When you’re young and first start investing you might focus on growth shares that provide you with the potential for outsized returns. After all, if your investments don’t work out as planned, you have time on your side to recover from your losses.
But as you enter retirement, it may be prudent to limit your exposure to these type of investments and focus on those that offer income and capital preservation. With that in mind, here are a couple of ASX shares that retirees might want to take a look at. Here’s what you need to know about them:
BWP Trust (ASX: BWP)
The first option for retirees to look at is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 stores leased to the hardware giant. BWP has been a strong performer during the pandemic thanks to the quality of its tenancies. With Bunnings reporting stellar sales growth, BWP has been able to collect rent as normal.
In light of this, the company intends to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.30, this equates to an attractive 4.25% dividend yield.
National Storage REIT (ASX: NSR)
National Storage is a leading self-storage focused real estate investment trust. It is one of the largest self-storage operators in the ANZ region with a network of over 200 centres. But it doesn’t plan to stop there. The company continues to see room to expand its network in the future via its development projects and growth through acquisition strategy. In fact, the company is in the process of raising $325 million to strengthen its balance sheet and replenish its investment capacity.
This should support solid income and distribution growth over the next decade, especially given the booming housing market. This traditionally results in growing demand for its services as people move homes or downsize. For now, analysts at Ord Minnett are forecasting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.03, this will mean yields of 4% and 4.2%, respectively.