If you’re busy constructing a retirement portfolio and looking for some quality options to add to it, I would recommend you take a closer look at the ASX shares listed below.
Here’s why I think these ASX shares would be great options for retirees:
Coles Group Ltd (ASX: COL)
The first ASX share I would add to a retirement portfolio is Coles. In fact, I believe the supermarket giant would be a great core holding for this type of portfolio. This is due to its defensive qualities, strong market position, and positive long term growth outlook. The latter is thanks to a combination of food inflation, its refreshed strategy, defensive earnings, and expansion opportunities.
Another positive is the company’s dividend policy. With Coles intending to pay out upwards of 90% of its earnings back to shareholders, they stand to benefit greatly from increasing dividends over the next decade. In the meantime, based on the current Coles share price, I estimate that it offers an attractive fully franked ~3.2% FY 2021 dividend.
Goodman Group (ASX: GMG)
Another ASX share that I think would be great for a retirement portfolio is Goodman Group. It is an integrated commercial and industrial property group that owns, develops, and manages industrial real estate across 17 countries. The main attraction to the company for me are its warehouses and logistics facilities. I believe these put Goodman in strong position to deliver consistently robust earnings growth over the next decade.
Especially given its exposure to the structural tailwinds of the ecommerce market through relationships with the likes of Amazon, DHL, and Walmart. In respect to the former, in June Goodman strengthened its relationship with Amazon with a 20-year lease for a distribution centre in Western Sydney owned by its joint venture with Brickworks Limited (ASX: BKW).