If you're in the process building a retirement portfolio, then you may be on the lookout for some ASX 200 shares to buy for it.
But you shouldn't just buy any old share. Rather than investing in risky growth shares, retirees ought to look for shares with strong business models, positive long term outlooks, and reliable dividends.
With that in mind, which shares could be in the buy zone in July? Let's take a look at what analysts are saying about these ASX 200 retirement shares:
Telstra Group Ltd (ASX: TLS)
The first ASX 200 retirement share that could be worth considering is Telstra. It is of course Australia's largest telecommunications company.
As well as offering defensive qualities, which are important for a retirement portfolio, it offers low risk earnings and dividend growth thanks largely to its mobile business.
It is for this reason that Goldman Sachs is positive on the company. It said:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. 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.
Speaking of dividend growth, Goldman Sachs is expecting fully franked dividend yields of 5% in FY 2024 and 5.1% in FY 2025.
Goldman has a buy rating and $4.25 price target on its shares.
Woolworths Limited (ASX: WOW)
Another ASX 200 retirement share that could be a good option for investors is Woolworths. It is Australia's largest Woolworths supermarket chain. In addition, it the owner of Big W and a growing pet care business.
Goldman Sachs is also feeling very positive about the company. So much so, it has Woolies on its conviction list. This is due to its dominant market position and belief that more market share gains are coming thanks to its loyalty program. The broker said:
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 currently has a conviction buy rating and $39.40 price target on the company's shares. Its analysts are also forecasting fully franked dividend yields in the region of ~3% through to FY 2026.
