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2 high quality ASX shares to buy for your retirement portfolio

Wooden arrow sign stating 'retirement' against backdrop of beach
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If you’re in retirement or approaching it, you may be looking for ways to boost your income in this low interest rate environment.

But which ASX shares could help you achieve this? Two top options for retirees to look at are listed below. Here’s what you need to know about them:

Collins Foods Ltd (ASX: CKF)

The first ASX share to look at is Collins Foods. It is a quick service restaurant operator with a focus on KFC restaurants. At the last count, the company operated a total of 247 KFC restaurants in Australia and 45 in Europe. It also operates 15 Taco Bell restaurants in the Australian market.

Collins Foods has continued its growth over the last 12 months despite the pandemic. During the first half of FY 2021, it reported an 11.3% increase in revenue and a 15.1% lift in underlying net profit after tax.

Looking ahead, management has plans to continue expanding its KFC network in the future. This is both in Australia and in the European market. The latter is significantly underpenetrated in comparison to the Australian market, which could provide it with a long runway for growth.

UBS is positive on Collins Foods. It currently has a buy rating and $11.65 price target on its shares. UBS is also forecasting a fully franked dividend of 22 cents per share in FY 2021. This represents a ~2.3% dividend yield.

Ramsay Health Care Limited (ASX: RHC)

Another ASX share to look at for a retirement portfolio is Ramsay Health Care. It is one of the world’s leading private healthcare companies with operations across several countries.

Ramsay was hit hard by the pandemic and experienced a significant drop in elective surgeries. However, trading conditions are now improving and the company looks well-placed to benefit from a backlog in surgeries in the near term and increased demand for healthcare services over the long term. 

One broker that is particularly positive on the company’s prospects is Goldman Sachs. Its analysts currently have a conviction buy rating and $75.00 price target on Ramsay’s shares.

It believes its shares are trading at an attractive level. Particularly given its solid earnings and dividend growth potential over the coming years.

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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 has recommended Collins Foods Limited and 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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