4 shares perfect for the blue-chip retiree

These four shares including Challenger Ltd (ASX:CGF) offer an attractive mix of fully franked dividends and capital growth.

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If you are 65 years or older, your risk tolerance is likely to be much lower than someone in their 20's or 30's.

Income shares are also likely to be more important to you, especially since franking credits are most beneficial when you are in retirement.

Lower risk growth shares can also play an important role in your portfolio, especially if you want to generate good levels of capital growth over a longer time frame.

With those points in mind, here are four shares that I think could be great additions for a retired investor:

CSL Limited (ASX: CSL)

CSL is the leading healthcare share on the ASX with a market capitalisation of $58 billion. The company has been a great performer in the past, but I think the outlook is just as positive with the demand for blood plasma and niche therapeutics set to boom over the next decade. The shares do look a little expensive at the moment, although one analyst has just slapped a $148 price target on them.

Challenger Ltd (ASX: CGF)

Challenger is the clear market leader when it comes to annuities in Australia and this means it is well placed to capitalise on the growing demand that is being generated from an ageing population. Furthermore, the company has a fast-growing boutique funds management business that adds another source of income and profits. The shares have enjoyed an extremely strong run over the past six months, so I would probably wait for a pull-back before buying the shares.

WAM Capital Limited (ASX: WAM)

WAM Capital is one of the best performing fund managers on the ASX and can be a very valuable source of franked dividends for retirees. The shares currently yield around 5.8% and also give investors exposure to the share market with less volatility.

Greencross Limited (ASX: GXL)

Greencross is Australia's leading veterinary company and provides investors with exposure to a growing company that pays fully franked dividends. Importantly, the outlook for the veterinary sector is strong, with humans continuing to spend increasing amounts of money on animal and pet care. The shares offer reasonable value at current prices, trading at 17x earnings and offering a grossed up dividend yield of around 4%.

Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia owns shares of Challenger Limited and Greencross Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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