If you are building a retirement portfolio, you will no doubt be looking for lower risk options with defensive qualities and strong and sustainable business models.
Well, the good news is that there are plenty of ASX shares on the Australian market that boast these qualities and could be good options for a retirement portfolio.
But which ASX 200 retirement shares are analysts tipping as buys for August? Let's take a look at three:
APA Group (ASX: APA)
This energy infrastructure company could be a quality option for retirees.
Its consistent earnings growth means that APA has an enviable track record of dividend increases. In fact, it will soon complete 20 years of dividend increases in a row.
For example, Macquarie is forecasting dividends of 56 cents per share in FY 2024 and then 58.5 cents per share in FY 2025. Based on the current APA Group share price of $7.80, this equates to 7.2% and 7.5% dividend yields, respectively.
Macquarie also sees plenty of upside for its shares. It has an outperform rating and $9.40 price target on them.
Telstra Corporation Ltd (ASX: TLS)
Another ASX 200 retirement share to look at is Telstra. Given that many of us could not function without a phone or internet, this makes the telco giant another defensive ASX share.
In fact, one of the main reasons that Goldman Sachs is bullish is the "low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business."
Goldman Sachs expects this to support 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 $3.89, this equates to yields of 4.6% and 4.9%, respectively.
Goldman has a buy rating and $4.30 price target on Telstra's shares.
Woolworths Limited (ASX: WOW)
A final ASX 200 retirement share that could be a buy is supermarket operator, Woolworths.
As we saw during the pandemic, supermarkets are among the most defensive businesses you will find. Whatever is happening in the economy (or world), people need their food and daily essentials.
Goldman Sachs is very positive on the company. Its analysts "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 its ability to pass through any cost inflation to protect its margins, beyond market expectations."
The broker expects this to underpin fully franked dividends of $1.07 per share in FY 2024 and $1.13 per share in FY 2025. Based on the current Woolworths share price of $34.45, this implies yields of 3.1% and 3.3%, respectively.
Goldman has a buy rating and $40.20 price target on its shares.
