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2 high quality ASX shares to buy for your retirement portfolio

hand drawing two arrows on chalk board with one saying work and the other saying retire
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When you first start investing, you might look for high risk, high reward growth shares. Because if things don’t go quite to plan, you have plenty of time to recover.

However, when you’re approaching retirement, you have less time on your side to recover your losses, so it can be best to switch your focus to income and capital preservation.

With that in mind, here are two ASX shares which could be top options for retirees:

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care is a leading private healthcare company with operations across several regions. Although its growth over the short term is likely to be challenging because of headwinds caused by the pandemic, its long term outlook remains as positive as ever.

This is due to its world class network of private hospitals and their exposure to the growing demand for healthcare services globally. Management also has a penchant for acquisitions and could boost its growth with further earnings accretive acquisitions in the future.

Analysts at Macquarie have an outperform rating and $73.65 price target on the company’s shares at present.

Woolworths Limited (ASX: WOW)

Woolworths could be a good option for retirees due to the conglomerate’s numerous quality brands. These include Woolworths supermarkets, Dan Murphy’s, BWS, and BIG W. As a whole, the company appears to be well-positioned for growth over the long term thanks to its defensive qualities and strong market position.

In addition to this, another potential driver of value in the future could be its supply chain improvement plans and the proposed spin-off of its $10 billion Endeavour segment. Although the latter is likely to be delayed until after the pandemic passes, it is expected to create value for shareholders.

Analysts at Citi are positive on the company’s future. They recently put a buy rating and $44.50 price target on Woolworths’ shares. Citi is forecasting a fully franked $1.16 per share dividend in FY 2021, which equates to a 2.9% yield.

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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 Woolworths Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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