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:
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BWP Trust (ASX: BWP)
The first share to consider buying is BWP. It is a commercial real estate company with a focus on warehouses. The majority of which are leased to hardware giant Bunnings Warehouse. I believe Bunnings is Australia's highest quality retailer and a fantastic tenant to have. This is particularly the case right now with Bunnings performing very well during the pandemic and likely to continue doing so thanks to tax cuts and government stimulus. In light of this, I believe BWP is well-placed to pay a distribution in the region of 18.29 cents per unit in FY 2021. Based on the current BWP share price, this equates to a 4.55% distribution yield.
Goodman Group (ASX: GMG)
Another ASX share I think would be a top option for a retirement portfolio is Goodman Group. It is an integrated commercial and industrial property group. It owns, develops, and manages industrial real estate across 17 countries and counts many blue chips as customers. This includes Amazon, Coles Group Ltd (ASX: COL), and Walmart. I'm a big fan of the company due to its exposure to quick growing markets such as ecommerce. I believe this leaves it well-positioned to deliver solid earnings and distribution growth over the 2020s.
Woolworths Limited (ASX: WOW)
Finally, I think this retail conglomerate could be a great option for a retirement portfolio. I'm a fan of Woolworths due to its strong brands, entrenched customer base, and defensive qualities. The latter has been on display this year with its supermarkets delivering stellar sales growth during the pandemic. Overall, I feel the company is in a position to continue growing its earnings and dividend at a decent rate over the next decade.
