is aiming for high-teens underlying earnings per share compound annual growth rates from FY 2021 to FY 2025. This could be supportive of further dividend increases in the coming years, potentially providing retirees with a growing income stream.

The team at Morgans are positive on the telco giant. Its analysts currently have an add rating and $4.60 price target on the company’s shares. Morgans is also forecasting another 16.5 cents per share dividend in FY 2023, which equates to a 4.2% dividend yield.

Woolworths Limited (ASX: WOW)

Another option to consider for your retirement portfolio is retail conglomerate Woolworths.

It could be worth considering due to its strong brands, entrenched customer base, and defensive qualities. The latter could come in particularly handy if the Australian economy falls into a recession in the next 12 months.

Another positive is its digital and omni-channel advantage. This bodes well for the future and is a big reason why Goldman Sachs is so bullish on the company. The broker expects it to drive further market share and margin gains.

Goldman currently has a conviction buy rating and $44.10 price target on the company’s shares. It is also forecasting fully franked dividend yields of 3%+ in the coming years.

The post Brokers name 2 ASX 200 shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Should all ASX investors be buying defensive shares right now?
• Woolworths share price edges higher as shareholders green light MyDeal takeover
• Should you buy Telstra shares after the telco ‘comfortably turned the corner’?
• 5 things to watch on the ASX 200 on Tuesday
• Are Woolworths shares good value in September?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. 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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