2 blue chip ASX shares for a retirement portfolio

Coles Group Ltd (ASX:COL) and this blue chip ASX share could be top options for a retirement portfolio. Here's why…

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If you're aiming to set yourself up for a comfortable retirement, a good way to do this is by having a reliable and growing passive income stream.

Pleasingly, there are a number of quality ASX shares that could help you achieve this. Two to consider are listed below:

Coles Group Ltd (ASX: COL)

This supermarket operator could be a great core holding in a retirement portfolio. This is due to its defensive qualities, solid long term growth prospects, and its favourable dividend policy. The latter sees the company aim to distribute 80% to 90% of underlying profit to shareholders each year.

One broker that believes Coles is a quality long term option is Goldman Sachs. It currently has a buy rating and $20.50 price target on its shares.

Goldman is forecasting fully franked dividends of 62 cents per share in FY 2021 and then 66 cents per share and 73 cents per share in FY 2022 and FY 2023.

Based on the latest Coles share price of $16.70, this will mean yields of 3.7%, 4%, and 4.4%, respectively, over the next three years.

Telstra Corporation Ltd (ASX: TLS)

Another option to consider for a retirement portfolio could be Telstra. This is due to its strong market position, generous dividend yield, and improving outlook.

In respect to the latter, Telstra is targeting a return to growth in the near future and management appears confident that it can get there.

Another positive is the company's plan to split into three separate businesses. This is expected to simplify its operations and allow Telstra to take advantage of potential monetisation opportunities for non-core assets.

Goldman also sees Telstra as a good option for investors. It currently has a buy rating and $4.00 price target on the company's shares.

The broker also continues to forecast the company paying a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a very attractive 4.65% dividend yield over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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