Are you looking for retirement portfolio options? If you are, then you may want to look at the quality ASX shares listed below.
As well as having defensive qualities, both these ASX shares offer potential for capital gains and attractive yields.
Here’s what analysts are saying about them:
Coles Group Ltd (ASX: COL)
The first ASX retirement share that could be a buy is supermarket giant Coles.
It could be a top option due to its defensive qualities, which were on display during the pandemic, its solid growth outlook, and positive exposure to inflation.
Citi currently rates Coles as a buy and believes it is well-positioned to deliver earnings and dividend growth through to at least FY 2025.
In respect to the latter, the broker is forecasting fully franked dividends per share of 70 cents in FY 2023, 73 cents in FY 2024, and then 80 cents in FY 2025. Based on the current Coles share price of $18.38, this represents yields of 3.8%, 4% and 4.35%, respectively.
Citi has a buy rating and a $20.20 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX retirement share that could be a buy is Telstra.
It is the nation’s largest telco, providing millions of Australians and businesses with internet and phone services. Just like the food Coles sells, these are services that most Australians can’t go without. It is for this reason that Telstra is seen as a defensive option for investors.
Another positive is the company’s outlook. It is targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.
Goldman Sachs expects this to underpin fully franked dividends per share of 17 cents in FY 2023, 18 cents in FY 2024, and 20 cents in FY 2025. Based on the current Telstra share price of $4.26, this will mean yields of 4%, 4.2%, and 4.7%, respectively.
The broker has a buy rating and a $4.80 price target on its shares.
