Should you buy this ASX 200 giant for your retirement share portfolio?

This ASX 200 giant could tick a lot of boxes for retirees.

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Deciding which ASX 200 retirement shares to buy for your portfolio is a big decision.

After all, you ideally want shares that you can buy and hold for the long term and count on for capital gains and income.

So, which ASX 200 retirement shares tick these boxes right now? Well, one popular option that could be worth considering is listed below. Let's see if it is a buy.

Woolworths Limited (ASX: WOW)

When buying ASX 200 retirement shares there are a few qualities that you might want to look out for. These are defensive earnings, strong business models, attractive dividend yields, and positive outlooks.

Supermarket giant Woolworths arguably ticks all four boxes. You only need to look at its performance through the pandemic and then the high inflationary environment to see the strength of its business model and its defensive earnings.

As for its outlook and yield, well Goldman Sachs is feeling very positive on both. It recently commented:

We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.

Goldman expects this to underpin fully franked dividends per share of $1.12 in FY 2024, $1.23 in FY 2025, and then $1.34 in FY 2026. Based on the current Woolworths share price of $34.52, this equates to growing yields of 3.25%, 3.55%, and 3.9%, respectively.

And with Goldman having a conviction buy rating and a $42.40 price target on the company's shares, this suggests a potential upside of almost 23% for investors.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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