When building a retirement portfolio, it's can be a good idea to find defensive options with long-term growth potential.
But which ASX 200 shares could fit the bill right now?
Two retirement shares that analysts at Goldman Sachs are feeling very positive about are listed below. Here's what they are saying about them:
Telstra Group Ltd (ASX: TLS)
Goldman thinks that telco giant could be an ASX 200 share to buy right now.
It highlights that its low risk earnings growth is what it finds most attractive about the company.
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.
In addition, the broker sees opportunities for the company to unlock value through asset divestments. It adds:
We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.
In the meantime, Goldman is expecting the company to pay fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $3.98, this will mean yields of 4.5% and 4.75%, respectively.
Goldman has a buy rating and $4.70 price target on its shares.
Woolworths Limited (ASX: WOW)
The broker also thinks that this supermarket giant and Big W owner could be an ASX 200 share to buy for a retirement portfolio.
As well as its defensive qualities, Goldman rates the company highly due to its leadership position and the stickiness and loyalty of its customers. It explains:
We are Buy rated 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.
And while its growing dividend yields are not as generous as Telstra's, Goldman still expects them to be in the region of 3% over the medium term.
The broker has a conviction buy rating and $42.30 price target on Woolworths' shares.
