The Motley Fool

These ASX shares could be great options for a retirement portfolio

When you’re in your 20s or 30s you might seek the high risk, high reward gains from fledgling growth shares. After all, if things don’t go to plan, you have plenty of time to recover your losses.

But as you enter retirement, I think these types of investments should take a backseat. Instead I would focus on investments that offer income and capital preservation.

Three shares which I think are great options for retirees right now are as follows:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a good addition to a retirement portfolio. This is because of its defensive qualities, solid growth prospects due to its refreshed strategy, strong market position, and favourable dividend policy. In respect to the latter, Coles intends to pay out between 80% and 90% of its earnings to shareholders each year. Which I estimate to mean that its shares currently provide a fully franked forward 3.5% dividend.

National Australia Bank Ltd (ASX: NAB)

If you don’t already have the banks in your portfolio then I think NAB could be worth considering. Although bank shares have been strong performers recently, I still see a lot of value in them and believe they could provide solid total returns for investors over the coming years if the housing market rebounds. And based on recent data from the Australian Bureau of Statistics, this appears to be happening. In July new loans issued to households increased by a sizeable 3.9% to $32 billion, which was the biggest increase in almost five years.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Finally, I think Sydney Airport would be a good option for a retirement portfolio. Although domestic passenger numbers have been falling this year, the number of international visitors through its gates continues to rise. I believe this and its strong pricing power, will allow the company to continue growing its income and dividend at a modest rate for many more years to come. At present Sydney Airport’s shares offer a trailing 4.8% dividend yield. Another bonus is that its status as a bond proxy should support its shares if bond yields continue to narrow.

And here are three more quality shares that I think would be great options for retirees right now thanks to their growing earnings and dividends.

NEW! Best 3 Dividend Buys for 2020

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of National Australia Bank 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 Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!