If you want to set yourself up for a comfortable retirement, having a passive income stream that is both reliable and has the potential to grow over time would be a great way to achieve this goal.
The good news is that the ASX is home to a number of quality ASX dividend shares that tick these boxes and could be great additions to a retirement portfolio.
Two that are rated as buys are listed below:
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Rural Funds Group (ASX: RFF)
The first ASX dividend share to consider for a retirement portfolio is Rural Funds.
It could be a top option due to the quality of the agriculture-focused real estate property trust's assets and their long term tenancy agreements. The latter also have built-in rental increases, which provides great visibility on its future earnings.
Bell Potter is a fan of Rural Funds and has a buy rating and $2.65 price target on its shares.
As for dividends, it is forecasting dividends per share of 11.7 cents in FY 2023, 12.2 cents in FY 2024, and 12.7 cents in FY 2025 . Based on the current Rural Funds share price of $2.01, this will mean yields of 5.8%, 6.1%, and 6.3%, respectively.
Telstra Corporation Ltd (ASX: TLS)
Retirees may also want to consider buying this telco giant's shares. It could be a top option due to its defensive qualities, inflation protection, and positive growth outlook.
In addition, now that its legal restructure is complete, the company is able to look at divesting its InfraCo Fixed assets. This could unlock value for shareholders and potentially even lead to capital returns.
It is partly for this reason that Goldman Sachs is bullish on Telstra and has a buy rating and $3.60 price target on its shares.
In addition, the broker is forecasting a growing stream of fully franked dividends. It is expecting dividends per share of 17 cents in FY 2023, 18 cents in FY 2024, and then 20 cents in FY 2025. Based on the current Telstra share price of $4.26, this will mean yields of 4%, 4.2%, and 4.7%, respectively.
