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3 strong ASX 200 shares to buy for a retirement portfolio


If you’re approaching retirement, then now might be the time to start focusing on capital preservation and income rather than chasing gains.

But which shares should you buy? I believe the three shares listed below could be great additions to a well-balanced retirement portfolio. Here’s why I like them:

Coles Group Ltd (ASX: COL)

The first company I would consider adding to a retirement portfolio is Coles. I think the supermarket operator is one of the most defensive shares on the ASX. This is because the bulk of its earnings come from its supermarkets which, as we have witnessed this year, traditionally perform well regardless of that is happening in the rest of the economy. Another reason for retirees to consider buying Coles is its dividend. With management aiming to pay out upwards of 90% of its earnings to shareholders, I believe its dividend can grow materially over the next decade or two.

Goodman Group (ASX: GMG)

Another option to consider for a retirement portfolio is Goodman Group. It is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate in 17 countries. I like the company due to the diversity of its operations and its exposure to quick growing markets such as ecommerce. Overall, I believe it is well-positioned to deliver solid earnings and distribution growth for a long time to come.

Woolworths Limited (ASX: WOW)

This retail conglomerate could be another good option for a retirement portfolio. I like Woolworths due to its strong brands, entrenched customer base, and defensive qualities. Combined, I believe they have positioned the company perfectly to deliver robust earnings and dividend growth over the next decade and beyond. And while its shares don’t provide the biggest dividend yield, a fully franked 2.9% yield is not to be sniffed at in this low interest rate environment.

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Returns As of 15th February 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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.

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