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Wesfarmers vs Qantas shares: Where should a 60-year-old invest?
If you're in your sixties and weighing up Wesfarmers Ltd (ASX: WES) against Qantas Airways Ltd (ASX: QAN) shares, you're comparing two iconic names with very different track records and business models. Wesfarmers spans supermarkets to hardware and pharmacies, while Qantas is Australia's airline. With retirement income, steady dividends and relative stability front-of-mind for many, let's spark up the Wesfarmers vs Qantas shares debate for those seeking to balance regular income with resilience.
The case for Wesfarmers
Wesfarmers is one of Australia's largest, longest-standing listed conglomerates. Its household brands include Bunnings, Kmart, Officeworks and Priceline, giving it a retail backbone, plus chemical and fertiliser operations. The group added healthcare in 2022 with the API acquisition, bolstering its "defensive" qualities against economic shocks. As of its company profile, Wesfarmers' portfolio gives it exposure to daily spending habits of Australians from all walks of life.
For investors near or in retirement, several figures stand out:
- Dividend Yield: 2.93%, fully franked – reliable and tax-friendly income.
- P/E Ratio: 29.94 – more of a premium price, reflecting perceived quality and steadiness.
- Dividend track record: Decades of consistent, fully franked payouts. Recent payments have hovered around $2 or more per share each year, often split between interim and final dividends.
Wesfarmers' vast scale ($86.58 billion market cap) and stable business mix could provide peace of mind for retirees who value predictability and steady dividends.
The case for Qantas Airways
Qantas is Australia's flagship airline, with roots stretching back to 1920. Its two main brands, Qantas and Jetstar, connect Australia's dots across domestic and international routes. According to its most recent public description, Qantas prides itself on safety, reliability, and customer service, and it survived the massive turbulence of the COVID-19 pandemic.
Here's what might appeal to a sixty-something investor:
- Dividend Yield: 4.40%, fully franked – higher cash return than Wesfarmers as of the latest data, and strongly tax-effective.
- P/E Ratio: 10.64 – much lower than Wesfarmers, appealing for those looking for value.
- Dividend payments have resumed since 2025, after being paused during the pandemic. The most recent payouts were around 40 cents per share over the past year.
Qantas's business is more cyclical and sensitive to global shocks, but for investors seeking higher income (and comfortable with travel industry risks), it's worth a look.
Valuation comparison
Let's put the numbers side-by-side:
| Wesfarmers | Qantas | |
|---|---|---|
| Market Cap | $86.58 billion | $13.42 billion |
| P/E Ratio | 29.94 | 10.64 |
| Dividend Yield | 2.93% (100% franked) | 4.40% (100% franked) |
| Dividend per share (latest annual) | $2.22 | $0.40 |
| Earnings per share (EPS) | 2.534 | 0.845 |
Note: Qantas's reported P/E ratio and EPS numbers align as expected, but be mindful that in airline cycles, earnings can fluctuate more dramatically than for a diversified retailer. Both companies offer fully franked dividends, boosting net yield for many Australian retirees.
Recent share price momentum
Comparing recent share price performance up to 7 October 2026:
- Wesfarmers closed at $76.30, up 0.58% for that day. Year to date, its return stands at -3.7%.
- Qantas closed at $8.87, down 1.33% for the day. Its year-to-date return is -9.6%.
Both shares are in negative territory for 2026 so far, but Wesfarmers has held up a little better than Qantas.
Which is the better buy?
If I had to pick for a 60 year old investor seeking reliable, tax-effective income and peace of mind, I'd lean towards Wesfarmers. Its business diversity, decades-long dividend consistency and defensive exposure across everyday retail sectors tick the classic retiree boxes. Qantas' dividend yield is higher at present, but the airline game is far more turbulent: it paused dividends during COVID, and earnings remain vulnerable to oil prices, wars, and changing travel habits.
While Wesfarmers trades at a much higher P/E (almost 3x Qantas), I see that as reflecting its more stable earnings and longer-term pedigree as a dividend stock. For retirees focused on sleep-at-night investing, my pick would be Wesfarmers – even if it's less exciting on the income front right now. Qantas could appeal if you believe in a strong, sustained post-pandemic recovery and are happy to take on extra risk for extra yield, but it wouldn't be my primary choice for my own nest egg.
