With interest rates unlikely to be going higher any time soon, if I were a retiree I would look to the share market to grow my wealth and generate a source of income.
Three outstanding ASX 200 shares that I believe would be suitable for retirees right now are listed below:
CSL Limited (ASX: CSL)
Retirees that are looking to add a little growth to their portfolio might want to consider this biotherapeutics giant. I believe CSL is perfectly positioned to grow its earnings and dividend at an above-average rate long into the future. This is thanks to its leading therapies, growing plasma collection network, and its lucrative research and development pipeline. The latter contains a number of therapies which have the potential to generate billions of dollars in sales over the next decade. And thanks to a recent pullback in the CSL share price, investors are currently able to pick up shares almost 17% lower than their 52-week high.
Goodman Group (ASX: GMG)
I think Goodman Group would be a quality option for retirees. It owns, develops, and manages industrial real estate across several countries. I’m particularly positive on the company due to its exposure to markets with very favourable long term outlooks. The latter includes its exposure to ecommerce through relationships with giants such as Amazon, DHL, and Walmart. Given how these assets are likely to be in demand for a long time to come, I feel it bodes well for income and distribution growth in the 2020s.
Woolworths Limited (ASX: WOW)
Finally, I think Woolworths would be a good option for retirees. I like the conglomerate due to its numerous quality brands, such as Woolworths supermarkets, Dan Murphy’s, and BWS, and their defensive qualities. Together with its supply chain improvement plans and the proposed spin off of its $10 billion Endeavour segment, I believe the company is well-placed to grow its earnings and dividend at a solid rate over the next decade. Based on the latest Woolworths share price, I estimate that it offers a decent fully franked 2.7% dividend yield.
Where to invest $1,000 right now
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of 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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