Are you looking for retirement portfolio options? If you are, then you may want to look at the quality ASX shares listed below.
As well as having defensive qualities, these ASX shares offer potential for capital gains and attractive dividend yields.
Here's what analysts are saying about them:
Aurizon Holdings Ltd (ASX: AZJ)
Aurizon could be a top ASX retirement share to buy. It is a rail freight operator that transports more than 250 million tonnes of Australian commodities each year. Macquarie is positive on Aurizon and currently has an outperform rating and a $4.04 price target on its shares.
In respect to dividends, the broker is forecasting partially franked dividends of 18.4 cents per share in FY 2024 and then 25.1 cents per share in FY 2025. Based on the latest Aurizon share price of $3.61, this will mean dividend yields of 5.1% and 7%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX retirement share that could be a buy is supermarket giant Coles. Citi is bullish on the company and has a buy rating and $18.30 price target on its shares. Its analysts feel recent weakness has created a buying opportunity. Particularly given the broker believes Coles' recent update "reinforces our view that the market looks too low on sales in FY24."
As for income, Citi is expecting a fully franked 61 cents per share dividend in FY 2024 and 68 cents per share in FY 2025. Based on the current Coles share price of $15.91, this will mean dividend yields of 3.8% and 4.3%, respectively.
Telstra Group Ltd (ASX: TLS)
A final ASX retirement share for investors to consider buying is Telstra. It is of course Australia's largest telecommunication company. Goldman Sachs is a fan of Telstra and has a buy rating and a $4.80 price target on its shares. It believes Telstra's "low risk earnings (and dividend) growth" across FY22-25 "is attractive."
In respect to its dividend growth, Goldman is expecting Telstra to pay fully franked dividends of 18 cents per share in FY 2024 and then 20 cents per share in FY 2025. Based on the current Telstra share price of $3.91, this equates to fully franked yields of 4.6% and 5.1%, respectively.
