Top broker names 2 ASX shares for retirees

One of the best ways to set yourself up for a comfortable retirement is by having a passive income stream …

| More on:
Happy retirees celebrate with wine over lunch

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

One of the best ways to set yourself up for a comfortable retirement is by having a passive income stream that is both reliable and has the potential to grow over time.

Investing in companies that share their profits through dividend payments is up there as one of the most efficient ways of achieving this.

But which ASX shares could you buy for a retirement portfolio? Two highly rated shares to consider are listed below:

Adairs Ltd (ASX: ADH)

The first option to consider for a retirement portfolio is Adairs. It is a leading retailer of homewares and home furnishings in the ANZ market. As well as having a network of stores across Australia, it also has a strong presence online through its Adairs and Mocka brands.

Trading conditions have been very positive for the company this year. This is being driven by its strong market position, the housing market boom, and a redirection in consumer spending.

And while FY 2022 will be tough due to the company cycling heightened sales this year, Goldman Sachs is expecting a return to solid growth in FY 2023. It is also forecasting fully franked dividend yields above 6% between FY 2021 and FY 2023.

Goldman Sachs currently has a buy rating and $4.80 price target on its shares. This compares to the latest Adairs share price of $4.29.

Coles Group Ltd (ASX: COL)

Another option to consider for a retirement portfolio is this supermarket giant. Coles could be a top option due to its solid long term growth prospects, generous dividend policy, and defensive qualities.

The latter qualities have been on display for all to see over the last 18 months. This has underpinned very strong sales and earnings growth during the pandemic.

And while its growth will moderate now as it cycles elevated sales from the prior period, for the reasons mentioned above, Coles remains well-positioned over the long term. This should be supported by its focus on automation, which is expected to reduce costs notably and help grow its online business.

Goldman Sachs is also very positive on Coles. It currently has a buy rating and $20.70 price target on its shares. This compares to the latest Coles share price of $17.92.

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

More on Broker Notes

Man smiling at a laptop because of a rising share price.
Broker Notes

4 ASX shares to buy this week: experts

Looking for investment inspiration?

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

Macquarie forecasts 28% upside for this ASX All Ords stock

Let's see why the broker is feeling bullish about this name.

Read more »

A share market analyst looks at his computer screen in front of him showing ASX share price movements
Broker Notes

What's Macquarie focused on this earnings season?

Here's what the broker is saying about next month's results releases.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Should you buy Zip shares and sell NextDC shares?

Let's see what one analyst is saying about these popular shares.

Read more »

Two brokers analysing stocks.
Broker Notes

Morgans names 2 ASX shares to buy and 2 to hold

Let's see what the broker is saying about these shares.

Read more »

Hand holding out coal in front of a coal mine.
Broker Notes

Up 379% in 5 years, are Whitehaven Coal shares now a buy, hold or sell?

Here’s what Macquarie is forecasting for Whitehaven Coal shares into 2026.

Read more »

Woman with gold nuggets on her hand.
Broker Notes

Expert tips further upside for this surging ASX 200 gold stock

How much fuel is left in the tank for this gold mining heavyweight?

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »