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2 outstanding ASX shares for your retirement portfolio

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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:

BWP Trust (ASX: BWP)

BWP could be a good ASX share to buy for a retirement portfolio. It is a commercial real estate investment trust with a focus on warehouses.

The company generates the vast majority of its rental income from properties leased to home improvement giant Bunnings Warehouse.

At the last count, BWP leased 68 of its 75 properties to the hardware giant, making it the largest owner of Bunnings properties.

Given the strength of the Bunnings business, this has proven to be a big positive. Particularly for shareholders that have benefited from growing distributions over the last decade. And with Bunnings experiencing strong demand again in 2021, the future looks positive for BWP.

Ord Minnett is expecting the company to pay an 18 cents per share distribution in FY 2021. Based on the current BWP share price, this represents a 4.5% distribution yield.

Transurban Group (ASX: TCL)

Another ASX share to look at for a retirement portfolio is Transurban. It is one of the world’s leading toll road operators.

Given the quality of its roads, the time-savings they provide, and their strong pricing power, Transurban looks well-placed to resume its growth again once the pandemic passes and traffic volumes recover. This should be supported by new developments and growth projects over the coming years.

One broker that is positive on the company is Macquarie. It recently put an outperform rating and $14.76 price target on its shares.

Furthermore, the broker is forecasting dividends of 40.5 cents per share and 60.4 cents per share in FY 2021 and FY 2022, respectively. Based on the current Transurban share price, this equates to yields of 3.1% and 4.7% over the next two 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 owns shares of Transurban Group. 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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