If you're looking for retirement portfolio options, then you may want to look at the shares listed below.
One leading broker believes these ASX shares are in the buy zone at the current level. Here's what you need to know about them:
Lifestyle Communities Limited (ASX: LIC)
The first ASX share for retirees to look at is actually a company which focuses on retirement and semi-retirement living.
Lifestyle Communities builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50. Its land lease model allows people to downsize their family home to free up equity in retirement whilst enjoying resort style living.
Goldman Sachs is a big fan of the company and believes it is well-placed to benefit from strengthening demand for land lease as the ageing population looks to enhance retirement by releasing equity from the family home.
The broker suspects that upwards of 5% of people over 65 could be living in a land lease community in the medium term. This is up from its current estimate of 2% to 3%.
Goldman has a conviction buy rating and $16.50 price target on the company's shares. The broker is also forecasting consistent dividend growth over the next few years.
Telstra Corporation Ltd (ASX: TLS)
Another ASX share that could be a top option for a retirement portfolio is Telstra.
The last few years have been very disappointing for shareholders. They have watched on as its earnings and dividends have declined materially, dragging the Telstra share price down with them.
However, thanks to the success of its T22 strategy and the easing NBN headwind, Telstra is now on the cusp of a return to growth. Not only does this mean that the dividend cuts are likely to be over, but dividend increases are a distinct possibility in the coming years.
Analysts at Goldman Sachs expect this to be the case. They are currently forecasting fully franked dividends of 16 cents per share through to FY 2023 before an increase to 18 cents per share in FY 2024. Based on the current Telstra share price of $3.73, this will mean yields of 4.3% and then 4.8%.
Goldman Sachs currently has a buy rating and $4.20 price target on its shares.
