Here are 3 ASX retirement shares to buy in July

These shares could be great options for retirees. Here's why analysts rate them as buys.

| More on:
Two people smiling at each other while running.

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

When you first start out investing, you can invest in fledgling growth stocks and small caps.

That's because if things don't go quite to plan, you have plenty of time to recoup your losses.

However, if you're already in retirement, you cannot really afford to lose money. As a result, it's arguably best to look beyond growth stocks and focus more on capital preservation and income.

But which ASX retirement shares could be worth considering? Let's take a look at three that could be top options:

APA Group (ASX: APA)

It's always good to have defensive shares in your retirement portfolio. Especially those that are able to pay sustainable dividends.

APA Group certainly ticks these boxes. This energy infrastructure company has a long track record of dividend growth. In fact, it is currently on course to increase its dividend for 20 years in a row.

Analysts at Macquarie expect the company to deliver on this. The broker is forecasting dividends of 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $7.95, this equates to 7% and 7.2% dividend yields, respectively.

Macquarie also sees plenty of upside for investors. It has an outperform rating and $9.40 price target on its shares.

Coles Group Ltd (ASX: COL)

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

Morgans is very positive on the company's outlook and believes its growth will resume in FY 2025 after a tricky time in FY 2024.

It is expecting this to lead to Coles paying 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 $17.10, this implies dividend yields of 3.85% and 4%, respectively.

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

Telstra Group Ltd (ASX: TLS)

There are few industries that are more defensive that the telecommunications industry. After all, mobile phones and internet are services that many of us could not go without.

This could make Telstra a great ASX retirement share to buy. Especially given its leadership position in the market.

Goldman Sachs thinks it would be a great option. Its analysts have even highlighted its "low risk earnings (and dividend) growth" as a reason to buy. In addition, the broker is expecting some attractive dividend yields.

It is forecasting fully franked dividends per share of 18 cents in FY 2024 and then 18.5 cents in FY 2025. Based on the current Telstra share price of $3.59, this will mean yields of 5% and 5.15%, respectively.

Goldman has a buy rating and $4.25 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.

More on Retirement

Smiling elderly couple looking at their superannuation account, symbolising retirement.

2 ASX 200 retirement shares to buy now

Analysts have buy ratings on these high-quality stocks.

Read more »

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

If I were 60 I'd buy these ASX shares for dividends

These stocks could be appealing options for passive income.

Read more »

man and woman discussing superannuation

What's the average age Australians access their superannuation?

Here's what the data says.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

How much cash do you need to quit work and live off ASX dividend income?

Dividends are the best path to an early retirement for most Australians...

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.

2 ASX investments I think all retirees should have

Investors shouldn’t underestimate how important these two things are.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.

2 ASX shares to buy for a retirement portfolio in FY25

Analysts have put buy ratings on these stocks. Here's why they could be worth considering for retirees.

Read more »

worried couple looking at their retirement savings

Will you still be paying a mortgage in retirement?

One in three Australians expect to still be paying off their home loans in retirement, a survey shows.

Read more »

Older couple enjoying the backyard

3 top ASX retirement shares to buy for FY25

Analysts think these stocks could be good additions to a retirement portfolio.

Read more »