When building a retirement portfolio, you want to have the best ASX shares you can find in there.
Anything less, simply won't do and could have a serious impact on your lifestyle in the future.
But which ASX retirement shares could be best buys? Let's look at two that Bell Potter rates very highly. They are as follows:
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Cedar Woods Properties Ltd (ASX: CWP)
This property development company could be an ASX retirement to share according to the broker.
It believes that Cedar Woods is well-placed for growth and is being undervalued by the market. It explains:
We are adding CWP as our key pick within Real Estate small caps (in favour of APZ). CWP has a substantial pipeline of residential projects amidst Australia's extreme housing shortage, record presales, and positive forward commentary from a historically conservative management team.
Despite these compelling fundamentals, CWP's size and liquidity have likely constrained performance to date. We believe the current valuation – trading below NTA (versus a long-term average premium of +30%) and at a forward PE of 9.5x, which significantly undervalues its double-digit growth profile – presents a compelling entry point for a company arguably in its strongest position ever.
Bell Potter is forecasting dividends per share of 28 cents in FY 2025 and then 32 cents in FY 2026. Based on its current share price of $6.24, this equates to dividend yields of 4.5% and 5.1%, respectively.
ResMed Inc. (ASX: RMD)
Another ASX retirement share to consider buying is ResMed.
While the sleep disorder treatment company doesn't offer much by way of income, it has the potential to compound away for many years and build up your nest egg.
Bell Potter highlights the company's near-monopoly earnings as a reason to buy. It explains:
We see RMD as a company with near-monopoly earnings at a de-risked multiple and is a preferred way to play defence (with growth) in the current market environment. GLP-1 headlines knocked the 12MF P/E from ~32x to ~22x currently (which we view as being over-done) and well below pre-recall peaks even as EPS growth remains high. Philips remains under an FDA consent decree that blocks new device sales in the U.S. following its 2021 recall, a remediation that management admits could take five to seven years to clear—effectively handing ResMed near-monopoly share in the world's largest CPAP market.
Cloud-connected monitoring and the NightOwl home-testing platform deepen switching costs and add high-margin SaaS revenue streams—which grew +10 % YoY last quarter. Management's balance-sheet target implies a net-cash position by FY25, giving further optionality on buy-backs or bolt-ons.
