If you are in the process of building a retirement portfolio, then it could be worth considering the ASX blue chip shares named below.
These shares have been tipped as buys and could have qualities that make them suitable for retirees. Here's what you need to know about them:
Coles Group Ltd (ASX: COL)
As providers of our daily essentials, consumers fill their trolleys each week no matter how much supermarkets raise their prices. This gives Coles and its peers very defensive earnings, which is a great quality for a retirement share.
UBS thinks it would be a top option for investors. It has a buy rating and $19.50 price target on its shares.
The broker also expects a nice dividend yield from its shares. It is forecasting fully franked dividends of 70 cents per share in FY 2024 and then 74 cents per share in FY 2025. Based on the current Coles share price of $18.07, this implies dividend yields of 3.9% and 4.1%, respectively.
And for the same reasons, Woolworths Limited (ASX: WOW) could be another ASX retirement share to buy.
Goldman Sachs is very positive on the company and believe it is well-placed for growth in the coming years. It expects this to support 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 $34.34, this implies yields of 3.1% and 3.3%, respectively.
Goldman has a buy rating and $40.20 price target on its shares.
Transurban Group (ASX: TCL)
Another ASX retirement share that could be a great option for investors is Transurban. It is a toll road giant with a portfolio of roads across Australia and North America.
This includes CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane. It also has a significant project pipeline that should support its long-term growth.
As these roads are always in need, particularly given population growth and urbanisation, Transurban also has defensive qualities that could make it attractive for a retirement portfolio.
In addition, it is one of the more generous dividend payers on the local share market. For example, analysts at Citi are forecasting dividends per share of 63.6 in FY 2024 and then 65.1 cents in FY 2025. Based on its current share price of $12.77, this would mean dividend yields of 5% and 5.1%, respectively.
Citi currently has a buy rating and $15.50 price target on Transurban's shares.
