Building a retirement income portfolio? Buy these unstoppable ASX dividend shares – analysts

If you’re building a retirement portfolio, then you may be on the lookout for quality ASX dividend shares to buy. Two unstoppable ASX dividend shares that could act as the foundation of a portfolio are named below.

Both of these ASX dividend shares have bright long term growth prospects and provide investors with attractive yields. Another positive is that analysts believe they are trading at levels that offer meaningful upside potential for investors.

Here’s what analysts are saying about them:

Transurban Group (ASX: TCL)

The first ASX dividend share that could be a top option for an retirement portfolio is Transurban.

Transurban is one of the world’s leading toll road operators. It owns a portfolio of integral roads such as CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane. It also has a lucrative pipeline of development projects that look likely to be supportive of growth over the next decade and beyond.

Analysts at JP Morgan are positive on the company and have a buy rating and $15.00 price target on its shares. The broker has been pleased with improving traffic trends and highlights the company’s positive exposure to inflation.

As for dividends, JP Morgan expects dividends per share of 60 cents in FY 2023 and then 63 cents in FY 2024. Based on the current Transurban share price of $13.69, this implies yields of 4.4% and 4.6%, respectively.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share for investors to consider for a retirement portfolio is retail giant Woolworths.

It is the company behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, and Big W. In addition, the company has been boosting its exposure to the pet accessories and food market through recent acquisitions.

Goldman Sachs is a fan of the company and appears to see it as a great option for a portfolio. So much so, it has a conviction buy rating and $41.70 price target on the company’s shares.

The broker likes Woolworths due to its belief that it is on a “pathway to deliver ~3% sales and ~9% NPAT FY22-25e CAGR.” It also feels that share price weakness this year is “providing a value entry point to a quality player.”

As for dividends, the broker is forecasting fully franked dividend yields of 3% in FY 2023, 3.3% in FY 2024, and 3.5% in FY 2025.

The post Building a retirement income portfolio? Buy these unstoppable ASX dividend shares – analysts appeared first on The Motley Fool Australia.

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More reading

• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
• Bought $1,000 of Woolworths shares 10 years ago? Here’s how much dividend income you’ve received
• Brokers name 2 ASX dividend shares to buy next week
• Shopping spree: What happened to the Woolworths share price today?
• Brokers name 3 ASX shares to buy today

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 no position in any of the stocks mentioned. 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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