2 excellent ASX shares for a retirement portfolio

Could a retirement portfolio be taken to the next level with these shares?

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If you're looking for ways to boost your income in retirement, then you might want to look at the shares listed below.

These high quality ASX shares could be great options for retirees. Here's what you need to know about them:

Man and woman discussing retirement and superannuation.

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Coles Group Ltd (ASX: COL)

The first option to consider for a retirement portfolio is this supermarket giant. It could be a good option due to its solid long term growth prospects, generous dividend policy, and defensive qualities.

Coles has been growing strongly during the pandemic. And while its growth will inevitably moderate now as its cycles heightened sales from a year earlier, Goldman Sachs is positive on its medium term growth.

Its analysts are forecasting earnings per share of 76 cents in FY 2021, 81 cents in FY 2022, and then 89 cents in FY 2023. This is expected to lead to dividends per share of 62 cents, 66 cents, and 73 cents, respectively.

If this proves accurate, it will mean a reliable and growing source of income for investors. Based on the current Coles share price of $17.04, this implies yields of 3.6%, 3.9%, and then 4.3%.

Goldman Sachs currently has a buy rating and $20.50 price target on its shares.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another option to consider for a retirement portfolio is Sydney Airport. This airport operator has been hit incredibly hard during the pandemic, but things are starting to look a lot more positive now.

With domestic travel rebounding strongly, save for the occasional lockdown, Sydney Airport's terminals are becoming busier by the month. This bodes well for its earnings and dividends in the near term.

And while international travel may take some time to return to normal, that doesn't necessarily mean you won't receive a generous yield with its shares.

Goldman Sachs is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $6.12, this will mean yields of 1.4% and 4.6%, respectively.

The broker currently has a buy rating and $6.73 price target on its shares.

James Mickleboro doesn't own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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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