2 high quality ASX shares for your retirement portfolio

Ramsay Health Care Limited (ASX:RHC) and this ASX share could be top options for retirees looking for a source of income…

| More on:
asx investor daydreaming about US shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're currently in retirement or approaching it, you'll probably be looking for ways to boost your income in this low interest rate environment.

But which ASX shares should you turn to? Two top options for retirees to look at are listed below. Here's what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX share to look at is BWP. It is a commercial real estate investment trust with a focus on warehouses.

The vast majority of the company's properties are leased to home improvement giant Bunnings Warehouse. Given how Bunnings has been performing very strongly during the pandemic, it will not be surprising to learn that BWP has continued its positive form over the last 12 months and collected rent largely as normal.

Another positive was that the company's portfolio actually appreciated in value last year. This came at a time when most other retail landlords were writing down the value of their properties.

Pleasingly, Bunnings has continued to perform well in FY 2021 and appears to have put BWP in a position to deliver a robust result later this year.

Analysts at Ord Minnett are estimating an 18 cents per share distribution in FY 2021. Based on the current BWP share price, this represents a 4.2% distribution yield.

Ramsay Health Care Limited (ASX: RHC)

Another ASX share to look at is Ramsay Health Care. It is a leading private healthcare company with operations across several countries.

While its growth over the short term is likely to be challenging in some markets because of headwinds caused by the pandemic, things are improving and its long term outlook remains very positive due to its world class network of private hospitals and their exposure to the growing demand for healthcare services.

Analysts at Goldman Sachs are very positive on the company. They note that the ANZ market is recovering strongly and expect Ramsay to benefit greatly from a backlog in surgeries. And given how the local market contributes approximately two-thirds of its earnings, this bodes well for the company's recovery from the pandemic.

Overall, its analysts believe Ramsay is now well-placed for solid earnings and dividend growth over the coming years. In light of this, they recently put a conviction buy rating and $70.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retirement

A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.
Retirement

3 ASX dividend shares paying more than the pension in retirement

How much money would you need to have invested to receive more in ASX dividends than the pension?

Read more »

An older woman gazes over the top of her glasses with a quizzical expression as if she is considering some information.
Retirement

Government warning to retirees over Centrelink age pension misinformation

We reveal an example of what the Centrelink age pension misinformation circulating online looks like.

Read more »

A young couple in the back of a convertible car each raise a single arm in the air whilst enjoying a drive along the road.
Retirement

How to invest your first $10,000 in ASX shares towards an early retirement

Your first move could be an important one when it comes to building a retirement portfollio.

Read more »

Superannuation written on a jar with Australian dollar notes.
Superannuation

3 essential tips to maximise a superannuation fund at any age

Some simple changes can make a big difference...

Read more »

A couple sit on the deck of a yacht with a beautiful mountain and lake backdrop enjoying the fruits of their long-term ASX shares and dividend income.
Retirement

How to retire early using ASX shares

Want to retire early? Take a look at this guide.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Retirement

If I were a retiree, I'd buy these 2 ASX shares straightaway

Retirees may do well with these investments in their portfolio.

Read more »

Couple holding a piggy bank, symbolising superannuation.
Retirement

The best ASX 200 retirement shares to buy in May

Bell Potter thinks these shares could be top options for retirees. Let's find out why.

Read more »

Retired couple hugging and laughing.
Retirement

2 wonderful ASX 200 retirement shares I'd buy in May

I’m very positive on these stocks for retirees.

Read more »