2 ASX 200 retirement shares to buy now

Analysts think these shares could be quality additions to a portfolio.

| More on:
Couple holding a piggy bank, symbolising superannuation.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're building a retirement portfolio, then you will no doubt want some high-quality companies in it with the ability to grow and pay consistent dividends.

But which ASX 200 shares could fit the bill right now?

Two retirement shares that analysts are feeling very positive about are listed below. Here's what they are saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

The first ASX 200 retirement share for investors to look at is Treasury Wine.

It is one of the world's leading wine companies and the owner of popular brands, including Penfolds, Beringer, 19 Crimes, Lindemans, and Wolf Blass.

The company was given a huge boost last week when the Chinese government announced it had removed tariffs on Australian wine. This gives the company a huge growth runway over the next decade for its premium wines.

Morgans is likely to have been pleased with the news, having previously highlighted the China removal of tariffs on Australian wine imports as a "key near-term share price catalyst."

Its analysts have an add rating and a $14.03 price target on the wine giant's shares.

In addition, the broker is expecting the company's shares to provide investors with a growing source of income. It is forecasting fully franked dividends of 36.4 cents per share in FY 2024 and 44.8 cents per share in FY 2025. Based on its current share price of $13.00, this will mean yields of 2.8% and 3.45%, respectively.

Woolworths Limited (ASX: WOW)

Another ASX 200 retirement share for investors to consider buying is Woolworths. It is one of the big two supermarket operators and also owns Big W, Everyday Rewards, PFD, Cartology, and Quantium, to name just a few.

Goldman Sachs is a big fan of the company and believes it is well-positioned for growth over the coming years. This is due to its leadership position in the market and the stickiness and loyalty of its customer base. It recently stated:

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.

Goldman has a conviction buy rating and a $40.40 price target on Woolworths' shares.

As with Treasury Wine, the broker expects a growing income stream from Woolworths' shares in the coming years. It forecasts fully franked dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025.

Based on the current Woolworths share price of $32.47, this will mean yields of 3.4% and 3.6%, respectively.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retirement

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.

Should you manage your own superannuation?

Most of us can use an SMSF. But should we?

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement

Key actions for Baby Boomers and Gen X to take now for an excellent retirement

Findex provides 5 investment tips for both Baby Boomers and Gen Xers to help secure their retirement.

Read more »

A group of seven young people of different genders and cultural backgrounds stand in a group with serious expressions wearing casual young persons' attire.

Key actions for Millennials and Gen Z to take now for a good retirement

Young Australians have time on their side to better plan and execute their investments.

Read more »

Couple holding a piggy bank, symbolising superannuation.

4 ASX retirement shares to buy in May

Analysts think these stocks could fit nicely in a retirement portfolio.

Read more »

An older man wearing a helmet is set to ride his motorbike into the sunset, making the most of his retirement.

What's the average Australian superannuation balance at age 70 in 2024?

The average super balance at age 70 might shock you.

Read more »

A middle-aged man working from home looks at his mobile phone with a laptop open on the table in front of him.

Will you need to keep working after retirement?

Two-thirds of Australians say they plan to continue working beyond their retirement age.

Read more »

parents putting money in piggy bank for kids future

Is the Bank of Mum and Dad now expanding to superannuation?

Three in four Australians are planning to give some of their superannuation as an inheritance to loved ones.

Read more »

Two people smiling at each other while running.

Australians overestimate how much they need in retirement: report

A new survey shows Australians think they need $1.6 million to retire.

Read more »