Investors who are retired or on the verge of retiring have different needs from their ASX shares. Instead of prioritising maximum capital growth, these investors usually want to set up a safe and dependable stream of income â a retirement fund â to help pay the bills that don’t stop once one has walked off the job for the last time.
Finding ASX shares that can act as a foundation in such a retirement fund is easier said than done. Today, let’s examine two ASX shares that I believe would make excellent candidates.
2 premier ASX shares that are perfect for a retirement fund
APA Group (ASX: APA)
First up, we have the gas pipeline owner APA Group. Although APA has operations ranging from power production to energy storage, its primary asset is the nationwide network of gas pipelines that the company owns and operates. These provide extraordinarily stable cash flows, which APA uses to increase its dividends like clockwork.
APA has raised its annual dividend every single year since 2004. At recent pricing, this premier ASX share was trading with a dividend yield of 6.24%. Investors should note, however, that these dividends don’t come with too much in the way of franking credits. Even so, this stock’s income dependability, as well as its massive upfront yield, lead me to regard APA Group as a prime candidate for any retirement fund.
Coles Group Ltd (ASX: COL)
Next up, we have a company with far more name recognition in Coles Group. Coles is the company behind the eponymous grocery chain that makes up a huge chunk of the Australian grocery and supermarket industry. It also owns the Liquorland bottle-shop chain.
I like Coles as a retirement fund investment due to its durable nature as a consumer staples stock and its strong track record of paying out large, fully-franked dividends.
On the former, Coles sells goods such as food and household essentials that we all need, rather than want, to purchase on an ongoing basis. As long as the company is one of the cheapest places to fulfil these needs, it should do well as a business. That’s regardless of whether the economy is booming or busting, or whether inflation is high or low.
On the latter, Coles has increased its annual dividend every year since its listing in late 2018. At recent pricing, investors could buy shares of this ASX share with a fully franked yield of 3.16%.
The post 2 premier ASX shares for your retirement fund appeared first on The Motley Fool Australia.
Should you invest $1,000 in APA Group right now?
Before you buy APA Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and APA Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 18 November 2025
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Why Coles shares are a retiree’s dream
- Are APA shares a good buy for passive income?
- APA Group declares December 2025 half-year distribution
- 3 ASX dividend stocks to brighten your Christmas stocking
- Top brokers name 3 ASX shares to buy today
Motley Fool contributor Sebastian Bowen 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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Leave a Reply