If you're building a retirement portfolio, you'll no doubt be wanting to fill it with quality ASX shares that pay dividends and have positive long term outlooks.
Well, two ASX shares that tick these boxes are listed below. Here's why analysts rate them as buys:
Charter Hall Long WALE REIT (ASX: CLW)
The first ASX share for investors to consider for a retirement portfolio is the Charter Hall Long Wale REIT.
This is a property company that invests in high quality real estate assets that have long weighted average lease expiries (WALEs). These properties are leased mainly to corporate and government tenants and had a WALE of 11.8 years and a 99.9% occupancy rate when it reported its half year results this month.
That result went down well with analysts at Citi. In response, the broker has retained its buy rating with a $5.00 price target. It commented:
We re-iterate our Buy rating on CLW, with rising inflation providing a tailwind to revenue, a 6.1% FY23 dividend yield, and a- 25% discount to NTA (book value), despite c. 50% of income linked to inflation (meaning some protection to book values).
Citi expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.59, this will mean yields of 6.1% and 6.3%, respectively.
Transurban Group (ASX: TCL)
Another ASX share for investors to consider for a retirement portfolio is Transurban.
It is a leading toll road operator with a portfolio of important roads in Australia and North America, as well as a significant project pipeline. The latter could be very supportive its growth in the future.
It also recently released its first half results and revealed that its roads are booming again after a difficult time during the pandemic. The company commented:
Record traffic volumes with Average Daily Traffic (ADT) exceeding 2.5 million trips for the first time in November 2022. Traffic volumes were supported by record traffic in Sydney and Brisbane, freight traffic and weekend travel
Macquarie was pleased with what it saw and retained its outperform rating with an improved price target of $14.51.
In addition, the broker is now forecasting dividends per share of 57 cents in FY 2023 and then 61 cents in FY 2024. Based on the current Transurban share price of $13.93, this will mean yields of 4.1% and 4.4%, respectively.
