If you're nearing (or currently in) retirement, it may be time to start focusing a little on capital preservation. This means investing in lower risk shares rather than fledgling growth shares.
But which ASX 200 shares might be suitable? Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here's what you need to know about them:
Collins Foods Ltd (ASX: CKF)
The first ASX 200 share that could be worth considering for a retirement portfolio is Collins Foods.
Collins Foods is one of the largest operators of KFC restaurants in Australia. In addition, it has a growing presence in Europe and a growing network of Taco Bell restaurants across Australia.
The good news is that management still sees plenty of room to grow its network at home and abroad. This should be supportive of earnings and dividend growth in the coming years.
Speaking of dividends, Collins Foods shares a decent portion of its profits with shareholders each year. Morgans is expecting this to continue in FY 2023 and is forecasting a fully franked 28 cents per share dividend. Based on the current Collins Foods share price of $10.10, this will mean an attractive dividend yield of 2.8%.
Morgans currently has an add rating and $11.50 price target on its shares.
Woolworths Limited (ASX: WOW)
Another ASX 200 share to consider for a retirement portfolio is Woolworths.
It is of course the retail conglomerate behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, and Big W.
Woolworths could be a top option for retirees due to its strong market position, defensive qualities, and positive exposure to inflation.
Goldman Sachs is a fan of the company. As well as the above, it likes Woolworths due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.
Goldman currently has a conviction buy rating and $41.70 price target on the company's shares. It is also forecasting fully franked dividend yields of 3%+ in the coming years.
