2 high quality ASX shares for your retirement portfolio

Ramsay Health Care Limited (ASX:RHC) and this ASX share could be top options for retirees looking for a source of income…

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If you're currently in retirement or approaching it, you'll probably be looking for ways to boost your income in this low interest rate environment.

But which ASX shares should you turn to? Two top options for retirees to look at are listed below. Here's what you need to know about them:

asx investor daydreaming about US shares

Image source: Getty Images

BWP Trust (ASX: BWP)

The first ASX share to look at is BWP. It is a commercial real estate investment trust with a focus on warehouses.

The vast majority of the company's properties are leased to home improvement giant Bunnings Warehouse. Given how Bunnings has been performing very strongly during the pandemic, it will not be surprising to learn that BWP has continued its positive form over the last 12 months and collected rent largely as normal.

Another positive was that the company's portfolio actually appreciated in value last year. This came at a time when most other retail landlords were writing down the value of their properties.

Pleasingly, Bunnings has continued to perform well in FY 2021 and appears to have put BWP in a position to deliver a robust result later this year.

Analysts at Ord Minnett are estimating an 18 cents per share distribution in FY 2021. Based on the current BWP share price, this represents a 4.2% distribution yield.

Ramsay Health Care Limited (ASX: RHC)

Another ASX share to look at is Ramsay Health Care. It is a leading private healthcare company with operations across several countries.

While its growth over the short term is likely to be challenging in some markets because of headwinds caused by the pandemic, things are improving and its long term outlook remains very positive due to its world class network of private hospitals and their exposure to the growing demand for healthcare services.

Analysts at Goldman Sachs are very positive on the company. They note that the ANZ market is recovering strongly and expect Ramsay to benefit greatly from a backlog in surgeries. And given how the local market contributes approximately two-thirds of its earnings, this bodes well for the company's recovery from the pandemic.

Overall, its analysts believe Ramsay is now well-placed for solid earnings and dividend growth over the coming years. In light of this, they recently put a conviction buy rating and $70.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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