If you’re looking to retire in the coming years, then now might be the time to start thinking about a retirement portfolio.
But which shares should you buy for it? If I were constructing a retirement portfolio, I would want it to have quality blue chips which pay dividends and have solid growth prospects.
With that in mind, here are three top options which I think could be part of a retirement portfolio:
Goodman Group (ASX: GMG)
I think Goodman Group would be a good option for a retirement portfolio. I believe the integrated commercial and industrial property group is well-positioned for growth over the next decade thanks to the strength of its portfolio. Goodman focuses on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and industrial facilities, warehouses, and business parks. One of the key attractions for me is its exposure to the ecommerce market through relationships with Amazon, DHL, and Walmart.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another share which I would add to a retirement portfolio is Sydney Airport. The airport operator’s shares have fallen heavily this year because of the pandemic. And while its airport is a ghost town right now, it won’t be long until it is full of life again. Domestic tourism looks set to start its recovery in the coming months, with international tourism likely to follow in 2021. I’m optimistic by the end of 2022 the passenger traffic at its airports will be approaching pre-pandemic levels. This should put the company in a position to pay dividends that equate to very generous yields based on today’s share price. As a result, I think it could pay to be patient with this one.
Wesfarmers Ltd (ASX: WES)
A final option to consider for a retirement portfolio is this conglomerate. I think the majority of Wesfarmers’ many businesses are well-placed for growth over the next decade. Not least the key Bunnings business which goes from strength to strength. In addition to this, with the company sitting on a mountain of cash, I don’t believe it will be long until it makes some earnings accretive acquisitions. All in all, I believe this leaves Wesfarmers well-positioned to grow its earnings and dividends consistently over the coming years.
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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 Wesfarmers 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.