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:
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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.
