2 high quality ASX 200 shares for a retirement portfolio

Retirees might want to take a look at these ASX shares…

| More on:
man celebrating with bottle of champagne at a party

Image source: Getty Images

If you’re a retiree, you might be looking for a way to generate an income after the interest rates on traditional interest-bearing investment products collapsed over the last few years.

One way you could potentially do this is by investing in dividend shares.

Luckily, the Australian share market is home to a large number of them. But which ones should you buy? Here are two that have been rated as buys recently:

Coles Group Ltd (ASX: COL)

The first high quality option for retirees to consider is Coles. It could be a top option for a retirement portfolio due to its defensive qualities, attractive dividend yield, and solid long term growth prospects.

In respect to the latter, Coles has been tipped for growth over the 2020s thanks to its long track record of delivering same store sales growth, strong market position, and its refreshed strategy. This strategy is embracing automation, cutting costs, expanding its online business, and supporting margin expansion.

A recent note out of Goldman Sachs reveals that its analysts are forecasting consistent dividend growth for the foreseeable future. The broker has pencilled in fully franked dividends per share of 62 cents, 67 cents, and then 73 cents over the next three financial years. Based on the latest Coles share price of $17.02, this will mean yields of 3.6%, 3.9%, and 4.3%, respectively.

Goldman Sachs has a buy rating and $19.40 price target on its shares.

Goodman Group (ASX: GMG)

Another quality option for retirees to consider is Goodman Group. It is a property company that owns, develops, and manages industrial real estate across several countries. This includes properties with exposure to markets with very favourable outlooks such as ecommerce thanks to deals with Amazon and DHL.

Given how these assets are predicted to be in demand for a long time to come, it bodes well for income and distribution growth in the future. As does it development pipeline, which is filled with a large number of very promising projects.

Citi is positive on Goodman and has a buy rating and $22.10 price target on its shares. The broker is forecasting dividends per share of 30 cents, 32 cents, and 35 cents over the next three years. This represents yields of 1.4%, 1.5%, and 1.7%, respectively.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks 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.

More on Dividend Investing

Young boy wearing suit and glasses adds up on calculator with coins on table
Dividend Investing

What is the current dividend yield on Bendigo Bank shares?

The bank's stock is currently trading with a very healthy yield.

Read more »

Man holding different Australian dollar notes.
Dividend Investing

2 high quality ASX 200 dividend shares analysts have named as buys

Here are two dividend shares rated as buys...

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Dividend Investing

Top brokers name 3 ASX dividend shares to buy today

Top brokers have named 3 dividend shares they think are buys...

Read more »

A kid stretches up to reach the top of the ruler drawn on the wall behind.
Bank Shares

Has the ANZ dividend been growing?

The ASX bank's shares are well known for their big dividends but have tbey been growing recently? We take a…

Read more »

A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today
Dividend Investing

2 ASX dividend shares rated as buys by experts amid inflation volatility

BHP is one of the ASX dividend shares liked by brokers.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

I like APA as an ASX dividend share idea. Here’s why

APA has performed well as an ASX dividend share in my opinion.

Read more »

Three Argosy miners stand together at a mine site studying documents with equipment in the background
Resources Shares

What’s the outlook for Fortescue shares with Twiggy at the helm?

Andrew Forrest stepped down as CEO of the ASX 200 iron ore giant in 2011.

Read more »

Dividend Investing

Analysts name 2 top ASX 200 dividend shares to buy now

Here are a couple of dividend shares paying big dividends...

Read more »