Why Telstra (ASX:TLS) and this ASX share could be top options for a retirement portfolio

These ASX shares could be top options for retirees in search of income and returns…

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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:

Suncorp Group Ltd (ASX: SUN)

The first ASX share to consider for a retirement portfolio is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

After a tough year during the pandemic, Suncorp has returned to form in FY 2021. During the first half, the company reported a 39.5% increase in cash earnings to $509 million.

Pleasingly, Goldman Sachs believes this solid form can continue. As a result, it recently retained its buy rating and lifted its price target to $12.08.

Goldman is positive on the company’s outlook and is forecasting a 60 cents per share fully franked dividend this year. Based on the current Suncorp share price of $11.24, this will mean a 5.3% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share to look at for a retirement portfolio is Telstra. After several years of struggles, the word “growth” is finally being talked about.

In February, Telstra’s CEO, Andy Penn commented: “After a decade of disruption following the creation of the nbn, and with its rollout now declared complete, we can clearly see the path to underlying growth ahead of us.”

“Our investment in innovation and technology, digitisation and networks, improving our customer experience and being disciplined in our capital management, mean that at the start of this decade, as Australia digitises its economy, Telstra is in a strong position to grow,” he added.

Analysts at Goldman Sachs appear confident that the telco giant will deliver on this. Its analysts currently have a buy rating and $4.00 price target on its shares.

The broker is also forecasting 16 cents per share fully franked dividends for the foreseeable future. Based on the latest Telstra share price of $3.56, this will mean 4.5% yields.

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*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Sonic Healthcare 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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