If I were building an ASX share portfolio for retirement, there are a few things I would prioritise.
Naturally, dividend income would be important. After all, having regular payments arriving in your bank account could make retirement much more enjoyable.
But I wouldn’t simply look for the shares with the biggest dividend yields.
Retirement could last 20 or 30 years, and I would want to own businesses that have a reasonable chance of growing their earnings and dividends over that time.
I would also favour established companies with strong market positions, dependable cash flows, and businesses that I can see remaining relevant for decades.
With that in mind, here are five ASX shares that would make my shortlist.
The first ASX share I would consider is APA Group.
I think infrastructure businesses can be particularly well suited to a retirement portfolio, especially when they own assets that customers depend on and cannot easily replace.
APA certainly fits that description. The company operates an extensive network of gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure across Australia.
Many of its customers rely on this infrastructure to keep their own operations running, which helps APA secure long-term agreements and generate relatively predictable cash flows.
And that is the sort of business I would want supporting my retirement income.
While APA has significant investments to make as Australia’s energy requirements change, it already has an established asset base generating substantial cash.
In FY 2026, the company delivered underlying EBITDA growth of 8.3% and increased its annual distribution to 58 cents per security. Management expects another increase to 59 cents in FY 2027, which will mark its 23rd annual increase in a row.
Looking ahead, APA has a substantial development pipeline that could keep earnings and dividend growth going for a long time to come.
APA gives me a good starting point, but I would want more than energy infrastructure supporting my retirement income.
The other four companies bring different strengths to the portfolio, including some with excellent dividend growth potential.
So, let’s look at why I think they could be worth owning for the next 20 or 30 years.
Telstra Group Ltd (ASX: TLS)
Another ASX share I would put on my retirement shortlist is Telstra.
I don’t expect Telstra to become a spectacular growth company, but that isn’t really what I’m looking for here.
What I like is that telecommunications has become an essential part of everyday life, and Telstra has a leading position in the Australian market.
Millions of customers pay for mobile and internet services every month, giving the company a recurring source of revenue.
Telstra has also demonstrated that it can increase prices while continuing to grow its mobile subscribers.
This has helped support earnings and dividend growth, with the company lifting its annual dividend by 10.5% to 21 cents per share in FY 2026.
And thanks to its Connected Future 30 strategy, I think Telstra could continue providing shareholders with a useful combination of income and modest earnings growth.
Transurban Group (ASX: TCL)
I would also want some exposure to transport infrastructure, which is where Transurban comes in.
The company owns and operates major toll roads across Australia and North America.
What I like about Transurban is the potential for its existing assets to become more valuable as cities grow.
Building major roads through established urban areas is extremely difficult and expensive. That puts Transurban in a strong position where it already operates important routes.
And with many of its concessions allowing tolls to increase over time, the company has opportunities to grow revenue without needing traffic volumes to rise significantly every year.
That could be particularly valuable during retirement, when inflation can gradually reduce the purchasing power of your income.
Transurban is expecting to pay distributions of 72 cents per security in FY 2027, up from 69 cents in FY 2026.
Overall, I think its long-lived assets and potential for growing distributions make it a strong candidate for a retirement portfolio.
Wesfarmers Ltd (ASX: WES)
Another ASX share I would be very comfortable owning over a long retirement is Wesfarmers.
I have a lot of respect for the company and the way it has been managed over the years.
It owns some excellent retail brands, including Bunnings, Kmart, and Officeworks, while also operating in healthcare and industrial markets.
But I think one of Wesfarmers’ greatest strengths is its ability to make sensible decisions about where to invest its money.
Management has demonstrated a willingness to expand successful businesses, develop new opportunities, and exit investments that no longer justify their place in the group.
That approach has helped Wesfarmers deliver excellent long-term returns to shareholders.
And the company continues to perform well, with underlying net profit increasing 8.3% in FY 2026.
I wouldn’t necessarily expect Wesfarmers to offer the biggest dividend yield on my shortlist. However, I think its earnings growth potential and disciplined management could allow dividends to increase considerably over a lengthy retirement.
Woolworths Group Ltd (ASX: WOW)
A final ASX share I would consider is Woolworths.
I think the supermarket giant has many of the qualities I would want in a retirement investment.
Its supermarkets serve millions of Australians every week, generating substantial revenue from products that households need regardless of economic conditions.
And after a challenging period, Woolworths is showing signs of being back on track.
Its Australian Food division reported an 8.5% increase in EBIT in FY 2026, demonstrating the progress being made in improving profitability.
With its enormous store network, strong brands, and established customer relationships, I believe Woolworths is well positioned to keep growing earnings and dividends over the long term.
Of course, with its shares now trading near record highs, investors are paying a premium for that quality.
But for someone building a retirement portfolio with a 20- or 30-year investment horizon, I think Woolworths could still be an excellent company to have on their shortlist.
Final word
Of course, I wouldn’t necessarily limit an actual retirement portfolio to just five ASX shares.
I would want greater diversification, potentially including international investments and some cash or defensive assets.
But if I were narrowing down the ASX to a handful of companies capable of supporting my retirement income for many years, these five would certainly deserve a place on my shortlist.
The post If I could only buy 5 ASX shares for retirement, these would make my shortlist appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.