4 ASX retirement shares to buy in May

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

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When building a retirement portfolio, many investors will look for ASX shares with defensive qualities, attractive dividend yields, and strong business models.

The good news is that there are plenty of these trading on the Australian share market, making life easier for retirees.

But which ASX retirement shares are analysts tipping as buys right now? Let's take a look at four:

APA GroupĀ (ASX: APA)

This energy infrastructure company could be a great ASX retirement share to buy. Especially given its defensive earnings, long track record of growth, and big dividend yield.

In respect to the latter, Macquarie is forecasting dividends of 56 cents per share in FY 2024 and 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.69, this equates to 6.4% and 6.6%Ā dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

Coles Group LtdĀ (ASX: COL)

Supermarkets are another generator of defensive earnings. As providers of our daily essentials, consumers fill their trolleys each week no matter how much they raise their prices.

Morgans believes the company's growth can continue and is forecasting fully franked dividends of 66 cents per share in FY 2024 and then 69 cents per share in FY 2025. Based on the current Coles share price of $16.28, this impliesĀ dividendĀ yields of 4% and 4.2%, respectively.

Morgans has an add rating and $18.95 price target on its shares.

Telstra Corporation LtdĀ (ASX: TLS)

We can't go without food and, for many of us, we can't go without our phone or internet. This makes Telstra another very defensive ASX share that could be worth considering for a retirement portfolio.

Especially with its shares falling heavily recently, making its valuation and dividend yields even more attractive. In respect to the latter, Goldman Sachs is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.64, this equates to yields of 4.9% and 5.2%, respectively.

Goldman has a buy rating and $4.55 price target on Telstra's shares.

Woolworths LimitedĀ (ASX: WOW)

Finally, investors might want to consider another supermarket operator, Woolworths. For the same reasons as Coles, it could be a great option for an ASX retirement portfolio.

Goldman Sachs certainly believes this is the case. Much like with Telstra, Woolworths shares have pulled back meaningfully recently, which the broker believes has created a compelling buying opportunity. Particularly given that its analysts "forecast WOW 2-yr sales CAGR FY24-26e of +3.2% and EBIT growth of +4.8%."

It expects this to support fully franked dividends of $1.08 per share in FY 2024 and $1.14 per share in FY 2025. Based on the current Woolworths share price of $30.78, this implies yields of 3.5% and 3.7%, respectively.

Goldman has a buy rating and $39.40 price target on its shares.

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, Macquarie Group, and Telstra Group. 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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